Online loan platform for traders
KOTA KINABALU: Financial institutions channelled RM16.1 billion to small and medium industries in Sabah up until December last year.
Bank Negara Malaysia (BNM) Governor Datuk Muhammad Ibrahim said this was 68 percent from the total financing amount to business entities in the State.
He said that in line with the Sabah Development Corridor, a holistic financing ecosystem had been created to support the business environment.
The financing ecosystem was covered by the Credit Guarantee Corporation (CGC) which provided collateral to unsecured entrepreneurs for loan facilities, he said at the Karnival Kewangan Sabah (Sabah Finance Carnival) held at Suria Sabah from Aug 46.
Muhammad said there is also the small loan settlement scheme for entrepreneurs facing cash flow problems while the BNM Special Funds supported access to financing.
He said the rate of non-performing loans for entrepreneurs in Sabah was the lowest in the country.
Muhammad said BNM was aware that some entrepreneurs were facing difficulties getting loans, in particular those who had just begun their business endeavours or had involved themselves in a new development or in a new transition such as biomass, hotel and shipping.
He said BNM was working with CGC to develop an online finance platform that will help entrepreneurs conduct searches and apply for finance packages.
The platform is expected to be completed by the end of this year to reduce the entrepreneurs’ search costs, he said.
Muhammad also announced the implementation of the Financial Accelerator Lab which is geared towards providing fast and systematic follow-up assistance to entrepreneurs who had failed to acquire their choice of financing package.
He said the initiative would help applicants to take the necessary steps to raise their chances of getting financial assistance in the future.
Muhammad also commented on savings among the people of Sabah, saying about 16 percent of the adult population in Sabah still do not have a bank account.
He said all 60 state assembly constituencies in Sabah were now equipped with at least one finance facility as compared to only 24 in 2011.
Meanwhile, the Financial Industry Collective Outreach or Finco was also launched yesterday.
Muhammad said Finco was aimed at raising efficiency in the English language as well as served as a motivational tool for children and youths from low income families.
Present at the event were Chief Minister Datuk Seri Panglima Musa Haji Aman and Deputy Chief Minister cum Industrial Development Minister Datuk Raymond Tan Shu Kiah.
Also present was Sabah Education Department director Datuk Maimunah Suhaibul.