The SME Bank Group has approved, as of December 2016, RM45 million in financing to 611 youth entrepreneurs under the Young Entrepreneur Fund (YEF).

The YEF is a special fund allocated by the government to create new entrepreneurs among Malaysian youth by providing alternative financing access to them to start new business as well as for the needs of their existing business.

Deputy International Trade and Industry Minister Datuk Ahmad Maslan said 158 recipients from the Federal Territory obtained RM12.4 million while Selangor was next with RM9.1 million (98 participants) and Johor with RM4.7 million (58 participants).

"There were 23 participants from Kedah who received RM1.7 million," he said in reply to Datuk Wira Othman Abdul (BN-Pendang), in the Dewan Rakyat here today, who wanted to know the number of recipients who had benefited from YEF after it was set-up.

Established in 2013, the YEF, with a revolving fund of RM50 million helped youths aged between 18-30 to get involved in business.

He said the programme also offered financing of between RM20,000 and RM100,000 to each customer based on Islamic banking principals.

He also said an estimated 550 YEF entrepreneurs were still active in their business.

As of March 2017, SME Bank had approved RM26 billion in financing to more than 15,200 small and medium entrepreneurs.

On an average, RM2 billion is approved each year to about 1,200 entrepreneurs, including young entrepreneurs.

"Cumulatively, SME Bank approved 84.3 per cent of the loan applications it received.

"This was an excellent achievement compared with commercial banks which only achieved 79.3 per cent in loan approval over the same period," he said.

Todate, Mustapa also said RM11.06 million in financing was approved to 82 Bumiputera applicants to conduct online business while RM29 million in grants were approved to 1,436 youths who ventured into business under the "Tunas Usahawan Belia Bumiputera programme.

-- BERNAMA