Penang: Over 2,000 small traders have applied for the Biaya Ramadan Perniagaan Rakyat Scheme (BARAKAT) and the Special Financing Programme for Chinese-Owned Micro Enterprises (BERKAT), Entrepreneur and Cooperative Development Minister Steven Sim announced.

According to BERNAMA News Agency, despite the schemes being launched just last Thursday, they have received strong interest. BERKAT, introduced by SME Corp Malaysia in conjunction with Chinese New Year, has garnered over 1,000 applications. Similarly, BARAKAT, launched by TEKUN Nasional for Ramadan and Aidilfitri, has received about the same number of applications as of Monday.

Sim stated that the ministry is dedicated to expediting the application approval process, with an aim to finalize approvals within around five days if all documentation is complete. This marks a significant reduction from the previous processing time of up to 30 days.

BERKAT, with a total allocation of RM30 million, is designed to provide Chinese small traders with working capital support for Chinese New Year. It covers stock purchases, business expansion, and premises improvements. BARAKAT, with RM50 million allocated, aims to support Muslim traders in Ramadan and Aidilfitri bazaars with their working capital needs.

Sim noted that both financing schemes are part of the ABCD strategy outlined by the Ministry of Entrepreneur and Cooperative Development (KUSKOP) to boost local business competitiveness. The ABCD strategy includes enhancing productivity, simplifying bureaucracy, providing easy access to capital, and ensuring market access for entrepreneurs.

The government aims to convey a clear message of support for small traders and small and medium enterprises, helping them grow and remain competitive. On Feb 5, KUSKOP, via TEKUN Nasional and SME Corp Malaysia, launched these special financing schemes worth a total of RM80 million to improve micro-entrepreneurs' access to funding during the festive season.