SPIKS Assist Youths in Entrepreneurship

Before, entrepreneurship was regarded as risky but now, it is highly coveted and viewed as an opportunity to be creative, innovative and can a rewarding experience.  

These days, people at a very young age are being encouraged to become entrepreneurs when they grow up.

This is evident as some high education institutions in Malaysia offers entrepreneurship course as a compulsory course and as a result, there is a rising trends of youths venturing into entrepreneurship.

This trend is no exception to Sarawak we are seeing more young entrepreneurs operating their business through online and generating revenue.

Many has come to realise that entrepreneurship helps to create jobs, increase innovation, raise competition and are responsive to changing economic opportunities and trends.

However, while we come to realise the opportunities presented in venturing into entrepreneurship, many especially young entrepreneurs are still struggling in terms of securing capital needed to jump-start their business.

Announced in early 2020, the Small and Medium Industry Financing Scheme or Skim Pinjaman Industri Kecil dan Sederhana (SPIKS) was introduced by the State government with the aim of helping the people and alleviate their burden.

It is a soft loan scheme aimed to provide financing for valid Bumiputera Sarawakian small and medium enterprises (SMEs) in manufacturing, services and ICT sector for the purpose of working capital, renovation of business premise and purchase of machinery and equipment.

Details of the loan scheme are as below:

1. Eligibility
2. Bumiputera entrepreneurs with valid business license registered with Registrar of Business/Registrar of Company (ROB/ROC)
3. Malaysian citizen age 21 years and above
4. Have a proper and formal place of business (especially in major towns)
5. Fully involved in business
6. At least have 1 year experience in managing the business rising trends of youths venturing into entrepreneurship
7. Involved in the manufacturing/processing, services and ICT sector
8. Purpose of Loan
9. Working capital
10. Renovation of existing business premise
11. Purchase of machinery/business equipment
12. Guarantors
13. Two (2) persons with a fixed monthly income of RM800.00 and above
14. For private limited company, the Board of Directors will automatically be the guarantors
15. No double and cross guarantee are allowed
16. Screening Procedure
17. Application form must be filled, signed and stamped (company) and supported with:
    1. A copy of identity card (applicant, partners & guarantors)
    1. A copy of company trade licence, share certificates
    1. Form 24, 49 & Memorandum of Association must be filled for private limited company
    1. A copy of financial statement which include Profit & Loss, Cashflow & Balance Sheet
    1. A copy of company bank statement for the past 6 months
    1. A copy of tenancy agreement/Sale & Purchase Agreement
    1. A copy of Director’s Resolution for private limited company
    1. A copy of pay slip of the guarantors
    1. Form J/EC must be filled by the guarantors
    1. A copy of Quotations (equipment/renovation purpose)
    1. Other supporting documents (contract, offer/agreement etc)
    1. A copy of utility bills (for applicant’s home address)
    1. A copy of Business plan/company profile

(Source: Sarawak Economic Development Corporation)

SPIKS offers credit or loan limit of between RM6,000 and RM250,000 with a service charge of 4 per cent per annum.

The loan disbursement is made by the Sarawak Economic Development Corporation (SEDC) must be approved by the SPIKS Committee.

The tenure of the SPIKS loan is up to seven years (depending on the Committee’s decision) and the repayment of is on a monthly basis and the up to seven years.

In Sarawak, the youths are encouraged to take up entrepreneurships as a mean to generate their income and improve their socio-economic wellbeing.

Aside from the introduction of SPIKS, the State has also offered skill courses in various institutions such as CENTEXS and community college as a way to gain skills needed to start their business.

As a scheme that is designed to help SMEs in Sarawak, it has help to open various doors of opportunities to the entrepreneurship scene in Sarawak.