Global Symposium: Innovative Financial Inclusion By Mr. Rizal - - PowerPoint PPT Presentation

By

• Mr. Rizal Nainy

Deputy CEO (I)

Global Symposium: Innovative Financial Inclusion

Confidential

SMEs : The Backbone of the Economy

2 Source: Department of Statistics Malaysia and SME Corp. Malaysia

97.3% 3% (645, 5,136) 136) busi

usines ness establi blishm hment nts in the he count

• untry

ry are e SMEs SMEs Es cut ut acro ross all sector

• rs of the

he econo

• nomy

High Income Nation

by 2020

41% 65% 23%

GDP EMPLOYMENT EXPORTS Achievement in 2015

36.3% 65.5% 17.6%

Confidential Development Financial Institution (DFIs)

Banking Institutions (BIs)

BNM Special Funds CGC Special Guarantee Schemes MDV IP Financing Government Crisis Funds

Venture Capitals Leasing & Factoring Institutes

Ar-Rahnu & Pawn Broking Insts.

Microfinance Institution

Mainstream Financing Mainstream Financing

Financial Landscape for SMEs in Malaysia

Government Funds 3

Financial Institutions (FIs)

Other Avenues

Alternative Financing

Angels

FinTech:

• ECF
• P2P
• IAP

(online financing)

Confidential

HIP 3 SME Investment Partner Early stage Revenue Business Development Stage Seed Expansion Pre-IPO Maturity

Valley of Death

Start-up Lower risk Higher risk Founder Government grants Business angels Private equity Debt/bridging loan Bond market/ SME bond MyULM Main /ACE Markets Venture capital

• Cradle
• MDEC
• MOSTI
• MTDC
• Biotech

Corp

• MAVCAP
• MTDC
• MOSTI
• Biotech Corp
• MAVCAP
• MDV
• MTDC
• KMP
• Biotech Corp
• SME Bank
• MIDF
• BPM
• BNM
• MATRADE

Source: Securities Commission of Malaysia (prepared for SME Masterplan 2012-202)

Gaps still exist in financing for start-ups & early stage

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SME Corp. Malaysia SME Corp. Malaysia

Confidential

New Market-based Funding

In Malaysia, there is emergence of some new market-based funding to meet SMEs’ changing needs

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THANK YOU

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Appendix

Confidential

Conclusion

Lesson learned in forming collaborative efforts to scale up innovative financial inclusion initiatives

• Concern regarding the source of alternative financing to assist

start-up and innovative SMEs in supporting their business growth. These companies are facing difficulties in getting financial assistance from local banks since their business and technology proposals do not have sound financial support and good guarantee.

• Government has offered incentives for the contribution of private

sector and there is also a need to create awareness to get involvement from the private sectors, for instance in ECF platform.

• The need to create public awareness through the outreach

programmes in partnership with other Government Agencies and industry players to build awareness on new methods of capital formation in the digital age of online interactive media.

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