Central Bank of Malaysia

10/10/2019 | Press release | Distributed by Public on 10/10/2019 05:39

Engagement with SME Community in Sandakan

Engagement with SME Community in Sandakan

Ref No : 10/19/0210 Oct 2019Embargo : For immediate release

Bank Negara Malaysia (BNM) today, held a dialogue session with key representatives from associations of small and medium enterprises (SMEs) and business chambers in Sandakan, Sabah. The dialogue, chaired by Assistant Governor Adnan Zaylani Mohamad Zahid, was held in conjunction with Karnival Kewangan Sandakan which will take place on 12 and 13 October 2019 at Harbour Mall, Sandakan.

The dialogue session received positive response from the SMEs and business chambers in Sandakan. At the dialogue, the Sandakan business community shared their views on the current business challenges. Amongst the issues highlighted by SMEs were in obtaining business licenses from the local authorities, lack of financial and business management capabilities among the SMEs as well as awareness on the availability of capacity building programmes and financing schemes for SMEs. In addressing the demand for capacity building, the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and a few other financial institutions have agreed to collaborate with the SME associations to educate and upskill their members.

Some local businesses also requested financial institutions to be more flexible in dealing with SME customers in the current challenging business environment. While acknowledging these, BNM also explained recent measures that accorded such flexibilities that enabled SMEs to restructure and reschedule existing facilities. SMEs were also encouraged to maintain active conduct of business current accounts which could support their financing applications to financial institutions. SMEs may also benefit from the Skim Pembiayaan Mikro where they can apply for financing without collateral for up to RM50,000 from 10 participating financial institutions.

Assistant Governor Adnan Zaylani emphasised that apart from banks, SMEs have options to source financing from development financial institutions, Credit Guarantee Corporation Malaysia Berhad (CGC) and alternative finance providers such as Peer-to-Peer Financing and Equity Crowdfunding platforms which are regulated by the Securities Commission Malaysia.

SMEs may also seek financial advisory, assistance and redress at first sign of difficulties. SMEs can obtain information regarding BNM's Fund for SMEs as well as avenues for financial advisory and redress such as the Small Debt Resolution Scheme (SDRS). For more information, please visit our website at www.bnm.gov.my.

In addition, SMEs can utilise Khidmat Nasihat Pembiayaan (MyKNP) which is a joint collaboration by BNM, CGC and Agensi Kaunseling dan Pengurusan Kredit, with the support of the financial industry. MyKNP aims to improve financing applicants' experience, including providing greater understanding of the factors affecting their financing applications as well as help in raising their eligibility for future financing. Applicants who have been unsuccessful in securing SME or home financing can reach out to MyKNP for assistance (myknp.com.my).

BNM will continue to collaborate with the Sabah state government and the financial industry to extend the reach and depth of financial services to the local community and businesses. Moving forward, BNM will hold similar dialogues to bridge the financial sector and local communities to ensure an efficient and effective ecosystem for SMEs.

Bank Negara Malaysia
10 Oct 2019

© Bank Negara Malaysia, 2019. All rights reserved.