No budget cut for micro-finance activities

"We are in the midst of recalibrating the budget. We are probably not going to cut anything (for micro financing)," he told reporters on the sidelines of the ASEAN Microfinance Conference here today.

He said the government has allocated more than RM200 million to support micro-financing activities in 2015 through various agencies including TEKUN Nasional and Amanah Ikhtiar Malaysia.

Meanwhile, Ministry of Finance Secretary-General Tan Sri Dr. Mohd Irwan Serigar Abdullah said micro-finance plays a critical role in the development and sustainability of small and medium enterprises as it addresses their lack of financing options.

He pointed out that a coordinated national and regional response is needed to strengthen the service delivery of micro-finance institutions to the underserved.

"To do so, we need a 'people-centred' micro-finance model that carries the hope for shared prosperity," he said in his keynote address read by Ahmad Badri.

Mohd Irwan said to move forward, the government needs to address challenges in micro-financing including limited financial literacy, inadequate micro-financing regulatory framework and insufficient infrastructure.

"Addressing these challenges calls for a new development model based on structural changes that ensure inclusiveness, resilience and sustainable development as a more integrated approach in micro-financing," he added.