Over 2,000 Small Traders Apply For BERKAT And BARAKAT Financing Schemes - Sim

GEORGE TOWN, Feb 11 (Bernama) -- Over 2,000 small traders have to date applied for the Biaya Ramadan Perniagaan Rakyat Scheme (BARAKAT) and the Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT), Entrepreneur and Cooperative Development Minister Steven Sim said.

He said that despite being launched just last Thursday, both schemes had drawn an encouraging response.

“So far, BERKAT, launched in conjunction with Chinese New Year by SME Corp Malaysia, has received more than 1,000 applications.

“BARAKAT, introduced in conjunction with Ramadan and Aidilfitri by TEKUN Nasional, has received about the same number of applications as of Monday (Feb 9),” he told Bernama after a courtesy visit to the Bernama Penang Bureau office here today.

Sim said his ministry was committed to expediting the application approval process, aiming to complete it within around five days if all documents were complete, compared with up to 30 days previously.

“We will do our best to shorten the processing time to get approval faster. If all documents are complete, we will process within about five days, instead of 30 days as before,” he said.

Elaborating, Sim said that BERKAT, with a total allocation of RM30 million, was aimed at providing Chinese small traders with working capital support for Chinese New Year, covering stock purchases, business expansion and improvements to their premises.

He said that BARAKAT, with an allocation of RM50 million, sought to assist Muslim traders in the Ramadan and Aidilfitri bazaars with their working capital needs throughout the fasting month.

Sim added that both financing schemes were part of the ABCD strategy outlined by the Ministry of Entrepreneur and Cooperative Development (KUSKOP) to enhance the competitiveness of local businesses.

He explained that the ABCD strategy comprises four components, namely A, focusing on productivity shifts to enhance efficiency and business outcomes; B, simplifying bureaucracy by shortening processes and reducing administrative burdens; C, providing access to capital through easy, low-interest financing schemes; and D, ensuring market access to enable entrepreneurs to participate in domestic and international markets.

“The government wants to send a clear message that we understand the challenges small traders and small and medium enterprises face and will keep helping them grow and stay competitive,” he said.

On Feb 5, KUSKOP, through TEKUN Nasional and SME Corp Malaysia, launched two special financing schemes worth a total of RM80 million to improve micro-entrepreneurs’ access to funding during the festive season.

--BERNAMA