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.

To enhance the enabling infrastructure for SME financing, the Credit Bureau Malaysia was established in 2008 to provide comprehensive and credible credit information and ratings for SMEs in Malaysia. More than 1.1 million credit reports have now been generated by Credit Bureau Malaysia to facilitate access to financing for businesses since its inception. In addition, SMEs with limited collateral or track record are able to benefit from the credit guarantee facility provided by Credit Guarantee Corporation that extends its services to include advisory. In efforts to ensure simple, efficient and prompt application process, Bank Negara Malaysia and the Association of Banks in Malaysia (ABM) introduced PARTNER 1, a simplified application form and documentation checklist which has now been adopted by 8 domestic  BIS central bankers’ speeches  1  banking institutions. This initiative has been enhanced in PARTNER 2, in which reasons are provided for loan applications that have not been successful. This is to provide to the SMEs the opportunity to address the weaknesses or limitation thereby enhancing their potential to gain access for financing. In addition, SMEs facing challenges in their business operations, may now seek assistance from the various agencies namely the SME Corporation’s One Referral Centre and the Bank Negara Malaysia’s Small Debt Resolution Scheme (SDRS) when confronted with financial stress. Under the Small Debt Resolution Scheme, a total of 894 SMEs have now been assisted since its establishment in 2005.