1. FINANCING THE SERVICES SECTOR SOKHA ANGKOR RESORT HOTEL,
CEO FORUM VII
SOKHA ANGKOR RESORT HOTEL,
SIEM REAP, CAMBODIA
17 – 19 NOVEMBER 2010

2. MALAYSIA’S OVERVIEW
UNDERSTANDING SERVICE SECTOR IN MALAYSIA
SME BANK MALAYSIA’S - AN OVERVIEW
SME BANK’s FACILITIES & PACKAGING
OUR EXPERIENCE IN SERVICES SECTOR

3. MALAYSIA OVERVIEW

4. Malaysia - Towards Achieving Vision 2020
Crime
Education
Corruption
Low Income Households
Urban Public Transport
Rural Basic Infrastructure
GTP : National Key Result
Areas (NKRAs) N1 N2 N3 N4 N5 N6
1MALAYSIA
People First, Performance Now
Government Transformation Programme (GTP)
6 NKRAs
New Economic
Model
(NEM) 8 SRIs
10th Malaysian Plan
Re-energizing the private sector
Developing a quality workforce
Creating a competitive domestic economy
Strengthening the public sector
Transparent and market friendly affirmative action
Building the knowledge base and infrastructure
Enhancing the sources of growth
Ensuring sustainability of growth
NEM :Strategic reform
initiatives (SRIs) S1 S2 S3 S4 S5 S6 S7 S8 P1
Internally driven, externally aware P2 P5 P3 P4
Leveraging on our diversity internationally
Transforming to high income, through
specialization
Unleashing productivity led-growth and
innovation
Ensuring equality of opportunities and
safeguarding the vulnerable P6 P7 P8 P9
P10
Nurturing, attracting and retaining top
talent
Concentrated growth, inclusive development
Supporting effective and smart partnerships
Valuing environmental endowments
Government as a competitive corporation
Together We Create Value Towards Sustainable Success 4 4 4

5. Business Opportunities Private-Public Split [%]
Malaysia – Economic Transformation Program (ETP)
6% p.a. real GDP growth target for
Raise the GNI from USD188B to USD523B by 2020
Lift per capita income from USD6,700 to USD15,000 by 2020
USD444B in funding and investments
8% public sector; 92% private sector (Private sector lead; Government facilitated)
131 Entry Point Projects with 60 Business Opportunities
National Key Economic Area
Entry Point Projects
Business Opportunities
Investment Requirement
[USD billion]
Private-Public Split [%]
1, Oil Gas & Energy 12 7 68
98:1
2. Financial Services 10 6 66
96:4
3. Palm Oil 8 4 39
98:2
4. Wholesale & Retail 15 1 80
100:0
5. Tourism 64
6. Electronics & Electricals 11 24
88:12
7. Business Services 9 13
91:9
8. Education
94:6
9. Communication Content & Infras. 16
10. Healthcare 5
99:1
11. Agriculture
62:38
12. Greater KL 54
66:34
TOTAL
131 60
444
92:8
Together We Create Value Towards Sustainable Success

6. Together We Create Value Towards Sustainable Success
Malaysia - National Key Economic Activities - NKEA
SME Bank is in line with the government’s focus on the service sector
Service Sector
Together We Create Value Towards Sustainable Success

7. Together We Create Value Towards Sustainable Success
Malaysia - Customer Groups
Definition of SMEs by National SME Development Council 2004
Manufacturing
Including agro-based manufacturing and manufacturing related services
MICRO
SMALL
MEDIUM
Services
Including Information & Communication Technology
MICRO
SMALL
MEDIUM
Together We Create Value Towards Sustainable Success 7

8. UNDERSTANDING SERVICE SECTOR IN MALAYSIA

9. Together We Create Value Towards Sustainable Success
Malaysia – Importance Of Service Sector
Liberalised the 27 services sub- sector to attract more foreign investments – 2009
These sub-sectors - health and social services, tourism services, transport services, business services and computer and related services.
National Committee for Approval of Investments in the Services Sector established under MIDA.
Act as a focal point to receive and process applications of investments in the services sector
Together We Create Value Towards Sustainable Success

10. Together We Create Value Towards Sustainable Success
Malaysia – Service Sector Contribution To GDP
Continue To Expand
Malaysia’s service sector continued to expand over the years
Together We Create Value Towards Sustainable Success

11. Together We Create Value Towards Sustainable Success
Malaysia – Service Sector Contribution To GDP
Continue To Expand
Malaysia’s service sector continued to expand over the years
Together We Create Value Towards Sustainable Success

12. Together We Create Value Towards Sustainable Success
Malaysia - Common Facilities Extended To Service Sector
Together We Create Value Towards Sustainable Success

13. SME BANK OF MALAYSIA
- AN OVERVIEW

14. Together We Create Value Towards Sustainable Success
Ownership & Mandate
Ministry OF
Finance Inc.
Ministry Of
International
Trade & Industry
SME BANK
Central Bank Malaysia
SME financing
Manufacturing sector
Services sector
Construction sector
Supervising Ministry
Shareholder
Regulator under DFIA 2002
Together We Create Value Towards Sustainable Success

15. SME BANK’s FACILITIES & PACKAGING

16. Working Capital Financing Credit Guarantee Scheme (CGS & CGS-I)
Financing Facilities & Packaging
FINANCING FACILITIES
Conventional
Islamic
Working Capital Financing
Fixed Asset Financing
Credit Guarantee Scheme (CGS & CGS-I)
I-Cash
SME PACKAGING
SME Start-up
SME Franchise
SME Global
SME Professional
SME Procurement
Developing SMEs from start-up to expansion and export stages
Together We Create Value Towards Sustainable Success

17. OUR EXPERIENCE IN SERVICES SECTOR

18. Together We Create Value Towards Sustainable Success
Contribution To SME Development in Malaysia
Approval
2005
2006
2007
2008
2009
Aug 2010
Total Approval No
720
1,227
1,622
1,192
1,095
416
Value (USD Mil)
535
689
984
710
657
160
Total Approval - Service Sector
467
979
1,379
1,025
913
329
378
549
865
602
534
130
% Contribution 71 80 88 85 81
In line with the government focus on the service sector
Together We Create Value Towards Sustainable Success

19. Together We Create Value Towards Sustainable Success
Contribution To SME Development in Malaysia
Total Portfolio
In line with the government focus on the service sector
Together We Create Value Towards Sustainable Success

20. Together We Create Value Towards Sustainable Success
Contribution To SME Development in Malaysia
Portfolio – Services Sub-Sector
Our exposure in services sector increase over years,
in line with the government plan to boost the sectors
Together We Create Value Towards Sustainable Success

21. Together We Create Value Towards Sustainable Success
Contribution To SME Development in Malaysia
Common Facilities Offered
Fixed Assets & Working Capital the most common facilities offered in service sector
Together We Create Value Towards Sustainable Success

22. Together We Create Value Towards Sustainable Success
Contribution To SME Development in Malaysia
Together We Create Value Towards Sustainable Success

23. THANK YOU