KUALA LUMPUR – An allocation of RM5 million under the Ministry of Entrepreneur Development and Cooperatives (MEDAC) is ready with the goal of assisting entrepreneurs to increase the output of locally produced goods.
MEDAC minister, Tan Sri Noh Omar, explained that the allocation is under the “umbrella concept” and that for a start, the funds will be allocated through the Rural Economic Development Scheme (SPED) which is implemented in partnership with the Ministry of Rural Development (KPLB).
He said that the umbrella concept’s purpose is to facilitate the process of providing financial assistance to entrepreneurs that are looking to expand their stockist and agent business.
The minister explained that they are starting with the allocation of RM5 million to see the response from entrepreneurs.
Additionally, he said that the allocation from KPLB will be placed under Bank Rakyat and SME Bank, both of which will be under the supervision of MEDAC.
When speaking to the media following the Aducktive Food Sdn Bhd’s product launch ceremony recently, Noh Omar stated that entrepreneurs looking to apply for the funding can do so through Bank Rakyat and SME Bank with the maximum financing available at RM100,000.
According to the minister, the umbrella concept would allow for the approval of bulk financing by a company and it would eliminate the need for the company to repeatedly apply for funding from the bank.
Furthermore, successful applications will be receiving the payment in different stages, according to the terms and conditions that have been established, he added.
To date, the minister announced that there have been 15 initial applications. However, the parties involved will perform an exhaustive review of the entrepreneur’s criteria before the banks are able to give their approval.
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