KUALA LUMPUR, Nov 9 — Umno’s Padang Terap MP Mahdzir Khalid has urged the government to ensure that it will follow-through with the financial aid delivery system on the ground.
At the moment, he said what is being offered by the Finance Ministry is not necessarily reaching the people who really need it, in particular businesses.
“The government needs to ensure that there is a delivery system that works so that whatever they have promised in Budget 2021 really does reach the people on the ground,” he said during his debate on the Budget 2021 Bill today.
The former education minister cited instances where businesses found it difficult obtaining loans as banks have put certain regulations in place.
“For entrepreneurs, the banks won’t entertain their loan application if they see that they don’t have sufficient financial backing.
“Yes, there are many existing financial facilities, but in reality, when businesses go to the bank, are they really able to get these loans?
“Can the Finance Ministry guarantee that these facilities are made available for people who need it?” he said.
Mahdzir, who is also Umno’s vice-president, cited examples of sectors that are “dead” and in dire need of financial aid, such as tourism, food and beverages and hospitality such as hotels.
“This is one of the problems that needs clarity; otherwise, businesses won’t get what they need.
“This is what has been voiced to us from the ground,” he said.
In the Budget 2021 announcement last week, the government said that borrowers, individuals or micro enterprises having trouble honouring their loans will be able to apply for a postponement or reduced instalments to settle their debts from their respective banks.
At the same time, the government also announced an allocation of RM150 million for training programmes and assistance for 100,000 entrepreneurs.
A sum of RM95,000 million will also be set aside for micro-credit financing for women entrepreneurs.
Meanwhile, RM4.6 billion will be allocated to empower Bumiputera entrepreneurs.
