KUALA LUMPUR (May 31): Delivering on the financial mandate and embracing digitalisation were key contributors to the successful performance of SME Bank last year amid extraordinary headwinds.
Chairman Datuk Seri Nazir Ariff said the bank started 2020 on a positive momentum as it advanced its transformation into a digital and customer-centric development financial institution (DFI).
“Despite the challenges, SME Bank successfully delivered its financial targets, having approved RM2.8 billion financing to 2,030 small and medium enterprises (SMEs) during the year,” he said in a statement today.
According to him, out of the total financing approved, 50.4% were for small category SMEs and 36.6% were for medium-sized entrepreneurs.
“The top three sectors that received the approvals were wholesale and retail trade as well as restaurants and hotels at 26.7%, construction at 17.3%, and manufacturing at 16.8%,” Nazir said.
The bank recorded profit before tax of RM134.8 million for the financial year 2020 compared with RM213.9 million in 2019.
Group president and chief executive officer Aria Putera Ismail said SME Bank’s targeted moratorium extension under its SME relief programme benefited 3,084 eligible customers with a total financing value of RM4.1 billion.
Besides focusing on supporting SMEs to stay afloat, he said, the bank continued to play its role in delivering the government’s aspiration through the Budget 2020 allocation.
The bank allocated a fund of RM200 million for the MySMELady, a financing facility designed to empower women entrepreneurs in developing their businesses.
“As at Dec 31, 2020, nine entrepreneurs had received financing approvals worth RM7.9 million,” he said.
Besides that, its wholly-owned unit, The Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR), continued to provide unique and effective entrepreneur development and coaching programmes, albeit virtually, to the various stages of SMEs throughout the year, Aria said.
“In 2020, CEDAR had held 1,251 coaching and training programmes involving 13,674 entrepreneurs,” he said.
In addition, Aria said SME Bank strived to create regional champions among the Bumiputera SMEs through the Jaguh Serantau financing scheme with an allocated fund of RM300 million for two years, from 2020 to 2021.
The bank had approved financing totalling RM23.5 million as at Dec 31, 2020 under this scheme.
SME Bank’s commitment to assisting SMEs to grow and remain competitive has been recognised internationally by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).
The bank also received the Special Awards for Sustainable Energy Financing for the DFI category at the 2020 National Energy Awards.
The accolade was for the bank’s support in facilitating SMEs into the green technology sector through Malaysia’s Green Technology Financing Scheme, as well as other financing assistance.
