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MAYBANK’S SME FINANCING SCHEMES –OPPORTUNITIES FOR GREEN TECHNOLOGY SECTOR
KJ BalanHead, Business Development, SME BankingCommunity Financial Services
April 2009
• Ministry of Energy, Green Technology and Water ( KeTTHA) was established
July 2009
• National Green Technology Policy was launched
January 2010
• First meeting was held among the National Green Technology Council
BACKGROUND OF GREEN TECHNOLOGY IN MALAYSIA
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NATIONAL GREEN TECHNOLOGY PILLARS
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Seek to attain energy
independence and promote sufficient
Conserve and minimize the impact on the environment
Enhance the national economic
development through the
use of technology
Improve the quality of life
for all
ENERGY ENVIRONMENT ECONOMY SOCIAL
FUTURE OF GREEN TECHNOLOGY IN MALAYSIA
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“I would also like to announce here in Copenhagen
that Malaysia is adopting an indicator of a
voluntary reduction of up to 40 % in terms of
emissions intensity of GDP by the year 2020
compared to 2005 levels. This indicator is
conditional on receiving the transfer of technology
and finance of adequate and correspond to what is
required in order to achieve this indicator”
Reference: YAB PM at COP15, Copenhagen on 17th December 2009
Policy Statement
Green Technology shall be a driver to
accelerate the national economy and
promote sustainable development.
Reference : National Green Technology Policy
GREEN INVESTMENT OPPORTUNITIES
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•Economic Transformation Programme (ETP) report in October 2010 aimed to achieved
real GDP growth of 6% per year for the next decade.
•FDI expected to pick up in the next 1-2 years and private investment growth including
green technology in 2011 may hits government forecast of 10.2%
•A minimum of 52,000 jobs are expected to be created to construct, operate and
maintain RE power plants by 2020.
Parameter 2020 2025
No. of Green Jobs 304,968 495,364
National GDP (RM million) 67,332 125,406.90
National GNI (RM million) 65,992.70 122,908.50
Source: Green Technology Roadmap Phase 1
Targeted National Outcomes
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KEY AREAS (GTFS)
ENERGY SECTOR
BUILDINGS AND TOWNSHIP SECTOR
WATER AND WASTE MANAGEMENT SECTOR
TRANSPORTATION SECTOR
NO. CRITERIA
A TYPE OF ENERGY
Renewable: Hydro, Solar, Fuel Cell,Wind,Kenatic,Biomass and combustible waste.
ENERGY SUPPLY SECTOR:
SCOPE:
Application of Green Technology in power generation and in the energy supply side
management, including co-generation by the industrial and commercial sectors
B ENERGY UTILISATION SECTOR :
SCOPE:
Application of Green Technology in all energy utilisation sectors and in demand side
management programes.
CRITERIA FOR ENERGY SECTOR
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NO. CRITERIA
A Energy Efficiency & Renewable Energy
B Indoor Environmental Quality
C Sustainable Site Planning & Management
D Materials & Resources
E Water Efficiency
F Innovation
CRITERIA FOR BUILDINGS AND TOWNSHIP SECTOR
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NO. CRITERIA
A SCOPE:
Technology in the management and utilisation of water resources
TYPE OF WATER: Fresh water (tap or portable), water for industrial processes, agriculture and grey
water
B SCOPE:Waste water treatment, solid waste and sanitary landfill
TYPE OF WASTE: Garden waste, Industrial waste (i.e. spent bleaching earth, waste edible oil, POME),
Municipal waste (MSW), Agricultural waste, Organic waste, Sewage
CRITERIA FOR WATER AND WASTE MANAGEMENT SECTOR
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NO. CRITERIA
SCOPE:
Incorporation of Green Technology in the transportation infrastructure, vehicles and
fuel, in particular, bio-fuel, electric vehicle and mass public transport system.
