11.1.5 sme financing in malaysia

7/30/2019 11.1.5 SME Financing in Malaysia

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Contents

SMEs in Malaysia

Status of financing for MSMEs

BNM SME Funds

Green Technology Financing Scheme

Micro Financing

BNMs initiatives to assist MSMEs

Financial advisory

Awareness programmes

Conclusion2


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SMEs are the backbone of t he economy and importantgenerator of employment and grow th

Account for large proportion of

businesses in Malaysia:

- .

(548,267)- Bulk (80%) micro enterprises,

with less than 5 workers

99%Share of Firms

32%Share of GDP

59%Share ofEmployment

3

are o xporMarket


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A st ructured approach in SME Development since 2005

Promote development of competitive and resilient SMEs in all sectors

towards increasing SME contribution to the economy

es

Economic Socio Economic

Developing progressiveand resilient

SMEs and entrepreneurs

O

bjectiv

development of

SMEs in knowledge-

based industries

viability of SMEsacross all sectors

rusts

.Enhancing access

to financing

.Strengthening enabling

infrastructure

.Building capacity and

capability

StrategicT

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New Financing Schemes for SMEs during the Budget 2012 Announcement

SMESME Emer enc

Commercialisation

Fund (USD0.6bil) Fund (USD31mil)Fund (USD3mil)

(USD156mil)

Market ValidationFund (USD94mil)

MyCreativeVenture Capital

(USD62mil)

ProfessionalServices Fund

(USD31mil)

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Challenge in developing resilient , compet it ive& innovat ive SMEs

Capacity building key toimprove viability of SMEsto grow & withstand

Formalise and bringmicroenterprises intothe mainstream

compe on

develop medium & fastExpand marketing

channels for MalaysianSMEs to become

become champions

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Central Banks holistic framework implemented to assist SMEs

Microfinance Institutional Framework

Financial Infrastructure

BNMLINK, BNMTELELINK, Mobile LINK

Avenues to Obtain Information &Advice/Redress

Strengthening the Development Financial

Institutions (DFI) Credit Guarantee Corporation (CGC)

Credit Bureau Malaysia (CBM)

nanc ng e p es s a us ness

Associations ABMConnect

Complaint & SME Advisory Units at FIs

SME Financing Facilitation (ABM-PARTNER)

Financing Schemes

. . .

SME Rejuvenation Programme (pilot)

Debt Resolution & Management

Various Central Bank SME Funds

Venture Capital Funds

Small Debt Resolution Scheme (SDRS)

Credit Counseling & Debt Management Agency

(AKPK)

Various CGC Guarantee Schemes

10th Malaysia Plan: Working Capital Guarantee

Guarantee Schemes

SME financial exhibition

Outreach & Awareness Programmes

c eme

Green Technology Financing Scheme (RM1.5 b)

Distribution of promotional materials through

strategic partners, including Local Authorities


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SMEs across all sectors rely on banks as the main source of externalfinancing

Financing Outstanding as at end-Sep 2011RM billion Agriculture

(5%)Others

5%

BIs144.7

Government Funds and Schemes 1

Construction

(11%)

Services

(57%)

DFIs

13.3

.

Venture Capital 2

Manufacturing

(22%)

SMEs in all economic sectors have accessto financing

Factoring and Leasing 2

0.1

.

1/At end-Jun 2011

2/

At end-2010

87% of total SME financing are from banks

Banks have 559,334 SME accounts

Source: Bank Negara Malaysia, SME Corp Malaysia and Securities Commission


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SMEs continuously have access to bank financing

Approval rate remained high at 82%

100

In Jan-Sep 2011, financing approvals

grew by 26% yoy, amounting toRM54.7 billion for 91,688 accounts

81.5

66.1

75

All customers

business financing

Based on survey conducted by SMECor , a roval rate is 85% Third

TitleMeasure

502003 2004 2005 2006 2007 2008 2009 2010 Jan-

Sep

Quarter 2010 Survey on SMEs)

Source: Bank Negara Malaysia


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Central Banks SME funds: More than 50,000 SME accounts approved

RM1.0 billion still available under Central BanksSMEFunds at end-Sep 2011

222.6

47.7

Fund for Food

Fund for Small and Medium Industries 2

91% 9%

25.7

171.0

560.8

Bumiputera Entrepreneur Project Fund-i

New Entrepreneurs Fund 2Utilised Available

.

