27 October 2017
RM7 BLN FOR SJPP TO ENSURE SMES SECTOR CONTRIBUTE 41 PCT TO GDP
KUALA LUMPUR, Oct 27 (Bernama) -- The 2018 Budget has allocated RM7 billion under the Skim Jaminan Pembiayaan Perniagaan (SJPP) as one of the measures so that small and medium enterprises (SMEs) sector will contribute 41 per cent of gross domestic product by 2020.
Prime Minister Datuk Seri Najib Tun Razak, in tabling Budget 2018 in the Dewan Rakyat today, said from the sum, RM5 billion was for working capital and RM2 billion with 70 per cent guaranteed by the government for services sector, including Industrial Revolution 4.0.
"An unprecedented amount of RM1 billion is provided as loans to companies with 70 per cent guaranteed by the government.
"These loans are provided under SJPP to enable SMEs to automate production processes and reduce employment of foreign workers," he said.
Najib, who is also Finance Minister, said an additional RM1 billion was provided to the Shariah-compliant SME Financing Scheme, increasing the fund size to RM2.5 billion.
"A subsidy of two per cent will be provided on profit earned to ease the cost of financing," he added.
In addition, he said, RM200 million was allocated to SMEs for training programmes, grants and soft loans under the SME Corp and about RM82 million was allocated for the development of halal industries and products under various agencies.
Najib said for micro entrepreneurs, the government provided the highest allocation to Tabung Ekonomi Kumpulan Usaha Niaga Nasional (Tekun) amounting of RM500 million.
He added to appreciate Amanah Ikhtiar Malaysia's borrowers of which the majority were women and good paymasters, the government would allocate an additional RM200 million to the fund, making the total fund size would be RM2.7 billion, benefiting nearly 400,000 borrowers.
Furthermore, Najib said, RM80 million was allocated under the Rural Economic Financing Scheme through Bank Rakyat and SME Bank to provide financing facilities to rural Bumiputera entrepreneurs.