Entrepreneurs should have realistic expectations when applying for financing and be prepared financially when venturing into green projects, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui.
He advised entrepreneurs should have realistic expectations as not all businesses could get full loans from banks.
“(Green) entrepreneurs should have a portion of their financial costs as well,” he said at a press conference after launching The International Best Practices Seminar.
He added that companies should also think about the viability of their business models to gain bankers’ confidence in funding green projects.
He said financiers were reluctant to participate actively in developing the green technology industry due to the perceived high risk.
“We have also brought on board Bank Negara to implement initiatives to convert our bankers to become more receptive to green projects,” he added.
On the assessment of the applicants, Malaysian Green Technology Corp (MGTC) acting-chief executive officer Ahmad Zairin Ismail said MGTC has improved the assessment model.
“We are looking at key points of assessment for the criteria to be looked at by banks and certain aspects that we can tolerate. As a result of this innovation in risk assessment, we believe that we can make some headway for the banks to finance more projects,” he said.
MGTC was set up as the focal point for green technology development and growth in the country.
Chin said MGTC would endorse green projects while banks would assess the business risks and viability of the projects.
“Bankers will be more confident giving out loans when they know that risk assessment is applied and they can approve those loans,” he added.