Total initial allocation: RM11.4 billion

Source: Bank Negara Malaysia and CGC

Total financing approved: RM20.8 billion (due to revolving nature of funds)

CGC has guaranteed RM48.3b to 413,698 accounts as at end-Sep 2011


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Green Technology Financing Scheme to support national green agenda

To promote investments in Green Technology (GT)Objective

ro ucer o - o nance nves men s n

production of green technologies User of GT To finance investments in utilisation ofgreen technologies

Purpose ofFinancing

Producer of GT Max: RM50 m per company User of GT Max: RM10 m per company

FinancingSize

Producer of GT Up to 15 years User of GT Up to 10 years

FinancingTenure

Malaysia Green Technology Corporation andCGC

Issued 103 GT certificates with ro ect value totalin RM2.1 b

ImplementingAgency

82 companies applied for RM1.7 m financing 24 companies have been granted RM350.6 m financing

c evements


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Easy, Fast & Convenient of Micro Financing

Financin size ran in between

Small

RM1,000 to RM50,000

Financing isnanc ng

Amount

Use for

offered to micro

enterprises

of

Microfinance

EasyBusinessPurposes

FastConvenient

as approva

Fast disbursement Widely accessible


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Micro enterprises have benefited from Micro FInancingby 10 financial institutions

Financing outstanding grew by 15.5%RM million , end-period

No. of accounts grew by 7.9%000, end-period

15.5% yoySep-11 859

7.9% yoySep-11 70.4

2010 776 66.82010

2006 84 2006 10.2

No. of access points increased Micro enterprises have quick access to

End-period

2010 2,544*

Average Processing Time in Sep-11 (No. of days)

Governments36.2% yoy

2006 913

* Increase in artici ation from 9

Approval Time

Disbursement

Time

TargetParticipating

Financial

Institutions

Performance

34

2009 ,

Source: Central Bank Malaysia

to 10 financial institutions


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Many have benefited from the advisory and resolution servicesprovided

BNM has assisted 247,457 clients as at Jan-Sep 2011No of clients

For BNM:

Majority (96.7%) sought

Information& guidance

Resolution of

239,766

n orma on

88% of complex issues

were resolved

complex issues &

advisory

,

, -No of clients

. o e reso ve

issues were in favour

of consumers

9,928Information &

uidance

12,570Debt mgt &

resolution

Source: Bank Negara Malaysia and AKPK


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Central Banks promotion initiatives to enhanceawareness among SMEs

Promotion of SME programmes-

Distribution of SME

information materials

Outreach programmes

nationwide

Advertisements (ads)including articles &

interviews

SME events & road shows

Strategic partnerships

Newspapers, business

magazines, TV interview

SME events, roadshows

SME Financing Fairs

,(33 ads)

(private, governmentagency & local authorities)

an s a e eve a ogues


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Malaysia ranks high in terms of financial access

Category Ranking Source

Gettin Credit World Bank Doin Business.years*

2009, 2010, 2011 & 2012

Reports)

Loans accounts per

No. 2 out of 87 Consultative Group to Assist the

,Poor (Financial Access Report2010)

Ease of Access to LoansNo. 8 in 2011 from World Economic Forum (The Global

Deposits accounts per Consultative Grou to Assist the

no. n -and 2011-2012)

1,000 adults

.

Poor (Financial Access Report 2010)

* Most recent update


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Conclusion

SMEs areimportantsource ofeconomic

Stepping-upthe awarenesscampaign for

various

SMEs to befinancially-savvy, proactive to

sectorblueprint in

the face of thegrowth and

have potentialprogrammes

for SMEsimprove

themselves

financial

landscape

owar s pro uc ng na ona , reg ona an g o a c amp ons

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Vision


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www.smeinfo.com.my

www.smecor . ov.mThank you

SME Annual Report 2009/10

.

1-300-30-6000

Physical KL Sentral

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11.1.5 sme financing in malaysia

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