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MSC Malaysia Industry Dialogue ...

MSC Malaysia Industry Dialogue
Financing ICT SMEs & Micro SMEs

8 April 2010
Berjaya Hotel & Convention Center, KL

Mr. Aliman Ali, Assistant Vice President / Head Operations 1, SME Bank

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SME BANK SME BANK Presentation Transcript

  • MSC Malaysia Industry Dialogue 8 April 2010 THE ROLE AND FUNCTION OF SME BANK
  • Vision & Mission To become the SME Hub by 2010 with the unique capability to evaluate, promote and grow Malaysian SMEs with a focus on the development of the Bumiputera Commercial and Industrial Community (BCIC) in line with the Government’s aspirations. In achieving recognition as the SME Hub, the management and employees of the Bank will collaborate with its network of strategic partners/providers to focus on becoming the centre of knowledge and expertise on the financing and growth needs of Malaysian SMEs. VISION MISSION
  • Vision & Mission SME Hub’s Definition The ability of the Bank to offer ‘One Stop Center Experience’ to its customers where all the Bank’s staff at all business levels have the ability to provide the information as stated below to the customers:-   (i) Bank’s products and services package; and its client charter.   (ii) Products and services related to SMEs offered by government agencies and any other SME lending institutions. (iii) Brief on economic and industry reports, corporate business plan and also related BNM guidelines & circulars.   (iv) Related initiatives with Bank’s strategic partners/providers.    The above information will support the concept of “No wrong door policy”. For example, any customer that comes to the Bank for assistance, they will receive respond not only on the Bank’s products and services but also information pertaining to assistance from the other SME lending institutions or government agencies.   In addition, while providing ‘value added advisory services’ to the customers along the relationship tenure, the Bank’s staff will be able to further assisting the client to tap any matching grant or technical assistant available, or any developmental programmes funded by the government allotted to the other agencies.
  • SME Hub SME Hub By 2010 SME Bank Small to Medium Business Large Enterprise Micro/Start Up Business SME Customer Business Growth Value Chain Other Development Financial Institutions Other Commercial Banks Network of financial/non-financial advisory services supporting SME growth value chain SME Corp, Government Ministries and Agencies Financial and Research Institutions, National and International Chambers of Commerce Universities and Institutes of Higher Learning Productivity and Training Centres, Professionals, Consultants and Subject Matter Experts. Micro Funding Service Providers
  • Commercial Banks CIMB Bank Muamalat SME Development Agencies SMECORP MARA PUNB MTDC UUM UKM Holding Institutes of Higher Learning MPC Government Agencies Strategic Partners HDC
  • Ownership & Reporting Ownership & Reporting Structure MOF Inc. MECD SME BANK Bank Negara Malaysia
    • SME financing
    • Manufacturing sector
    • Services sector
    • Construction sector
    Supervising Ministry Shareholder Regulator under DFIA 2002 Before MOF Inc. MITI SME BANK Bank Negara Malaysia
    • SME financing
    • Manufacturing sector
    • Services sector
    • Construction sector
    Supervising Ministry Shareholder Regulator under DFIA 2002 After
  • SME BANK TARGET CUSTOMERS
  • Facilities & Funding Financing Facilities & Funding Financing Facilities Funding
    • Internal Fund
    • RMK9 Funds
    • Bank Negara Funds (TUB & TIKS)
    • Special Fund For Tourism (SFT2)
    • Rural Economic Development Scheme (SPED)
    • Public Transport Development Fund (TPPA)
    • Film & Drama Financing Scheme (SPFC)
    • Graduates Entrepreneur Fund (TUS)
    • SME Fund 2 (TIKS2)
    • Terengganu State Entrepreneur Fund (DUNT)
    • Foreign Funds (JBIC SMI)
    • Other Funds
    • Fixed Asset Financing
    • Land
    • Building
    • Land & building
    • Machine & equipments
    • Motorised vehicles
    • Equity/ Investment
    • Project initiation/ start-up financing
    • Venture Capital Fund
    • Financing
    • Ordinary Shares
    • Preferred Shares
    • Loan Stock
    • Conventional
    • Term Loan
    • Leasing
    • Industrial Hire Purchase
    • Bank Guarantee
    • Islamic
    • Bai’bithaman Ajil (BBA)
    • Bai Murabahah
    • Bai Dayn
    • Ijarah
    • Ijarah Thummalbai’
    • Kafalah
    FACILITY
    • Working Capital Financing
    • Fixed Working Capital
    • Revolving Working Capital
  • Strategic Products 5 Strategic Products Developing SMEs from start-up to expansion and export stages
  • Qualified Sectors Activities Qualified For Financing Out of Scope
    • Manufacturing (Preference will given to high growth sector)
    • Services
    • Electrical, Gas & Water Supply
    • Transportation, storage & communication
    • Wholesale & Retail Trade
    • Education
    • Healthcare
    • 3. Construction (Contracts from Govt & GLC)
    • 4. Tourism
    • 5. ICT & biotech.
