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Muhyiddin launches syariah-compliant SME financing fund

Posted on April 25, 2012, Wednesday

 

SYARIAH COMPLIANT: Muhyiddin (second right) launching the funds yesterday. Also present is Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed (second left). The scheme will be managed by 13 Islamic banking institutions with the federal government providing a two per cent rebate of the bank’s profits. — Bernama photo

BACHOK: Deputy Prime Minister Tan Sri Muhyiddin Yassin yesterday launched a RM2 billion syariah-compliant financing fund for small and medium enterprises (SMEs).

Muhyiddin said the loan scheme, announced by Prime Minister Datuk Seri Najib Tun Razak in the 2012 Budget, reflects the private sector’s seriousness in supporting the federal government’s efforts to promote economic growth.

The scheme will be managed by 13 Islamic banking institutions with the federal government providing a two per cent rebate of the bank’s profits, he said when launching the scheme at Sekolah Menengah Kebangsaan Datuk Perdana here yesterday.

Also present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed, Deputy Finance Minister Datuk Dr Awang Adek Hussin, SME Corporation chairman Datuk Dr Mohamed Al Amin Abdul Majid and the president of the Association of Islamic Banking Institutions of Malaysia (AIBIM).

Over 15,000 people attended the event.

Muhyiddin said Malaysia’s complete Islamic finance system, comprising   takaful and syariah-compliant stocks at Bursa Malaysia besides the international finance market in Labuan, plays an important role in the international money market.

“All this we can achieve under the Barisan Nasional (BN) administration which has sucessfully introduced policies and a complete system to encourage   and regulate the development of Islamic banking that many countries want to emulate,” he said.

The federal government has also not neglected businesses in Kelantan as it has raised the competitiveness of their products and services by reducing the cost of doing business, he said.

“The Malaysian Investment Development Authority (Mida) has approved incentives for three SME projects in Kelantan, with total domestic investment of  RM6.2 million, that will create 116 jobs in the textile sector in Kelantan,” he said.

He added that SME Corporation, under the Malaysian Industrial Development  Finance Bhd, has approved RM42.97 million in loans from 71 applications from the state.

Earlier, Muhyiddin visited the Siti Aishah market in Jelawat here and mingled with the 350 petty traders. He also announced an allocation of RM500,000 to repair the market, which was built during the rule of the previous BN administration. — Bernama

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