M'SIAN GOVT HAS RM250 BIL LIQUIDITY TO HELP ENTREPRENEURS

KUALA LUMPUR, March 23 (Bernama) -- The Malaysian government has a huge
liquidity of RM250 billion (US$1=RM3.64) in its coffers to help local
entrepreneurs cope with the current global economic crisis, Najib Razak said
Monday.

The Deputy Prime Minister said the government would also provide incentives
to encourage banks to issue loans to businessmen in need of financial aid such
as providing repayment guarantees to banks to reduce the liability risk.

"One of the important elements in facing the global economic and financial
crisis is to ensure the country's financial system is able to disburse loans to
entrepreneurs who are in need of financial aid," said Najib, who is also Finance
Minister, when opening the 2009 MIDF (Malaysian Industrial Development Finance
Bhd) Bumiputera Entrepreneurs' Symposium.

"So long the banking sector does not give out loans, until then efforts to
stimulate the world economy will not succeed," he said.

Among the incentives provided are credit guarantee scheme for small-time
businessmen by the Credit Guarantee Corporation under the supervision of Bank
Negara which will provide 80 percent guarantees for loans approved under the
scheme.

-- BERNAMA