KOTA KINABALU: The State government has allocated RM10 million to fund the Youth Entrepreneurship Scheme Sabah (YESS), a special grant to help young people keen to to start up a business.
Youth and Sports Minister Datuk Tawfiq Abu Bakar Titingan said the scheme will be launched next month. The grant, he said, is a one-off micro-credit loan as an injection to assist youths who want to start their own business but could not do so due to financial limitations.
“Eligible applicants will be granted a maximum of RM2,000 for individual loan and a maximum of RM5,000 for group of up to five people,” Tawfiq said.
Although there are specific criteria that need to be fulfilled for eligibility, he said it will not be as strict as the requirements set by private financial institutions.
“Banks normally require an applicant to provide a collateral or some kind of assurance such as a government contract. And we found that not all of our youths are able to meet this criteria. Some opt to set up burger stall, for example, or a newspaper and book stand, and may not be eligible for such contracts. This is where YESS comes in,” Tawfiq said.
Applicants must be 21 to 30 years old and preferably those who have enrolled and completed some skills training course.
According to Tawfiq, the YESS programme was created following findings by the Sabah Youth Index (IBS) which revealed that in Sabah, youths’ social well-being is among the domain that needed attention.
“And one of the approaches that we can take to address this problem is entrepreneurship,” Tawfiq reckoned.
Tawfiq said the ministry would target both urban and rural youths who may have the capability and determination, but needed help to kick-start their business.