KUALA LUMPUR: 26 January 2017 – SME Bank’s unique value proposition of “Beyond Financing” model in developing SMEs has been recognised at the international level for the Bank to be the first Development Financial Institution (DFI) in Malaysia and ASEAN to be a member of The Montreal Group, an exclusive global forum for state-owned development banks focused on assisting micro, small and medium-sized enterprises.
Founded in 2012 by seven members with a total estimated combined assets of USD2 trillion, TMG was established to encourage exchange of ideas, best practices and foster greater understanding of the international market for the growth of SMEs.
The Group Managing Director of SME Bank, Datuk Mohd Radzif said, “This is a testament to the Bank of how far we have gone. TMG recognizes SME Bank as a prominent DFI in the country as well as ASEAN region. We do not just offer financing but we also carry the role of nurturing and developing the SMEs through the Bank’s various intervention programmes.”
Datuk Radzif added, “Our business model is the result of our continuous efforts in improving ourselves to ensure we are able to fulfill the Government’s mandate and support the unserved and underserved segments of the SMEs while ensuring our sustainability.”
Since its establishment in 2005, SME Bank has approved a total financing amounting RM26 billion and assisted more than 15,000 SME entrepreneurs. The Bank’s Upward Migration program has successfully upgraded more than 800 SME businesses to a higher level. Meanwhile, CEDAR or Centre for Entrepreneur Development and Research Sdn. Bhd., a wholly-owned subsidiary of SME Bank, has successfully coached more than 33,000 participants in various SME entrepreneurial training programs
As a member of TMG, SME Bank will have access to best practices on multiple areas such as governance, risk management, human capital development, delivery channels, product and service innovations, and other international standards for potential adoption. In addition, it is also an opportunity for the Bank to leverage on TMG’s forward looking research.
From SME Bank’s perspective, it would be able to share it views on the SME market in Malaysia and ASEAN region in general. Being accepted to the Group is part of the Bank’s journey in achieving its vision towards becoming a full-fledged specialized financial institution; an international benchmark for nurturing SME excellence.
There are eight current members of TMG namely Business Development Bank of Canada (BDC-Canada), Banco Nacional De Desenvolvimento Economico E Social (BNDES-Brazil), Banque Publique d’Investissement (Bpifrance-France), China Development Bank (CDB-China), Nacional Financiera Banca de Desarollo (Nafinsa-Mexico), Small Industrial Development Bank of India (SIDBI-India), Finnvera (Finland) and Saudi Industrial Development Fund (SIDF-Saudi Arabia). With the joining of SME Bank as the latest TMG member, there will be nine TMG members in the Group.