Don’t over rely on free grants, Bumiputera entrepreneurs told

The government does not want Bumiputera entrepreneurs to rely too much on free grants said Economy Minister Rafizi Ramli.

“Grant assistance are only given to entrepreneurs at the micro stage to motivate them to start a business through agencies such as Mara and SME Corp as a capital boost,” he said.

Rafizi pointed financing through banks and financial agencies with low interest rates is still available.

“This effort would ensure businesses are sustainable, competitive with capacity to repay loans. Assistance in the form of loans can maximize the government’s limited financial funds.

“The government would be able to provide more access for financial aid to truly eligible Bumiputera businesses.”

Rafizi said this in a written reply to Datuk Awang Hashim (PN-Pendang).

Awang questioned the government’s decision to stop free grants to Bumiputera companies and entrepreneurs under Bumiputera development agencies such as Teraju.

“Funds channelled through financial agencies and banking institutions would increase fund size via leverage and duplication and it will be remobilised to provide access to Bumiputera companies.”

He also explained Teraju’s role in aiding Bumiputera businesses.

“The realignment of Bumiputera development agencies such as Teraju will offer capital access to Bumiputera businesses that leads to growth and widens the scale of the company to the global level.

“Teraju also plays the role as a catalyst in scaling up Bumiputera start-ups and mid-tier companies.”

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