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Perspective of DFIs in Malaysia
DFIs are specialised FIs
established by the
Government with specific
mandate to develop and
promote
key sectors that
are considered of
strategic
importance to the overall
socio-economic
development objectives
of the country
Roles and functions in providing focused financial and development support to bolster economic growth, socio-economic agenda and human capital development
The strategic sectors
include agriculture, small
and medium enterprises
(SMEs), infrastructure,
maritime, export
oriented sector as well as
capital-intensive
and high-technology
industries
The are 13 DFIs in
the country
of which 6
are prescribed
under the Development
Financial Institutions
Act 2002 and supervised
by Bank Negara
Malaysia (BNM)
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Ownership & Reporting
MOF Inc. Bank Negara
Malaysia MITI
SME Bank
Supervising Ministry
Shareholder 100% owned
Regulator Under DFIA 2002
Broad Focus on:
• Manufacturing sector • Services sector • Construction sector
• Authorized Capital RM5.0 billion
• Paid up Capital RM1.35 billion
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Vision & Mission
A Full-Fledged
Specialised Financial
Institution With Global
Aspiration To Nurture
SMEs For Nation Building To Support
Government’s
Economic Agenda
In Developing SMEs
As An Engine Of
Growth
&
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Delivery Network
Kuala Lumpur Kuantan
Johor Bahru Miri
Kota Kinabalu
Kuching
Melaka Seremban
Shah Alam
Ipoh
Kota Bharu
Kuala Terengganu
Bayan Baru Seberang Jaya
Alor Setar Kangar
Tawau
KL Sentral Rawang
Kajang
2011 2012 2013
Enterprise & Business Centre/UTC Outlet 17 22 24
Enterprise Premise Complex (EPC) 24 25 25
Sg. Petani
Taiping
Pudu Sentral
Pasir Mas
Pekan
Temerloh
Kemaman
Batu Pahat Pasir Gudang
Bintulu
To be opened
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INNOVATION AND
TECHNOLOGY ADOPTION
- Encourage greater innovation and
technology adoption by SMEs
ACCESS TO FINANCING
- Ensure that
creditworthy SMEs have access to
financing for working capital and investment
LEGAL AND REGULATORY
ENVIRONMENT
- Ensure that legal and regulatory environment is
conducive for the formation and
growth of SMEs, while protecting the broader interest of
society.
HUMAN CAPITAL
DEVELOPMENT
- Enhance human capital and
entrepreneurship development among
SMEs
MARKET ACCESS
- Expand the
market access for goods and services produced by SMEs
INFRASTRUCTURE
- Improve the infrastructure for the
SMEs to operate effectively.
6 Focus Areas
41% share of GDP
(2010: 32%)
62% share of employment
(2010: 59%) 25% share of exports
(2010: 19%)
NATION
Our role in SME Master Plan 2012-2020
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SME Definition and General Financing Criteria
Full time
employee
Manufacturing (including
Agro-Based) & Manufacturing Related
Services
Services Sector (including ICT)
Micro Less than 5 employees Less than 5 employees
Small Between 5 - 50 employees Between 5 - 19 employees
Medium Between 51 - 150 employees Between 20 - 50 employees
Annual Sales
Micro Less than RM250,000 Less than RM200,000
Small Between RM250,000
& less than RM10 million
Between RM200,000
& less than RM1 million
Medium Between RM10 million
& RM25 million
Between RM1 million
& RM5 million
Eligibility Criteria
Status Entity defined as Small Medium Enterprise (SME)
Business activity Activities related to manufacturing, services and construction that not in contrary to Shariah principles
Primary agriculture, mining, private/commercial housing, gambling and other activities determined by the Bank from time to time ARE NOT ELIGIBLE
Ownership Malaysian owned entity ( >51% Malaysian equity)
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Type of Financing
• Bai’ Bithaman Ajil
• Bai’ Istisna’
• Ijarah
• Ijarah Thummal Bai’
• Land
• Building
• Machineries
• Equipments
• Motor Vehicle
FIXED ASSET
• Fixed
• Revolving
• Bai’ Murabahah
• Bai’ Dayn
• Bai’ Inah
• Kafalah
WORKING CAPITAL
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Trade Services
Issuance of Letter of Credit
• Through Agent Bank
Shipping Guarantee
• Through Agent Bank
Issuance of Bank
Guarantee
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Entrepreneurial Training
SME Bank’s Existing
Clients
Existing/Would-be
Entrepreneurs
EPC Participants
Scope
Intensive Training
SMEs Performance
Enhancement
Training
Basic Training
New Customer
Orientation Training
Type
TRAINING
Establishment of Centre for Entrepreneur Development &
Research (CEDAR) • Launched on 6 Nov 2012
• To support SME Bank’s role in the area of human
capital development i.e. providing capacity building
& capabilities enhancement for SMEs
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Entrepreneur Premise Program
25 Complexes/433 Lots
Financing Facilities
Matching Grant for Technical &
Training
Advisory Services
Entrepreneurship Training
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i-Enterprise Premise Financing (i-EPF)
i-Enterprise Premise Financing is a financing package for the refinancing and purchase of shop-house, shop-lots, office spaces and factories. It also covers acquisition of completed or under construction properties. The package includes financing for working capital.
Margin of financing of up to 150% of Market Value (MV) of the property Longer tenure up to 30 years ; with grace period of up to 6 months (for completed
Property) and 24 to 36 months (for property under constriction) Stamp Duty, legal Fee, Mortgage Reducing term Takaful (MRTT) and Valuation Cost can be
included in the financing package Waiver for Fire & All Peril contribution (1st year only), actual cost of searches and actual cost
for Discharge of Charge (if any) No penalty for early settlement
Facility Eligibility Pricing
Islamic Bai Bithaman Ajil (BBA) Bai Istisna Bai Inah
Sole-proprietor and partnership Private Limited Co within the
National definition of SME Individual business owner
Up to BFR – 1.8%
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Young Entrepreneur Fund (YEF) is a special fund allocated by the Government as part of its continuous strategy of acculturation and creation of new entrepreneurs among Malaysia youth. The purpose of this fund is to provide alternative access to the young entrepreneurs in obtaining financing to start their new business as well as for the needs of their existing business .
Financing Concept
Islamic Bai Bithaman Ajil (BBA) Bai Inah Ijarah, Ijarah Thummal Bai’, Bai’Istisna
Our Attractive pricing
5% per annum (Annuity Monthly rest)
Financing limit
Minimum : RM20,000 Maximum : RM100,000
Tenure
Up to 7 years including maximum 1 year grace period
Young Entrepreneur Fund (YEF)
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Malaysian youth between 18 to 30 years of age, owning the business. The business is registered with Suruhanjaya Syarikat Malaysia (SSM) or other authorised registering
bodies under a sole-proprietorship or partnership firm, or a Sdn Bhd company. For a partnership firm or a Sdn Bhd Company, the youth applicant must hold majority shares of more
than 51% AND is the key decision maker. Minimum possession of entrepreneurship/vocational or at least 2 years experience in business to be
financed Those without entrepreneurship/vocational certificate could be considered through the acquisition
of entrepreneurship training from Centre for Entrepreneur Development and Research (CEDAR), SME Bank.
Start-up companies / firms may be considered
Young Entrepreneur Fund (YEF) ...(cont)
Working Capital Requirement Margin of Financing
Working Capital – Purchases of raw materials, stocks, overhead cost, renovation, advertising & promotion etc.
Up to 100%
Purchase of Assets for Business Operations Margin of Financing
Loose tools, machinery & equipment, office equipment, vehicle etc Brand New Used/Reconditioned
Up to 100% Up to 75%