Malaysia SME backs soft loan idea
Malaysia SME, a media company which caters to local small- and medium-sized enterprises (SMEs), yesterday backed the move by SME Corp Malaysia to give out soft loans, instead of grants, to SMEs.
It, however, suggested that the interest rates be lower. "I think if it (the rates) could be lower than 4 per cent ... maybe 2 to 3 per cent, it will help the SMEs a lot.
"Because if you look at the BLR (base lending rate) now, which is about 6 per cent, and if commercial banks give discounts about 1 or 1.5 per cent to the SMEs, it (the rates) would be about 4 or 4.5 per cent," Malaysia SME's chief executive officer, Wayne Lim told reporters after a briefing in Kuala Lumpur yesterday on the Second Malaysia SME Congress 2010.
SME Corp, in a recent report, said it had suspended all grants indefinitely as it was restructuring funding facilities to stop abuses in the system.
It plans to offer soft loans through Malaysian Industrial Finance Bhd with a 4 per cent interest rate, saying that way people will be more serious and committed to their businesses.
Wayne said giving soft loans would make SMEs more responsible towards their businesses. "If you give away grants for free, maybe the commitment level is lower ... people may take the money but do not really know how to use it. If you lend them the money, they will be more careful.
"Therefore, in my opinion, changing the grant concept to soft loans would work better, provided the interest rate is attractive," he said.
Currently, about 50 over government agencies provide loans assistance.
On the Second Malaysia SME Congress 2010 themed "It's All About SME", to be held on July 7, Lim said it will focus on various aspects of small- and medium-sized businesses.
The event will mainly concentrate on challenges, best practices, business strategies and key success stories and feature prominent speakers. About 500 participants are expected at the event this year. - Bernama
It, however, suggested that the interest rates be lower. "I think if it (the rates) could be lower than 4 per cent ... maybe 2 to 3 per cent, it will help the SMEs a lot.
"Because if you look at the BLR (base lending rate) now, which is about 6 per cent, and if commercial banks give discounts about 1 or 1.5 per cent to the SMEs, it (the rates) would be about 4 or 4.5 per cent," Malaysia SME's chief executive officer, Wayne Lim told reporters after a briefing in Kuala Lumpur yesterday on the Second Malaysia SME Congress 2010.SME Corp, in a recent report, said it had suspended all grants indefinitely as it was restructuring funding facilities to stop abuses in the system.
It plans to offer soft loans through Malaysian Industrial Finance Bhd with a 4 per cent interest rate, saying that way people will be more serious and committed to their businesses.
Wayne said giving soft loans would make SMEs more responsible towards their businesses. "If you give away grants for free, maybe the commitment level is lower ... people may take the money but do not really know how to use it. If you lend them the money, they will be more careful.
"Therefore, in my opinion, changing the grant concept to soft loans would work better, provided the interest rate is attractive," he said.
Currently, about 50 over government agencies provide loans assistance.
On the Second Malaysia SME Congress 2010 themed "It's All About SME", to be held on July 7, Lim said it will focus on various aspects of small- and medium-sized businesses.
The event will mainly concentrate on challenges, best practices, business strategies and key success stories and feature prominent speakers. About 500 participants are expected at the event this year. - Bernama
Right now, MDeC is offering Cloud Computing Grants for SMEs. Please go to http://www.malaysiagrants.com for more details.
ReplyDeleteAgreed, loans to SMEs are very important for financing their expansion- after all they're the backbone of the economy. Do check out SME Loan Malaysia for a customized business loan matching service!
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