Shortened time frame for processing of financing applications to continue - Wan Junaidi

The move to shorten the time frame for the processing of applications for financing from agencies under the Ministry of Entrepreneur Development and Cooperatives (MEDAC) will continue even after the COVID-19 pandemic ends.

Its minister, Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the improvement initiative, which began several days ago, has received positive feedback, including from Prime Minister Tan Sri Muhyiddin Yassin as it could reduce bureaucracy and accelerate the loan processes.

"This is a new normal, especially in online transaction and there is no need for too many transactions at counter. For example, in the past, business operators need to go to the premises to monitor the operations, but now there are businesses that don't need them to be around to monitor the situation.

"Just show it online, it can be done. We used to spend one week just to be at the premises but now we can do it in just one day," he told reporters after visiting micro, small and medium enterprises (SMEs) at Pertama Complex and Mara Complex here today.

However, he said counter operations would still continue but only at a minimum level.

Wan Junaidi, yesterday, announced that the ministry has shortened the time frame for the processing of applications for funding under nearly all MEDAC agencies by more than 75 per cent to make it easier for SMEs to get financing, thus enabling them to resume business faster.

Meanwhile, about 20 per cent of over 850,000 SMEs in the country were found to be affected by COVID-19, of whom 80 per cent were women entrepreneurs who had previously conducted direct purchase transactions.

Wan Junaidi said the ministry had, therefore, intensified efforts to help those affected by providing online courses and training to guide them in new business ventures.

"According to a study conducted by SME Corp, we are expecting more than 20 per cent of SMEs to be affected (by COVID-19). However, they have not stop doing business but may switch to a new business.

"We will give them guidance and training, but it involves financial implications, so, I have met with the Finance Mnister for additional provisions to help SMEs nationwide," he said.

-- BERNAMA