Technical Cooperation for SME Bank, Malaysia
JFC-Micro has provided technical cooperation for improvement of credit analysis to SME Bank, Malaysia as an ODA project of Policy Research Institute (PRI) of Ministry of Finance (MOF), Japan.
Outline of SME Bank, Malaysia
In Malaysia, strategic policies for development of SMEs have been implemented based on the recognition that such development will contribute greatly to the national economy.
In October 2005, SME Bank, Malaysia was established in order to provide financial and managerial support for SMEs, as a result of merger of SME finance department of the Development and Infrastructure Bank of Malaysia and the Industry and Technology Bank of Malaysia.
| Organization | Government-owned Development Financial Institution |
|---|---|
| Objective/purpose | Offers financial and business advisory services and credit guarantee for SMEs |
| Established | October 2005 |
| Branch offices | 19 Branch Offices |
| Employees | 995 |
| Outstanding Loans | Approximately USD 1,299 million |
(As of December 31, 2010)
Background of JFC-Micro's Technical Cooperation
SME Bank, Malaysia started financing for SMEs based on the government's policy, but its loan outstanding remains small at the moment, as it was just established recently. Thus, it is required for them to meet the strong demand from the SMEs more promptly.
Under such a situation, the bank asked PRI for technical support. Considering the achievement by JFC-Micro in the Technical Cooperation for Vietnam Bank for Social Policies, PRI asked JFC-Micro for technical cooperation. Hence, JFC-Micro has been providing know-how for financing for Micro and Small Enterprises (MSEs) and business start-ups promptly since December 2008.
JFC-Micro's activities for SME Bank, Malaysia
| Date | Purpose | Contents in detail | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| September 23-28,2007 | Preliminary survey | JFC-Micro conducted a field survey in order to figure out the necessity of technical cooperation. Executives of SME Bank, Malaysia officially asked for the provision of JFC-Micro’s know-how.  |
||||||||
| December 15-20, 2008 | Signing ceremony on Record of Discussion (RD) and Seminar in Kuala Lumpur (KL) | JFC-Micro signed the RD and conducted a seminar for executives and staff of SME Bank, Malaysia. Questionnaire result showed that the seminar participants understood JFC-Micro’s credit analysis correctly. [Questionnaire result (excerpt)] Average of 5-grade evaluation (5: Very Satisfactory ~ 1: Very Unsatisfactory)
   |
||||||||
| August 31-September 4, 2009 | Meeting with representatives of SME Bank | Representatives of JFC-Micro and PRI visited SME Bank in Kuala Lumpur to discuss further plan of this project. As a result, both sides agreed to hold a seminar in Japan in January 2010. In addition, JFC-Micro explained the outline of credit analysis method for business start-ups as a preliminary lecture.  |
||||||||
| January 25-29, 2010 | Seminar in Japan | JFC-Micro accepted seven staff from SME Bank, Malaysia and held a 5-day seminar. JFC-Micro explained about operations regarding credit analysis in detail through lectures by the department specialized in supporting business start-ups, together with visits to branch offices.   |
||||||||
| December 15-17, 2010 | Meeting with Representatives of SME Bank | Representatives of JFC-Micro and PRI visited the bank's Head Quarter (in KL) and branch (in Melaka) to discuss the progress of the project. During the discussions, SME Bank reported their achievement of improving credit analysis procedure including introduction of new credit analysis format, which is newly produced based on JFC-Micro's analysis method specialized for MSEs.  |
||||||||
| June 20-22, 2011 | Final Evaluation | Representatives of JFC-Micro and PRI visited the bank's headquarters (in KL) to evaluate the project, and confirmed that the bank has achieved a certain result on the project. All parties agreed to compile final evaluation on the project.  |
