Chapter 6 - SME Corporation Malaysia

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CHAPTER 688 National SME Development Council SME ANNUAL REPORT 2009/10Enhancing Access to FinancingIn 2008 and 2009, the Government had undertaken a comprehensiveapproach to assist businesses which include introducing stimulus measuresspecifically for SMEs amounting to RM15.6 billion or equivalent to 2% of GDPto weather the impact of the global financial crisis. Bulk of the measures wasfocused on enhancing access to financing for SMEs. As at end-June 2010,80% of the funds have been approved, and 65% of these funds have beendisbursed benefiting about 79,000 SMEs (end-2009: 53% disbursed to 56,000SMEs) which helped support the early recovery of the economy.Diversified Financial Landscape for SMEIn addition to the comprehensive financial landscape comprising bankinginstitutions (BIs), development financial institutions (DFIs), venture capitalcompanies, leasing and factoring companies, there are also Government fundsand Bank Negara Malaysia (BNM) schemes that SMEs can avail themselves.During the year, risk sharing mechanisms, such as the guarantee schemeswere also introduced to enhance SMEs’ access to financing.Chart 6.1Diversified Financial Landscape for SMEsBanking InstitutionsDevelopment Financial InstitutionsBNM Special Funds and Guarantee SchemesGovernment Funds and SchemesCredit Guarantee SchemesSME Credit BureauGovernment Crisis FundsVenture CapitalCompaniesLeasing andFactoringAr-Rahnu andPawn BrokingMicrofinanceInstitutionsBanking Institutions and Development Financial InstitutionsBanking institutions continued to remain as the main source of financing forSMEs, accounting for 80% of the total financing extended by the various SMEfinanciers as at end-2009. In addition, DFIs complement the banks to facilitatethe growth of strategic sectors as identified by the Government.
National SME Development CouncilSME ANNUAL REPORT 2009/1089CHAPTER 6Chart 6.2SME Financing Outstanding as at end-2009 (RM billion)BlsDFIsGovernment Fundsand SchemesVenture CapitalLeasing andFactoring1.52.69.016.3119.3In 2009 and first-half of 2010,financing to some SMEs wereexcluded from the SME financingdata because these companies hadgrown beyond the definition of SMEs.Without this exclusion, financingoutstanding to SMEs by financialinstitutions expanded 5.5%year-on-year to RM146.4 billioninvolving 648,236 accounts as atend-2009, and increased further by8% as at end-June 2010.Enhancing Access to FinancingChart 6.3Approval Rate of SMEs0 20 40 60 80 100 120Source: SME Corporation Malaysia, Bank Negara Malaysia and Securities Commission of MalaysiaDuring the year, financing to SMEs via financial institutions, comprising thebanking institutions and DFIs has remained strong. With the approval rate of78% in 2009, the financial institutions had approved RM50.9 billion to 140,141SME accounts. The approval rate rose further to 80% in the first-half of 2010.The six DFIs under the purview of BNM had approved a total of RM5.6 billionfinancing to 27,144 SME accounts throughout the 683 branch networks.Total financing outstanding from DFIs grew from RM14.1 billion as at end-2008to RM16.3 billion as at end-2009, representing an increase of 15.4% andreaching out to 112,288 SME accounts.%100806040The comprehensive and holisticapproach in enhancing accessto financing for SMEs has raisedMalaysia’s global ranking in termsof financial access as follows:• Number 1 for the thirdconsecutive year by the WorldBank on “Getting Credit” (DoingBusiness 2008, 2009, 2010);• Number 5 by Consultative Groupto Assist the Poor (CGAP) for“Loan accounts per 1,000 adults”(Financial Access Report 2009);and• Number 13 in 2009 (up fromnumber 15 in 2008) by theWorld Economic Forum for“Ease of Access to Loans”(Global Competitiveness Reports2008 - 2009 and 2009 - 2010)20020062007200820092010 1HAll customersSource: Bank Negara MalaysiaSMEs
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Chapter 6 - SME Corporation Malaysia

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