Tekun Nasional's loan default rate of 9.5% is acceptable, which is below the micro-financing default average of 16%.

Tekun loan default rate acceptable, says chairman

 

PEKAN: Tekun Nasional's loan default rate of 9.5% is acceptable, which is below the micro-financing default average of 16%, its chairman Datuk Nor Azita Abdul Rahman said.

She said that Tekun often emphasised on the need to pay back loans and that since 2010, it had started running seminars to give entrepreneurs a better chance of succeeding in their ventures.

“When you borrow, you must pay back. Then future entrepreneurs will have the chance to take out loans,” she said at the launch of the Pahang state-level Tekun entrepreneurship seminar on Saturday.

During the seminar, RM183,000 in loans were given out to 25 participants. An estimated 1,100 attended the one-day event.

Since its set up in 1998, Tekun Nasional, an agency under the Entrepreneur and Cooperative Development Ministry, had loaned RM3.97bil to 342,317 individuals and companies.

Nor Azita said it was now compulsory to attend such seminars for anyone borrowing more than RM3,000, while credit checks would be done on those seeking to take another round of funding.

According to Tekun documents, participation had shot up from 392 in 2010 to 19,019 in 2015.

Todate in 2016, Tekun has lent RM82.98mil to 5,419 individuals and companies.

Nor Azita said poor financial management was one of the main stumbling blocks for Malay entrepreneurs.

“Even if you sell nasi lemak at a canteen, you need to close accounts to see how much you're earning versus how much you're actually profiting,” she said.

To address this, Tekun provides basic accounting training and an accounting programme to its entrepreneurs.