By Norrasyidah Arshad
SHAH ALAM, Nov 16 — Yayasan Hijrah Selangor could potentially lose up to RM21.3 million in revenue over the next five years if a 10 per cent service charge is not imposed.
State executive councillor for entrepreneurship Najwan Halimi said the charge, implemented on September 1, aims to cover Hijrah's operational costs and assist more entrepreneurs in the future.
[caption id="attachment_335375" align="alignleft" width="413"]
State executive councillor for entrepreneurship Najwan Halimi speaks during the debate on the 2024 Selangor Budget, at the Selangor State Legislative Assembly in the State Secretariat Building, Shah Alam, on November 16, 2023. — Picture by HAFIZ OTHMAN/SELANGORKINI[/caption]
Hijrah, which aims to assist small businesses, only received funding when it was first established in 2015 but subsequently did not receive any operational grant allocations.
"Since its establishment, Hijrah's operations have borne the burden of an eight per cent service charge imposed on financing. In 2022, the charge for borrowers below RM30,000 was reduced to four per cent.
"This will result in Hijrah experiencing a revenue shortfall of RM21.3 million over the next five years," he said during the Selangor State Legislative Assembly session today.
Responding to a query from Sungai Panjang state assemblyman Mohd Razali Saari, Najwan said the percentage increase also aligns with the rate charged by Amanah Ikhtiar Malaysia.
"The Entrepreneurial Group Economic Fund (Tekun) charges a four per cent rate, even though the government bears its operating costs," he added.
A total of 58,464 small businesses have been assisted in starting or expanding their ventures with over RM768.8 million in funding as of June this year, including 34,823 women entrepreneurs.
Hijrah also provides free guidance, including TikTok strategy classes, to enhance businesses and marketing courses to make the participants' products competitive domestically and internationally.
