10/18/2019 | Press release | Distributed by Public on 10/18/2019 05:57
In a bid to enhance engagement with SMEs in Langkawi, Bank Negara Malaysia (BNM) today held a dialogue session with financial institutions, state government officials and the local business community.
The dialogue sought to gain understanding and feedback on financing related issues faced by the island's local businesses including perceptions on access to financing. BNM took the opportunity to brief SMEs and raise awareness on the Bank's latest initiatives for small and medium enterprises (SMEs). The dialogue was chaired by Assistant Governor Adnan Zaylani Mohamad Zahid on 18 October 2019.
The dialogue session received positive response from the SMEs and business community shared their views on the current business challenges. Representatives from 17 SMEs Associations and Business Chambers attended and contributed to a lively session.
Amongst the main issues highlighted by SMEs include lack of awareness and understanding on financing schemes available for SMEs particularly microfinance, uncertainty of business (whereby revenues hinge on seasonal tourism activity), initiatives to enhance borrowers' eligibility following unsuccessful financing applications and issues on rescheduling and restructuring of credit facilities. The taxi associations also provided feedback on the cost of insurance which does not commensurate with the business risks in Langkawi. BNM took note of the feedback and will collaborate with the insurance industry to look at the matter.
BNM also elaborated on the recently announced measures that can further improve the SME financing eco-system such as Khidmat Nasihat Pembiayaan (MyKNP) and the newly expanded scope of Small Debt Resolution Scheme (SDRS).
SMEs seeking advisory and assistance in raising their eligibility for financing can now utilise Khidmat Nasihat Pembiayaan (MyKNP) - a collaborative effort between BNM, Credit Guarantee Corporation Malaysia Berhad (CGC) and Agensi Kaunseling dan Pengurusan Kredit (AKPK). MyKNP aims to improve financing applicants' experience, including providing greater understanding of the factors affecting their financing applications. Applicants who have been unsuccessful in securing SMEs or home financing can reach out to MyKNP for assistance (http://myknp.com.my).
To assist SMEs facing loan repayment difficulties, SDRS is a scheme that allows space for SMEs to focus on revival plans for their businesses. SMEs are able to restructure and reschedule their existing facilities with the financial institutions or seek redress under the SDRS.
SDRS is a platform for financial institutions and SMEs to work out possible debt rehabilitation solutions amicably and collectively without resorting to legal recourse.
The eligibility criteria for SDRS has recently been expanded to also include SMEs which have ceased operations yet still have the ability from other sources of income to repay their debt obligations with other sources. This serves as an out-of-court assistance and intervention to the SMEs. For further information on SDRS or other SMEs please contact BNMTELELINK at 1-300-88-5465 (LINK).
SMEs are strongly encouraged to maintain proper conduct of business current accounts as this can strongly support their financing applications to financial institutions. SMEs may also benefit from the Skim Pembiayaan Mikro where they can apply for financing without collateral for up to RM50,000 from 10 participating financial institutions. Small or micro enterprises should formalise or register their businesses with Suruhanjaya Syarikat Malaysia in order to be eligible for the financing schemes including 'Tabung BNM untuk PKS'.
Bank Negara Malaysia
18 Oct 2019
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