7/23/2019 Aiding Budding Entrepreneurs 20131022

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PACE 22 I N STRTS TS MONDY, TB_ � 013

NATIONL BUE CN SRGY (.-

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Aiding budding eltrpreneursMICRO PPP PROGRAMME: Small businesseslooking to grow id help in te fom omicocedit udin

JERMY Tan, who operates ashop selling bags in Sabah,applied fr loan through the

Dynamic Small Entrepreneurs Programme under Majlis AmanahRakyat (Mara) to be sed as working capital and to renovate his business premises.

 Tan was nominated and supported by the Hawkers and Petty Traders Association and te localauthority in is area to receive a

loan to expand his business Withinseven working days, he receivedRM8000 in microcredit A monthlater, his sales increased fomRM8,000 to RM4,000 a month

Corporal (R) Samy Mrugan,fondly known as Sam Popeye,works as a cocont milk spplierand receives financing fom theATM Veteran Entrepreners Programme

Aer more than 13 years of service with the Malaysian ArmedForces, Sam began attendingcorses organised by Perbadanan

�Hal Ehwal Bekas Angkatan Tentera(Perhebat) and Tekn National(Tekn) After completing thecorses, he was advised to expandhis business sing microcredits

Sam used the RM20,000 loan asworking capital to secure the supply of quality cocont and his salesincreased to RM5,000 per monthe is determined to repay the loanwithin five years to ensure hisriends can enoy this financingfacility as well

 The su cc es s st or ie s of entrepreneurs like Tan and Sam arethe result of the Micro PPP Programme initiated by the NationalBle Ocean Strategy NBOS) Thisprogramme falls under the auspices of the Public Private Partnership Unit of the Prime Minister's Department It consists of a

NB�Micro PPP Fnd and a LonghouseHomestay programme, with an allocation of 300 million

 Te Prime Ministers Department works wit other governmentministries and agencies to channelfunds throgh agencies such as

 Tekun, Mara, Perhebat Veteran Affirs Depatment, Malaysian Agricultural Researc and Development Institute (Mardi) and BankRakyat

 These agencies act as implementing bodies to process applications as well as to monitor theimplementaion of the programme

 This programme sows the governments commitment in elpingsmall- and mediumscale entrepreneurs Since the Micro PPPFund was introduced, it has beenwellreceived and feedback asbeen positive ntil August this

 year, 22,365 participants had benefted fom the programme, withfunds amonting to RM266 mil

lion The conditions imposed on aborrower are simple and workthrough noninterest fnancing facilities

Althogh the amount of ndsr each individal is relativelysmall, usually below M50,000, ithelps reduce the burden of bsiness cost, and aows traders andhawkers to obtain credit to expandtheir businesses, which in turn increases their incme and standardof living

 The Micro PPP Fund was alsosed to fund computerised fetigation fr the rain protecting structure of the Rock Melon Farming

Proect that has been developed onvacant land owned by the Defence

Ministy in Sepang, Selangor Thishightech agricultural project wasled by Mardi Participants incldedgradates om agriultral colleges and institutions as well as theAzam Tani Programme

Paticipants fom the Azam TaniProgramme who are capable, interested and able will be roped intote workrce, wile ohers willreceive a passive dividend based onthe returns of the project

Meanwhile, an ATM veteran hasundegone intensive training nder Phase II of the Rock MelonFarming Prject and will train others when the project is implement

Taking Perebat business coues has helped army veterns open small businesses.

Helpers under Mara's Dynamc Small Entrepreneurs Programmeworkingto prepa stal before they are opened r business

Renovation works underway to transform a longhouse into ahomestay.

ed To date more than 50 ATMveterans had been identifed by theVeteran Afairs Department Theywill be roped in in stages and some

could also become rock melon entrepreneurs to help other veterans.

 The Micro PPP Programme alsoprovides microfunding to threelonghouses in Kanowit Sungai Assap and Serian, Sarawak,  to pgrade them into comfortablehomestay nits fr tourists A totalof RM678 million had been channelled through Saraak's Tourismand Cltre Ministy and the Public Works Depatment Aer theupgrading works are completed,the longhoses will be delivered tothe coopertives o homestay committee that has been appointed bythe ministry to un the business

 The revenue generated fromrental income on homestay units

will be divided according to thespecified ratio between the cooperative/homesty committee andthe participating nit owners of theLonghose Homestay Programme

 The ministry has aso identifiedve longhoses in Sarawak (Longhose Bawang Assan, Sibu; NkaHose Homesta Sarikei; PuehHomestay Sematan Benoa VillageHomestay, Benuk and Annah RaisHomesta, Kuching, that are readyto take part in this programme

 To date, the scoe of componentsfr each project is being reviewedby a committee chaired by the ministy The coittee members inclde members of the Veteran Afairs Department and DefenceMinistry

 The government nderstands

that small bsinesses fce difculties getting loans despite varios fcilities provided by bansand nancial institutions in the

contry They believe that it isdicult to get oans becase nancial institutions impose strictconditions, such as the reqirement of garantors, collateral,large amounts of paperwork, trackrecord, fnancial statements and sofrth.

In addition the sevice chargesimposed on borrowers are quite

high. The Micro PPP Programme pro

vides immediate impact and touchpoints to the people

It is exected to create and develop p to 30000 small bsinesses and will benefit more than ,000longhouse residents The programme can also increase the income of poor households and sp

port the governments aspirationsto become a highincome conty Te governmet is responsible

or improvng the economy by empowering entrepreners throghefective means such as the MicroPPP Programme

 This programme can expandbsinesses om one level to another, sc as fom small to medimsized enterprises to become asuccessful bsiness entity

 The measrement of sccess frthe Micro PPP Programme is notst based on te amont of loansdisbursed to a nmber of recipients, but also on how many entrepreners have sccessfllyleveraged on the business loans tobe successl in their respective

fields