KUCHING: The Ministry of Entrepreneur Development and Cooperatives (Medac) will continue to focus on assisting micro and informal traders as well as entrepreneurs affected by the Covid-19 pandemic.
Minister Datuk Seri Wan Junaidi Tuanku Jaafar said based on a study conducted by the ministry, although there were various assistance/stimulus packages that have been channelled by the government, entrepreneurs especially those involved in the micro and informal sector are still unable to fully restore their businesses.
“Despite the variety of incentives offered, the fact is that this group is still suffering because they do not have sufficient financial capacity.
“In fact, many of them do not have a business continuity plan and do not know how to apply for assistance provided by the government,” he said.
He further said Medac has found that there was a mismatch between the assistance provided by the government and the actual needs of entrepreneurs.
For example, the cost of adapting to digitalisation by micro-entrepreneurs does not require an excessive amount of financing compared to what is being offered to them.
The assistance provided by the government through commercial banks was difficult to be utilised by most entrepreneurs, especially micro entrepreneurs.
“We need to make necessary changes based on the current situation and needs. Be willing to change towards improving, simplifying and streamlining existing processes in ministries and agencies to become more effective, efficient and customer friendly.
“We need to be closer to the people so that we understand their situation and offer help immediately,” he said in delivering his New Year message during the launch of Medac’s direction for 2021 in Putrajaya on Monday (Jan 4).
Acknowledging the huge implication of Covid-19 on entrepreneurs, Medac has developed a special Entrepreneur and Cooperative Recovery Plan to ensure the sustainability and recovery of business operations of entrepreneurs, including micro enterprises, small and medium enterprises (SMEs), cooperatives, social entrepreneurs, start-ups and informal entrepreneurs.
“For the implementation of the first phase from May to December last year, a total of 20 programmes have been implemented with an allocation of RM171 million for 12,138 beneficiaries of which 96.52 percent are Bumiputeras.
“The second phase will start in January until May this year with an allocation of RM17.1 million,” he announced.
As of December last year, Medac has also offered financial assistance to affected entrepreneurs amounting to RM1.48 billion through agencies such as SME Bank, Bank Rakyat, Tekun Nasional and the Cooperatives Commission of Malaysia (SKM) to 53,449 beneficiaries.
In line with the National Entrepreneurship Policy (DKN 2030), Medac has formulated a new direction in the development of holistic entrepreneurship to ensure that entrepreneurship remains a major contributor in driving the country’s economic growth.
The five main approaches to the direction for 2021 is based on the concept of five Es (5E) – Enculture, Enable, Empower, Energise and Engage:
1. Enculture – efforts to cultivate entrepreneurial thinking and values among new entrepreneurs who are creative, innovative, resilient and knowledge-based, especially among the youth by applying technology advancement to be more competitive in exploring domestic and international markets.
2. Enable – seeking informal entrepreneurs as registered formal entrepreneurs.
3. Empower – focus on empowering micro, small and medium enterprises (PKMS) in restoring their business affected by Covid-19 as well as strengthen their drive to continue to thrive and be more resilient and competitive.
4. Energise – focusing on efforts to transform or inject new energy into the Cooperative Movement as a catalyst for the country’s economic growth which is balanced, inclusive, progressive and sustainable.
5. Engage – enhance engagement sessions either online or face-to-face to ensure Medac entrepreneurship programmes can be achieved and understood by society from all walks of life.