A INFRASTRUCTURE
Green infrastructure
B GREEN FUEL
Green fuel production
C VEHICLE
Alternative Fuel and Electric Vehicle (i.e. taxi, bus, etc)
CRITERIA FOR TRANSPORTATION SECTOR
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APPLICATION PROCEDURE
GTFS
APPLICATION
BUSINESS REVIEW BUSINESS REVIEW
PRESENTATION
TECHNICAL
EVALUATION
FINANCING
APPLICATION
GUARANTEE
APPROVAL
GTFS APPLICATION
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Online via www.gfts.mywebsite
Supporting Document
( mail/hand)
GreenTech Malaysia’s office
GreenTech will give
notification
whether
accepted or rejected
BUSINESS REVIEW PRESENTATION
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Passed ���� screening process
Present project business
( 30 minutes )
Only applicant that deemed commercial viable will be further
process
TECHNICAL EVALUATION
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Application will be evaluated
Additional information must be provided
(data/drawing/report)
– technical evaluation purpose
Technical Evaluation team will submit and present the GTFS project to the GTFS Technical
Committee (GTC) for their consideration and approval
All applicants will be officially notified on
their
approval status
Green Project Financing Recommendation Certificate
will be issued
(valid for six (6) months from the issuance date)
FINANCING APPLICATION
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Successful applicants will apply for
financing at any financial institutions
( FIs ) of their choice.
Loan application will be evaluated by FIs
Letter of Offer will be issued
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GREEN TECHNOLOGY FINANCING SCHEME (GTFS)
Has zero or low green house gas (GHG) emission
Minimises the degradation of the
environment
Safe for use and promotes healthy
and improved environment for all
forms of life
Promotes the use of renewable
resources
Conserves the use of energy and
natural resources
GUARANTEE APPROVAL
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Credit Guarantee Corporation Malaysia
Berhad (CGC) will provide a guarantee of 60% on the approved
financing amount.
Letter of Guarantee will be issued
A guarantee fee of 0.5% per annum on the total guarantee amount will
be charged to the borrower.
BNM DEFINITION ON SME
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Sector
Size
Primary Agriculture
Manufacturing (including agro-based) & MRS
Services Sector (Including ICT)
Micro <RM200k <RM250k <RM200k
Small RM200k – RM1 mill RM250k – RM10 mill RM200k – RM1 mill
Medium RM1 mill – RM5 millRM 10 mill – RM 25
mill
RM 1 mill – RM 5
mill
Sector
Size
Primary Agriculture
Manufacturing
(including agro-based) &
MRS
Services Sector
(Including ICT)
Micro < 5 < 5 < 5
Small 5 - 19 5 - 50 5 - 19
Medium 20 - 50 51 - 150 20 - 50
TURNOVER
NUMBER OF EMPLOYEES
NEW SME DEVELOPMENT FRAMEWORK
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Source: SME Corporation Malaysia
VISION
GOALS
FOCUS AREAS
SUPPORTINSTITUTIONAL
SUPPORT
Creation of globally competitive SME’s across
contribute to the social well being of the nation
Creation of globally competitive SME’s across all sectors that enhance wealth creation and
contribute to the social well-being of the nation
Increase BusinessInformation
Expand Number of High Growth & Innovative
Firms
Raise ProductivityIntensify
Formalisation
Human Capital Development
Innovation & Technology Adaption
Access to Financing
Market AccessLegal & Regulatory
Environment Infrastructure
ACTION PLAN
Reliable Database
Monitoring & Evaluation
Effective Coordination
Effective Business Services
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Source: SME Census 2011, Department of Statistics, Malaysia (DOSM)
DISTRIBUTION(%) OF SME’s BY SIZE & LEGAL STATUS
SME’s ESTABLISHMENT BY SECTOR
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Sector Total Establishments
(a)
