theSun | TUESDAY JANUARY 13 2009 19

business

Take micro financing to face

slowdown: Tee Keat
by Giam Say Khoon
newsdesk@thesundaily.com
KUALA LUMPUR: Small and Medium
Enterprise (SME) players should take
micro financing to sustain their busi-
nesses and maintain job opportunities
for the people before the global eco-
nomic recession hits the country, said
MCA president Datuk Seri Ong Tee
Keat yesterday.
Ong said adequate access to financ-
ing for micro businesses is vital to
enable them to contribute and survive
through the current challenging times
as a significant number of SMEs in
Malaysia are micro-businesses.
“Malaysia will not be spared from
the global economic downturn brought
by the United States recession and sub-
prime crisis.
“Having adequate cashflow is
important to keep their businesses
running, to meet their obligations to
suppliers, employees, rental and other
operational expenses,” he said at the
launching of the MCA ICT Resource
Centre’s (MIRC) Micro Financing
Expo here. Among those present at the
function was Deputy Finance Minister
Datuk Kong Cho Ha, who is also the
party vice-president.
Ong said the micro financing
scheme, which enables a micro enter-
prise to obtain loans up to RM50,000,
has been available since 2006 and that
the processing of an application takes
only two to fourteen days.
“If you start applying for your
micro financing loan and be eligible
for financing, you could celebrate the
Chinese New Year holidays with peace
of mind.
“I urge everyone to consider apply-
ing for the scheme instead of resorting
to Ah Longs (loan sharks) which are
not legitimate lending agencies and
have wrecked countless lives
Ong said he wanted efforts to be
made to bring road shows on raising
the awareness on micro financing to
all states in the country so that all will
benefit from the initiative by the MIRC
and nine participating local banks.
He said the party will also work with
the SME players, non-governmental
organisations and the chambers of
commerce of all races to embark on
a “buy local products or services”
campaign.
“When we call on the people to buy
local products, we do not mean to call
for a boycott of other products.
“Most importantly, we want the
people to realise that by buying our lo-
cal goods and services, we can help a
lot of countrymen to keep their jobs as
well as local companies,” he said.
Ong said the party will soon visit
its counterpart in Beijing not only to
improve the relationship between the
two political parties but also to woo
investments from China to create more
job opportunities in Malaysia.
On the complaint that the interest
rate of micro financing is too high
for the SME players to apply, Kong
explained that the high interest rate is
because of the small quantum of the
If you start
applying
for your
micro
loan and the cost of services provided financing
by the financial institutions is very
high as bank officers have to actually loan
go to the ground to look for potential and be
borrowers and collect repayment. eligible for
“The micro financing does not re- financing,
quire collateral and a guarantor and is
deemed riskier by financial institutions.
you could
That is why the cost can be higher,” he celebrate
said. the
On another matter, Ong who is Chinese
transport minister, said it is not for New Year
the ministry to determine whether the
proposed new low cost carrier terminal holidays
(LCCT) in Labu, Negri Sembilan, by with
Sime Darby Bhd and AirAsia is feasi- peace of
ble, as it is a privatised project. mind.”
On the criticism that the LCCT would
be a problem in the government’s ef- – Tee Keat
forts to make KL International Airport
(KLIA) an aviation hub, Ong said the
ministry had listened to the Malaysia
Airports Holdings Bhd’s (MAHB) view,
and the KLIA masterplan, which is a
study commissioned by the MAHB, will
be tabled to the ministry this week.
Asked if the proposed LCCT will
violate the International Civil Aviation
Organisation’s (ICAO) guidelines as
the airport will be built just 10km away
from the KLIA, Ong said the geographi-
cal distance is a separate matter as far
as the ICAO compliance is concerned.
“The landing and take-off is the key
parameter that we take into considera-
tion and we have conducted our study
(that it will not pose a problem to
KLIA),” he said.

Honda raises sales target
despite tough times
KUALA LUMPUR: Honda Malaysia Sdn Bhd plans
to increase its 2009 sales target to 35,000 units
despite the looming financial crisis.
In a statement, Honda said the target would
be equivalent to capturing 8.8% of the total
industry volume with a forecast of 400,000 units
for this year.
Honda Malaysia managing director Atsushi
Fujimoto said despite all the negativity from
the market, the company would continue to
introduce new, refined products and innova-
tions to the market this year. “With the launch of
the 3rd Generation City last month, the company
has received more than 4,500 bookings and the
numbers are still counting, setting the pace for us
to reach the target,” he said.
Fujimoto said Honda Malaysia would continue
to place customer satisfaction as its priority and
continue its effort in providing the best product
quality, sales and after-sales services at reason-
able prices.
He said last year, Honda Malaysia registered
sales of 32,486 units compared with the target
of 33,000 units. However, the company still man-
aged to record a growth of 14% on the back of
28,479 units in 2007, it said. – Bernama
CIMB Bank aims for one-digit
growth this year
CHANGLOON (Kedah): CIMB Bank aims to
achieve one-digit growth this year following
the global economic slowdown, group chief
executive officer Datuk Seri Nazir Razak said
yesterday. He said the less than 10% growth
would not adversely affect CIMB which
registered 15% growth last year.
CIMB would also re-evaluate 368 branches
nationwide to merge 30 branches, he told
reporters after the opening of the Changloon
CIMB branch by Kedah Mentri Besar Datuk
Seri Azizan Abdul Razak.
“The third phase merger exercise has
nothing to do with the economic slowdown.
It is more towards boosting competition,
ensuring viability and relevant to clients and
to maintain the lead position in the market,”
he said. – Bernama
Economy fear hits stocks and
oil again
LONDON: Equities kicked off the week on a down
note and the euro fell yesterday with recurrent
worries about the global economy pushing inves-
tors away from riskier assets and also driving oil
below US$40 (RM140) a barrel.
Friday’s December US payrolls report, which
showed more than half a million jobs lost and
the highest unemployment rate since 1993, ag-
gravated anxiety about US consumer demand.
“The negativity still sits in the market, nothing’s
really changed in 2009,” said Dominic Vaughan,
senior dealer at CMC Markets in Australia. “In the
next three to six months we’ve still got difficult
times ahead ...”
MSCI’s all-country world index was down
about 0.7%, taking the benchmark into negative
territory for the year-to-date and the fourth nega-
tive daily performance in a row.
The pan-European FTSEurofirst 300 index of
top European shares was down 0.5% after losing
the same on Friday. – Reuters