SHAH ALAM, March 22 — Financial institutions have been urged to consider providing financial assistance to small and medium enterprises (SMEs) based on business models and not on their assets as currently practised.
Deputy Finance Minister Datuk Johari Abdul Ghani said the move would enable SMEs to forge ahead as they are important agents for Malaysia’s growth with a 35.9% contribution to Malaysia’s Gross Domestic Product.
“The numbers are expected to grow to 41% by 2020, when the sector will contribute 62% to employment and 25% to Malaysia’s exports,” he told reporters after launching Maybank’s Capacity and Capability Building for SMEs programme here Tuesday.
Johari also reminded SMEs of the importance of keeping good financial records especially in business transactions and tax invoices.
“This will help banks understand your business model and gain their trust to eventually provide you with the financial assistance based on the business model,” he said.
Meanwhile, Maybank Head of SME Banking Mohd Zaini Aris said the bank aims to reach out to 1,500 SME entrepreneurs through the programme this year.
“We have planned eight programmes for the year including in Kuala Lumpur, Sarawak, Perak and Penang, involving Maybank customers and selected SMEs,” he said.
Mohd Zaini said Maybank’s retail SME loans in the country have more than doubled over the last five years to RM10.2 billion from RM4 billion, adding the bank has approved RM2 billion in non-collateral funding for 6,800 SMEs since 2013.