THE need for cash flow during the difficult economic period and
enhanced awareness on government grants have led to a surge in
applications for grants by small and medium enterprises (SME) this year.
SME Corp Malaysia chief executive officer Datuk Hafsah Hashim said the
agency received an average of 998 applications a month in the first
eight months this year, compared with 360 applications a month for a
three-year period between January 2006 and Dec 2008.
"We
received 7,982 applications for grants in the first eight months this
year. However, between January 2006 and December 2008, we received a
total of 12,938 applications," she said at a media conference in
conjunction with the launch of SME Corp in Kuala Lumpur yesterday.
Also present were SME Corp chairman Datuk Mohamed Al Amin Abdul Majid.
SME Corp officially began its operations yesterday to
replace Small and Medium Industries Development Corp (Smidec) which was
established in May 1999.
The increased awareness among the SMEs on the grants, which is also
attributed to Smidec's nationwide roadshow, has resulted in some 5,000
backlog of applications for grants.
Hafsah said SME Corp is confident of clearing the backlog within two months time.
She said SMEs require government grants to assist their cash flow to
meet working capital, export activities and easing their financial
burden during the current economic slowdown.
For this year, a
total of 174 SME programmes with a RM3.04 billion allocation from the
government, has been implemented by 14 ministries and 60 agencies.
Hafsah
added that Prime Minister Datuk Seri Najib Razak, who will chair the
next National SME Development Council meeting in December, will
announce the output and outcome of these programmes.
