FINANCIAL institutions should emulate Alibaba’s “3-0-1” step process to speed up processing of applications for loans and financing, Finance Minister Lim Guan Eng said.

“I think you all know the 3-0-1 (steps) from Alibaba – three minutes to fill in the form, no need to see anyone, and one second for approval,” he said while delivering the keynote address at the Credit Guarantee Corp 24th SME Awards.

This, he said, should be used as a benchmark to speed up turnaround time.

Lim said financial institutions should also ensure that the rate of non-performing loans is under control.

“Now we will not expect you to reach it immediately but if we can do it and at the same time ensure our non-performing loan rate is kept under control, I am sure Bank Negara Malaysia (BNM) will have no objection.”

As for small and medium enterprises (SME), the government has allocated RM17.9 billion to the development of the sector in next year’s budget.

The funds are to ease access to financing, increase productivity, raise the level of human capital, reduce the cost of doing business and increase the adoption of technology.

The SME sector is expected to add RM3.8 billion in value and help meet the GDP growth target of 4.9%.

Lim said the goods and services tax (GST) and income tax refunds were expected to help the country reach its growth target despite economic headwinds, as individuals and companies will have more money to spend and invest.

As of end February, the government has paid up RM7.9 billion of the RM37 billion outstanding tax refunds. – April 9, 2019.