    • Primary agriculture (Processing and services of food products are exempted)
    • Property Development
    • Gambling
    • Illegal activities
    • Open to all business entities:
    • (Sole-proprietor, Partnership, Cooperative, Sdn Bhd, Berhad) majority owned by Malaysian & registered in Malaysia.
    • Subject to terms & conditions of each funds.
    Eligibility
    • Foreign owned companies
    • Bankrupt shareholder and director
    • Insolvent entities with negative shareholders funds
    • Family relationship with SME Bank staff
    Not Eligible
  • Facilities TERM LOAN (FIXED ASSET)
    • LAND & BUILDING
    • CONSTRUCTION OF BUILDING
    • MACHINERY/EQUIPMENT/PLANT
    • COMMERCIAL VEHICLES
    • RENOVATION
    • FURNITURE/FITTINGS
    LEASING
    • MACHINE/EQUIPMENT/PLANT
    • COMMERCIAL VEHICLES
    • FURNITURE/FITTINGS
    INDUSTRIAL HIRE-PURCHASE
    • MACHINE/EQUIPMENT/PLANT
    • COMMERCIAL VEHICLES (EXCEPT
    • BUS)
  • Facilities FIXED WORKING CAPITAL
    • PURCHASE OF STOCK
    • DEBTORS
    • OVERHEADS
    • INTANGIBLE ASSETS I.E.
    • PATENT, GOODWILL, INTELLECTUAL PROP.
    • LEGAL FEES (FOR TUS ONLY)
    • PRE-OP I.E. FRANCHISE FEE, MANAGEMENT FEE, CONSULTANCY FEE & PROMOTION & BRANDING
    • REVOLVING WORKING CAPITAL
    • PRE-SHIPMENT
    • PURCHASE OF RAW MAT.
    • W.I.P
    • FINISHED GOODS
    • REVOLVING WORKING CAPITAL/FACTORING
    • POST-SHIPMENT
    • DEBTORS
  • Facilities BANK GUARANTEE
    • PERFORMANCE BOND
    • ADVANCE PAYMENT GUARANTEE
    • TENDER BON
    • GUARANTEE TO SUPPLIER, BANK & ETC.
    CREDIT GUARANTEE SCHEME (CGS)
    • FACILITIES BY CIMB:
    • OVERDRAFT
    • LC
    • TR
    • BILLS PURCHASED
    LOAN STOCK
    • FIXED ASSETS
    • WORKING CAPITAL
    • * Maximum 30% of paid up capital
    COMFORT LETTER
    • For Government & GLC Tender Submission
  • Margin Of Financing FACILITIES MARGIN OF FINANCING TERMS & CONDITION Fixed Asset Working Capital Industrial Hire Purchase Leasing 75%-90% 70%-100% 90% 100% Start Up/On Going Co Start Up/On Going Co In operation 3 yrs with good track record In operation 3 yrs with good track record
  • Margin Of Financing FACILITY MARGIN OF FINANCING LAND 90% BUILDING 90% MACHINERY & EQUIPMENT 85% COMMERCIAL VEHICLES 90% FURNITURE & FITTINGS 80% RENOVATION 80% FIXED WORKING CAPITAL 100% REVOLVING WORKING CAPITAL 70% - 80% ON INDENT/PURCHASE ORDER OR 100% ON COST OR 90% ON INVOICE INDENT/PO
  • Facilities Tenure FACILITY MARGIN OF FINANCING LAND 20 Years BUILDING 10 Years MACHINERY & EQUIPMENT 7 Years COMMERCIAL VEHICLES 7 Years FURNITURE & FITTINGS 5 Years RENOVATION 5 Years FIXED WORKING CAPITAL 5 Years REVOLVING WORKING CAPITAL 5 Years FIXED REVOLVING CAPITAL 5 Years
  • FUNDS & CRITERIA FUND GENERAL FUNDS SKIM PEMBIAYAAN ISLAM 5 (SPI 5) FUNDS PROVIDER INTERNAL INTERNAL MINIMUM REQUIREMENT
