KUALA LUMPUR: National Entrepreneurial Group Economic Fund’s (Tekun) internal reserves of RM250 million will help it continue to assist small and medium entrepreneurs despite an allocation cut in Budget 2019, the Dewan Rakyat was told today.
Deputy Entrepreneur Development Minister Datuk Dr Mohd Hatta Md Ramli said the internal source of funds would help it carry out its aim to help entrepreneurs despite a drop from RM500 million allocated this year in the 2018 Budget to RM100 million for next year (2019 Budget).
“Despite the allocation cut from RM500 million to RM100 million, Tekun is optimistic it would be able to continue hand out loans due to its internal funds of RM250 million.
“Therefore, with those funds, Tekun is targeting to create 50,000 new micro entrepreneurs within the next year,” he said in replying to a supplementary question by Datuk Mohd Nizar Zakaria (BN Umno-Parit) on whether Tekun’s role could be jeopardised by the allocation cut in 2019 Budget.
Meanwhile, Hatta said loan repayments to Tekun recorded an increase each year, with an overall RM2.07 billion collected from 2014 to July this year.
He said RM312 million was repaid by entrepreneurs to Tekun in 2014; RM355 million in 2015; RM543 million (2016); RM544 million (2017); and RM302 million (as at July this year).
He said the government estimated RM600 million overall repayment to Tekun this year.
He said between 2013 and this year, the government had allocated RM1.5 billion to Tekun.
“Based on that amount and Tekun’s internal funds of RM1.27 billion, around RM2.77 billion was allocated (in loans) to 175,445 entrepreneurs,” he said.