KUALA LUMPUR, March 23 (Bernama) — Malaysia has a huge liquidity of RM250 billion in its coffers to help local businessmen tide over with the current global economic crisis, Datuk Seri Najib Tun Razak said today.
“That is the liquidity available throughout the banking and the capital market. Malaysia is not short of liquidity and we can tap into that,” said the Deputy Prime Minister.
He said the government would also provide incentives to encourage banks to issue loans to entrepreneurs in need of financial aid such as repayment guarantees to financial institutions to reduce liability risks.
“One of the important elements in coping with the current economic and financial crises is ensuring the country’s financial system can disburse loans to entrepreneurs in need of financial assistance,” he said at the 2009 MIDF (Malaysian Industrial Development Finance Bhd) Bumiputera Entrepreneurs’ Symposium.
“As long as the banking sector does not give out loans, until then efforts to revive the world economy will not succeed,” said Najib, who is also Finance Minister.
Among incentives provided are the guarantee scheme for small-time businessmen by the Credit Guarantee Corporation under Bank Negara’s supervision which will guarantee 80 percent of the loans approved under the scheme, he said.
Source : Bernama