A recent assessment found that small and medium-sized businesses account for a tiny proportion of loans granted by banks – Koya

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A recent assessment found that small and medium-sized businesses account for a tiny proportion of loans granted by banks – Koya

Minister of Commerce, Commerce and Tourism, Faiyaz Koya.

Trade, Commerce and Tourism Minister Faiyaz Koya said that a recent national e-commerce assessment found that commercial bank lending services are generally focused on large infrastructure and low-risk projects, small and medium-sized enterprises representing a tiny proportion of loans. allowed.

Speaking at the workshop on e-commerce and consumer protection, Koya said that, according to this assessment commissioned by the Pacific Islands Forum secretariat, this poor access to finance limits the capacity of small and medium-sized businesses. to invest in activities related to electronic commerce. businesses and upgrades.

Koya also pointed out that although businesses have embraced e-commerce, consumers remain skeptical of the high risks and uncertainty perceived with the concept of online shopping and remain accustomed to the traditional shopping environment.

He says that tangible factors in a traditional business environment, such as the appearance of a store and direct contact with a salesperson, provide a sense of comfort and confidence.

The Minister of Commerce, Trade and Tourism says it must also be recognized that consumers, especially young consumers, have also adapted and accepted these tools, including cashless transactions and online transactions and sales.

Koya also said that e-commerce has huge potential benefits for the well-being of consumers, but that the lack of product information, unfair trading practices, inadequate online dispute resolution and violations of the law. consumer privacy is common.

He says that in order to protect consumers and ensure a level playing field, there is a need to review consumer policies and there should be special features of e-commerce in the respective consumer law.

Koya adds that there must also be a full audit of e-commerce policies, incentives and laws and he directs the ministry to carry out this task in collaboration with stakeholders such as the Consumers Council.


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