Govt considers increasing I-BAP allocation following overwhelming response, says Ramanan
KUALA LUMPUR: The government has decided to consider increasing the allocation for the Business Accelerator Programme for Indian-owned companies (I-BAP) to RM10mil in the upcoming Budget, following an overwhelming response since its launch in October last year, says Datuk Seri R. Ramanan.
The Deputy Entrepreneur Development and Cooperatives Minister said that RM5.13mil from this year's RM6mil allocation had been approved and would be channelled to recipients. Meanwhile, the remaining RM800,000 is being processed for distribution. New applications have reached RM2mil, pushing total applications beyond RM8mil.
"Based on discussions with Minister Datuk Ewon Benedick and SME Corporation Malaysia (SME Corp) chief executive Rizal Nainy, we will propose raising allocations to RM10mil in the upcoming Budget.
"If applications rise to RM14mil or RM15mil next year, the government will suggest an additional allocation of RM20mil the following year," he told reporters after attending the handing-over of offer letters to I-BAP recipients here on Thursday (Aug 7), where 31 companies received grant offers ranging from RM7,000 to RM100,000.
He also shared the latest proposal of raising the rate of matching grants from 50:50 to 70:30, and expanding the scope of use for the grants to include purchasing raw materials and premises rental payments.
"This was suggested by Rizal and will help reduce operational costs for small entrepreneurs, giving them room to focus on growth and innovation," Ramanan said.
Meanwhile, I-BAP recipient Chocofac (Malaysia) Sdn Bhd's chief executive officer (CEO) A Micheal Dass said that it was the second time his company had applied for the grants and praised the improvements made to the application process, which he described as being simpler and more inclusive.
"Previously it was rather complicated; now it's very easy to apply. The aid will help us improve our product and increase sales. SME Corp has also helped us significantly, including providing shipping subsidies for cross-border business transactions," he said.
Fellow recipient, MindAppz E-Tuition CEO K. Thinesh Kumar, stated that I-BAP not only helped strengthen small and medium enterprises but also had a significant impact on education technology companies that introduce artificial intelligence (AI)-based learning systems.
Finally, Rizal, during his speech, shared that SME Corp would be organising SME Venture@Asean 2025 in conjunction with Malaysia being the Asean Chair, from Oct 16 to 18 at the Malaysian International Trade and Exhibition Centre (MITEC), which will be officiated by Prime Minister Datuk Seri Anwar Ibrahim. – Bernama
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