Image credit: NST
KUALA LUMPUR (Feb 12): SME Bank approved RM3.6 billion in financing for Financial Year 2024 (FY2024), marking a 35.1 per cent increase from FY2023.
This funding was directed toward micro, small and medium enterprises (MSMEs) in ‘unserved and underserved sectors’ such as Bumiputera, technology and digital adoption, climate-related industries, halal, and tourism.
This initiative, said the group, aligns with Bank Negara Malaysia’s (BNM) Performance Measure Framework (PMF), which guides Development Financial Institutions (DFIs) in creating greater economic impact.
“SME Bank remains committed to driving high-impact initiatives in line with the Madani Government’s aspirations, and offers financing and beyond-financing support to MSMEs at every growth stage,” said acting SME Bank group president and chief executive officer Datuk Dr Mohammad Hardee Ibrahim.
He added that SME Bank’s subsidiary, the Centre for Entrepreneur Development and Research (CEDAR), supported nearly 3,400 entrepreneurs last year through capability programmes.
CEDAR was appointed as the Asean Centre of Excellence (COE) for MSMEs in Green Transition, and was shortlisted as one of the Priority Economic Deliverables (PED) for Malaysia’s Asean Chairmanship 2025.
Additionally, CEDAR hosted a cross-border trade and investment workshop for Asean and Hong Kong businesses, strengthening SME Bank’s global presence.
It was informed that the government allocated RM2 million under Budget 2025 for capacity-building programmes, which SME Bank would implement via CEDAR.
In a statement, SME Bank said its efforts last year reinforced its mandate to support unserved and underserved segments, particularly in tourism and construction.
“Through engagement programmes, structured coaching, and specialised advisory services, nearly 18,000 entrepreneurs have benefitted from SME Bank’s support. These initiatives contributed to the creation and sustenance of over 100,000 jobs nationwide.”
It said it had also implemented several high-impact initiatives to drive MSME growth.
“The Halal Entrepreneurship Development Programme has benefitted over 130 entrepreneurs since its launch in 2023.
“The Vendors Development Programme has ‘on-boarded’ 106 vendors with RM13.6 million in financing from 2022, leading to a 17.5 per cent increase in revenue, reaching RM204 million in 2023.
“The Business Exports Programme has supported 83 companies, facilitating RM192 million in export sales across Southeast Asia, the United Arab Emirates (UAE), the UK, and the US.
“SME Bank XCESS has connected Malaysian SMEs with international industry players to enhance export opportunities, while SME Bank iTEKAD ISHRAF has helped B40 (low-income) community entrepreneurs, particularly those from ‘asnaf’ (those eligible to receive tithes), with RM5 million in funding from strategic partners.
“Participation has grown from 20 in ISHRAF 1.0, to 400 nationwide in ISHRAF 3.0.”
SME Bank said all these initiatives meant to sustain Malaysia’s economic growth and build on the group’s achievements past and beyond.
“SME Bank continues to play a critical role in fostering financial accessibility and long-term business resilience, ensuring that MSMEs would remain a driving force in Malaysia’s economy,” it said in the statement.
Source: https://www.theborneopost.com/2025/02/12/sme-bank-out-to-ensure-msmes-remain-a-driving-force-in-nations-economy/