Chapter 6 - SME Corporation Malaysia

National SME Development CouncilSME ANNUAL REPORT 2009/1093CHAPTER 6SME Credit BureauThe SME Credit Bureau wasestablished by CGC in July 2008to assist SMEs to build, maintainand enhance their credit standing,and ultimately facilitate wider andeasier access to financing. TheBureau is the leading provider ofcomprehensive and credible creditinformation and ratings on SMEs inMalaysia. It is:• A convenient one-stop centrefor financiers and other creditgrantors to retrieve creditinformation and ratings on SMEsfor credit evaluation purposes;and• A user friendly platform for SMEsto build their track record andcredit standing to facilitate fasterprocessing of their creditapplications.As at end-June 2010, 38 financialinstitutions and 28,131 SMEs havebecome members of the Bureau.The Bureau currently provides creditreports such as the following:• Self-enquiry Report which enablesSMEs to be aware of their owncredit standing and identify criticalareas for improvement that willenhance their credit worthiness;• Business Information Reportwhich enables SME and CreditGrantor members to review theirbusiness partner's/customer'scredit standing and ratings; and• Business Review Report whichprovides trade information andprobability of default of acompany.The Bureau also provides CreditMonitoring Services, a cost effectivemechanism to alert SMEs of thecompany’s rating and any adversechanges to the company’sinformation.Overseas Credit GuaranteeFacilityIn supporting SMEs to undertakeoverseas projects, the total guaranteecoverage approved under the EXIMOverseas Guarantee Facility (EOGF)of the Export-Import Bank of MalaysiaBerhad (EXIM Bank) stood atRM256.8 million as at end-2009.Under the scheme, the Bank providesup to 80% guarantee to financingextended by participating financialinstitutions to eligible companiesundertaking projects overseas. Inview of the global economic crisis,the EOGF terms and conditions werealso changed in May 2009 to includethe participation of locallyincorporatedforeign banks, and theloan extended to public-listedcompanies, as well as theirsubsidiaries. As at end-June 2010,18 SMEs benefited from theguarantee facility.MicrofinanceMicro entrepreneurs have accessto financing via Pembiayaan Mikrobased on the financing frameworkapproved by the National SMEDevelopment Council which requiresno collateral, minimal documentationand fast approval. Currently, there arenine participating financial institutionsof Pembiayaan Mikro comprising sixbanking institutions and three DFIs.The number of access points(including branches of participatingfinancial institutions and strategicpartners) for Pembiayaan Mikro hasincreased from 913 as at end-2006to 1,868 as at end-2009. UnderPembiayaan Mikro, financing outstandinggrew by 28.1% year-on-yearto RM709.3 million, while the numberof Pembiayaan Mikro clients grew by20.8% year-on-year to 62,798 as atend-June 2010 (end-2009: RM616.5million, 57,403 clients).In addition, the Government alsointroduced other new microfinanceschemes during the global financialcrisis.• BNM established the RM200million Micro Enterprise Fund(MEF) in November 2008 tofurther enhance access tofinancing for micro enterprises.The fund is accessible through theparticipating financial institutionsof MEF. As at end-June 2010,RM131.8 million of financing hasbeen approved to 5,945 microenterprises via this scheme (end-2009: RM79.6 million to 3,646micro enterprises);Enhancing Access to Financing