
by SHAHRIN AIZAT NOORSHAHRIZAM
THE government has launched RM80 million worth of low-cost financing schemes to help micro and small traders increase inventory, marketing and operational capacity ahead of the Chinese New Year and Ramadan seasons.
Entrepreneur Development and Cooperatives Minister Steven Sim (picture) said the two schemes are aimed at easing short-term cash flow constraints faced by small traders during peak festive demand, particularly those operating at bazaars and seasonal markets.
“We want to help small traders run their businesses more smoothly, especially during festive seasons when they need immediate working capital to buy stock, improve promotion or adopt new tools,” he said at a press briefing today.
Of the total allocation, RM50 million has been set aside for the Skim Biaya Ramadan Perniagaan Rakyat (Barakat), which will be administered by Tekun Nasional, while RM30 million will be channelled through SME Corp Malaysia for a festive financing scheme targeting Chinese New Year-related businesses.
The Barakat scheme is designed to support micro and informal traders operating throughout the Ramadan period, including those selling food and beverages, clothing, and Aidilfitri-related goods.
Eligible applicants may obtain financing of between RM1,000 and RM30,000, depending on whether they hold a valid local council licence or Companies Commission of Malaysia (SSM) registration.
Sim said the scheme is also open to informal traders who may not have full documentation, provided they can furnish basic verification of business activity, such as confirmation from local authorities or bazaar organisers.
“We understand the realities faced by micro traders. Sometimes their documentation or credit history is limited, but that should not automatically exclude them from government support,” he said, adding that the ministry would work with implementing agencies to facilitate access while maintaining financial accountability.
Financing under Barakat carries a low profit rate of 3% per annum, applies the Syariah-based Tawarruq concept and is aimed at helping traders operate in a more planned and sustainable manner during Ramadan.
Meanwhile, the RM30 million Chinese New Year festive financing scheme under SME Corp targets micro and small businesses within the Chinese community, particularly those involved in food production, traditional snacks and festive-related trades.
Sim said food-related businesses were given special attention under the scheme as they often face higher upfront costs and greater difficulty accessing formal financing.
“Sometimes food traders, especially those preparing traditional festive items, find it harder to obtain government financing. That’s why we want to ensure this segment is properly covered,” he said.
Both schemes offer financing of up to RM30,000 per applicant at a profit rate of 3%, with funds allowed to be used for inventory purchases, equipment, packaging, decorations and other business needs related to festive sales.
To address concerns over timing, Sim said approvals for both schemes would be fast-tracked, with processing expected to take between five and seven working days, provided applications are complete.
“In the past, some financing approvals could take up to 30 or 40 days. Our commitment now is to shorten that period significantly so traders can get help when they actually need it,” he said.
Applications for the Chinese New Year scheme open on Feb 9, while applications for Barakat are already open. Information is available through Tekun Nasional and SME Corp Malaysia.
Sim said the ministry would monitor take-up rates closely and consider additional allocations if demand proves strong, noting that the initiatives form part of broader efforts to strengthen micro and small enterprises and reduce bureaucratic hurdles.
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