KINABATANGAN: Loan approvals under federal microfinancing agencies will be shortened to just five working days nationwide, as the government moves to cut red tape and speed up access to funding for small businesses, says Datuk Mohamad Alamin.
The Deputy Entrepreneur Development and Cooperatives Minister Datuk Mohamad Alamin said the accelerated approval timeline applies to financing schemes under agencies such as Tekun Nasional and Amanah Ikhtiar Malaysia, provided applicants submit complete documentation.
He said the move follows repeated complaints from entrepreneurs over delays and excessive paperwork, prompting agencies to streamline procedures and introduce a data-sharing system to avoid repeated submission of documents.
“If previously approvals could take up to two weeks, the instruction now is clear – loans must be approved within five working days,” Mohamad said when met during the Jualan Madai Koperasi dan Usahawan at Kampung Batu Puteh, here, on Wednesday (Jan 21).
Mohamad said the faster approval process comes as the Ministry steps up support for entrepreneurs ahead of the Visit Malaysia Year 2026, with tourism identified as a key driver of local economic growth.
He said additional financing through Tekun and Amanah Ikhtiar Malaysia will be channelled to tourism-related businesses, including operators looking to expand homestays or invest in tourism assets, to help them capitalise on rising visitor demand.
In Kinabatangan alone, Mohamad said financing disbursed last year through Tekun and Amanah Ikhtiar Malaysia exceeded RM10mil, each, underscoring the scale of support already flowing to entrepreneurs in the constituency.
He added that allocations for the area are expected to be increased this year, particularly for tourism-focused businesses.
Mohamad said entrepreneurs in Kinabatangan are largely involved in micro, small and medium enterprises, ranging from food and retail businesses to transport services, logistics linked to the palm oil sector and school transportation.
At the national level, Mohamad said Tekun and Amanah Ikhtiar Malaysia are among agencies allocated a combined RM500mil in financing this year, up from RM350mil previously, excluding facilities provided by financial institutions such as Bank Rakyat and SME Bank.
He said the combination of higher allocations under microfinancing agencies and faster nationwide loan approvals is expected to give entrepreneurs quicker access to capital, enabling them to grow more sustainably while strengthening local economies, particularly in rural areas like Kinabatangan.