Government will subsidise interest rates on bank loans to small- and medium-sized enterprises (SMEs) to encourage further lending said Deputy Finance Minister Datuk Dr Ng Yen Yen.
According to Deputy Finance Minister government would pay the difference in interest rates between what the commercial banks would charge the prospective borrower and what the borrower could reasonably bear.
“Government will also explore the securitisation of bank loans to encourage further lending to the SME sectors,” Datuk Dr Ng Yen Yen said. “Although SMEs account for less than 10% of the economy, the potential for their growth is tremendous,” she added.
SMI Association of Malaysia president Dr Looi Teong Chai said the association would set up a SMI Foundation to help promising SMI companies that require additional funding. Details will be announced next year.
