In response to alleged criticism that Chinese small- and medium-sized enterprises are not sufficiently supported in Malaysia, officials in the nation announced last Friday (May 29) that a new financing scheme will launch to support the demographic.
According to Minister in the Prime Minister’s Department Datuk Wee Ka Siong, the new program will begin taking applications on Friday in an effort to curb illegal, shadow banking.
“With no financial resources as commercial banks are not willing to approve any loans for them, some of the Chinese SMEs have to resort to illegal money lenders for their financial problems,” the official said at the office of the Secretariat for the Advancement of Malaysian Entrepreneurs.
According to Ka Siong, Chinese-owned SMEs in the nation will be able to access loans at a 4 percent interest rate. Applicants can download an application online, reports said, and will receive an answer regarding their loan within a week.
“Should there be any dissatisfied, rejected applicants, they can voice their appeal where there will be another board comprising of bankers, finance experts and other industry experts that will re-assess the documents submitted,” Ka Siong added.
According to a report released last March, small business financing in Malaysia is on the rise with industry players like the CIMB Group have refocused their efforts to servicing small companies. The country has also been home to significant growth in the alternative lending industry.
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