en. borhan bin sidik deputy chief executive officer, smidec
DESCRIPTION
SECURING FUNDS DURING ECONOMIC DOWNTURN PART 1 – SECURING FUNDS FROM GOVERNMENT. MIA REGIONAL CONFERENCE 2009, 10 – 11 AUGUST 2009 “ Exploring Opportunities, Inspiring Growth Towards Sustainability”. En. Borhan bin Sidik Deputy Chief Executive Officer, SMIDEC. Presentation to cover…. - PowerPoint PPT PresentationTRANSCRIPT
MIA REGIONAL CONFERENCE 2009, 10 – 11 AUGUST 2009“Exploring Opportunities, Inspiring Growth Towards Sustainability”
En. Borhan bin SidikDeputy Chief Executive Officer, SMIDEC
SECURING FUNDS DURING ECONOMIC DOWNTURNPART 1 – SECURING FUNDS FROM GOVERNMENT
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Presentation to cover…
• Transformation of SMIDEC to SME Corp. Malaysia
• Overview of SMEs in Malaysia
• Impact of global crisis on SMEs
• Government measures for crisis
• Other Government funds and programmes
• SME Corp. Malaysia’s assistance programmes
• SCORE as comprehensive tool for risk evaluation
• Moving forward
2Banking Summit 2009
Transformation of SMIDEC to SME Corp. M’sia
Referral Centre on SME development
and issues
Mgmt of data & Info
dissemination & Research
One-stop SME advisory centre
Capacity Building Programme
Policy Development Programme Implementation
Financial AssistanceProgramme
Coordinate policies &
programmes
• SME Corp. M’sia, Secretariat to the National SME Development Council (NSDC), the highest policy making body to chart SME development
NSDC
SecretariatSME Corp. M’sia
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Source: Census of Establishment and Enterprise 2005, Department of Statistics Malaysia
Overview of SMEs in Malaysia
SME Overview
Employ 56%
workers
19% of total
exports
• 80% are micro-
enterprises
99.2% or 548,267 of
total establishments
• 87% services• 7% manuf.• 6% agriculture
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32% of GDP
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• Impact evident since 4Q’ 08 and intensified in 1Q’ 09• Manuf. experienced earlier than services, particularly those in export-
oriented sector
%
Timing of Crisis Affecting SMEs
Impact of fin. & econ. global crisis on SMEs: 77% of respondents affected
Source: SMIDEC Survey April/May 2009
(%)No
ImpactSlight Impact
Moderate Impact
Severe Impact
- Sales 8.1 29.2 41.0 21.6- Exports 66.9 11.0 10.8 11.2- Production 28.7 32.2 27.1 12.1- Profit Margins 10.5 26.6 37.0 25.8- Ave. Selling Price 15.7 30.9 36.8 16.5
Below Normal Normal
Above Normal
Not Applicable
- New orders 57.6 27.0 4.6 10.8- Inventory levels 30.1 39.5 8.5 21.9- Sales cancellation 15.6 29.9 14.4 40.2
• However, companies remained lean - low inventory level
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Sales, profit margin & selling price affected, and future orders indicate poor prospect s
Source: SMIDEC Survey April/May 2009
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Issues Measures
% %
Reduction in demand is the main issue
Source: SMIDEC Survey April/May 2009
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Worsen29%
Unchanged28%
Positive24%
Opportunity19%
• Overall : pessimistic on outlook– >50%: conditions to worsen / remain unchanged– 70%: recovery in 2010 and beyond– 20%: contemplating downsizing operations, closing down / relocating
• Nevertheless:– 24% - positive view– 19% - saw opportunity to grow business (first survey: 12%)
Still in operation
77.7%
Downsize the operation
18.0%
Cease operation
1.7%
Relocate to another country
0.5%
Other2.0%
OUTLOOK
WHAT SMEs PLAN TO DO
SMEs Outlook for next 6 Months
Source: SMIDEC Survey April/May 2009
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• Policy measures huge and comprehensive• 25 funds and facilities : Total RM15.6 billion (2% of GDP)
• SME Assistance Facility
• SME Modernisation Facility
• Restructuring/ Rescheduling
RM 1.2 bil
• Working Capital Guarantee Scheme
• Industry Restructuring Loan Guarantee
• Financial Guarantee Institution (Danajamin)
Govt took aggressive measures to address SME’s concerns
Initially to assist SMEs cope with higher prices, later to weather the impact of global crisis
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Measures addresses key areas of concerns
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Mainly to enhance access to financing during the crisis.
