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

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

MALAYSIA OVERVIEW

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

Business Opportunities Private-Public Split [%] Malaysia – Economic Transformation Program (ETP) 6% p.a. real GDP growth target for 2011-2020 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

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

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

UNDERSTANDING SERVICE SECTOR IN MALAYSIA

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

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

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

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

SME BANK OF MALAYSIA - AN OVERVIEW

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

SME BANK’s FACILITIES & PACKAGING

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

OUR EXPERIENCE IN SERVICES SECTOR

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

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

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

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

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

THANK YOU