Jun 05 2008
only 5 percent SME loans approved
Wow! if RM479.2 million is just 5%, then the total loan approved is about RM9.584 billion! Perhaps the parties concerned should provide more statistics such as number of applicants, total value of application, reasons for rejection etc. To say that just 5% approved is very bad. Does it mean lack of applications from the normal Malaysian SME businesses?
RM479.2 million/217 = average RM2.2 million per enterprise
THE SME Bank has approved loans, totalling RM479.2 milion, to 217 non-Bumiputera small- and medium-sized enterprises up to April. Deputy Entrepreneurial Development and Cooperative Minister Datuk Saifuddin Abdullah said the amount, however, accounted for only five per cent of the bank’s total loans to SMEs.
Saifuddin, in his reply to Senator Datuk Wong Siong Hwee, said SME Bank had been a pioneer in providing financial assistance to small and medium businesses since October 2005. He said his ministry was also helping the bank to iron out several issues which were causing delays in approving loans.
“We realise that SME Bank has several weaknesses. This includes the time taken to approve loans and consider the appeals made by those whose loans are rejected.” He said his ministry was planning to set up an appeals committee to enable rejected loan applicants to re-apply by sending their applications directly to the ministry’s secretary general.
“We are looking at ways to get the banks to submit a written report to the minister on the number of loans that were not approved and explain why they were rejected.”
Saifuddin said banks were also encouraged to give loans to people going into business for the first time. “We have several funds such as the Rural Economic Funding Scheme and State Entrepreneurial Funds to help entrepreneurs kick-start or expand various types of businesses,” he said. Support services in terms of special entrepreneurship education programmes and activities are also provided by SME Bank.
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