KUALA LUMPUR, Feb 27 (Bernama) -- The National Entrepreneurial Group Economic Fund (TEKUN) recorded a non-performing loan (NPL) rate of 9.8 per cent last year compared to 12.6 per cent in 2023, said Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.
He said Amanah Ikhtiar Malaysia (AIM), now in its 38th year of establishment, recorded a portfolio-at-risk (PAR) of 0.02 per cent last year, compared to 0.09 per cent in 2023.
He credited the decline in NPL and PAR to, first and foremost, a financial education programme conducted in collaboration with the Credit Counseling and Management Agency (AKPK).
The programme provides training in financial management and business planning, helping entrepreneurs maintain stable cash flow and, in turn, repay their loans, he said, adding that the programme includes courses on the basics of entrepreneurship to make borrowers aware of the importance of repaying their loans.
Secondly, it is carrying out regular monitoring and close supervision of entrepreneurs, including providing guidance and support to help them overcome financial challenges," he said during the Minister's Question Time in the Dewan Rakyat today.
The agency, he said, also offers loan restructuring options to entrepreneurs who are facing financial difficulties, including more flexible payment plans such as extending the payment period or reducing monthly payments.
Ewon said this in response to a question from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) regarding efforts by agencies under the ministry, as TEKUN Nasional and AIM, in reducing their NPL rate and performance in 2024.
He said the ministry, through TEKUN Nasional and AIM, always tries to reduce the NPL and PAR to ensure the funds can be channelled to other entrepreneurs in need.
"When we can reduce NPL and PAR, these two agencies have funds that can be loaned to existing entrepreneurs and more importantly new entrepreneurs,” he said.
-- BERNAMA
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