Contracts & Commercial

PM announces 11 Incentives Worth RM2.9 Billion for SMEs

Date: 30 March 2018; Type: Industry Updates; Source: Bernama

KUALA LUMPUR, Mar 30 (Bernama) -- Datuk Seri Najib Tun Razak has announced 11 new and additional incentives worth RM2.9 billion for Small and Medium Enterprises (SMEs).

The Prime Minister said the biggest allocation of RM2 billion would be channelled to Phase Two of the Bumiputera Facilitation Fund programme.

He said another allocation of RM500 million would be provided to accelerate the development of Bumiputera entrepreneurs in the retail and distribution industry.

Of the amount, RM200 million comes from the government and another RM300 million from Perbadanan Usahawan Nasional Bhd (PUNB), he when addressing the gathering of Bumiputera entrepreneurs here today.

He said RM50 million in incentives would also be allocated to assist the listing of SME companies on Bursa Malaysia Bhd's Leading Entrepreneur Accelerator Platform (LEAP).

For this purpose, matching grants amounting to RM500,000 will be awarded to each company listed in the Bumiputera Enterprise Enhancement Programme (BEEP) under SME Corporation Malaysia (SME Corp)," he said.

He said an allocation of RM40 million would be provided under the Local to Global Corporation Ascend 800 (LGC800) programme that would benefit 80 high-performance Bumiputera SME companies in the form of easy loans of up to RM500,000 per company to transform their businesses.

Najib said RM60 million would be set aside for the Bumiputera Youth Entrepreneurs Tunas Programme (TUBE) to prepare and train 3,000 Bumiputera youths in 2019.

The Prime Minister said RM50 million would also be allocated for the implementation of the WIRA eDagang Digital Free-Trade Zone for 10,000 Bumiputera SMEs within three years.

"This initiative, which will be jointly managed by Malaysia Digital Economy Corporation (MDEC), SME Corp and Malaysia External Trade Development Corporation (MATRADE), is aimed at globalising Bumiputera e-commerce companies," he said.

Najib said RM50 million in incentives would be allocated for the SpeedMeUp programme under SME Corp to help Bumiputera startup companies to start business operations with matching grants of up to RM250,000.

He said another RM50 million would also be allocated under the Investment Incentive Fund to boost Bumiputera equity ownership in selected strategic sectors.

Najib said Majlis Amanah Rakyat (Mara) would extend the Express Contract Financing Scheme (SPiKE) amounting to RM50 million for the benefit of 3,000 Bumiputera entreprenuers.

"Mara will also allocate RM50 million for micro and small business entrepreneurs," he said.

He said the allowance for increased exports for SMEs would be extended for or another two years until 2020.

Besides the financial incentives, the prime minister also announced non-financial incentives such as the empowerment of the Bumiputera Agenda Steering Unit (Teraju) by mandating it to become the sole coordinator of all Bumiputera-related policies and programmes at all levels of ministries, agencies, corridors and government-linked companies.

Apart from the 11 incentives laid out, Najib also announced the establishment of the Malaysian Bumiputera SME Association (BumiSME) as a platform to unite all SMEs from various backgrounds and industries.

He said SME Corp Chairman Tan Sri Mohamed Al Amin Abdul Majid was appointed chairman of the association's protem committee and an initial fund of RM10 million would be channelled to BumiSME through SME Corp.

"With this fund, I'm entrusting BumiSME to organise an annual Bumiputera SME national mega exposition and sales," he said

He said the expo would bring entrepreneurs from all over the country to exhibit and sell their products and services on a large scale, either through B2B (business-to-business) or B2C (business-to-consumer).

MY Bernama

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