Kuala lumpur: Agencies that provide financing to micro, small, and medium enterprises (MSMEs) have been urged to publish periodic reports on funding recipients to improve transparency and reduce opportunities for abuse, cronyism, and political interference. Small and Medium Enterprises Association Malaysia (SAMENTA) president Datuk William Ng highlighted this need, suggesting that these reports include data like approval rates, average processing time, and loan default rates by sector.

According to BERNAMA News Agency, Datuk William Ng emphasized the importance of these measures, noting that even though most agencies have transitioned to digital systems to enhance transparency and eliminate middlemen, these systems can still be manipulated by insiders. He proposed the introduction of a whistleblower protection mechanism to enable reports on misconduct, collusion, or cronyism to be made directly to the Malaysian Anti-Corruption Commission (MACC) or the integrity unit of the relevant ministry without fear of retaliation.

SAMENTA has expressed support for the firm stance taken by Prime Minister Datuk Seri Anwar Ibrahim and Minister of Entrepreneur Development and Cooperatives Steven Sim Chee Keong to eradicate the culture of using political support letters and insider financing arrangements. Datuk William Ng described any attempts to bypass proper financing governance as acts of economic sabotage.

He further explained that the culture of political patronage and cronyism in funding approvals has distorted the entrepreneurial ecosystem, as public financing often gets allocated based on political ties rather than genuine entrepreneurial capabilities. This practice results in deserving MSMEs being sidelined.

Datuk William Ng warned that agencies tasked with developing MSMEs also risk being burdened with unpaid loans if financing is approved for those lacking the commitment and genuine capability to undertake their business ventures.