MITI approves RM1.6b under shariah-compliant SME financing scheme

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GEORGE TOWN, Oct 16 — The Ministry of International Trade and Industry (MITI) through its agency, SME Corporation, has approved funding totalling RM1.595 billion under the Shariah-compliant SME (Small and Medium Enterprises) Financing Scheme.

Deputy Minister, Datuk Ahmad Maslan said since the scheme was started in 2012, some 1,181 applications had been received but only 971 applications had been approved.

“A total funding of RM2 billion has been allocated for this scheme since 2012 to help entrepreneurs and small traders across the nation, and to-date, some RM1.595 billion have been approved, involving 13 banks,” he told the media after a working visit to Penang today.

The scheme would be administered by 13 participating Islamic banking institutions, he added.

Ahmad said the Federal government would bear 2.0 per cent of the profit rate charged on the financing provided by the banks to the SMEs.

“The rebate is specifically to assist the SMEs which carry out business activities in all Shariah-compliant sectors except financial services.

“I am very confident that many SME entrepreneurs who are eligible to apply (for the scheme) will benefit from the lower borrowing cost from Islamic banking institutions involved through the rebate provided by the Federal government,” he said.

Meanwhile, Ahmad said in Penang, some RM112.6 million had been approved to-date to 76 SMEs which were Shariah-compliant.

“Out of 94 applicants in Penang, 76 companies have received the approval which will enable them to expand their businesses,” he said.

Earlier, Ahmad in his working visit to the state visited Abbott, a manufacturer of medical products, and a factory operated by Agus Food Industries Sdn Bhd, which supplies pasteurised and frozen coconut milk, at the Bayan Lepas Free Industrial Zone. — Bernama

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