In efforts to tackle the issue of rising cost of living for Malaysians, the National Budget 2025 tabling announced numerous business-friendly initiatives that could help alleviate the burdens of SMEs.
Even before the announcement of Budget 2025, the MADANI Micro Financing Scheme by Bank Simpanan Nasional (BSN) serves as a vital ‘lifeline’ for SMEs looking to strengthen working capital amidst economic uncertainties and even natural disasters.
Particularly, the scheme supports working capital, as well as the acquisition of business assets and the renovation of premises.
In the case of one beneficiary, 37-year-old Mohd Nurzul Hafiz Tamril shared that he received RM95,000 in financing over 2 separate instances to bolster his business’ working capital after the devastation caused by floods.
Nurzul, who operates Shell petrol stations through his company Stesyen Minyak Nurzul, began his business in July 2020 with a Shell outlet in Shah Alam.
“During the floods, our estimated losses were around RM75,000. While we managed to make an insurance claim, it didn’t cover everything. A significant portion of our stock was damaged and theft also occurred,” he told Malaysian national news agency, BERNAMA.
“Shell took care of the pump equipment repairs, but we still faced losses due to the absence of customers. Many vehicles were damaged in the flood. It took us 3 months to bring sales back to normal,” he added.
Despite these setbacks, Nurzul persevered, earning a ‘gold retailer’ status with Shell for 3 consecutive years. This success enabled him to open a second Shell station in Klang in August this year.
“(Now), business is doing very well. For our Klang station, we plan to increase sales by offering additional services such as automatic teller machines and car wash facilities. Our goal is to make it a one-stop centre for customers,” he added.
He commended the MADANI Micro Financing Scheme for offering critical support to traders in challenging times, emphasising the ease of application process.
“I’m thankful to the government for creating these opportunities. The MADANI government provides extensive support to traders like us. I encourage other SMEs to seize such opportunities – you never know how your business might flourish,” he said.
It was reported that as of 30 September 2024, BSN has disbursed RM433.52 million in financing under the scheme this year.
Over 260,000 entrepreneurs financed
The government has channelled a total of RM6.35 billion in financing to 265,097 entrepreneurs through the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) until September this year.
Its deputy minister Datuk Seri R Ramanan said the ministry, via its agencies is always committed to providing assistance and support to micro SME (MSME) entrepreneurs in various aspects.
According to him, KUSKOP encourages entrepreneurs to engage in business within programmes organised by the ministry and agencies, including the MADANI cooperative and entrepreneur sales programme (JMKU) and the one district, one industry showcase (SDSI).
“Until 30 September 2024, a total of 95 JMKU programmes were organised, registering sales amounting to RM8.54 million. Additionally, the SDSI showcase programmes in Sabah, Perak and Johor have recorded sales worth RM1.22 millions,” he said.
According to Ramanan, the MSME sector posted encouraging growth in 2023 based on key macroeconomic indicators such as gross domestic product (GDP), exports, employment and productivity.
He added that MSMEs have also recorded a 5% growth, contributing RM613.1 billion in 2023 compared to RM584 billion in 2022.
“This achievement is also in line with the findings of the SME Corp’s MSME Survey 2024, which shows better MSME performance, with 53% of respondents recording higher sales in 2023.
“Additionally, 74.2% of respondents stated that their businesses will improve in 2024,” he said.
