KUALA LUMPUR, Jan 3 — The National Entrepreneurial Group Economic Fund (Tekun Nasional) is initiating legal action against borrowers with bad debts totalling RM340 million, its chairman Datuk Abdullah Sani Abdul Hamid said.
Abdullah Sani told Utusan Malaysia in a news report published today that the situation was caused by non-compliance with established procedures.
“In our current position, we have a bad debt of RM340 million that was previously unpaid... which will soon disappear without news.
“I will not hesitate to file a suit in court to demand arrears from the borrowers,” he was quoted as saying.
He also proposed the establishment of a debt collection agent to track down the borrowers and reclaim the RM340 million in arrears.
According to Tekun Nasional, bad debts are classified as loan arrears that exceed 24 months.
Tekun Nasional, known for providing easy and rapid financing facilities to the Bumiputera community for business startups and development, offers guidance, support services, and an extensive network of entrepreneurs.
The agency has 12 individual financing schemes, three group financing schemes, and one contract financing scheme.
Loans of up to RM100,000 are available with financing periods ranging from six to 120 months for most individual financing schemes.
The financing coverage is for the Bumiputera, Orang Asli, and the ethnic Indian community, encompassing various industries such as crafts and sports.
Abdullah Sani said the total rate of non-paid financing from the current financing portfolio in 2023 stands at 12 per cent, a figure he deemed moderate but in need of improvement.
“So, this year 2024, I will not compromise to get the financing repayment. Debt must be paid,” he was quoted as saying.
