MITI TO IMPLEMENT SME OUTREACH PROGRAMME

KOTA BAHARU (Malaysia), July 30 (Bernama) -- The International Trade and
Industry Ministry will implement an outreach programme to approach small and
medium-scale entrepreneurs (SMEs) after the launch of the Small and Medium
Industries Development Corp (Smidec) rebranding into SME Corporation Malaysia on
Aug 17.

Minister Mustapa Mohamed said the rebranding would strengthen the agency and
enable it to set out policies for the progress and development of SMEs in the
country.

He wanted SME Corporation to be better known by local entrepreneurs and able
to approach them with ease because they were an important group for the
country's economic development.

"I intend to make SME Corporation as a one-stop agency in 2010 where SMEs
will obtain expert advice on the industries they are involved in and get loans,"
he told reporters after opening SME Bank's entrepreneurs exposition here today.

On July 9, Prime Minister Najib Razak announced Smidec's rebranding to
develop a competitive and resilient SME sector in overcoming the economic
crisis.

Mustapa said that through the outreach programme, the ministry wanted
explain to the SMEs the roles played by SME Corporation and the government's
readiness to assist target groups.

After the launch of SME Corporation and its logo next month, the ministry
would enhance the various programmes currently offered to the SMEs.

"The government provides various incentives to assist small and medium-scale
industries (SMIs) including a RM10 billion stimulus package for them.

"Of the total, RM5 billion was allocated as a guarantee fund so that the
SMIs can easily obtain loans. Through the fund, Bank Negara will bear 80 percent
of the risk while financial institutions 20 percent.

"So, this with make it easy for banks to approve loans to SMIs," he said,
adding that to date, SME Bank had approved RM300 million to SMEs from the
stimulus package.

The other RM5 billion, he said, was for the Industrial Adjustment Fund under
Bank Negara to assist SMEs in enhancing their business opportunities.

"Bank Negara has also set up a special unit to help and monitor SMEs
interested in developing their business further," he said. (US$1=RM3.52)
-- BERNAMA