    • FIRMS/PARTNERSHIP/ SDN BHD
    • 51.0% MALAYSIAN OWNED
    • START UP OR ONGOING
    • FIRMS/ PARTNERSHIP/SDN BHD
    • 51.0% MALAYSIAN OWNED
    • 51.0% BUMIPUTERA
    • START UP OR ONGOING
    AMOUNT
    • MIN – RM100,000
    • MAX – RM50.0 MILL
    • MIN – RM100,000
    • MAX – RM50.0 JUTA
    INTEREST RATE
    • PRIME RATE+ 0.5% TO 2.0%
    • (MONTHY REST)
    • PRIME RATE + 0.5% TO 2.0%
    • (MONTHLY REST)
    TENURE
    • MAX - 20 YEARS
    • MAX – 20 TAHUN
    INDUSTRI FOCUS
    • ALL SECTOR ALLOWED BY
    • SME BANK GUIDELINE
    • MANUFACTURING
    • SERVICES
  • FUNDS & CRITERIA FUNDS JBIC-SMI (OECF) AJDF ® SMIPP FUNDS PROVIDER JAPAN - MOF JAPAN - MOF JAPAN -MOF MINIMUM REQUIREMENT
    • FIRMS OR SDN BHD
    • ON GOING
    • 51.0% MALAYSIAN
    • OWNED
    • PAID UP CAPITAL
    • <RM3.0 JUTA
    • FIRMS OR SDN BHD
    • ON GOING
    • 51.0% MALAYSIAN
    • OWNED
    • PAID UP CAPITAL
    • <RM3.0 JUTA
    • SDN BHD
    • 51.0% MALAYSIA
    • OWNED
    • PAID UP CAPITAL <RM5.0 JUTA
    • START UP OR
    • ONGOING
    AMOUNT
    • MIN – RM50,000
    • MAX – RM5.0 MILL
    • MIN – RM50,000
    • MAX – RM5.0 MILL
    • MIN – RM100,000
    • MAX – RM5.0 JUTA
    INTEREST RATE
    • 6.25%
    • (MONTHLY REST)
    • 6.25%
    • (MONTHLY REST)
    • 7.0%
    • (YEARLY REST)
    TENURE
    • MAX - 15 YEARS
    • MAX - 15 YEARS
    • MAX – 15 YEARS
    INDUSTRI FOCUS
    • MANUFACTURING
    • SERVICES
    • MANUFACTURING
    • SERVICES
    • MANUFACTURING
    • SERVICES
  • FUNDS & CRITERIA FUNDS SFT2 SPED FILEM CEREKA PENGANGKUTAN AWAM (TPPA) FUNDS PROVIDER KEM. PELANCONGAN KPLB KEKWA MITI MINIMUM REQUIREMENT
    • 60.0%
    • BUMIPUTERA
    • SDN BHD
    • SDN BHD/ ENTERPRISE/
    • PARTNERSHIP
    • FULL TIME
    • 100%
    • BUMIPUTERA
    • LOCATED IN
    • RURAL AREA
    • SDN BHD
    • OBTAINED LICENSEIN FILM PRODUCTION
    • INDIVIDUAL/ SDN
    • BHD/ KOPERASI/
    • PARTNERSHIP
    • LICENCE PERMIT
    • FROM LPKP
    AMOUNT
    • MIN – RM50,000
    • MAX – RM25.0
    • MILL
    • MIN – RM30,000
    • MAX – RM500,000
    • MIN – RM50,000
    • MAX – RM1.00
    • MILL
    • MIN – RM30,000
    • MAX – RM5.00
    • MILL
    INTEREST RATE
    • 4.0% - 5.5%
    • (YEARLY REST)
    • 4.0%
    • (MONTHLY REST)
    • 4.0%
    • (MONTHLY REST)
    • 4.0%
    • (YEARLY REST)
    TENURE
    • MAX - 20 YEARS
    • MAX – 5 TAHUN
    • MAX – 4 TAHUN
    • TAXI – 5 TAHUN
    • BUS – 10 TAHUN
    INDUSTRI FOCUS
    • TOURISM
    • PROJECT
    • MANUFACTURING
    • SERVICES
    • FILM
    • (FICTION FILEM )
    • TAXI/ LIMOUSIN
    • EXSPRESS BUS
    • STAGE BUS
  • FUNDS & CRITERIA FUNDS TABUNG USAHAWAN SISWAZAH KRAF PERKHIDMATAN OUTSOURCING FUNDS PROVIDER MITI MITI MITI MINIMUM REQUIREMENT
    • GRADUATE <10 YRS
    • AGE < 40 YRS OLD
    • FULL TIME STAFF
    • SDN BHD/ ENTERPRISEL/ PARTNERSHIP
    • MECD TRAINNING
