Presentation on theme: "1 CEO FORUM VIII DECEMBER 5 – 7 THIMPHU, KINGDOM OF BHUTAN."— Presentation transcript:
1 CEO FORUM VIII DECEMBER 5 – 7 THIMPHU, KINGDOM OF BHUTAN
MICROFINANCING IN THE DEVELOPMENT OF ENTREPRENEURS
A MICROFINANCE INSTITUTION IN MALAYSIA INTRODUCING TEKUN NASIONAL MALAYSIA
MFIs IN MALAYSIA MFI GOVERNMENT AGENCY/INSTITUTION BANKS BSN & 9 FIs Agro Bank Bank Rakyat TEKUN Nasional MARA AIM
TEKUN Nasional is Company Limited by Guarantee registered in 1998 TEKUN is under the supervision of the Ministry of Agriculture & Agro-Based Industry (MOA) TEKUN NASIONAL
GOVERNMENT OF MALAYSIA NEW ECONOMIC POLICY To Generate Income, Creating Wealth & Enhancing Standard of Living.
Objectives of TEKUN NASIONAL To provide start-up fund and additional capital for small business/ entrepreneurs in the form of microcredit
TEKUN Nasional as a strategic and ideal entrepreneur development institution To provide Micro Financing And Entrepreneurship Development Support Services VISION MISSION
TEKUN NASIONAL Roles Entrepreneurship Information Business Opportunities Financing Facilities Advisory Services Business Support Entrepreneurs Networking
PERFORMANCE FROM 1998 – 31 OCT LOAN AMOUNT RM 1.85 billion (USD529.1 million) NUMBER OF LOANS 245,933 NUMBER OF BORROWERS 196,053
SOURCE OF FUND Total Fund Received From The Government In The Form of Loan : 1999 – 2011 RM 1.3 Billion Total Loan Disbursement RM 1.85 billion
FINANCING OFFERED Loan Amount :RM 500 – RM 50,000 (USD 154 – USD14,286) Repayment :1 month – 5 years Service Charge :7.6 % per annum Savings :5% of the loan amount per annum (loan tenure) Repayment :Monthly / weekly Method of repayments :Loan Officers (Collectors), TEKUN Mobile, Business Centres, appointed banks, Post- dated Cheques
ELIGIBILITY Bumiputera (indigenous) Aged 18 to 65 years old Have viable business or business plan Posses valid business license/permit Specific place to run the business Directly involved in the business Existing business loan not exceeding RM 50,000 (USD14,286) * We do pre sanction visit
SAVINGS Compulsory savings imposed on borrowers ; The amount of savings is 5% of the loan amount per year (loan tenure) The savings amount is included in the weekly/monthly repayment; Withdrawal of savings is only allowed when the loan is fully settled.
GUIDANCE AND ADVISORY Experienced staff/officer to provide guidance and advice to borrowers ; Monitor the development of the business ; To find new market for the products Business skills through training Advise on business improvement.
BASIC ENTREPRENEURSHIP COURSE
BUSINESS OPPORTUNITIES TEKUN provides business opportunities to new entrepreneurs via Smart Partnership programme between ‘anchor company’ and TEKUN Nasional Business activities such as contract farming, retail, beauty saloon, frozen food etc.
TEKUN ENTREPRENEURS COMMUNITY As a platform for entrepreneurs to know each other and develop networking To market their products To find suppliers
BUSINESS CENTRES To provide information on : : business opportunities : roles of other agencies Entrepreneurs discussion / meeting point 8 BCs have been in operation 4 BCs to be operational soon Located in major towns
ENTREPRENEUR DEVELOPMENT PROGRAMS Business Opportunities Programs ( Mentor Mentee Program ) Graduate Entrepreneurs Development Women Entrepreneurs Development ( Home Based Program ) Income Enhancement Program
TEKUN NASIONAL Entrepreneur Development Programs Entrepreneurs Development for Ex- Prisoners & Drug Addict Entrepreneurs Development for Poverty Eradication Entrepreneurs Development for Indian Youth ( SPUMI )
HOME BASED PROGRAMS
POVERTY ERADICATION PROGRAM
SPECIAL PROGRAMME SECOND CHANCE PROGRAMME PRISON / DRUGS AGENCY SPECIAL GROUP REQUIRED TO ATTEND COMPULSORY COURSE CONDUCTED BY TEKUN MALACCA GOVERNMENT POVERTY FINANCING SCHEME MAKSIMUM RM5,000 TO POOR AND HARDCORE POOR
KEDAI TEKUN ( RETAIL SHOP ) Opportunities for entrepreneurs to display and sell their products Financing offered to operators
29 TEKUN Nasional’s Roles In Supporting SMEs Financing
30 Groom Big Exit Policy TEKUN’s Entrepreneurs being successful in their businesses ( with good business and payment track record) and need to expand may gain access/recommended to Financial Institutions supporting/financing SMEs thus continuing to provide facilities (with larger loan size) and will no more be classified as microcredit. ( Institutions involved :- MARA, SME Bank, Bank Pembangunan, PNS, AGRO Bank, etc) ENTREPRENEURSHIPDEVELOPMENT
Noridah Hitam Retail and tailor 1 st Loan : RM5, nd Loan : RM15, Sales Before :RM9, / month After :RM15, / month