KUALA LUMPUR, Sept 6 — Development financial institutions , or specialised banks, should provide more funding opportunities to micro, small, and medium enterprises , and not just focus on big companies.
“When the companies seek expansion and create new products, it will contribute to the real economy via the hiring of new workers and an increase in liquidity in the market,” he told Bernama today. Ahmed Razman said the government can also come up with policies that will encourage more businesses to seek financing from DFIs rather than from commercial banks as DFIs can ensure a higher probability of success to these businesses due to the specific nature of their business, which is to focus on assisting the businesses.
“In fact, DFIs, government-linked companies , and all government ministries should review their plans with the aim of supporting the economic recovery. Bank Islam chief economist Mohd Afzanizam Abdul Rashid said the DFIs have provided appropriate support during the pandemic, but a greater focus is needed in order to help restore and retain the capacity of businesses.
“The collaboration could be in the form of business training like marketing, finance, and strategy as well as providing access to export markets and integrating themselves with the global supply chain. If we think that way, finance is only one part of the equation in order to these businesses,” he stressed.
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