It means these assets are often not valued fully by investors and lenders. This raises the cost of capital for these firms to sub-optimally high levels – a market failure. Remedying that market failure, by ensuring intangible assets are consistently and coherently valued, is important if these companies are to grow to reach their full potential. 61  57  For example, Song et al (2015) find that virtually all the rise in earnings dispersion between workers is accounted for by increasing dispersion across the average wages paid by different firms. 58 Andrews et al (2015) and Dabla-Norris et al (2015). 59 HM Government (2013). 60 Aghion et al (2017). 61 Big Innovation Centre (2017b). 18  All speeches are available online at www.bankofengland.co.uk/speeches  18  More broadly, it is possible that current UK corporate governance practices may act as a brake on innovative companies. A recent report by the Big Innovation Centre makes important proposals for re-purposing UK companies to support long-term investment and productivity. 62  The government recently initiated a Patient  Capital Review to explore how best to support the financing of innovative companies as they scale-up. 63  A third category of policy measure focusses on the fortunes, not of innovative frontier companies, but the long tail of low-productivity non-frontier firms. These companies have tended to be focussed on somewhat less historically. Indeed, their large numbers and disparate characteristics may be one reason why this is the case.

The SME financing guide book being launched today is initiated by the Institute of Bankers Malaysia to provide detailed guidance to assist SMEs in their applications for financing from financial institutions. It also provides information on the factors that are taken into consideration by financial institutions in approving the applications. In addition, it elaborates on the responsibility of borrowers, and the redress mechanisms that are available. Irrespective of sectors, SMEs should adopt best practices in financial management to ensure their business will remain sustainable. Managing costs will also enhance the performance and competitiveness of the business in both domestic and global markets. SMEs should therefore actively draw on the wide range of products and services including advisory services offered for every stage of its business cycle, whether it is a start-up, growing or a matured business. The expertise, extensive network and the broad range of services and products which are in place should be leveraged upon by the SMEs. Recognising the importance of SMEs in contributing to the socioeconomic development of the country, the Government has introduced various programmes to assist SMEs through its Ministries and agencies. The infrastructure to support access to SME financing has also vastly improved compared to a decade ago. In 2012, a total of RM217.2 billion in financing has been disbursed to SMEs through the banking system, compared to only RM87.1 billion in 2003. This year, 155 SME development programmes with an allocation of RM18.4 billion have been developed and which is being channeled through government agencies and the private sector.