KUALA LUMPUR: AmBank Islamic has signed a memorandum of understanding (MoU) with Tekun Nasional to launch AmBank Islamic Qard Microfinancing to support asnaf entrepreneurs known as Asnafpreneur.

Each recipient will be identified as 'Ahli Teman' and will be put in a group of five. These groups are then required to attend weekly meetings to ensure weekly payment is collected.

TEKUN Nasional is a government agency under the Entrepreneur Development and Cooperatives Ministry that provides swift and syariah-compliant microfinancing to support entrepreneurs in starting and expanding their businesses. 

Beyond financing solutions, TEKUN Nasional also offers guidance, support, and networking opportunities to nurture competitive entrepreneurs, especially those in micro, small and medium enterprises (MSMEs).

"We believe that a strategic collaboration with a fit for purpose vehicle such as Tekun Nasional is key to achieve a broader impact. 

"We hope this can enhance financial inclusion for micro-entrepreneurs in the B40 category, ensuring they have the resources and opportunities to grow their business. 

"This is a step forward in empowering Malaysia's MSMEs to adapt and thrive in today's dynamic economy. We at AmBank Islamic are pleased to be a key enabler for this aspiration," said AmBank Islamic chief executive officer (CEO) Eqhwan Mokhzanee. 

The initial funding for this programme is RM500,000 and is estimated to benefit more than 50 asnafprenuers. The term financing is with no profit charge, with repayment tenure of up to 18 months.

Tekun Nasional managing director and CEO Datuk Adam Abd Ghani said the collaborative programme is expected to empower and elevate entrepreneurs' economic standing so they can move beyond their asnaf status.