Additional TEKUN Nasional funding a noble effort but improvements needed - Economist
KUALA LUMPUR - The government should start to have more comprehensive indicators for TEKUN Nasional on its impact and output rather than input and the process of the funding initiative, said Putra Business School Associate Professor Dr Ahmed Razman Abdul Latif.
Ahmed Razman said in the past, TEKUN Nasional has allocated millions in funding to the deserving informal and micro entrepreneurs and they measure the success of its funding initiative through the amount being allocated and also the repayment rate.
"The lacking part is that the impact and the output of this funding facilities cannot determine whether the entrepreneurs are able to expand their business or not.
"For example, by hiring more workers or by expanding their premises or gratifying their products or able to penetrate international markets or able to increase their market capital and eventually become large corporations,” he told Bernama, here today.
On Aug 3, Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick announced an additional allocation of RM200 million to fund informal and micro entrepreneurs under TEKUN Nasional.
He said the additional sum is meant to assist more such entrepreneurs and will bring this year’s total allocation to RM800 million.
Commenting on current announcement by Ewon, Ahmed Razman highlighted that it is a good thing that the government decided to increase the fund allocated to help the informal and micro entrepreneurs in their business financing.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the additional allocation to TEKUN Nasional is indeed a timely move that can promote enterpreneurial activities to the next level.
Mohd Afzanizam said as in this current economic landscape, businesses would need to be cognisant on the potential challenges that may affect their sales and cost management and ultimately their profitability.
"This may require certain upgrade in their business facility in order to improve their sales and productivity. For instance, investment in smart devices would require sizeable investment for the micro enterpreneurs.
"Not to mention the relevant training they would need to attend in order to acquire better skils in business like how would they market their products and services online. These are capacity building which can be a costly affair to the micro businessess,” he said.
Online trader Maziah Mahmud, 34, one of the beneficiaries of TEKUN Nasional, said she is a small trader who does not qualify for a bank loan for her online business.
"So, this initiative is good for the people because this is a loan scheme that will be repaid to the government. My first loan of as little as RM5,000 was used to buy business equipment such as an ingredient grinder to make fish sauce and a freezer to store products.
Meantime, another person who has just received the Tekun Nasional funding, Syed Mohd Nasry Syed Sabry, 25, said the funds were very helpful to expand his business that sells toys such as model kits and action figures online and in his physical shop.
"This additional fundinng is a good move because it will help many other businesses that need funds as well," he said.
In PERAK, state Women, Family, Social Welfare, Cooperatives and Entrepreneur Development Committee chairman Salbiah Mohamed said the additional funding of RM200 million is very helpful for informal and micro entrepreneurs under TEKUN Nasional in the state.
She said about RM29.8 million had been channeled to 1,296 TEKUN Nasional borrowers during the first six months of this year in the state.
"The amount is part of the almost RM50 million that has been allocated this year.
"Certainly the addition to this fund can help entrepreneurs for the initial capital of their projects if they need the money to start a business project," she said when contacted by Bernama. - BERNAMA
