KUALA LUMPUR: Asean is the brand new China and the area is set to become not simply the world’s factory but additionally a consumer base, stated the Minister Of Investment, Trade And Industry (Miti) Tengku Datuk Seri Zafrul Aziz.
He stated the federal government is tapping into alternatives arising from the shifting international provide chains.
“The 10 nations that make up Asean are already residence to greater than 678 million folks, with a mixed GDP (gross home product) of about US$3.7 trillion (RM17.4 trillion) in 2022. As a bloc, Asean is the fifth-largest economic system on this planet. It additionally had a center class of roughly 350 million in 2022, representing US$300 billion of disposable earnings,” he informed reporters on the signing of a memorandum of understanding (MoU) on the Second Chance Financing Scheme for SMEs between Malaysian Industrial Development Finance Bhd (MIDF) and Agensi Kaunseling dan Pengurusan Kredit (AKPK) as we speak.
He stated the nation’s SMEs’ survival in native provide chains may assist them to capitalise on not solely Asean’s rising center class, but additionally shifting provide chains to and FDI flowing into the area.
“It is vital to help SMEs, within the context of worldwide provide chains which might be shifting to Southeast Asia. This regional financial integration can be a purpose that can be espoused by the Madani Economy framework,” stated Tengku Zafrul.
The authorities has introduced RM60 million in second probability financing alternatives for SMEs within the twelfth Malaysia Plan.
MIDF and AKPK will present small and medium enterprises which might be dealing with challenges and monetary difficulties with monetary help, advisory providers and enterprise steerage.
The MIDF Second Chance Financing Scheme provides financing of up to RM5 million for belongings or working capital financing at a price of three% each year. The goal is to allow SMEs to overcome challenges, gas progress and contribute to the general financial improvement of the nation.
Tengku Zafrul stated sudden shifts in market situations, unexpected disruptions, or inner struggles can push promising firms to the brink of failure and can have far-reaching penalties for a manufacturing’s complete provide chain, encompassing suppliers, clients, staff and probably the encompassing communities.
“Therefore, offering these firms with a monetary lifeline which helps their enterprise restoration is essential in making certain that provide chains stay intact which in flip, is essential to the nation’s socio-economic improvement. To that finish, the MIDF-AKPK collaboration is a crucial, holistic ‘restoration ecosystem’ when it comes to supporting troubled firms, significantly the SMEs,” he stated.
