Yii says the additional allocation announced by KUSKOP would be channelled through SME Bank’s SUCCESS programme to further support the Chinese business community.

KUCHING (April 8): Chinese-owned micro, small and medium enterprises (MSMEs) in Sarawak are urged to apply for a government financing scheme following an additional RM100 million allocation, bringing the total available funding to RM230 million.

Bandar Kuching MP Dr Kelvin Yii said the additional allocation announced by the Ministry of Entrepreneur and Cooperatives Development (Kuskop) would be channelled through SME Bank’s Success programme to further support the Chinese business community.

“The financing scheme can provide strong support for businesses, whether for start-ups or for expanding existing operations.

“To date, out of the initial RM130 million allocation, approximately RM90 million has been approved nationwide, which indicates a strong response,” he said in a statement.

In Sarawak, he said applications totalling RM16.8 million had been received, of which RM10.45 million had been approved and disbursed, while the remaining applications were pending further documentation.

“In terms of industry distribution, approved financing is mainly concentrated in the wholesale and retail sector, including FnB, accounting for 46.3 per cent.

“This is followed by services at 33.1 per cent, manufacturing at 7.2 per cent, construction at 2.8 per cent, and other sectors such as education, technology and transportation at 7.7 per cent,” he said.

Yii said the micro-financing scheme offered several advantages, including low interest rates, no collateral requirement and a faster approval process.

“This can significantly ease financing pressures on SMEs.

“The loans also prioritise applicants who have not previously obtained bank financing, helping more Chinese entrepreneurs enter the formal financial system for the first time,” he added.

He also said the government had committed to moderately relaxing application requirements.

“As long as applicants meet basic financial and compliance criteria, they stand a chance of approval, preventing complicated procedures from becoming a barrier to their business growth,” he said.

Apart from SME Bank’s Success scheme, which offers financing ranging from RM100,000 to RM3 million, Kuskop is also offering the BR Prosper-i financing scheme through Bank Rakyat, with financing ranging from RM1,000 to RM1 million.

“Both banks provide online and offline application channels to facilitate the application process,” he said.

He also noted that the ministry had also introduced the RM30 million Berkat festive financing scheme during the recent Chinese New Year period.

“The scheme has received a positive response from local Chinese SMEs,” he said.

The post Apply for expanded RM230 mln funding scheme, Chinese MSMEs in Sarawak told appeared first on Borneo Post Online.