Gov't To Consider Raising I-BAP Allocation Following Overwhelming Response - Ramanan
KUALA LUMPUR, Aug 7 (Bernama) -- The government will consider raising the allocation for the Business Accelerator for Indian-owned companies (I-BAP) to RM10 million in the upcoming Budget following overwhelming response since its launch in October last year.
Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R Ramanan said RM5.13 million from the RM6 million allocation this year has been approved and will be channelled to recipients, while the remaining RM800,000 is being processed for distribution, and noted that new applications have reached RM2 million, pushing total applications beyond RM8 million.
“Based on discussions with Minister (Datuk Ewon Benedick) and SME Corporation Malaysia (SME Corp) chief executive Rizal Nainy, we will carry the suggestion to raise allocations to RM10 million in the upcoming Budget.
“If applications rise to RM14 million or RM15 million next year, the government will suggest an additional allocation of RM20 million the following year,” he told reporters after attending the handing-over of offer letters to I-BAP recipients here today, where 31 companies received grant offers between RM7,000 to RM100,000.
He also shared the latest suggestion of raising the rate of matching grants from 50:50 to 70:30, and expanding the scope of use for the grants for purchasing raw materials and premises rental payments.
“This was suggested by Rizal and will help reduce operation costs for small entrepreneurs and will give them room to focus on growth and innovation,” Ramanan said.
Meanwhile, I-BAP recipient Chocofac (Malaysia) Sdn Bhd chief executive officer (CEO) A Micheal Dass said that it was the second time his company had applied for the grants and praised the improvements made to the application process, which he described as being simpler and more inclusive.
“Previously it was rather complicated, now it’s very easy to apply. The aid will help us improve our product and raise sales. SME Corp has also helped us a lot, including shipping subsidies for cross-border business transactions,” he said.
Fellow recipient, MindAppz E-Tuition CEO K Thinesh Kumar said that I-BAP not only helped strengthen the small and medium enterprises, but also made a huge impact on education technology companies that introduce artificial intelligence (AI) based learning systems.
Finally, Rizal during his speech shared that SME Corp would be organising SME Venture@ASEAN 2025 in conjunction with Malaysia being ASEAN Chair, from Oct 16 to 18 at the Malaysian International Trade and Exhibition Centre (MITEC), which will be officiated by Prime Minister Datuk Seri Anwar Ibrahim.
-- BERNAMA