KUSKOP UNVEILS BARAKAT, BERKAT FESTIVE SEASON FUNDING SCHEMES FOR SMALL BUSINESSES

KUALA LUMPUR, Feb 5 (Bernama) -- The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through TEKUN Nasional and SME Corp Malaysia, has introduced two special financing schemes totalling RM80 million to strengthen micro-entrepreneurs’ access to financing during the festive season.

Its minister Steven Sim Chee Keong said the initiatives comprise the Skim Biaya Ramadan Perniagaan Rakyat (BARAKAT) worth RM50 million in conjunction with Ramadan and Aidilfitri by TEKUN Nasional, and the Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT) amounting to RM30 million for the Chinese New Year by SME Corp Malaysia.

“The BARAKAT scheme is specifically for small traders and Malay micro-entrepreneurs, particularly those involved in sales and business at Ramadan markets and bazaars as working capital.

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“The rate imposed is only three per cent. It is hoped that this financing will help small entrepreneurs, especially during Ramadan, as working capital to restock and for promotions,” he said at a press conference on the announcement of the two schemes here today.

Also present were KUSKOP secretary-general Datuk Seri Khairul Dzaimee Daud, TEKUN Nasional managing director and chief executive officer Datuk Adam Abd Ghani and SME Corp chief executive officer Rizal Nainy.

For BARAKAT, TEKUN is providing financing of up to RM30,000 with a financing period of up to 12 months, benefiting traders in the food and beverage, clothing and essential goods sectors throughout Ramadan and Aidilfitri.

"Based on maximum estimates, approximately 1,666 applicants can apply for this scheme, while for the BERKAT scheme, approximately 1,000 applicants. For the BERKAT scheme, traders can start applying immediately, while for the BARAKAT scheme, applications can start from today," he said.

On BERKAT, he said the scheme aims to expand access to financing for Chinese-owned micro enterprises through a Peer-to-Peer (P2P) financing operator platform offering invoice financing and capital of up to RM30,000.

“The RM30 million fund is specifically for micro and small traders from the Chinese community and will also place special focus on those involved in Chinese New Year-related businesses and the food sector.

“I hope that with these two schemes, particularly for micro and small entrepreneurs, we can assist Malaysian traders in line with KUSKOP’s vision to intensify Malaysian businesses and strengthen the ‘ABCD’ strategy, which refers to productivity (A), simplified bureaucracy (B), access to capital (C) and market accessibility (D),” he said.

-- BERNAMA