    • SDN BHD
    • 51.0% BUMIPUTERA
    • SDN BHD
    • 51.0% BUMIPUTERA
    AMOUNT
    • MIN – RM20,000
    • MAX – RM250,000
    • MIN – RM30,000
    • MAX – RM5.0 MILL
    • MIN – RM30,000
    • MAX – RM5.0 MILL
    INTEREST RATE
    • 4.0%
    • (MONTHLY REST)
    • 4.0% - 6.0%
    • (MONTHLY REST)
    • 4.0% - 6.0%
    • (MONTHLY REST)
    TENURE
    • MAX - 10 YEARS
    • MAX – 10 YEARS
    • MAX – 10 YEARS
    INDUSTRI FOCUS
    • MANUFACTURING
    • SERVICES
    • TOURISM
    • FRANCHAIS
    • MECD SPECIAL PROGRAM
    • CRAFT INDUSTRY
    • OUTSOURCING
    • SERVICES
  • FUNDS & CRITERIA
  • FUNDS & CRITERIA FUNDS AGRO-BASED VENDOR SMARTBIZ HALAL HUB FUNDS PROVIDER AGROBANK MITI MITI MINIMUM REQUIREMENT
    • SDN BHD
    • 51.0% BUMIPUTERA
    • OBTAINED JAKIM
    • HALAL CERTIFICATE
    • SDN BHD
    • 51.0% BUMIPUTERA
    • APPOINTED UNDER VENDOR PROGRAM/ GOVERNMENT & GLC UMBRELLA CONCEPT
    • SDN BHD
    • 51.0% BUMIPUTERA
    • PREFFERENCE FOR
    • EXPORT ACTIVITIES
    AMOUNT
    • MIN – RM30,000
    • MAX – RM5.0 MILL
    • MIN – RM30,000
    • MAX – RM5.0 MILL
    • MIN – RM30,000
    • MAX – RM5.0 MILL
    INTEREST RATE
    • 4.0% - 6.0%
    • (MONTHLY REST)
    • 4.0% - 6.0%
    • (MONTHLY REST)
    • 4.0% - 6.0%
    • (MONTHLY REST)
    TENURE
    • MAX - 10 YEARS
    • MAX – 10 YEARS
    • MAX – 10 YEARS
    INDUSTRY FOCUS
    • MANUFACTURING
    • OF AGRI BASE
    • PRODUCT
    • MANUFACTURING
    • SERVICES
    • MANUFACTURING
    • SERVICES
  • FUNDS & CRITERIA NAME OF FUND SME ASSISTANCE GREEN TECHNOLOGY FINANCING SCHEME (Producers of Green Technology) FUND PROVIDER ▪ All PFI’s FINANCING SIZE
    • MAXIMUM: RM50 MIL PER COMPANY
    FINANCING TENURE ▪ UP TO 15 YEARS PURPOSE OF FINANCING ▪ TO FINANCE INVESTMENTS IN PRODUCTION OF GREEN TECHNOLOGIES THAT MEET THE SCHEME OBJECTIVE ELIGIBILITY CRITERIA
    • LEGALLY REGISTERED MALAYSIAN OWNED COMPANIES (at least 51% ) IN ALL ECONOMIC SECTORS
    GOVERNMENT INCENTIVE ▪ GOVERNMENT GUARANTEE – 60% OF FINANCING APPROVED GUARANTEE FEE
    • 0.5% p.a
    INTEREST/FINANCING RATE ▪ PRIME + (0.5 -2.0)%
  • FUNDS & CRITERIA NAME OF FUND SME ASSISTANCE GREEN TECHNOLOGY FINANCING SCHEME (Users of Green Technology) FINANCING SIZE ▪ MAXIMUM : RM10 MIL PER COMPANY FINANCING TENURE
    • UP TO 10 YEARS
    PURPOSE OF FINANCING
    • TO FINANCE INVESTMENTS IN UTILISATION OF GREEN TECHNOLOGIES THAT MEET SCHEME OBJECTIVE
    ELIGIBILITY CRITERIA
    • LEGALLY REGISTERED MALAYSIAN OWNED COMPANIES (AT LEAST 70%) IN ALL ECONOMIC SECTORS
    GOVERNMENT INCENTIVE
    • GOVERNMENT GUARANTEE – 60% OF FINANCING APPROVED
    GUARANTEE FEE
    • 0.5% p.a
    INTEREST/ FINANCING RATE
    • PRIME + ( 0.5 – 2.0) %
    • SME Bank Business Premise Scheme: special financing packaged tailored for SMEs to finance or refinance shop lots and office space.
