Tekun Loans Will Spur Economy, Says Najib

KUALA LUMPUR, Feb 9 (Bernama) -- The loans given out by Tabung Ekonomi Kumpulan Usaha Niaga (Tekun Nasional) totalling some RM2.4 billion so far to some 250,000 entrepreneurs will spur the national economy and the small and medium enterprise (SME) sector, says Prime Minister Datuk Seri Najib Tun Razak.

Source from (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=927243
Published: February 12, 2013

He said Tekun Nasional loans are a government initiative to help entrepreneurs start their own businesses while obviating their need to borrow from illegal lenders.

"The figure includes financing of RM41.95 million for nearly 5,000 business people from the Indian community under the entrepreneurship development scheme for the Indian community introduced in 2008," he said when opening the Tekun National Entrepreneurs Convention and Expo 2013 here Saturday.

Besides Tekun, Najib said, 82 funds totalling RM60.82 billion have been created by the government to assist SME entrepreneurs nationwide.

"With good credit access, the SME industry can expand and spur national economic growth," he said.

The strength of the country's credit access system was acknowledged in the World Bank's Doing Business Report 2011-2012 which ranked Malaysia top for ease of getting business financing among the 183 countries surveyed, he said.

The Prime Minister said SMEs currently contribute 32.5 per cent of the gross domestic product, and the target is to raise this figure to 41 per cent by 2020.

"We expect SMEs to be the engine of the nation's economic growth and continue to expand and contribute more to the country," he said.

Meanwhile, Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar said Tekun Nasional will continue to assist SME entrepreneurs to expand overseas.

"Tekun Nasional together with the Federal Agricultural Marketing Authority will not only assist with packaging and labelling but also with marketing inside and outside the country," he told reporters.

Noh Omar said Tekun Nasional is giving a 10 per cent discount to borrowers who repay on time, adding those with a good repayment record will also be able to apply for a second loan for an amount twice their first one.

In addition, he said, Tekun staff who collect RM1 million or more in loan repayments will be rewarded with a motorcycle.

About 15 per cent of Tekun Nasional's loans are outstanding, he added.

-- BERNAMA