IN weathering the socio-economic storm induced by COVID-19 pandemic containment measures, the government and some large businesses such as Axiata Group Bhd have been focusing on initiatives to support small and medium enterprises (SMEs).
SMEs account for about 98.5% of businesses in the country, with some six million workers in employment, and contribute about 38% of the country’s Gross Domestic Product (based on 2018 data).
The hardest hit among the SMEs are micro-enterprises – small-time businesses, which a majority of people depend on for a variety of solutions including food and catering, home and vehicle maintenance, childcare, freelance services, and personal grooming.
Defined as businesses with a sales turnover of less than RM250,000 per annum and with fewer than five employees, micro-enterprises make up a whopping 70% of the local SME ecosystem.
With many of these “mom and pop” entities run by entrepreneurs from the B40 segment of society whose survival depends on their ability to go out daily to make a living, only about 40% of these micro-enterprises have enough cash flow or savings to sustain them until this month.
For a faster rebound of the economy as health conditions improve, it is critical for SMEs and micro-enterprises to remain in business as this translates into employees being able to retain their jobs.
Recognising the need for quick and effective solutions that enable small businesses and sole proprietors to survive, Axiata is extending support to micro-enterprises in helping them stay afloat until economic activity hits the restart button.
The group, together with its subsidiaries Axiata Digital, Celcom Axiata Bhd and edotco Group, have embarked on the Axiata Covid-19 Assistance Programme, which offers a RM150 mil fund, with the support of the Finance Ministry.
Aspirasi, a digital financial services provider, supports the programme via Aspirasi Assist, which is the platform that is channelling funds to micro-businesses.
Aspirasi Assist is offering this underserved segment of businesses shariah-compliant micro-financing assistance ranging from RM1,000 to RM10,000, with concessional terms such as 0.5% profit rate, and repayment suspension for six months to enable merchants to recover as curbs on economic activities are loosened up.
The simple three-minute online process and availability of funds within 48 hours in their bank accounts upon approval are some of the reasons that motivate micro-enterprises to take up this assistance.
The micro-financing also comes with additional micro-insurance coverage to protect micro-enterprise owners with emergency expenses relief, accidental death and Covid-19 Assistance.
Axiata’s Covid-19 Assistance Programme was initially targeted to benefit about 150,000 micro-SMEs within the Boost, Aspirasi and Celcom ecosystem.
Knowing this has been a challenging period for all micro-enterprises, Aspirasi has taken the unprecedented step to make this fund available in the open market for micro-enterprises outside the Axiata ecosystem.
Hence, all eligible micro-SMEs can now receive financial support and protection to sustain their business via Aspirasi Assist.
Aspirasi serves micro-enterprises and SMEs and is not a new player in the market as it has been offering micro-financing in the past years to merchants within the Axiata ecosystem.
Aspirasi is also at the forefront of narrowing the financial and protection inclusion gap in Malaysia with a range of micro-financing and micro-insurance solutions.
Additionally, Axiata has built a solid relationship with micro-enterprises in the last few years through the Aspirasi platform with Boost merchants and Celcom vendors.
For more information on the programme, please visit www.aspirasi.co or email [email protected]. — May 6, 2020, Bernama
