Informal entrepreneurs contribute to country economy

11 May 2024

By AVV

KUALA PENYU: The informal economy sector such as street vendors and small traders have significant potential to contribute to the country's economy and provide job opportunities to the people.

The Minister of Entrepreneur Development and Cooperative Datuk Ewon Benedick said

informal entrepreneurs typically do not have the inclination to expand their businesses beyond daily needs.

"Therefore, the government provides various incentives and stimulus packages to ensure that entrepreneurs can continue and grow their businesses," Ewon, who is also the UPKO President said.

In his speech, he said during the presentation of the 2024 Budget, priority was given to continue supporting entrepreneurs to enhance business capacity and competitiveness through the provision of small loans to micro-entrepreneurs and small traders.

This included an allocation of RM100 million to Amanah Ikhtiar Malaysia (AIM) to eradicate poverty, a RM100 million fund for the Cooperative Commission of Malaysia's (SKM) Revolving Capital Fund to enhance cooperatives' capabilities in the supply chain; and an allocation of RM330 million to TEKUN to provide financing facilities to small traders.

During the first three months of 2024, TEKUN Nasional has approved financing totaling RM24.1 million for 1,468 entrepreneurs in the state of Sabah.

Out of this total, an amount of RM429,000 has been disbursed to 41 entrepreneurs from the Beaufort constituency.

TEKUN Nasional is a government agency established to provide easy and fast financing facilities to entrepreneurs to start and further develop their businesses.

"Established in 1998, TEKUN Nasional remains relevant by offering various new products in line with the current needs of entrepreneurs." he stated.