Forget Ah Long, Go To Tekun For Loan. Great Move But Why Restrict It Only To Bumis?

Bumiputeras who are keen to venture into small business or increase their working capital should apply for a loan from Yayasan TEKUN Nasional (YTN) instead of turning to unscrupulous 'Ah Long' for the loan.

The Entrepreneur Fund (TEKUN) managed by YTN had disbursed up to 134,000 small loans to about 80,000 Bumiputeras all over the country up to December 2006. YTN managing director Syed Kamarulzaman Syed Zainol Khodki Shahabudin said that under the Ninth Malaysia Plan, YTN had been allocated RM350 million and that it had no problems in giving out loans to assist small-scale entrepreneurs.

"Anyone who fulfils the loan conditions should be able to obtain the loan. It's so much better and safer than borrowing from a loan shark," he said.

CONDITIONS SET BY TEKUN

Of late, "Ah Longs" have been hogging the headlines for resorting to criminal intimidation and other brutal tactics against those who failed to pay up. Though the media has given wide coverage on the issue, there are still individuals who are ignorant and resort to borrowing from these loan sharks.

Some gave the excuse for turning to "Ah Longs" because agencies like TEKUN, MARA and banks failed to help them.

In refuting this, Syed Kamarulzaman explained that the conditions imposed for loans by TEKUN were minimal but if they failed to fulfil YTN's prerequisites, they would not get the loans. "The borrowers only need a permit, place to conduct the business and they must conduct the business full time. The process is facilitated by 192 TEKUN branches all over the nation with the cooperation of the District Entrepreneur Development Council (MPUD).

Unlike other financial agencies, TEKUN does not require the loan applicants to do much paperwork. They each need to fill up one form only. "We also have to ensure that with the loan, they can do business and the income generated can be used to pay back the loan," he said.

LOAN PROCESS

In the early days, loans were approved within 90 days. But now the process takes only 45 days. "For a short-term loan, like for operating a Ramadan stall, the process takes only two weeks," Syed Kamarulzaman said.

He, however, regretted that many of the businessmen only turned to TEKUN when they were in financial trouble. "As they feel the 45-day period is too long, they end up going to Ah Long who can approve their loan within a day. In fact, as business people, early planning is necessary, rather than acting at the last moment," he said.

"There is another category of Ah Long described as 'soft Ah Long' who don't lend out money but make sure the borrowers are indebted to them," he revealed. "For example, they supply items to retailers, farmers and fishermen and establish good rapport with them. The catch is that they offer the products at lower prices or allow credit to the buyers who can pay in instalments. "As they are indebted, they are bound to return to the soft Ah Long. This is in contrast to Bumiputera suppliers who offer goods at higher prices as they procured them at high prices too.

"These are the problems plaguing Bumiputera businessmen. Poor business networking and lack of knowledge in marketing their products add to their woes," he lamented.

However, he felt that many of those who got into trouble with Ah Long were those who borrowed for reasons other than doing business. They used the money to paying off an existing loan, for example. Only by doing business they can expect returns that can be used to pay off the debts and reinvest to improve their business.

ENTREPRENEURSHIP A CAREER

With eight new products launched last December, it is hoped that youths, women, rural folk and undergraduates will pursue entrepreneurship as a career of choice.

The products are TEKUN Niaga, TEKUN Tunas, TEKUN Tani, TEKUN Ternak, TEKUN Rakan Niaga, TEKUN Jangka Pendek, TEKUN Pelancongan and TEKUN 2nd Chance.

Through its workshops, YTN provides guidance for entrepreneurs before and after receiving the loans and this has helped create many new, successful Bumiputera businessmen. "Those selected to attend the workshops are the ones with potential and are serious in conducting business. They are also shown the way to establishing business networking," said Syed Kamarulzaman.

On unemployed graduates, he said various efforts were being taken to lure them into entrepreneurship and TEKUN had a number of loan schemes for them. If anyone needs capital to start a business, TEKUN is ready to help. In fact, the foundation also provides short-term loans to graduates who want to start a career as insurance agents.

TEKUN is doing all its best to help these undergraduates establish themselves.

So, it's up to the people, whether they want to look for Ah Long or TEKUN when they need help. (Nurul Halawi Azhari, Bernama)

***** There are so many deserving non-Malays out there who desperately need help from bodies like TEKUN. Why don't the authorities consider these people as human beings as well? What kind of government openly discriminates against half the population of the country all in the name of 'correcting' an outdated imbalance and an increasingly untenable ' leveling of an uneven field?' Help the bumis if you must, but don't ignore the poor and needy from the other races. It is the only decent thing to do, especially for a government which goes around the region and the world touting good governance, equality and justice.
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