Kuala lumpur: A total of 6,580 micro, small, and medium enterprises (MSMEs) have successfully scaled up their businesses year to date, showcasing the tangible impact of government intervention on entrepreneurs.
According to BERNAMA News Agency, Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong highlighted that this achievement serves as an indicator of the effectiveness of his ministry's (KUSKOP) efforts to enhance the competitiveness and expansion of MSMEs. Out of the total, 3,827 businesses transitioned from the informal sector to the micro category, 2,235 micro businesses advanced to the small category, and 518 small companies progressed to the medium category.
Sim emphasized that this development illustrates the impact of government efforts, with previously unregistered informal sector companies becoming micro enterprises and micro enterprises growing into small businesses. The minister discussed these achievements during an interview with Bernama during his recent visit to Bernama's Penang Bureau.
During the visit, Sim, who also serves as DAP Penang chairman, distributed mooncakes alongside state DAP leaders in celebration of the Mooncake Festival. He announced KUSKOP's target to enable at least 10,000 MSMEs to scale up their businesses this year, supported by an additional RM1 billion in microcredit financing announced by Prime Minister Datuk Seri Anwar Ibrahim during the National Day celebrations.
The additional allocation raises the total microcredit financing provided by the government this year to RM6 billion, an increase from RM5 billion previously. Of the RM1 billion addition, RM100 million will be channelled through TEKUN Nasional, increasing TEKUN's total financing allocation for the year to RM1.1 billion. TEKUN has already disbursed nearly RM700 million to over 31,000 entrepreneurs nationwide in the first seven months of the year.
Sim explained that the amount of financing received by each entrepreneur varies according to their business needs, with TEKUN financing reaching up to RM100,000. KUSKOP aims to disburse RM15 billion in financing to entrepreneurs nationwide this year, with nearly RM9 billion already channelled to about 250,000 entrepreneurs by July.
In Penang, RM737 million has been disbursed to nearly 6,000 entrepreneurs during the same period. The financing is intended not only for capital acquisition but also for making basic improvements to boost efficiency, productivity, and market reach.
Sim noted that digital transformation for MSMEs doesn't necessarily require major technology investments. It can start with adopting digital payment systems, e-wallets, QR codes, and financial and inventory management systems. These improvements can significantly boost efficiency and market expansion.
In efforts to expand digital transformation among cooperatives, KUSKOP aims for 100 cooperatives nationwide to become self-collection points for e-commerce platforms by the end of the year. As of the first half of the year, 56 cooperatives have joined the initiative, providing an additional income source and helping the cooperative movement adapt to the digital economy.
Sim added that this initiative not only generates additional income for cooperatives but also aids the cooperative movement, which has a history of over 100 years, in adapting to the digital economy. It's part of KUSKOP's efforts to diversify cooperative businesses and promote digital transformation.