Teraju allocates RM100m for short-term Islamic financing for working capital
KUALA LUMPUR: Bumiputera Agenda Steering Unit (Teraju), a Bumiputera-mandated agency under the Economy Ministry, has allocated RM100 million for a newly launched Islamic Working Capital Project Financing (i-WCPF) programme.
The programme offers easy access to financing through digital platforms such as peer-to-peer (P2P).
Economy Minister Rafizi Ramli said the shariah-compliant P2P financing allows Bumiputera companies to obtain short-term financing for their working capital.
“Usually those who take this P2P financing are for two to three months. Sometimes a company has to wait for the payment but doesn’t have enough time for the capital turnover.”
“Therefore, enterpreneurs can use invoices from companies or the government to get funding and the profit rate is better compared to existing financing products,” he told the media after launching the i-WCPF programme here today.
According to Rafizi, the financing programme is among the earliest shariah-compliant P2P financing in the country which also open to other Bumiputera companies that want to invest their funds in the programme.
He also hopes that Teraju will be like Chinese councils that support Chinese companies on their ecosystem.
“The programme launched today is part of the mandate given to Teraju to build a more complete ecosystem that empower Bumiputra entrepreneurs.”It is not only providing money but also guiding the companies,” he added.
The i-WCPF falls under Teraju’s two main service categories, namely financing services and facilitation services.
It provides a financing of up to RM1 million to target companies in the high-growth high value (HGHV) industry with a financing period up to 12 months.
Through i-WCPF, Islamic finance products will be offered in the form of Islamic investment note financing, pre and post invoice, in line with the Teraju Business Plan 2024-2030.
The programme aims to provide enterprises quick and easy access to financing through a digital platform, facilitating mid-level Bumiputera enterprises to expand operations globally and domestically in high value-added industries.
It is an alternative funding source for working capital that is not usually offered by financial institutions, financial service providers and government agencies.
The i-WCPF is also expected to increase Bumiputera participation in the supply chain and high value sector, the income or profit of Bumiputera SMEs and help build a more structured financial record.
Source: NST – Business Times