Hello everyone,

The Malaysian government has announced a RM1.2 billion fund to assist
small- and medium-sized enterprises (SMEs)during the current
challenging period. Prime Minister Datuk Seri Abdullah Ahmad Badawi
made the announced at the launch of the 2007 SME Annual Report in
Kuala Lumpur, Malaysia.

The special financial package will comprise a RM700 million SME
Assistance Facility (SAF) and a RM500 million SME Modernisation
Facility (SMF)per NST.

SAF is to assist SMEs facing financial difficulties, restructuring of
SME loans, engaging advisory services on cost management and for
investing in energy efficiency, while SMF is specifically to finance
modernisation of operations and for purchase of energy-saving
equipment.

SMEs can approach any commercial and Islamic banks, SME Bank, Agro
Bank, Bank Rakyat and EXIM Bank to apply for these two facilities.
The maximum limit under the SAF is RM1.5 million while the SMF has a
maximum limit of RM5 million, both at a 4% interest rate.

The Prime Minister said the financial assistance scheme was aimed at
encouraging SMEs to upgrade and strengthen their abilities to
increase efficiency and productivity, in order to reduce their cost
of operations.

The Prime Minsiter also announced the official handover of the
National SME Development Council (NSDC) secretariat function from
Bank Negara to the Small and Medium Industries Development Corp
(Smidec), which will be expanded to become the SME Corporation
Malaysia from January 2009.

As at end-March 2008, financial institutions in the country have
extended SME financing of RM132.4 billion, representing 44.3 % of the
total outstanding business financing.

Meanwhile, Bank Negara Malaysia Governor, Tan Sri Dr Zeti Akhtar Aziz
encouraged SMEs to seek advisory services, restructuring and
additional funds, which are extended at concessionary rates. These
facilities, besides helping SMEs having financial difficulties, are
also geared to assist the SMEs to strengthen their operations by
upgrading energy efficiency and processes.

In welcoming the new financing facilities, Bumiputra Manufacturers
and Services Industry Association of Malaysia (BMSIAM) President,
Datuk Raja Nong Chik Raja Zainal Abidin in a telephone interview
said, the funds would help the SMEs, in particular some one third of
the SMEs, mainly in the manufacturing sector, including food
processing, which were having financial difficulities.

One of the main goals of DK Malaysia Development is to promote
investment, business development, manufacturing, trade, and tourism
to Malaysia and DK Malaysia serves as a consultant to Malaysian
government agencies (MITI -Ministry of Trade and Industry Malaysia
and MIDA, Malaysian Industrial Development Authority).

Take care and All the best,

Fred Plimley
President - DK Malaysia Development, LLC
Host/Moderator - Linkedin Malaysia
f.plimley@...
http://www.linkedin.com/in/fredplimley
(951) 243-3602
(909) 214-8783
(206) 338-3191
(+44) 020 7193 7317
Skype ID: fredplimley