Source From (Business Times):
http://www.btimes.com.my/Current_News/BTIMES/articles/hapsy22/Article/
Published: on 23 April 2012
HAVE you pencilled in your dates on the calendar? "Jom Niaga" will kick
start tomorrow at SMK Dato' Perdana, Bachok, Kelantan! Yes, the "sugar
parade" is on and this is the one event that you should not miss!!
We, the SME Corpians, are equally excited organising Jom Niaga for you
as we meticulously line up each programme with care, ensuring that the
"entrepreneurship spirit" is well entrenched in each of those
programmes.
The Jom Niaga Carnival caters for all sizes of
companies - big, small and not forgetting the micro too - including
individuals from all walks of life. What would be interesting to look
out for in Bachok is the launch of the first-ever RM2 billion
"syariah-compliant fund for SMEs"! The birth of this fund couldn't have
been at a better cradle than the state of Kelantan as it has aptly been
referred to as the "Mecca of Malaysia"!
As we speak about
syariah compliance, I am being reminded that there are many verses in
the Quran and traditions of the Prophet Muhammad (Peace be upon him)
which clearly demonstrate the Islamic tenets in business transactions.
According to the Quranic teachings, there is a clear distinction between
genuine business profits and interest. While the former is recommended
and desirable, the latter is hated, undesirable and forbidden.
For Muslims, the dictates of the Quran and the teachings of the
Prophet (PBUH) set a scale in everybody's mind to distinguish between
the lawful and the unlawful means of earnings and to prohibit or
disapprove of all things that are either morally wrong or socially
unacceptable.
Foremost among the unacceptable business practices strongly condemned in Islam is riba.
Riba
(interest), by definition, is the extra sum the money lender charges
the borrower for deferred payment. Islam forbids all forms of riba
since it involves both oppression and exploitation. Riba is forbidden in
Islamic economic jurisprudence fiqh and is a major sin.
The Quran says: "Allah has permitted trading and forbidden riba (usury)." - the Al Baqarah Verse (2:275).
Sunnah(2)
is equally emphatic in denouncing riba. The Prophet (PBUH) is reported
to have said: "May Allah send down his curse on the one who devours riba
and the one who pays it and on the two witnesses and on the person
writing it." - Hadith Ahmad, No: 624.
In our keenness to earn
legitimate (halal) earnings, it is important for us to observe the
universal codes of lawful and unlawful business transactions. In fact,
Islam (and I am sure all other religions too) encourages truthfulness in
business transactions and raises the status of a truthful merchant, so
that he will be at par with the holy warriors and martyrs, in the
hereafter.
The Prophet (PBUH) is reported to have said: "The
truthful merchant (is rewarded by being ranked) on the Day of
Resurrection with prophets, veracious souls, martyrs and pious people." -
Hadith Tirmidhi, No: 1130.
The Prophet (PBUH) has also exhorted
the believers to strictly adhere to truthfulness in business
transactions. He says: "The seller and the buyer have the right to keep
or return the goods as long as they have not parted or till they part;
and if both the parties spoke the truth and described the defects and
qualities (of the goods), then they would be blessed in their
transaction, and if they told lies or hid something, then the blessings
of their transaction would be lost."
So, having put in context
about ethics in business as well as borrowing and lending, what's in
store about this syariah-compliant fund for SMEs that will be launched
in Bachok?
To generate the pool of funds and so as not to be too
dependent on the government, SME Corp worked together with the Ministry
of Finance and the Association of Islamic Banks of Malaysia to
deliberate on the "modus operandi" of the most effective way to create
better access to financing for SMEs.
After a series of meetings,
13 Islamic banks agreed to participate in this scheme by providing
syariah-compliant financing of up to RM2 billion. These financial
institutions include Bank Islam, CIMB Islamic, Affin Islamic, Bank
Rakyat, Maybank Islamic, Hong Leong Islamic, Alliance Islamic Bank, HSBC
Amanah, Public Islamic Bank, AmIslamic, RHB Islamic, Kuwait Finance
House and Bank Muamalat.
So, how do we facilitate easier access
to financing for SMEs? The government, through SME Corp, will take up
the two per cent profit rebate of your financing. In fact, SMEs
(including micro-enterprises) who already have an existing
syariah-compliant financing approved in 2012 are also eligible to get
the two per cent profit rebate that will be borne by the government.
Watch out... this profit rebate has an expiry date which will end in
December 2016 and it is only for financing facilities approved in 2012
and 2013.
How much can SMEs borrow? Up to RM5 million, aggregated
based on common directors/shareholders and all financing under this
scheme from all participating Islamic banks. No minimum amount. As l
said, even the micro-enterprises are eligible to apply.
What sort
of the financing facility is eligible? All ringgit-denominated
syariah-compliant financing for all purposes, including but not limited
to working capital, asset acquisition and upgrading of businesses.
However, it excludes non-funded facilities (e.g. bank guarantee and
letter of credit) and acquisition of other business and companies. It
also excludes refinancing or restructuring of existing facilities.
Accounts that have been restructured before turning non-performing in 2012-2013 are eligible under the scheme.
However, you need to ensure that at the point of application, your company fulfills either one of the followings:
* SCORE at least two stars;
* MCORE at least Level 1;
* Certified 1InnoCERT;
* Certified under National Mark of Malaysian Brand;
* Accorded MSC status by MDeC;
* Accorded BioNexus status by Malaysian Biotech Corp;
* Certified under Green Tech Cert under Malaysian Green Technology Corp; or
* TeraS selected SMEs under TERAJU.
So, does your company fulfill any one of the criteria? Are you
intending to expand your business? If the the answer is "YES", then it's
time to step ahead and be bold to succeed. Just like Emily Dickinson
once said, "Fortune Befriends the Bold"! If you want to meet those
bankers that provide the fund, they are equally eager to see you in
person at Jom Niaga @Bachok! See you there!
Datuk Hafsah Hashim is the chief executive officer of Small and Medium Enterprises Corporation Malaysia (SME Corp Malaysia)