In the wake of the COVID-19 pandemic, many businesses old and new will be struggling to survive. The pandemic caused irreversible damage to the exiting economy in Malaysia that will take years to recover from. While there are some long-term benefits that appear to be emerging from the pandemic, the business landscape will have to fully recover before it can start taking advantage of these new benefits. Luckily for Malaysian business owners, the government has created a Bumiputera business loan scheme to help businesses stay afloat and weather any potential issues that may arise.
Many businesses in Malaysia can benefit from a Bumiputera business loan, as the loan itself can help offset some of the operating costs that many businesses accumulated during the pandemic. Plus, since a Bumiputera business loan is sponsored by the government, they offer favorable loan repayment terms that don’t put too much pressure or strain on the business themselves.
Bumiputera business loans are excellent options for those Malaysian businesses that need assistance during these tough and uncertain times. There is no shame in applying for help when you need it, and the Malaysian government is hoping that many apply for Bumiputera business loans. The stronger the economy on the local level, the stronger it will grow on the national level.
What are Bumiputera Business Loans?
Given Malaysia’s size and infrastructure, many foreign companies establish roots in the country. Overseas companies from China, Japan, Europe, and the United States utilize Malaysia’s great infrastructure and location to establish manufacturing facilities or regional operations.
To support locally owned and operated companies, the Malaysian government created a classification of companies called Bumiputera companies. These companies are 60% Malaysian-owned and operated and further qualify for additional benefits and helpful schemes.
One such scheme is a Bumiputera business loan. So, you can see why these loans are so helpful to the Malaysian economy as a whole. Rather than spend resources on global enterprises, the Malaysian government has set aside funds to aid the development and survival of local businesses. The Malaysian economy hinges on the success of small businesses given its centralized cities. The rural economy thrives on small businesses, and those are the communities impacted the most by COVID-19.
Why Apply For a Loan
Many people are under the impression that taking a loan from a bank or another lender is a bad business decision. For example, if you have some private investors and they see you also take a loan from, they may get weary that your business is successful and may rescind their investment. But, in reality, loans are an acceptable way for businesses to make an investment into their future.
During COVID-19, the window for what was acceptable as a reason to take a loan expanded to include surviving the pandemic. If anything, now is the best time to take a loan and invest it into your business’s future and wellbeing.