    • Financing of completed or under construction shop lots or office space, purchased for owner occupation. Refinancing from other banks.
    • Eligible for SMEs with Sdn Bhd status and professional firms with at least 3 years audited accounts & profitable last 3 years.
    • Financing from RM100,000 to RM3.0 million.
    • Up to 95% margin of financing or up 100% based on Force Sale Value.
    • Up to 20 years including 3 years grace period for under construction premise.
    • Financing rate as low as PRIME RATE minus 2.25% p.a
    PREMISE FINANCING
  • SME ADVISORY CENTRE
  • WHO IS QUALIFIED FOR THIS SERVICES?
    • POTENTIAL CLIENT
    • SME BANK EXISTING CLIENT
    • PARTICIPANTS OF SME BANK ENTREPRENEURSHIP PROGRAM
  • TYPES OF SME ADVISORY SERVICES MODULE SERVICES Strategy/Business planning Business Model, financing planning, credit management, product development & services and legal management Market Research/Knowledge Industry/Market information analysis/research, documentation Customer Management Potential customer,expand growth, market diversification, matching business and export orientation Resource Planning Quality employee, training, orientation, employee management Process & System planning Business Operation, work flow,system & structure Communication integration Reputation, business relationship, planning business management Performance Growth Research achievement,supervision monitoring, rehabilitation
  • BASIC CREDIT EVALUATION AND INDUSTRY/PRODUCT REQUIREMENT
  • 5C CONCEPT IN BASIC CREDIT EVALUATION BASIC CREDIT EVALUATION CHARACTER
    • CREDIT HISTORY AND CHARACTER OF PROMOTER/CUSTOMER
    CAPITAL
    • CONTRIBUTION OF FUND IN COMPANY
    CAPACITY
    • ABILITY TO SERVICE THE LOAN
    CONDITION
    • SURROUNDING/ECONOMIC FACTORS EFFECT ON THE BUSINESS ACTIVITY
    COLLATERAL
    • ABILITY TO PROVIDE COLLATERAL TO COVER THE LOAN
  • BASIC INFORMATION/DOCUMENTS REQUIRED
    • Application Form
    • Director/Shareholder Profile
    • Form 24 and 49 (confirmation by company secretary)
    • Memorandum & Article
    • Audited account for 3 past years (confirmation by auditor)
    • Management Account
    • Latest bank account – 6 months
    • Project cash flow and profit loss statement – 5 years
    • Business Plan
    • Company Profile
    • All supporting document as per checklist
  • SME CLIENT NEEDS APPLICATION RECEIVED GATHER MANDATORY INFORMATION INFORMATON COMPLETE? EVALUATION DECISION SME CLIENT SATISFACTION NO ISSUE LETTER OF OFFER LETTER OF OFFER RECEIVED PREPARE LEGAL DOCUMENTATION COMPLIANCE DISBURSEMENT < 10 days 5 days for < RM500k 7 days for > RM500k Flowchart On Processing Workflow/Client Charter Max 90 days (secured) < 30 days < 3 days 1 day >RM500k (Pre compliance) <RM500k (Post complaince)
  • Thank You.