THE Entrepreneur Development and Cooperatives Ministry (EDCM) has introduced the “umbrella” concept with an allocation of RM5 million to help entrepreneurs boost the production of local products.

Its minister Noh Omar said that for a start, funds will be allocated through the Rural Economic Development Scheme and implemented in collaboration with the Rural Development Ministry (RDM). 

He said the umbrella concept aims to facilitate financial assistance to a company that wants to expand its stockist and agent business. 

“For starters, we are trying RM5 million, we will see how the response from the entrepreneurs is. The allocation from RDM is placed under Bank Rakyat and SME Bank under the purview of EDCM. 

“The maximum financing is RM100,000. Applications can be made at Bank Rakyat and SME Bank,” he told the media in Shah Alam today. 

The minister explained that the umbrella concept enables approval of bulk financing by a company and avoids repeat applications to the bank.

Payments will be done in stages according to the conditions set, he said.

“So far, we have received 15 initial applications. We will look comprehensively at the entrepreneurs’ criteria before the bank approves the next process,” he said. – Bernama, August 3, 2022.