ID :
51926
Tue, 03/24/2009 - 08:27
Auther :
Shortlink :
https://oananews.org//node/51926
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M'SIAN GOVT HAS RM250 BIL LIQUIDITY TO HELP ENTREPRENEURS
KUALA LUMPUR, March 23 (Bernama) -- Malaysia has a huge liquidity of RM250 billion (US$1=RM3.64) in its coffers to help local businessmen tide over with the current global economic crisis, Najib Tun Razak said Monday.
"That is the liquidity available throughout the banking and the capital
market. Malaysia is not short of liquidity and we can tap into that," said the
Deputy Prime Minister.
He said the government would also provide incentives to encourage banks to
issue loans to entrepreneurs in need of financial aid such as repayment
guarantees to financial institutions to reduce liability risks.
"One of the important elements in coping with the current economic and
financial crises is ensuring the country's financial system can disburse loans
to entrepreneurs in need of financial assistance," he said at the 2009
MIDF (Malaysian Industrial Development Finance Bhd) Bumiputera Entrepreneurs'
Symposium.
"As long as the banking sector does not give out loans, until then efforts
to revive the world economy will not succeed," said Najib, who is also Finance
Minister.
Among incentives provided are the guarantee scheme for small-time
businessmen by
the Credit Guarantee Corporation under Bank Negara's supervision which will
guarantee 80 percent of the loans approved under the scheme, he said.
"By mitigating the risk and taking 80 percent of it, the banks will be
incentivise to lend during difficult times becasue they are also averse to risks
like everybody else.
"We are monitoring this very closely and hopefully the lending and
availability of credit will be at the level that will sustain the requirement
for businesses to function, including investment, working capital and also those
who are able to find export market," he said.
Najib said the RM5 billion allocated for the Industries Restructuring
Guarantee
Fund would also help small-and medium-sized industries to restructure their
businesses to increase productivity and competitiveness.
"This is the best time to do restructuring. When the economy has recovered,
we will be better prepared for domestic and foreign markets," he said.
Finance guarantee institutions, funded with a RM1 billion capital, is to
generate loans from the bond market to finance promising companies with
only "AA" or "A" status.
"From the capital, it is estimated that a RM15 billion bond can be raised.
"We need this because some of the good companies are not AAA rated. Only AAA
companies have access to the bond market. This initiative is long-term and will
be on even beyond the (current) crisis," Najib said.
Besides that, he said, RM300 million has been allocated to the Agro Bank for
the micro credit programmet and RM50 million for the TEKUN programme to help
agro-based farmers and traders in rural areas.
Najib said these initiatives were from the third thrust of the second
stimulus package to help the private sector facing problems in their business.
He said SMIs are among the main economic spinners, contributing 56 percent
to the country's total employment.
SMIs also accounted for 99 percent of the total registered businesses in the
country and contributed 32 percent to the gross domestic product, he added.
-- BERNAMA
"That is the liquidity available throughout the banking and the capital
market. Malaysia is not short of liquidity and we can tap into that," said the
Deputy Prime Minister.
He said the government would also provide incentives to encourage banks to
issue loans to entrepreneurs in need of financial aid such as repayment
guarantees to financial institutions to reduce liability risks.
"One of the important elements in coping with the current economic and
financial crises is ensuring the country's financial system can disburse loans
to entrepreneurs in need of financial assistance," he said at the 2009
MIDF (Malaysian Industrial Development Finance Bhd) Bumiputera Entrepreneurs'
Symposium.
"As long as the banking sector does not give out loans, until then efforts
to revive the world economy will not succeed," said Najib, who is also Finance
Minister.
Among incentives provided are the guarantee scheme for small-time
businessmen by
the Credit Guarantee Corporation under Bank Negara's supervision which will
guarantee 80 percent of the loans approved under the scheme, he said.
"By mitigating the risk and taking 80 percent of it, the banks will be
incentivise to lend during difficult times becasue they are also averse to risks
like everybody else.
"We are monitoring this very closely and hopefully the lending and
availability of credit will be at the level that will sustain the requirement
for businesses to function, including investment, working capital and also those
who are able to find export market," he said.
Najib said the RM5 billion allocated for the Industries Restructuring
Guarantee
Fund would also help small-and medium-sized industries to restructure their
businesses to increase productivity and competitiveness.
"This is the best time to do restructuring. When the economy has recovered,
we will be better prepared for domestic and foreign markets," he said.
Finance guarantee institutions, funded with a RM1 billion capital, is to
generate loans from the bond market to finance promising companies with
only "AA" or "A" status.
"From the capital, it is estimated that a RM15 billion bond can be raised.
"We need this because some of the good companies are not AAA rated. Only AAA
companies have access to the bond market. This initiative is long-term and will
be on even beyond the (current) crisis," Najib said.
Besides that, he said, RM300 million has been allocated to the Agro Bank for
the micro credit programmet and RM50 million for the TEKUN programme to help
agro-based farmers and traders in rural areas.
Najib said these initiatives were from the third thrust of the second
stimulus package to help the private sector facing problems in their business.
He said SMIs are among the main economic spinners, contributing 56 percent
to the country's total employment.
SMIs also accounted for 99 percent of the total registered businesses in the
country and contributed 32 percent to the gross domestic product, he added.
-- BERNAMA