Facilities that SMEs Can Avail Themselves
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Summary of Funds & FacilitiesJuly 2008: Special Package for SMEs to address higher cost
AmountRM
Min / Agency
1. SME Assistance Facility 700 million BNM2. SME Modernisation Facility 500 million BNM3. SME Loan / Financing Restructuring and Rescheduling -no value- BNM
Total 1.2 billionNov 2008: 1st Stimulus Package Amount Min / Agency
1. Micro Enterprise Fund 200 million BNM2. Provision for additional business premises for SMEs (2) 100 million PUNB3 Urban Micro Financing 100 million AIM
Total 0.4 billionFeb ‘09: BNM Packages to enhance access to financing Min / Agency
1. SME Assistance Guarantee Scheme 2 billion BNM / CGCTotal 2.0 billion
Mac 2009: 2nd Stimulus Package Min / Agency1. Working Capital Guarantee Scheme 5 billion MOF2. Industry Restructuring Financing Guarantee Scheme 5 billion MOF3. Danajamin National Sdn Bhd 1 billion MOF
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2nd Stimulus Package for SMEs: March 2009 (cont’d…) Amount RM
Min / Agency
4. Industry Content Development Initiative 55 million MOSTI5. Assistance prog. for smallholders for replanting of palm oil 100 million MPIC6. Integrated chili plantation based on fertigation syst. project 10 million MPIC7. Raw material support programme for Bumi -wood entrep. 10 million MPIC8. Malaysia Timber Promotion Centre 20 million MPIC9. Prov. of apparatus to make chocolate semi-finished product 5 million MPIC
10. Assistance of rubber plantation material for 1,000 Sabah smallholders
3 million MPIC
11. Prog. to promote the plantation of latex timber clone (LTC) by S’wak smallholders
3 million MPIC
12 Fishermen’s Welfare Fund 2 million MOA13 Additional fund for micro credit programme under AgroBank 300 million MOA14 Additional fund for micro credit programme under TEKUN 50 million TEKUN15 Upgrading of infrastructure in the tourism sector 200 million MOTOUR16 Additional fund for the Automotive Development Fund 200 million MITI17 Program Siswazah Perantis PUNB 50 million PUNB
Total 12. 008 billionGrand Total 15.608 billion
Summary of Funds & Facilities
Banking Summit 2009 14
BNM Special Funds and Guarantee Facilities
Fund Allocation(RM bil)
1. Fund for Small and Medium Industries 2 6.8
2. New Entrepreneurs Fund 2 2.9
3. Fund for Food 1.3
4. Bumiputera Entrepreneur Project Fund 0.3
5. Micro Enterprise Fund 0.2
TOTAL 11.4
Guarantee Scheme/Facility Allocation(RM bil)
1. SME Assistance and Modernisation (closed since Feb 09) 1.2
2. SME Assistance Guarantee Scheme 2.0
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Manufacturing & Services:• Business Start-Up • Product & Process Improvement• Certification & Quality Management
Systems• Market Development• Development & Enhancing Product
Packaging Promotion of Halal Products
• Advertisement & Promotion
Manufacturing & Services• Soft Loan for SMEs (SLSME)• Soft Loan for Factory Relocation• Soft Loan for ICT Adoption
Financial assistance covers the entire spectrum of activities in the business cycle and scope will be extended to all sectors eventually
SME Corp. M’sia : Financial assistance programmes
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1. INDUSTRIAL LINKAGE PROGRAMME
2. SKILLS UPGRADING PROGRAMME
10. OUTREACH PROGRAMMES
8. ENTERPRISE 50 AWARD PROGRAMME
Focusing on facilitating linkages, enhancing skills & entrepreneurship technology innovation, motivation & advisory services
7. NATIONAL WOMEN ENTREPRENEUR AWARD (NWEA)
6. TECHNOLOGY AND INNOVATION PROGRAMME
9. SME EXPERT ADVISORY PANEL (SEAP)
SME Corp. M’sia: Capacity development programmes
3. BUMIPUTRA ENTREPRENEUR ENHANCEMENT PROGRAMME ( BEEP)
4. SME – UNIVERSITY INTERNSHIP PROGRAMME
5. SME COMPETITIVE RATING FOR ENHANCEMENT (SCORE)
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3-pronged approach for better outreach to SMEs & to reduce cost
Capacity building
SME Corp. M’sia: Advisory services - enhanced delivery system to reach more SMEs efficiently
Processes
• Standard loan application form for all Ministries / Agencies
Infrastructure
• Branches increased to all states
(from 4 to 18)
• SME Business Coaches
• SME Business Counsellors
Kedah / Perlis(Alor Setar)Pulau Pinang
(Bukit Mertajam)Perak(Ipoh)
Kuala Lumpur(HQ)N. Sembilan
(Seremban)Melaka(Ayer Keroh)Johor
(Johor Bahru)Sarawak (Kuching)
Sabah (Kota Kinabalu)
Kelantan(Kota Bahru)
Terengganu(Kuala Terengganu)
Pahang(Kuantan)
• Use of SMS to check status of loan/grant application
• SME Business Advisory Centre
• Business Licensing Electronic Support System (BLESS)
Basis:
• Identify weaknesses of SMEs to facilitate focused and integrated hand-holding assistance to SMEs;
• Link potential SMEs with large companies/ companies / MNCs ;
• Identify & facilitate suitable financial assistance for development of SMEs
SME
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Visit SCORE
SME Competitive Rating for Enhancement (SCORE), a tool to evaluate and track SME’s capabilities & performance
Analysis of SCORE Results
19Banking Summit 2009
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Moving Forward• Govt has provided various assistance to SMEs complementing the
banking system
• Awareness of programmes still lacking, SME Corp. M’sia will intensify the integrated outreach and promotional activities
• SMEs to remain relevant despite challenging environment• Revisit business plan and strategies• Take advantage of various funds / facilities and programmes• Enhance capacity & capability, adopt new technology and processes• Be ready to reap opportunity when economy recovers
• Info on Govt’s funds and facilities & development programmes:
• www.smeinfo.gov.my• www.smidec.gov.my• “Policies, Incentives, Programmes and Financial Assistance for
SMEs” Handbook (SMIDEC) • SME Annual Report
SME BUSINESS CENTRE
THANK YOU
Business Advisory Services (BAS)
VIRTUAL SMEINFORMATION CENTRE
[email protected]/www.smidec.gov.my
INFOLINE1-300-88-1801
Send to 15888
SMS for Grants Status & Other Information
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