1. MGT 162
Muhammad Syamil bin Kamal
Muhammad Ariff Azanis bin Azman
Muhammad Firdaus bin Ramli
Nur Diyana Afiqah binti Mahashim
Amalina Diana binti Mohd Kassim
Nur Hazirah binti Ishar
2. Company background
• The SME Bank was previously known as “Bank Industri dan Infrastruktur
Malaysia Berhad” was incorporated under the Act on 7 August 1979 as
Bank Industri Malaysia Berhad. It later changed its name to “Bank Industri
& Teknologi Malaysia Berhad” on 28 February 2000. SME Bank assumed its
present name following the merger with Bank Pembangunan &
Infrastruktur Malaysia Berhad on 1 October 2005.
• As a one-stop financial centre responding to the funding and business
growth needs of Malaysian SMEs, the Bank complements existing
products and services offered by commercial banks through a
comprehensive and integrated financial and business advisory services. It
is a wholly owned subsidiary of Bank Pembangunan Malaysia Berhad.
• SME Bank has an authorised share capital of RM1 billion comprising 1
billion ordinary shares of RM1.00 each, of which approximately RM770.45
million comprising approximately 770.45 million shares have been issued
and fully paid-up as at 31 October 2005. The SME Bank is dedicated to the
accelerated growth of Malaysian SMEs and designed to function
ultimately as a one-stop financing and business development centre.
3. • Vision Statement
To become the SME Hub 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.
• Mission Statement
In achieving recognition as the SME Hub, the
management and the employees of the Bank will
collaborate with its network of strategic partners
to support government’s economic agenda in
developing SMEs as an engine of growth.
4. • Company’s objectives
The principal activities of the Bank are to
provide financing as well as financial and
business advisory services to Malaysian SMEs
residing within predefined categories, which
have been framed within the SME
classification guidelines of the National SME
Development Council.
5. STRATEGY PLANNING
• Superior Economic and Industry Sector : Understand the market to
identity and develop high growth / high profitability segments.
• Market Leadership in Chosen Segments : Carefully define your customer
segments and be a leader in your chosen market rather than trying to win
the whole of the SME segmen.
• Cost Control : Take advantage of opportunities for standardisation,
process re-engineering, and adoption of new technology to improve
efficiency and reduce costs.
• Cross-Selling : Maximise cross-sell opportunities to capture all the fee
income and liability-side business you can, and also the lucrative personal
business of directors and owners
• Leadership : Make sure the SME business is sponsored at the most senior
level, and the business has a Board-level profile.
6. TYPES OF ORGANIZATIONAL STRUCTURE
• Tall organizational structure.
• The organization is clearly departmentalized
by function.
SPAN OF MANAGEMENT
• Narrow span management.
11. SME BANK’S PRODUCTS
Contract Financing
General Features:
Contract Financing Scheme is a financing package based on product bundling concept
of financing facilities which are already available in the Bank.
The scheme offers financing to customers who are Main Contractors or Nominated
Sub-Contractors having secured contract(s) from approval awarding parties mainly
government ministers, departments and agencies.
12. • Mechanics of Financing:
Providing loan facilities to fund the implementation of contracts until full completion.
The funding mechanism works by assigning the contract payment to the awarded
parties direct from the Bank.
Financing is offered on a pre-implementation or post-completion basis, or a
combination of both.
Types of contract:
Supply direct supply contract or contract with added value in the form of installation,
testing, commissioning, and training.
Construction and infrastructure projects including works in civil, mechanical, electrical
and information & communication technology.
Other business services contract such as providing services and maintenance.
13. • What do you learn from your observation and
searching info on the organization?
Thus, this organization applies tall organization structure and narrow span of
management which characterized by many levels. They have their own
strategic plans in order to achieve their desired goals and objectives which is
the principal activities of the Bank are to provide financing as well as financial
and business advisory services to Malaysian SMEs residing within predefined
categories. They also offer various products in order to satisfy their customers
needs. For instance, i-reach, i-surf, i-splash and etc.
14. Our meeting with one of the former senior management from the head-quarters.
