TEKUN Nasional's Non-performing Loan Rate Reduced To 9 Pct - KUSKOP

SUNGAI SIPUT, Jan 13 (Bernama) -- The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) has announced an achievement in the management of the Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN Nasional), with the non-performing loan (NPL) rate reduced to around 9 per cent down from over 10 per cent previously.

Deputy Minister Datuk Ewon Benedick attributed this success to the unwavering commitment of TEKUN Nasional and its cooperative efforts with borrowers, adding that reducing the NPL rate to single digits was crucial for the agency to continue providing financial support to new and emerging entrepreneurs.

"We have successfully brought the NPL rate down to about 9 per cent due to the efforts of TEKUN Nasional and the mutual understanding with entrepreneurs on the importance of timely loan repayments.

"This is crucial as it allows us to continue to channel funds to new businesses, facilitating their growth," Ewon said during the opening of the TEKUN Nasional Sungai Siput branch here today.

In addition to financial management efforts, Ewon highlighted the ministry’s ongoing initiatives to empower entrepreneurs, especially in the micro, small, and medium enterprise (MSME) sectors, by encouraging them to leverage digital platforms for marketing and expanding their reach. 

A key initiative to foster growth among MSMEs is TEKUN Nasional’s collaboration with TikTok Malaysia. Six TEKUN offices are being transformed into TikTok studios, where entrepreneurs can use the space to promote their products and services.

"Through this collaboration, entrepreneurs can come to these newly established studios and market their offerings. Next month, I will officiate the first studio in Sabah, and we hope to expand further across the country," Ewon said.

The first phase includes one studio each in Sabah and Sarawak, with four additional studios planned for Peninsular Malaysia. Ewon expressed hope that the number of studios would increase in the future as part of the ongoing partnership with TikTok Malaysia.

On  the opening of the TEKUN Nasional Sungai Siput Branch, he said this was another step toward strengthening support for local entrepreneurs in the area, adding that this new branch will enhance service delivery and benefit entrepreneurs, particularly those in informal and micro-business sectors.

"This initiative is part of TEKUN Nasional's ongoing efforts to improve its services and I am confident that the agency will continue to excel in supporting informal and micro-entrepreneurs across the country," Ewon said.

At the event, Ewon also announced that TEKUN Nasional has set a target of RM75 million in financing for 3,000 informal and micro-entrepreneurs in Perak. Since its inception in 1998, TEKUN Nasional has provided over RM10.07 billion in business financing to 593,605 entrepreneurs nationwide.

In Perak alone, TEKUN Nasional has disbursed RM678 million to 40,726 entrepreneurs, with 18 TEKUN branch offices operating across the state.

-- BERNAMA