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Maybank anticipates 35% growth in Retail SME financing this year

25 April 2017

4 min read

Maybank is expecting financing to the Retail Small and Medium Enterprise (RSME) segment to grow by 35% this year, compared with about 27% recorded last year. This will bring its total RSME loan portfolio to RM16.8 billion by end 2017.

Maybank Head of Community Financial Services (CFS), Malaysia, Datuk Hamirullah Boorhan, said the RSME segment was a key component of the CFS portfolio and had consistently been registering double digit growth over the last 5 years. RSMEs typically comprise businesses with turnover of RM25 million and below.

“We recognise that RSMEs play a vital role in the country’s economy and constitute some 97% of the overall SME segment,” said Datuk Hamirullah. “In this regard, we are committed to supporting them to ensure that they are given the opportunity to expand their businesses and contribute to the nation’s overall progress.”

He said that growth in the RSME segment this year is expected to come from business property-based loans, portfolio guarantee (PG), trade finance, commercial cards, micro credit and SME deposits through the Maybank SME First Account and payroll accounts.

Datuk Hamirullah added that as part of efforts to support the RSME segment, Maybank will be increasing the number of seminars this year under its “Building Capacity & Capability” programme (BCC). The BCC which was launched in 2014 , will see a total of 15 seminars conducted this year compared with 8 last year.

The Maybank BCC is aimed at enabling RSMEs to understand better the banking facilities available to them and how they can leverage on these services to grow their business. The half day sessions are jointly hosted by industry experts as well as financial advisors from Maybank who provide insight into traditional banking products as well as new opportunities available through online and digital platforms. Participants also benefit from business insights and financial tips shared by renowned speakers as well as join business networking sessions with other SMEs and field experts.

“Given our wealth of experience in serving this segment, we are confident that we can help the RSME segment to run their businesses more effectively, manage their cash flows better and leverage new-age technology to take their businesses to the next level,” explained Datuk Hamirullah.

The BCC seminars - open to all mid-sized SMEs - first began in 2014 and has successfully benefitted more than 2,400 SME and micro entrepreneurs in the country. The programme currently includes sub-sessions called “Sembang-sembang Business with Maybank” and “Best Brand & Business Practices”, Workshops for Emerging SMEs targeting for small and medium entrepreneurs.

This year, Maybank will also be including local market expert - namely Aladdin Street.Com - to share about the impact of e-commerce and globalisation with participants. Credit Guarantee Corporation Malaysia (CGC) will also be present to provide direct assistance to the participants.

“With the wealth of opportunities expected from the implementation of the Digital Free Trade Zone, we want to ensure that local SMEs are sufficiently equipped with knowledge and resources to benefit from the expected boost in e-commerce growth in Malaysia,” said Datuk Hamirullah.

“Our BCC programme will cover 15 sub-urban locations nationwide over the next six months and reach out to more than 1,200 entrepreneurs,” he added. “We will also include informative knowledge sharing sessions such as on the e-Commerce halal marketplace, M2uPay solution, access to CGC financing and portfolio guarantee as well as on marketing and branding tips.

Under the RSME portfolio, the Group serves a diverse range of businesses ranging from those in the wholesale and retail trade; hospitality management; insurance; real estate; general commerce; pharmaceuticals; education and fast moving consumer goods sector. About 61% of the RSME financing last year comprised Islamic financing, with the balance under conventional loans.