TEKUN Nasional Extends Repayment Deadline to End of 2024 Amid Pandemic Recovery Efforts

TEKUN Nasional extends loan repayment deadline to 2024, aims to reduce arrears to single digits, and receives increased funding to support small businesses recovering from COVID-19 impact.

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Muhammad Jawad
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TEKUN Nasional Borrowers Given Until End of 2024 to Repay Arrears

TEKUN Nasional Borrowers Given Until End of 2024 to Repay Arrears

Deputy Entrepreneur Development and Cooperatives Minister Datuk R Ramanan announced that all borrowers of the National Entrepreneurial Group Economic Fund (TEKUN Nasional) have been given until the end of 2024 to make repayment of their funding arrears. The extension was granted to assist entrepreneurs who are still struggling to rebuild their businesses that were adversely impacted by the COVID-19 pandemic in 2020.

Ramanan expressed confidence in the leadership of TEKUN Nasional chairman, Datuk Abdullah Sani Abdul Hamid, to reduce the number of non-paying borrowers to single digits this year. "The Tekun Nasional chairman is focused on reducing the arrears rate, and I am confident the target will be achieved," he said.

As of January 2024, there were 137,520 TEKUN Nasional borrowers with arrears of financing for over six months, amounting to RM1.1 billion. The current financing arrears rate stands at 12.66% nationwide. Ramanan explained that borrowers are coming forward to make payments, but they require more time due to the lingering effects of the pandemic on their businesses.

Why this matters: The extension of the repayment period for TEKUN Nasional borrowers provides much-needed relief to entrepreneurs who are still recovering from the economic fallout of the COVID-19 pandemic. By reducing the number of defaulting borrowers, TEKUN Nasional aims to ensure the sustainability of its financing programs and support the growth of small businesses in Malaysia.

TEKUN Funding Update: Ramanan also mentioned that about 30,000 TEKUN funding applications have been received so far this year. The government has allocated a total of RM360 million to TEKUN Nasional for 2024, including an additional RM30 million for the Indian Community Entrepreneur Development Financing Empowerment Scheme (Spumi Goes Big).

The Deputy Minister emphasized the importance of supporting entrepreneurs and expressed hope that more will come forward to apply for TEKUN Nasional financing. With the extended repayment period and the government's allocation, TEKUN Nasional is well-positioned to assist small businesses in rebuilding and thriving in the post-pandemic economy.

Key Takeaways

  • TEKUN Nasional borrowers given until end of 2024 to repay funding arrears.
  • TEKUN Nasional aims to reduce arrears rate to single digits in 2024.
  • Current arrears rate stands at 12.66%, amounting to RM1.1 billion.
  • Government allocated RM360 million to TEKUN Nasional for 2024, including RM30 million for Spumi Goes Big.
  • Extension and funding aim to support small businesses in post-pandemic recovery.