Malaysia SME Financing Ecosystem Costa Rica

CONFIDENTIAL Advancing microfinance under Malaysia’s SME Financing Ecosystem San José, Costa Rica 30 August 2016 Norsuraya Kasim (norsuraya@bnm.gov.my) Development Finance and Enterprise Department Bank Negara Malaysia 1 CONFIDENTIAL CONFIDENTIAL Disclaimer This document is solely for the use of a presentation at the ‘International Forum on the Granting of Microcredit, Its Impact and Regulation’ in San José, Costa Rica (29 – 31 August 2016) All information in this document shall not be circulated, copied or reproduced in whole or in part, nor publicly referred to or discussed unless with the prior written approval from Bank Negara Malaysia (BNM) or the information has been officially released by BNM to the public The information was not prepared with the specific consideration of any particular individual or entity Any views expressed in this document are those of the author and are not those of BNM While every care is taken in the preparation of the information, no responsibility can be accepted by BNM for any errors and any liability for any loss or damage arising from the use of, or reliance on, the information contained in this document 2 CONFIDENTIAL CONFIDENTIAL SMEs are a critical component of growth in the Malaysian economy • SMEs encompasses 97% of formal business establishments • 90% of SMEs operate in the services sectors • Micro enterprises is the largest group within SMEs (75% total establishments) Contribution of SMEs to the Economy • SMEs contribute ~ 1/3 of the country’s GDP • Cohesive effort needs to be mobilised effectively to realise SMEs’ potential as driver of economic growth • The SME Masterplan macro targets: – enhance SMEs’ contribution to economy by 2020 3 CONFIDENTIAL CONFIDENTIAL SMEs are defined by the NSDC based on sales turnover and number of employees SME Definition (effective Jan 2014) a) Annual sales turnover: Size Manufacturing Services & other sectors Micro < RM300,000 (USD75,000) < RM300,000 (USD75,000) Small RM300,000 -