SMES NEED SPECIALLY-DEDICATED FINANCIAL INSTITUTION -- PPIPBM

KUALA LUMPUR, July 22 (Bernama) -- The Bumiputera Manufacturers and Services Industry Association of Malaysia (PPIPBM) has asked the government to set up a specially-dedicated financial institution for small and medium enterprises (SMEs), particularly Bumiputera that are less subject to the banking & Financial Institutions Act, 1989 (BAFIA).

Its president, Datuk Nurammar Abu Bakar said this Act was essential as most SMEs were encountering financial problems, especially when their contracts were being reviewed by the government.

“These companies have enormous potential to develop. It is important for the government and financial institutions to support their growth," he said after paying a courtesy call on Bernama chairman Datuk Seri Azman Ujang at Wisma Bernama here today.

In another development, Nurammar believes that existing financing from Amanah Ikhtiar Malaysia, Tekun Nasional and SME Corporation Malaysia for SMEs should be constantly monitored by the authorities to assist the borrowers to achieve the objectives and targets, and be able to repay them.

In addition, he also found that not many Bumiputera entrepreneurs, particularly the Malays, knew about venture capital and how they could 'pitch' to restructure the company for financial assistance.

"This may be due to lack of exposure and latest knowledge, as well asd not futuristic in outlook towards economic digitization and Industry 4.0.

"Hence, we hope that the policies outlined by the government in empowering Bumiputera entrepreneurs will continue to be emphasised and prioritised so as they will not lag behind and be able to compete in the open market," he added.

-- BERNAMA