Additional Government Allocation for Entrepreneurs

Good news to Malaysian entrepreneurs! The Prime Minister of Malaysia, Datuk Seri Ismail Sabri Yaakob on 27 June 2022, has announced an additional allocation of RM100 million for the Informal & Micro Financing Scheme (SPIM) program under the National Enterprise Group Economic Fund (TEKUN). In addition to that, he also announced an additional allocation of RM30mil for the Bumiputera Enterprise Enhancement Programme (BEEP) under SME Corporation Malaysia.

The global Covid-19 pandemic is more than just a health crisis affecting billions worldwide. This is also causing an unimaginable global economic downturn. As a result of the pandemic, many small businesses naturally turned to the government first and foremost for help in the form of stimulus funding. These day-to-day concerns for many small businesses remain as COVID-19’s impact continues.

Government Initiatives

The Prime Minister stated that entrepreneurship development is one of the most crucial investment essentials for a country’s development and the cornerstone for innovation and transformation into a high-income country. The government remains ready to assist entrepreneurs through several initiatives and programmes that will be implemented in light of current economic developments. 

He also urged entrepreneurs to accept these allocations as part of transitioning from traditional businesses to technological adaptation and digitisation. Entrepreneurs and businesses can use these allocations to navigate their way out of these difficulties while reducing the effect on vulnerable communities. 

Malaysia GDP

Despite these challenges and economic disparity, Malaysia’s economic growth is expected to skyrocket from 4.5 per cent to 5.5 per cent between 2021 and 2025, according to the development roadmap, the 12th Malaysia Plan (2021-2025). Due to the government’s initiatives, the business sector is predicted to resume contributing to the country’s economic recovery efforts.

Malaysia’s GDP declined from 4.4 per cent in 2019 to -5.5 per cent in 2020 but gradually increased after the vaccination programme began. Following that, the economy started to recover, and GDP increased to 3.1 per cent in the Q4 of 2021. Malaysia’s GDP grew by 5.0 per cent in the first quarter of 2022, up from 3.6 per cent in the previous quarter. During Q1 2022, monthly GDP increased at a consistent rate of 4.3 per cent in January, 5.2 per cent in February, and 5.4 per cent in March, reflecting the effectiveness of the government’s aid and stimulus assistance.

With these increases in GDP, Malaysia is recovering from the effects of the outbreak. When combined with government initiatives and allocations, entrepreneurs can see the fruits of their labour within their reach. 

References

Ministry of Finance Malaysia. (2022, May 13). First Quarter 2022 GDP Grew By 5 Per Cent: Malaysia’s Economy Continued Its Recovery Momentum [Press release]. https://www.mof.gov.my/portal/en/news/press-release/first-quarter-2022-gdp-grew-by-5-per-cent-malaysia-s-economy-continued-its-recovery-momentum

Bernama. (2022, June 27). Additional allocation of RM100 MLN for Spim Tekun, RM30 mln for Beep – pm Ismail Sabri. BERNAMA. Retrieved July 1, 2022, from https://www.bernama.com/en/general/news.php?id=2095137