operating process, as well as in governance, finance and accounting practices. the financial industry should also address any negative perceptions by having an effective communication strategy and ensuring swift response time to sme customers, as these are vital in maintaining the integrity and public image of financial institutions. moving forward, it is imperative and almost inevitable for financial industry to undertake measures to advance financial literacy and capabilities of sme customers. the commitment to better serve the sme segment would reinforce the critical role of the financial industry in supporting the government ’ s development agenda in a well - functioning financial system. cgc has demonstrated that efforts to assist underserved smes can be achieved in a financially sustainable manner through its suite of innovative financial products and services. financial institutions should also explore strategic partnerships with adjacent industries such as telcos and fintechs to reduce market gaps and reliance on government subsidies for the smes. importantly, the financing ecosystem needs to be complemented with a comprehensive sme development ecosystem to nurture and elevate our smes towards greater size and competition. i hope today ’ s recognition and appreciation of fis and cgc customers would spur both parties to become more innovative, resilient and progressive. my heartfelt congratulations to all the winners and may you continue to inspire and set benchmarks on sme financing landscape. 3 / 3 bis central bankers'speeches

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. with the financial advisory team in imsme, unmatched or unsuccessful applicants will be further motivated to enhance their capacity and capability with relevant trainings aimed at improving their chances to secure financings or loans in the future. the imsme complements existing initiatives in the sme financing ecosystem, such as bnm ’ s fund for smes, alternative financing channels such as equity crowdfunding and