(Bernama) Government To Relook Micro Financing Scheme For SMEs

KUALA LUMPUR, July 5 (Bernama) -- The Finance Ministry will relook at micro financing scheme for small and medium enterprises (SMEs) to assist those unable to secure financing to improve cash flow, Deputy Finance Minister Datuk Donald Lim Siang Chai said Monday.

He said the ministry would discuss the matter with Bank Negara Malaysia as many people believed that the government should make it easier for SMEs to benefit from the scheme.

"Quite a number of economic experts told me that micro financing is a good scheme to help SMEs in the country but, of course, I will get more feedback," he told reporters after officiating the pre-launch of the SME Solutions Expo 2010 here.

Replying to a question that some SMEs were finding it difficult to get micro financing, Lim said the government might study policies used in developed nations on how they handled the issue, especially during the transition period from developing countries to developed nations.

"We need some advice from experts on how other countries have faced this problem," he said.

Currently, micro financing is offered to microentrepreneurs by nine participating financial institutions (PFIs).

The PFIs are AgroBank, Alliance Bank, AmBank, CIMB Bank, Public Bank, United Overseas Bank, Bank Rakyat, Bank Simpanan Nasional and EONCAP Islamic Bank.

Earlier, Lim said the SME Solutions Expo would prepare businesses, especially SMEs, for the high income economy as envisioned in the New Economic Model.

The expo, to be held from August 5 to 7 at the Mid Valley Exhibition Centre, is presented by CIMB Bank and organised by SME Magazine.

Over 150 exhibitors, including financial institutions, information technology (IT) vendors, telecommunications companies, Internet service providers, business consultants, training providers, logistic partners, media companies and government agencies, will be participating.

"We expect the exhibition to deliver RM95 million of business as compared to the RM80 million concluded last year," said Jessy Leong, executive director of Business Media International, the publisher of SME Magazine.

CIMB Bank's executive director Datuk Sulaiman Mohd Tahir said the expo would create a platform to assist SMEs in getting easier access to financial products and services for their businesses.

"We hope business owners will take opportunity to learn the various financing solutions and value-added services such as Internet banking, cash management solutions and employee payroll packages which can help them grow their businesses," he said.