SME Corp allocates additional RM6 million for Indian entrepreneurs
KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (KUSKOP), through its agency SME Corp Malaysia, has allocated an additional RM6 million specifically for small businesses owned by Indian entrepreneurs.
According to the Wilayahku portal, this additional allocation will be channeled through an existing program branded as the Business Accelerator Programme for Indian Small Business, or I-BAP.
I-BAP offers financial assistance in the form of matching grants of up to RM100,000 aimed at enhancing the capacity, capabilities, performance, and productivity of Micro, Small, and Medium Enterprises (MSMEs).
This includes expenses for acquiring machinery and equipment to improve product quality and production efficiency, product certification, ICT and e-commerce adaptation, implementation of Environmental, Social, and Governance (ESG) practices, as well as marketing and promotional campaigns.
The Deputy Minister of Entrepreneur Development and Cooperatives, Datuk Seri Ramanan Ramakrishnan, stated that the specific allocation for small businesses owned by Indian entrepreneurs through I-BAP is timely.
He emphasized the importance of their involvement in realizing the goals of the civilizational economic framework for achieving more equitable, inclusive, and sustainable growth.
Ramanan made these comments following a visit to Renewcell (M) Sdn Bhd, one of the companies receiving assistance today.
“The government will continue to support the empowerment of MSMEs, including small businesses owned by Indian entrepreneurs, to elevate them to a higher level. This aligns with the commitment and efforts of the Prime Minister, Datuk Seri Anwar Ibrahim, who prioritizes the success and advancement of the Indian community in line with the Malaysia Madani concept,” he said.
Ramanan also expressed his satisfaction seeing companies like Renewcell (M) Sdn Bhd benefiting from the assistance and successfully launching their new products.
“However, I would like to remind that small businesses owned by Indian entrepreneurs need to act quickly to seize the opportunities offered through the I-BAP program. This is because the funds are limited, and only applications that meet all the established eligibility criteria will be considered.
“For expenses that cannot be covered under I-BAP, MSMEs also have other financing alternatives available through SME Corp Malaysia,” he added.
Meanwhile, the Chief Executive Officer of SME Corp Malaysia, Rizal Nainy, stated that as of 2024, a total of RM24.12 million in grants has been approved for 197 companies under the Business Accelerator Programme (BAP).
He noted that out of this total, RM1.07 million has been approved for 12 Indian-owned companies.
“The BAP program has indeed proven to have a significant impact on MSMEs. Additionally, companies have recorded annual sales increases of up to 44.7 percent and a 30.3 percent increase in productivity,” he said.