Financial inclusion facilitates productive financing and investments which generates income for the underserved, improves equality and contributes to sustainable growth. Having an inclusive financial system is also important to ensure economic and social progress on the development agenda is achieved. Therefore, CGC’s goal of ensuring access to financial services for SMEs via a fair and transparent marketplace for financial products and services, including extending credit that provides a pathway towards balanced economic growth and prosperity for all Malaysians should be lauded. Based on the Economic Census 2016: Profile of Small and Medium Enterprises by the Department of Statistics, Malaysia (DOSM), SMEs in Malaysia constituted 98.5% of the total business establishments. Majority of the businesses were in services sector, mainly in wholesale & retail trade, followed by manufacturing, construction, agriculture and mining & quarrying. Financial institutions are the major source of financing for SMEs. As at end-2017, growth in financing to SMEs continues to be sustained above 5%, outstripping financing growth to households and large corporates. The approval rate for financing applications by SMEs of 75%, has also been consistently higher than that for all customers. The share of SME financing over total business financing has steadily trended upwards to more than 50% from 38% in 2010. This reflects an increased focus on SMEs as a strategic growth driver for financial institutions. According to the latest bi-annual survey by SME Corporation Malaysia (SME Corp), 97% of SMEs which applied for financing from FIs affirmed that they were able to obtain financing.

Of this, 27% were first time borrowers and 23% were without collateral and credit guarantee. Nevertheless, our work is far from done. There are pockets of SMEs, particularly the start-ups and those operating in new and high risk segments that continue to face challenges in obtaining financing. When businesses have insufficient access to financial products and services, they may be deprived of a chance to pursue new business opportunities, and as a nation, we are deprived of the benefits of their potential contributions to the economy. 1/3  BIS central bankers' speeches  Over the past 45 years, CGC has played a crucial role in bridging the gap between financial institutions and underserved SMEs via its innovative products and services. I commend CGC’s efforts for its latest venture in developing a dedicated online referral platform that connects the banks and the SMEs, known as imSME. The imSME has the potential to transform the SME Financing Landscape in the country, by matching SMEs’ financing needs with suitable products, thus reducing search costs and improving financing prospects for SMEs. The implementation of imSME exemplifies the importance of technology in increasing SMEs’ financing access. SMEs are now able to submit financing applications 24 hours a day, without the need to visit individual financial institutions to search for suitable product offerings. The Platform also facilitates the partnership between key collaborators to deliver end-to-end solution for SMEs that face higher hurdles to obtain financing.