SNAPSHOT | Guan Eng pans 'unfair' disbursement of govt-backed loans; extreme weather underway

KINI SNAPSHOT | What’s going on in the news today, with updates at 9am, 2pm, 6pm, and 9pm.

6pm

Economy

• It is unfair and structurally restrictive to channel government-backed loans intended for Chinese and Indian Malaysian-owned businesses through SME Bank and Bank Rakyat, said former finance minister Lim Guan Eng.

  He noted that these banks require businesses to comply with syariah financing rules, which creates an indirect barrier for many non-Muslim businesses, especially those in sectors such as food and beverage, traditional Chinese medicine, and entertainment.

  Instead, he proposed that Bank Simpanan Nasional (BSN) administer these funds, which he said is more inclusive because it offers both Islamic and conventional banking options, and has a wider network of branches to facilitate better access nationwide.

  Lim said this in reference to the RM100 million fund for Chinese-owned MSMEs, and RM50 million for Tekun Nasional for Indian-owned MSMEs via the Indian Community Entrepreneur Financing Scheme (Spumi).

• In a separate statement, Klang MP V Ganabatirau agreed with Lim, saying that the approach toward both the loan facilities for Chinese Malaysians and Indian Malaysians is unfair.

  He lamented that requiring non-Muslim businesses to be syariah-compliant to access loans specifically set aside for their communities is illogical and discriminatory.

  

  "Many Chinese‑owned MSMEs in Klang and across Malaysia, such as coffee shops, pork‑based food businesses, traditional Chinese medicine shops, and entertainment outlets, cannot and should not be forced to alter their business nature to qualify for financing," he said, adding that this is also similar to Indian‑owned businesses.

  Ganabatirau said that while the government’s intention to assist all communities is commendable, its implementation must match the intention.

  He also urged the Entrepreneur Development and Cooperatives Ministry and the Finance Ministry to immediately transfer the administration of the RM100 million Chinese‑owned MSME loan and the RM50 million Spumi loan to BSN.

Workers’ protection

• PSM expressed concerns on the Social Security Organisation’s (Socso) Lindung 24 Jam scheme, which the party said is “disappointing” as protection is borne entirely by workers instead of employers in terms of increased contributions.

  While PSM welcomes the 24-hour coverage as a positive and progressive step that it has long campaigned for, the party’s secretary-general Sivaranjani Manickam said it would be only right for employers to also contribute to the protection scheme.

  In a statement today, she argued that if company profits can increase due to the contribution of the workers, then employers must also play a bigger role in ensuring workers get proper social protection.

  

  The initiative, which came into effect yesterday, expands Malaysia's social security safety net, extending protection beyond workplace-related incidents, including during public holidays and rest days.

  Human Resources Minister R Ramanan previously said contributions would be subject to the contribution salary ceiling of RM6,000, with the initial contribution rate set at 0.75 percent of monthly wages for the first two years before increasing to one percent for the next three years, and 1.25 percent from the sixth year onwards.

• Two motorists injured in a fatal accident in Simpang Renggam, Johor, yesterday became the first recipients of benefits under the Lindung 24 Jam scheme.

  In a statement today, Socso said active contributors Husnizam Hisamudin, 43, and Amirul Hazim Misnon, 22, qualified for sick leave payments, permanent disability benefits, unlimited implant treatment, rehabilitation equipment, and rehabilitation support as required.

  Socso group chief executive officer Azman Aziz Mohammed added that the heirs of three other victims who were killed in the incident are also eligible to receive benefits.

Gambling ban

• The Kedah government acted illegally when it imposed a blanket ban on pool betting and lottery businesses, as such a decision exceeded the state’s constitutional limits, said the Court of Appeal.

  In its majority ruling published last Friday, the panel held that the state government’s decision in 2021 was unlawful as it used licensing powers for an impermissible constitutional purpose, and said the state had acted beyond its power (ultra vires) provided under the Federal Constitution.

  

  The decision was also irrational because it was, at least in part, executed based on the erroneous premise that the Finance Ministry would not renew the relevant federal licences, as the state failed to grapple with the legal consequences when the licences under the Pool Betting Act 1967 were, in fact, renewed.

  The panel, in December last year, had dismissed Kedah’s state government’s appeal, where it sought to reinstate the licensing ban.

  Free Malaysia Today reported earlier today that the Federal Court has fixed Aug 12 to hear the state’s leave application to appeal against the Court of Appeal’s decision.

READ MORE: Appeals court rejects Kedah's bid to not renew gaming licences

Politics

• Umno vice-president Khaled Nordin has described the upcoming Johor election as “timely” since there is only a narrow window left in the year to schedule an election.

  According to Bernama, he said while there is no “perfect” time for an election, scheduling an election needs to consider the monsoon season and floods from November to January, and Hari Raya celebrations in February and March.

  

  “In Johor, the festive season is usually quite prolonged,” said the Kota Tinggi MP.

• The date of the Johor BN Convention scheduled for June 14 may be brought forward, Bernama quoted its secretary Halim Suleiman as saying.

  This is due to the dissolution of the state assembly yesterday to pave the way for an election.

READ MORE: Johor MB announces dissolution of state assembly

Climate

• The World Meteorological Organisation said El Niño conditions are expected to develop in the coming months, increasing the likelihood of extreme weather events worldwide and adding to the effects of global warming.

  Anadolu Ajansi quoted the UN weather agency saying there is an 80 percent chance that El Niño will emerge during the June-August period, with the probability of it persisting through at least November reaching near or above 90 percent.

  “We need to prepare for a potentially strong El Niño event, which will exacerbate drought and heavy rainfall and increase the risk of heatwaves both on land and in the ocean.

  “The most recent El Niño, in 2023-24, was one of the five strongest on record, and it played a role in the record global temperatures we saw in 2024,” added WMO secretary-general Celeste Saulo.

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