The government is considering asking small- and medium-scale enterprises (SMEs) to borrow more for development and expansion and depend less on grants. International Trade and Industry Minister Datuk Seri Rafidah Aziz said soft loans or interest-free loans could be more effective in the government's efforts to support SMEs.
She said her ministry and the Small and Medium Industries Development Corp (Smidec) will fine-tune the existing support programmes for SMEs in order to get the best approach.
"I'm asking Smidec to study the possibility of reducing the grant element because, sometimes, this did not elicit responsibility among our people.
"We are looking at various options ... the money will still be available, but maybe in the form of soft loan or interest-free loan as there is a payback element," she said after announcing SMEs' performance in the manufacturing sector in Kuala Lumpur yesterday.
