BANK Muamalat Malaysia’s iTekad initiative is emerging as a cornerstone for uplifting micro, B40 and asnaf communities by empowering microentrepreneurs.
Through a multi-faceted approach involving financial support, training and halal certification, iTekad builds businesses and transforms lives.
Bank Muamalat’s head of the Social Finance Department Zaharuddin Alias discussed the initiative’s achievements, strategic goals and extensive support systems.
He shared that iTekad’s primary target group comprises micro, B40 and asnaf communities.
The programme is designed to uplift these groups, as they receive training, grants to buy equipment, and working capital.
Therefore, businesses that are bigger than micro-entrepreneurs are redirected to the small and medium enterprise (SME) division for more suitable financing solutions.
“As they grow and achieve higher income levels, they will transition into other programmes that offer bigger financing options, sometimes up to RM1 million,” he explained.
Focus on F&B, Gig Economy, Agriculture
One of the standout features of iTekad is its emphasis on halal certification.
According to Zaharuddin, four businesses have achieved halal certification under the programme: A Roselle cordial production in Klang, a soursop-based beverage based in Puchong, a spices manufacturing in Perlis, and an F&B business in Sabah.
He also highlighted a sambal business from Putrajaya which has gained popularity.
“The sambal has garnered immense demand, especially during Ramadhan. We have used their products as gifts for customers and have actively promoted them through our marketing efforts,” he said.
Moreover, Bank Muamalat also helps to promote iTekad participants via social media platforms and television programmes.
For participants in sectors such as agriculture, iTekad offers grants for equipment alongside working capital. While the initial grants typically cap at RM5,000, exceptions are made for businesses demonstrating higher potential and needs.
“We have approved grants exceeding RM5,000, but these are closely monitored to prevent misuse and ensure sustainability,” Zaharuddin clarified.
While iTekad has made substantial progress locally, he noted that none of its products has entered international markets yet. However, plans are underway for a game-changing initiative in 2025.
Collaborating with strategic agencies, iTekad aims to introduce its entrepreneurs to global exhibitions and trade fairs.
This move is expected to elevate the visibility of iTekad businesses and position them on the international stage.
Partnerships Driving iTekad’s Impact Collaborations with various organisations have been pivotal in maximising iTekad’s impact.
Zaharuddin said key partners include corporate entities, where companies channel zakat funds to provide capital for iTekad entrepreneurs.
Besides, state Islamic councils also help facilitate the use of wakalah zakat for microenterprise development.
On the other hand, non-governmental organisations (NGOs) collaborate to tailor iTekad programmes to their target communities.
Bank Muamalat is also collaborating with the Malaysian National Cooperative Movement, where they have provided revolving capital and working capital to successful entrepreneurs.
Prudential BSN Takaful will also partner with Bank Muamalat, focusing on takaful to ensure that entrepreneurs and their families have financial protection against unforeseen events.
Lastly, collaboration with higher education institutions to nurture “siswapreneurs” by equipping graduates with entrepreneurial skills and opportunities.
Financial Literacy and Gender Inclusivity
Financial literacy is a cornerstone of iTekad’s module as it is part of the sustainability foundation of any business.
Participants learn the essentials of financial management, including cashflow analysis, profit and loss statements, as well as understanding bank facilities.
To ensure effective learning, iTekad appoints training providers to monitor participants oversix months.
Remarkably, the cost of training is funded through zakat, alleviating financial burdens on participants.
“This approach ensures that participants can sustain their businesses, manage their finances prudently and scale up responsibly,” Zaharuddin said.
Over 40% of B40 entrepreneurs supported by Bank Muamalat fall within the 30-45 age group, with the F&B sector dominating participation.
Particularly, women entrepreneurs form a majority, which Zaharuddin attributed to their discipline and commitment.
“It is a visible advantage as we can see their diligence and higher discipline compared to men,” he remarked.
iTekad’s support extends beyond financial aid and training as entrepreneurs are provided with ongoing mentorship and monitoring.
Zaharuddin stated that trainers track participants’ progress during the initial months after training.
“Our trainers would monitor the entrepreneurs’ progress for six months, where they need to submit reports and financial statements for us to ensure that they follow the lessons that we have given, especially for financial management.”
Thereafter, Bank Muamalat conducts regular visits to their businesses.
Zaharuddin added that participants are encouraged to join other entrepreneurial programmes and networking events for continuous growth and learning opportunities.
As iTekad matures, Bank Muamalat wants to create a pipeline of successful entrepreneurs who transition from microenterprise to SMEs.
This aligns with the programme’s broader goal of contributing to Malaysia’s economic growth by empowering underserved communities.
Bank Muamalat also collaborates with associations such as the Malaysian Association for the Blind, Sarawak Society of the Blind, and the National Autism Society of Malaysia to empower less-abled iTekad entrepreneurs.
“We aim to nurture these businesses step by step, providing them with the tools and opportunities to thrive. Ultimately, we want them to not only sustain themselves but also create jobs and drive economic progress,” he added.
As iTekad gears up for its next phase, including international expansion and deeper collaborations, the programme’s impact is set to grow, fostering a brighter future for Malaysia’s microentrepreneurs.
Source: https://themalaysianreserve.com/2024/12/23/itekad-bank-muamalat-boosts-microentrepreneurs-with-halal-certification/