CONTINUED SUPPORT FOR SMALL & MEDIUM ENTERPRISES
Kota Bharu, 7 February 2009 – Bumiputera entrepreneurs must maintain competitiveness and continue to innovate to ensure their survival in facing challenges during these certain times, states Malaysian Industrial Development Finance Berhad (MIDF) in a symposium held here today.
“Simposium Usahawan Bumiputera MIDF 2009 was organised with the intention of assisting Bumiputera entrepreneurs to overcome difficulties arising from the current economic climate. The symposium is one of MIDF’s efforts to support the Government in maintaining the economic well-being of the Malaysian small and medium enterprises (SMEs).
More than 350 Bumiputera entrepreneurs were exposed to financing solutions and available opportunities which may help ensure their business survival in facing the current economic condition. During such testing times it is vital that SMEs maintain a competitive and innovative edge to ensure the viability of their businesses.
In his keynote address during the symposium’s official launch, MIDF Chairman Tan Sri Dato’ Mahmood Taib stated that it was MIDF’s hope that this symposium will provide entrepreneurs the platform to learn how to better manage their businesses, establish new business contacts whilst strengthening existing ones, and also the opportunity to learn from the case studies and research that will be shared by guest speakers.
Following on the Ministry of International Trade and Industry’s call that more efforts and support be provided to small and medium enterprises, the one-day symposium, designed to provide entrepreneurs with a comprehensive range of knowledge on financial management and business opportunities, brought together eight speakers from MIDF, Yayasan Tekun Nasional, PUNB, SMIDEC as well as MATRADE. Topics discussed at the symposium included those that elaborated on the various financial assistance schemes and business opportunities made available by MIDF and other agencies under the Ministry of International Trade and Industry (MITI).
Participants were also given insights on the local and global economy as well as on the equity and money markets by MIDF Research. MIDF also featured a successful entrepreneur to share his recipe for success with the participants at the symposium.
The topics were specifically selected to address constraints faced by Bumiputera entrepreneurs, which among others include the need of capital and financial assistance, the level of experience or knowledge, lack of branding activities and weak business models.
MIDF’s Group Managing Director, Encik Mohd. Najib Hj. Abdullah added that with the current economic conditions not being conducive for businesses especially SMEs, companies will have to be extra careful with their business expenditure while simultaneously seeking to improve or sustain their revenues in a very challenging market. Such measures however have a tendency to breed greater levels of business innovation, creativity and overall competitiveness. “Our role at MIDF is to identify those companies and individuals with solid business plans and assist them in meeting their business aspirations,” said Najib.
With almost 50 years of experience as the designated conduit for government development funds, MIDF’s Development Finance Division has always played a proactive role in supporting Malaysia’s SMEs and presently offers the Soft Loan Schemes for Small & Medium Enterprises (SLSME), Soft Loan Scheme for ICT Adoption (SLICT), Soft Loan Scheme for Automation & Modernisation (SLSAM), Soft Loan Scheme for Soft Loan Scheme for Factory Relocation (SLFR), Soft Loan Scheme for Automotive Development (SLSAD), Soft Loan Scheme for International Branding as well as the Dana Khas Kerajaan Persekutuan for Terengganu-based SMEs (DKKP).
“SMEs are the backbone of the Malaysian economy, and MIDF’s loan offerings can assist SMEs to navigate through the current tough economic conditions. Last year, MIDF cut interest rates on its soft loan schemes from 4% to 2% and raised financing margins to a maximum 90%,” Najib added.
Over the years, MIDF has assisted Bumiputera enterprises with loans totalling RM2.9 billion.
“There are 519,000 SME entrepreneurs in Malaysia. With over 90 percent of business establishments generating 32 percent of the Gross Domestic Product (GDP) in Malaysia being SMEs, it is absolutely vital that the SMEs are provided with every opportunity to improve the level of their overall competitiveness and to grow the businesses. It is our hope that participants of this symposium, and the others who will be joining the programme at different locations that we have planned for the rest of the year, will be better equipped to face the challenges ahead” said Tan Sri Mahmood.
About MIDF
MIDF is now a diversified group with substantial investments in the financial services industry. Following its merger with Amanah Capital Partners Berhad in 2003, the acquisition of Utama Merchant Bank Berhad (UMBB) in 2004, and the emergence of MIDF Amanah Investment Bank Berhad, MIDF Group has evolved into a stronger and bigger entity, offering a competitive and diversified range of financial services to include Investment Banking, Asset Management and Development Finance.
MIDF is a subsidiary of Permodalan Nasional Berhad (PNB) Group of Companies, has total assets of over RM9 billion and shareholders’ funds of over RM2 billion.
