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Wee: Government loans available for businesses destroyed by flooding

[ 12-01-2015 ]
Wee: Government loans available for businesses destroyed by flooding
Businesses will face a challenge to re-open after the floods. -Bernama

Businesses will face a challenge to re-open after the floods. -Bernama

KUALA LUMPUR: Hope is not lost for the shops and stores in the East Coast that were destroyed by the recent floods.  

Minister in the Prime Minister’s Department Datuk Dr Wee Ka Siong revealed that SME Corp, the Secretariat for the Advancement of Malaysian Entrepreneurs (SAME) and the Malaysian Industrial Development Finance Bhd (MIDF) have allocated funds for such emergencies.

“Most shops in Kuala Krai are still closed. They are unable to do businesses because their stocks have been destroyed or washed away by floods,“ he told reporters on Saturday.

Recent flooding destroyed business inventory and premises, with many traders wondering if they would be able to resume their businesses.   

According to Dr Wee, businesses can apply for funds up to RM100,000 through a combination of soft-loans from MIDF and grants from SME Corp.

“These government agencies are here to ensure traders can successfully resume their businesses,“ he said.

SME Association of Malaysia Teh Kee Sin said it is vital for businesses to resume operations as soon as possible.

“Their employees remain jobless if they don’t start their businesses,“ he said, adding that it will have negative impact on local economy if there is a prolonged shutdown.

Teh who was involved in helping flood victims in Johor to apply for the same loans in 2006 hoped a special taskforce can be set up to oversee the collaboration between these government agencies.

“It is important to ensure the whole process of application, approval and disbursement of funds are conducted swiftly and efficiently,“ he said.

Teh also pointed out that the government has recently announced that RM10 mil will be allocated to aid traders affected by floods.

“The funds will not be enough for them to recover all their losses. At least it will be enough for them to refurbish their buildings and repair their machines,“ he said.