KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (MEDAC) has committed to ensuring micro and informal business operators are given the appropriate assistance to recover from the effects of the Covid-19 pandemic.
The informal sector refers to enterprises that are not registered with the Companies Commission of Malaysia or any professional body, including the local authority.
MEDAC deputy minister Muslimin Yahaya said the government, through Tekun Nasional, provides the Informal Financing Scheme (SPIN) in an effort to help informal sector entrepreneurs affected by the pandemic with financing of up to RM10,000 without interest.
“Through this scheme, a total of 2,197 informal entrepreneurs have been given funding approval amounting to RM14.1 million as of Oct 1, 2021,“ he said during the winding-up session of the 12th Malaysia Plan (12MP) in the Dewan Rakyat today.
He was responding to an oral question from Datin Paduka Dr Tan Yee Kew(pix) (PH-Wangsa Maju) regarding the recovery plan for the micro-industry sector, especially small traders.
According to him, the government has also simplified the funding application process by reducing the number of required document copies.
“Previously, 10 to 17 documents were needed for financing, but due to the emergency and need to help entrepreneurs, the government has reduced this to only three documents.
“These include the applicant’s identity card, a copy of the latest accounts, and a confirmation as a trader from a hawkers’ association, residents’ association, or the night market organising committee, among others,“ he explained.
Apart from that, the approval is also expedited from 14 days to seven working days and the disbursement will be issued within two days after signing the letter of agreement to receive the funding, he said.
Source: https://www.thesundaily.my/home/medac-committed-to-assist-micro-informal-businesses-recover-from-pandemic-HM8439393