BNM Engagement with SME Community in Melaka

Bank Negara Malaysia (BNM) today, held a dialogue session with key representatives from financial institutions, state government and the local business community in Melaka. The dialogue, chaired by Assistant Governor Adnan Zaylani Mohamad Zahid was held in conjunction with Karnival Kewangan Melaka taking place on 13 and 14 July 2019.

At the dialogue, the Melaka business community shared their views on the current conditions. Amongst the issues highlighted by the small and medium enterprises (SME) were the challenging business environment, lack of understanding on financing requirements and availability of financing access for micro enterprises. While acknowledging these, the SME were also advised to research and increase their awareness on the various offerings of different financial institutions that could potentially meet their financing requirements.

Assistant Governor Adnan Zaylani stressed the need for SME to seek advice early from financial institutions and relevant agencies when faced with financial difficulties. Seeking early advice is important to ensure SME have more room to effectively manage their finances.

Bank Negara Malaysia has established a dedicated advisory counter called “Kaunter Informasi PKS” as part of BNM’s effort to provide advice and support for SME. This is an important platform to address SME queries, provide advisory and resolve complaints. “Kaunter Informasi PKS” are available at BNM Laman Informasi Nasihat dan Khidmat Kuala Lumpur and five other BNM offices nationwide.

Additionally, SME should also explore alternative channels or sources of financing which may be more suitable for their businesses. These include financing from peer-to-peer (P2P) and equity crowdfunding platforms.

Small or micro enterprises should formalize or register their businesses with Suruhanjaya Syarikat Malaysia in order to be eligible for the financing schemes including “Tabung BNM untuk PKS” and Islamic financing facilities by Islamic financial institutions.

The dialogue session received positive response from the SME and government agencies in Melaka. Financial institutions were reminded on their responsibilities to provide guidance to the potential SME borrowers. Adequate explanations should be provided on the reasons for financing applications being rejected. This includes advice on how to improve the SME eligibility to obtain financing in the future.

Earlier before the dialogue, Assistant Governor Adnan also held a briefing session with representatives from the various Jawatankuasa Pembangunan dan Penyelarasan Dewan Undangan Negeri Melaka (JAPERUN). Melaka has 28 JAPERUNs representing every state assembly constituency in Melaka. At the briefing, Assistant Governor Adnan provided relevant information on SME financing access and advisory for JAPERUNs to share within their constituencies.

BNM will continue to collaborate with the Melaka state government and the financial industry to extend the reach and depth of financial services to the local community and businesses. Moving forward, BNM will hold similar dialogues to bridge the financial sector and local communities to ensure an efficient and effective ecosystem for SME.