Entrepreneurs should borrow from Tekun Nasional, not Ah Longs - Wan Junaidi

KUCHING: The Ministry of Entrepreneur Development and Cooperatives (MEDAC) called on micro-enterprises to reach out to its agency, TEKUN Nasional for hassle-free financing assistance and not go to loan sharks or Ah Longs.

Its Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said he was concerned over reports that many entrepreneurs were turning to loan sharks instead of going to the designated government agencies to borrow money to keep their businesses afloat.

Since taking over the ministry last year, he said he had made sure that the loan application process under TEKUN is simplified, with less paperwork and shorter processing time.

"Even those blacklisted by Credit Tip-Off Service (CTOS) and Central Credit Reference Information System (CCRIS) are also eligible to apply. For those who need to borrow money for business purposes, please see us and not the Ah Longs. Our interest rates are so much lower and we have your best interest at heart," he said in a statement today.

He said the financing programmes were also aimed at giving a second chance to entrepreneurs whose businesses had been badly affected by the COVID-19 pandemic.

According to Wan Junaidi, TEKUN had introduced a special financing scheme for informal business operators known as Skim Pembiayaan Informal (SPIN) in December last year.

He said a total of RM50 million had been allocated under this scheme, which would benefit 10,000 informal businesses all over the country, offering RM1,000 to RM5,000 loans with up to three years of repayment period.

"As of July 16, TEKUN disbursed RM19.47 million worth of loans under SPIN to 3,309 informal business operators nationwide with Selangor topping the list with RM3.15 million for 390 recipients, followed by Sarawak RM3.04 million (589 recipients) and Terengganu RM2.54 million (469 recipients)," he added.

-- BERNAMA