SME Financing in Malaysia - APEC SME Crisis Management Center
Transcript of SME Financing in Malaysia - APEC SME Crisis Management Center
SME Financingin Malaysia
Borhan SidikSME C ti M l iSME Corporation Malaysia
15 December2011
33rd APEC SMEWG Meeting, Bangkok, 15-16 December 2011
Contents
• SMEs in Malaysia
• Status of financing for MSMEs
− SME financingSME financing
BNM SME Funds
Green Technology Financing Scheme
− Micro Financing
• BNM’s initiatives to assist MSMEs
− Financial advisory
− Awareness programmesp g
• Conclusion2
SMEs are the backbone of the economy and important generator of employment and growth
• Account for large proportion of businesses in Malaysia:
99 2% of establishments- 99.2% of establishments (548,267)
- Bulk (80%) micro enterprises, with less than 5 workers
99%Share of Firms
32%Share of GDP
19%Sh f E t
59%Share of Employment
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19%Share of Export Market
A structured 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
PromotingEnhancing Developing progressive and resilient
SMEs and entrepreneurs‐
Objectiv Promoting development of
SMEs in knowledge-based industries
Enhancing viability of SMEs across all sectors
III.I. II.hrusts
III.Enhancing access
to financing
I.Strengthening enabling
infrastructure
II.Building capacity and
capability
Strategic Th
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New Financing Schemes for SMEs during the Budget 2012 Announcement
SME FinancingSME
Revitalisation SME Emergency CommercialisationInnovation FundSME Financing
Fund (USD0.6bil)Revitalisation
Fund (USD31mil)
g yFund (USD3mil) Innovation Fund
(USD156mil)
Market Validation Fund (USD94mil)
MyCreativeVenture Capital
(USD62mil)
Professional Services Fund
(USD31mil)
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Challenge in developing resilient, competitive & innovative SMEs…
Capacity building key to improve viability of SMEs
to grow & withstand titi
Formalise and bring microenterprises into
the mainstream –bottom 40%competition
Financing essential to
bottom 40%
Financing essential to develop medium & fast growth companies to
Expand marketingchannels for Malaysian
SMEs to become regional/global players growth companies to
become championsregional/global players
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Central Bank’s holistic framework implemented to assist SMEs
• Microfinance Institutional Framework
Financial Infrastructure
• BNMLINK, BNMTELELINK, Mobile LINKFi i H l D k t SME B i
Avenues to Obtain Information & Advice/Redress
• Strengthening the Development Financial Institutions (DFI)
• Credit Guarantee Corporation (CGC)• Credit Bureau Malaysia (CBM)
• Financing Help Desks at SME Business Associations
• ABMConnect • Complaint & SME Advisory Units at FIs• Bankinginfo & SME Portal (www bnm gov my)y ( )
• SME Financing Facilitation (ABM-PARTNER)
Financing Schemes
• Bankinginfo & SME Portal (www.bnm.gov.my)
• 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
S h (RM3 b)
Guarantee Schemes
• SME financial exhibition• Mass media advertisements
Outreach & Awareness Programmes
Scheme (RM3 b)• Green Technology Financing Scheme (RM1.5 b)
Mass media advertisements• Distribution of promotional materials through
strategic partners, including Local Authorities
SMEs across all sectors rely on banks as the main source of external financing
Financing Outstanding as at end-Sep 2011 RM billion Agriculture
(5%) Others (5%)
BIs144.7
Government Funds and Schemes 119 1
(5%)
Construction (11%)
Services (57%)
DFIs13.3
19.1
Venture Capital 23 4
Manufacturing (22%)
SMEs in all economic sectors have access to financing
Factoring and Leasing 20.1
3.4
1/ At end-Jun 20112/ 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
SMEs continuously have access to bank financing
Approval rate remained high at 82%(%)
100
(%)
SMEs
• In Jan-Sep 2011, financing approvals grew by 26% yoy, amounting to RM54.7 billion for 91,688 accounts
• SMEs accounted for 40% of total81.5
66.1
75
SMEs
All customers
• SMEs accounted for 40% of total business financing
• Based on survey conducted by SME Corp, approval rate is 85% (Third
TitleMeasure50
2003 2004 2005 2006 2007 2008 2009 2010 Jan-Sep2011
p, pp (Quarter 2010 Survey on SMEs)
2011
Source: Bank Negara Malaysia
Central Bank’s SME funds: More than 50,000 SME accounts approved
RM1.0 billion still available under Central Bank’sSME Funds at end-Sep 2011RM millionRM million
