Financial institutions urged to provide bigger loans to women entrepreneurs

BATU PAHAT - Financial institutions (Banks) and the related ministry have been urged to place their trust on women entrepreneurs by making it easier for them to apply for higher financial assistance or loans said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.

Ahmad Zahid who is also the Rural and Regional Development Minister said such an approach was necessary because women entrepreneurs can be better paymasters with a higher level of trust compared with their male counterparts.

”For example, in the case of Amanah Ikhtiar Malaysia (AIM), the repayment rate by women entrepreneurs was higher than men. It was proven as AIM was able to collect 99.8 percent of its loans offered to women entrepreneurs.

"Therefore, I urge financial institutions or the Ministry of Entrepreneur Development and Cooperatives, including the ministry, to give priority for loans or financial assistance applied by women entrepreneurs due to their high percentage of repayment initiatives,” he said when opening the Women’s Entrepreneurs Carnival in MRSM Batu Pahat, today.

Also present was (Risda) chairman Datuk Seri Dr Noraini Ahmad who is also the Parit Sulong Member of Parliament.

Ahmad Zahid said in efforts to produce more successful women entrepreneurs, the government through the ministry, departments and agencies need to go down to the ground to blend with such entrepreneurs by offering guidance, support and services to ensure the success of their business.

"They also need financial assistance, either in the form of micro-credit or loans for bigger capital investment. Nobody should look down or underestimate the prowess of women entrepreneurs in the country.

"To produce more women entrepreneurs, we should not just depend on one ministry. Of course there is the ministry of entrepreneur development and cooperatives but other ministries are also involved either directly or indirectly in producing entrepreneurs,” he said.

He added that as the president of the Malaysian Halal Council, he can see a huge potential in the halal industry with foreign demand and exports reaching USD1.3 trillion and that opportunities must be seized by women entrepreneurs in the country.

Ahmad Zahid said the government provides continuous support to women entrepreneurs who wished to engage in the halal industry, like the professional halal certification programme by the Halal Development Corporation, currently.

"I hope women entrepreneurs can look at the foreign market because halal products are not limited to just food, but also involves medical, pharmaceutical and services,” he said. - BERNAMA