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A comprehensive
financial product and service for vendors
As an OEM (own equipment manufacturer) or a
service provider to GLCs, MNCs and large
corporations, your business health in the
long term depends on the competitive value,
duration and depth of contractual
relationship with the buyer of your products
or services. An important consideration in
sustaining your business growth as a
contractor, vendor or supplier/distributor
of products or services to buyers is the
stability of the buyer-seller relationships
which leads to structured growth in product,
service and business development. However,
in order to retain these business
relationships and offer competitive pricing
and services, there is the constant need to
value add your offerings, upgrade equipment,
improve the speed of delivery, employ new
skills and generally manage a growing
business efficiently and effectively.
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Whether or not you are a main or a
sub-contractor to these large buyers of
products and services, there is the
continuous need to not only access financial
support to fund your capacity building, but
there is also the urgency to evolve your
business from downstream to more
sophisticated capabilities along domestic
and global procurement chains to continue to
operate and grow. |
As one of the key thrusts of the Ninth
Malaysia Plan is to move the economy up the
value chain and strengthen the country’s
implementation capacity to remain globally
competitive as a trading nation, the SME
Procurement fast tracks access to financing
and business development support for the
Malaysian vendor.
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SME
Clasification |
Small |
Medium |
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SME Profile |
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Vendor/Contractor in
manufacture of components,
materials and services to
GLCs and MNCs (Manufacturing
and Manufacturing-Related
Services, selected services
and priority growth sectors
under the Ninth Malaysia
Plan). |
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Sub-Vendor/Contractor to
Main Vendor/Contractor in
above sectors and
industries. |
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Credentialed and experienced
entrepreneur and service
provider. |
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Applies to all SME
classifications except
Micros (Annual turnover of
less than RM200,000 for the
services sector and
RM250,000 for the
manufacturing sector). |
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Eligibility |
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Viable businesses with high
growth opportunities in
local and international
markets. |
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Vendors with letter of
appointment / intent / award
by contract awarder. |
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Viable businesses with
strong product/services but
experiencing growth issues. |
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Vendors with access to ready
market (MNC,GLC or other
domestic buyers) |
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Vendor developmental
projects in priority or
target growth sectors. |
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The SME Procurement is
unique in that it focuses on your
special needs as a vendor. While the
product is not targeted to start-ups and
new businesses (as the SME Start-Up may
be a more appropriate product for you),
a contract is sufficient for us to
proceed with the assessment of your
application. In line with the Ninth
Malaysian Plan, our objective is to
promote the development of homegrown
regional/global suppliers to the
international market. However, to
support your business along this
developmental route, the SME Bank and
its network of partners will coordinate
efforts to ensure that sufficient funds
and business advisory support is
extended to Malaysian vendors.
Special Funds
In addition, we may
also be able to match your business
development requirements with the
appropriate dedicated funds or
programmes which are being channeled
through the SME Bank. The main criteria
is the duration and stability of your
business relationship with local and
international buyers. Depending on the
business stage at which funding and
business development interest is
registered, you may also be eligible for
the SME Global which has been designed
to promote the export-oriented
activities of Malaysian companies.
Again, our officers will be able to
direct you to our other products on
application.
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SME
Clasification |
Small |
Medium |
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Type of Financing |
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Conventional and Islamic |
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Conventional and Islamic |
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Facilities |
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Term Loan |
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Revolving
Loan |
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IHP /
Leasing |
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BG / Letter
of Credit |
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Factoring |
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Loan Stock |
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Term Loan |
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Revolving
Loan |
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IHP /
Leasing |
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BG / Letter
of Credit |
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Factoring |
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Loan Stock |
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Limit of Financing |
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Up to RM15
million |
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Up to RM50
million (subject to single
customer limit) |
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Interest Rates |
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Competitive
rates subject to terms of
funds and risk ratings where
applicable |
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Tenure |
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Up to a
maximum of 15 years subject
to assets financed |
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Working
capital up to 5 years,
subject to annual review |
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Up to a
maximum of 3 years grace
period |
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Method of Repayment |
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Monthly,
Quarterly, Fixed or contract
terms |
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Processing Fee |
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0.25% of
approved loan |
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Strategic Partners
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