Kuala Lumpur: The National Entrepreneurial Group Economic Fund (TEKUN) recorded a non-performing loan (NPL) rate of 9.8 per cent last year compared to 12.6 per cent in 2023, said Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.

According to BERNAMA News Agency, Amanah Ikhtiar Malaysia (AIM), now in its 38th year, reported a portfolio-at-risk (PAR) of 0.02 per cent last year, compared to 0.09 per cent in 2023. Minister Ewon Benedick attributed the decline in NPL and PAR figures to a financial education programme conducted in collaboration with the Credit Counseling and Management Agency (AKPK). This programme focuses on training in financial management and business planning, which aids entrepreneurs in maintaining stable cash flow and repaying their loans. Additionally, the programme includes courses on entrepreneurship fundamentals, highlighting the importance of loan repayment.

The minister further explained that TEKUN and AIM engage in regular monitoring and close supervision of entrepreneurs, providing them with guidance and support to help overcome financial challenges. Loan restructuring options, including more flexible payment plans such as extended payment periods or reduced monthly payments, are also offered to entrepreneurs facing financial difficulties.

Minister Ewon made these remarks in response to a query from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) during the Minister’s Question Time in the Dewan Rakyat. The question focused on the efforts of agencies under the ministry, specifically TEKUN Nasional and AIM, in reducing their NPL rate and performance in 2024. The minister emphasized that the ministry, through TEKUN Nasional and AIM, is committed to reducing NPL and PAR rates to ensure that funds can be allocated to other entrepreneurs in need.

By reducing NPL and PAR rates, Minister Ewon mentioned, both agencies can provide financial assistance to existing and new entrepreneurs, thereby fostering entrepreneurial growth and development.