222.6
47.7
Fund for Food
Fund for Small and Medium Industries 2
91% 9%
25.7
171.0
560.8
Micro Enterprise Fund
Bumiputera Entrepreneur Project Fund-i
New Entrepreneurs Fund 2
9 %Utilised Available
25.7Micro Enterprise Fund
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 2011g p
Green Technology Financing Scheme to support national green agenda
• To promote investments in Green Technology (GT)
P d f GT T fi i t t i
Objective
• Producer of GT - To finance investments in production of green technologies
• User of GT – To finance investments in utilisation of green technologies
Purpose of Financing
• Producer of GT – Max: RM50 m per company • User of GT – Max: RM10 m per company
Financing Size
• Producer of GT – Up to 15 years• User of GT – Up to 10 years
Financing Tenure
• Malaysia Green Technology Corporation and CGC
• Issued 103 GT certificates with project value totaling RM2.1 b
Implementing Agency
A hip j g
• 82 companies applied for RM1.7 m financing• 24 companies have been granted RM350.6 m financing
Achievements
Easy, Fast & Convenient of Micro Financing
• Financing size ranging between
Small Fi i
Financing size ranging between RM1,000 to RM50,000
• Financing is
Key Benefits
Financing Amount
Use for
offered to micro enterprises
Key Benefits of
MicrofinanceEasyBusiness
Purposes
FastConvenient
F t l• Fast approval • Fast disbursement
• Widely accessible
Micro enterprises have benefited from Micro FInancing by 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 significantly
Micro enterprises have quick access to Pembiayaan Mikrosignificantly
End-period
2010 2,544*
Pembiayaan MikroAverage Processing Time in Sep-11 (No. of days)
Government’s 6 41 868
36.2% yoy
2006 913
* Increase in participation from 9
Approval Time
DisbursementTime
Target
Participating Financial
Institutions’ Performance
6
34
42009 1,868
Source: Central Bank Malaysia
p pto 10 financial institutions
Many have benefited from the advisory and resolution services provided
BNM has assisted 247,457 clients as at Jan-Sep 2011No of clients
For BNM:
• Majority (96.7%) soughti f ti
Information & guidance
Resolution of
239,766
7 691
AKPK has assisted 30 010 clients as at Jan Sep 2011
information
• 88% of complex issueswere resolved
57 5% f th l d
complex issues & advisory
7,691
AKPK has assisted 30,010 clients as at Jan-Sep 2011No of clients
− 57.5% of the resolvedissues were in favourof consumers
9,928Information &
guidance
12,570Debt mgt &
resolution
g
Source: Bank Negara Malaysia and AKPK
Central Bank’s promotion initiatives to enhance awareness among SMEs
Promotion of SME programmesin Jan-Sep 2011in Jan-Sep 2011
Distribution of SME information materials
(184 106 units)
Outreach programmes nationwide (29 events)
Advertisements (ads) including articles &
interviews
• SME events & road shows• Strategic partnerships
• Newspapers, business magazines, TV interview
• SME events, roadshows• SME Financing Fairs
d t t l l di l
(184,106 units)(29 events) (33 ads)
(private, government agency & local authorities)
and state level dialogues
Malaysia ranks high in terms of financial access
Category Ranking Source
‘Getting Credit’ No 1 for 4 consecutive World Bank (Doing Businessg No. 1 for 4 consecutive years*
World Bank (Doing Business 2009, 2010, 2011 & 2012 Reports)
‘Loans accounts per 1 000 adults’
No. 2 out of 87 Consultative Group to Assist the 1,000 adults Poor (Financial Access Report
2010)
‘Ease of Access to Loans’ No. 8 in 2011 from 10 i 2010*
World Economic Forum (The Global Competitiveness Reports 2010 2011
‘Deposits accounts per No 9 out of 110 Consultative Group to Assist the
ase o ccess to oa s no.10 in 2010* Competitiveness Reports 2010-2011 and 2011-2012)
1,000 adults’ No. 9 out of 110 p
Poor (Financial Access Report 2010)
* Most recent update
Conclusion
New financialSMEs are important source of economic
Stepping-up the awareness campaign for
various
SMEs to be financially-savvy, pro active to
New financial sector
blueprint in the face of the
changinggrowth and have potential
programmesfor SMEs
improve themselves
changing financial
landscape
T d d i ti l i l d l b l h iTowards producing national, regional and global champions
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Vision
www.smeinfo.com.my
www.smecorp.gov.myThank you
SME Corp Malaysia
p g y
SME Annual Report 2009/10
SME Corp. Malaysia
1-300-30-6000
Physical KL Sentral
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