Total SMEs (b) Percentage (%) of SMEs over Total Establishments (b) / (a) *100
Overall Total 662,939 645,136 97.3
Services 591,883 580,985 98.1
Manufacturing 39,669 37,861 95.4
Agriculture 8,829 6,708 76.0
Construction 22,140 19,283 87.1
Mining & Quarrying 418 299 71.5
Source: Economic Cencus 2011, Profile of Small & Medium Enterprise
FINANCIAL LANDSCAPE FOR SME’s
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FINANCIAL LANDSCAPE FOR SME’s
BANKING INSTITUTIONS
DEVELOPMENTFINANCIAL
INSTITUTIONS
BNM Special Funds
and Guarantee
Schemes
Credit Guarantee
Schemes
Government Crisis
Funds
Credit Bureau
Malaysia
Government Funds
& Schemes
Venture Capital
Companies
Leasing &
Factoring
Ar-Rahnu & Pawn
Booking
Microfinance
Institution
Source: SME Annual Report 2011/12
Banks► Commercial & Islamic Banks
Non Banks► Development Financial Institution (DFI)
► Credit Co-operatives
► Government Agencies
FINANCING OPTION FOR SME’s
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Name of Development Financial Institution (DFI)
1 Malaysia Building Society Berhad
2 Malaysian Technology Development Corporation
3 Malaysian Industrial Development Finance Berhad
4 Bank Pembangunan Malaysia Berhad
5 Bank Perusahaan Kecil & Sederhana Malaysia Berhad (SME Bank)
6 Bank Pertanian Malaysia Berhad
7 Sabah Credit Corporation
8 Sabah Development bank Berhad
9 Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)
10 Borneo Development Corporation (Sarawak) Sdn Bhd
11 Borneo Development Corporation (Sabah) Sdn Bhd
12 Perbadanan Usahawan Nasional Berhad
13 Perbadanan Nasional Berhad
14 Johor Corporation
15 Bank Simpanan Nasional
16 Credit Guarantee Corporation Malaysia Berhad
17 Majlis Amanah Rakyat
18 Export-Import Bank of Malaysia Berhad
19 Tekun Nasional
20 Amanah Ikhtiar Malaysia
21 Cradle Fund Sdn Bhd
BANKING & FINANCIAL INSTITUTION
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Which banks provide conventional loans and Islamic financing?
Bank Conventional Islamic
1 Affin Bank Berhad ✔ ✔2 Al Rajhi Banking & Investment Corporation (Malaysia) Berhad ✔3 Alliance Bank Malaysia Berhad ✔ ✔4 AmBank (M) Berhad ✔ ✔5 Asian Finance Bank Berhad ✔6 Bank Islam Malaysia Berhad ✔7 Bank Muamalat Malaysia Berhad ✔8 Bangkok Bank Berhad ✔9 Bank of America Malaysia Berhad ✔10 Bank of China (Malaysia) Berhad ✔11 Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad ✔12 BNP Paribas Malaysia Berhad ✔13 CIMB Bank Berhad ✔ ✔14 Citibank Berhad ✔15 Deutsche Bank (Malaysia) Berhad ✔16 Hong Leong Bank Berhad ✔ ✔17 HSBC Bank Malaysia Berhad ✔ ✔18 Industrial and Commercial Bank of China (Malaysia) Berhad ✔19 JP Morgan Chase Bank Berhad ✔20 Kuwait Finance House (Malaysia) Berhad ✔21 Malayan Banking Berhad (Maybank) ✔ ✔22 Mizuho Corporate Bank (Malaysia) Berhad ✔23 National Bank of Abu Dhabi Malaysia Berhad ✔24 OCBC Bank (Malaysia) ✔ ✔25 Public Bank Berhad ✔ ✔26 RHB Bank Berhad ✔ ✔27 Standard Chartered Bank Malaysia Berhad ✔ ✔28 Sumitomo Mitsui Banking Corporation Malaysian Berhad ✔29 The Bank of Nova Scotia Berhad ✔30 The Royal Bank of Scotland Berhad ✔31 United Overseas Bank (Malaysia) Bhd ✔
CREDIT EVALUATION FRAMEWORK
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DOCUMENTS TO BE COLLECTED FROM CUSTOMERS EVALUATION PURPOSE
1. Form 24 & Form 49 (for Sdn Bhd) or Business
Registration/Business License (for SPP) 1. Experiences
2. Genuineness of a business2. Memorandum & Article of Association and Certification of
Incorporation (for Sdn Bhd only)
3. Latest two (2) years Financial Statements 1. Financial track record
2. Feasibility & resilience4. Latest six (6) months Bank Statements
5. NRIC of Directors/ Shareholders/ Partners/ Proprietor/
Guarantors (where applicable) 1. Conduct of account
2. Credit behaviour
6. Duly signed Credit Bureau Malaysia Consent Form*
7. Other collateral information (where applicable) 1. Commitment & support
2. Economic condition & viability8. Other income information (where applicable)