Ramanan called on the Tekun borrowers in question to settle their arrears so that the benefits can be passed on to other Malaysians in need, Bernama reported.

“I hope the borrowers can settle the outstanding balance (arrears) according to the schedule,” he was quoted as saying.

According to Ramanan, the state with the highest number of defaulters is Selangor (22,662 borrowers), followed by Sabah (16,945) and Kedah (14,823).

“As of January 2024, the national arrears rate is 12.7% nationwide, but in Selangor it is 21.5%,” he said at the Tekun Madani Selangor carnival, according to Bernama.

From its establishment in 1998 to January 2024, Tekun has provided RM9.15 billion in business financing to more than 570,000 entrepreneurs nationwide.

Meanwhile, Ramanan also announced financing amounting to RM65 million to be disbursed to 4,000 informal and micro-entrepreneurs in Selangor by Tekun.

Up to last month, he said, RM7.35 million had been provided to 225 Tekun entrepreneurs in Selangor.

Ramanan said Tekun provides financing of up to RM100,000 for a period of up to 10 years at an interest rate of 2-4%, much lower than financial institutions.