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SPECIAL MESSAGESPECIAL MESSAGE

S M E B A N K

R E C O G N I S E S T H A T

T H E C O R O N A V I R U S

P A N D E M I C A R O U N D

T H E W O R L D H A S

O V E R T A K E N O U R

L I V E S A N D

T R A N S F O R M E D O U R

W O R L D , P O S I N G

U N P R E C E D E N T E D

M E D I C A L ,

E C O N O M I C

A N D H U M A N

C H A L L E N G E S .

P E R U T U S A N K H ASPERUTUSAN KHAS

S M E B A N K A K U R

B A H A W A P A N D E M I K

C O R O N A V I R U S D I

S E L U R U H D U N I A

T E L A H M E N G A N C A M

K E H I D U P A N K I T A

D A N M E N G U B A H

D U N I A , L A L U

M E M B E R I C A B A R A N

D A R I S E G I

P E R U B A T A N ,

E K O N O M I D A N

K E M A N U S I A A N Y A N G

B E L U M P E R N A H

D I H A D A P I S E B E L U M

I N I .

Malaysia's economic growth in 2019Pertumbuhan ekonomi Malaysian pada 2019

4.3% GROWTH / PERTUMBUHAN

Profit before tax and zakat 2019Keuntungan sebelum cukai dan zakat 2019

RM213.9million / juta

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

D A T O ’ S E R I N A Z I R A R I F FD A T O ’ S E R I N A Z I R A R I F FC H A I R M A N / P E N G E R U S I

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DURING THIS CRITICAL TIME, WE AR E

COMMITTED TO OUR MISSION OF SUPP ORTING

THE SMALL AND MEDIUM ENTERPRISES (SME s )

WHILE FIRMLY STANDING BEHIND THE VARIOUS

EFFORTS TAKEN BY THE GOVERNMENT AND

REGULATORY BODIES.

Given the severe impact of the pandemic, SME Bank has made

appropriate decisions in addressing the main concern which is

primarily to provide financial assistance and beyond financing

support especially to our customers. We recognise that these

are unsettling times and our immediate proactive actions have

been to provide relief measures to help these SMEs weather

the storm. May the little efforts in the form of financing

moratorium, suspension of rentals and financing stimulus that

we have put forth go a long way in assisting our customers

who are most in need.

On behalf of the Board of Directors, it is therefore, my pleasure

to present to you SME Bank’s Integrated Annual Report for the

financial year ended 31 December 2019 (FY2019).

SEPANJANG TEMPOH KRITIKAL INI, KAMI KOMITED

TERHADAP MISI KAMI UNTUK MEMBANTU PERUSAHAAN

KECIL DAN SEDERHANA (PKS) DAN PADA MASA YANG

SAMA MEMBERI SOKONGAN PADU TERHADAP PELBAGAI

USAHA YANG DIBUAT OLEH KERAJAAN DAN BADAN-

BADAN KAWAL SELIA LAIN.

Berikutan kesan buruk daripada pandemik ini, SME Bank telah membuat keputusan yang betul dan bersesuaian dalam menangani isu utama iaitu untuk menyediakan bantuan kewangan dan bantuan yang menjangkaui pembiayaan khususnya kepada para pelanggan. Kami tahu bahawa ini adalah masa yang sukar dan tindakan proaktif kami adalah untuk segera menyediakan langkah-langkah bantuan bagi membantu PKS menghadapi cabaran ini. Semoga usaha kami yang mungkin tidak seberapa ini dalam bentuk moratorium pembiayaan, penangguhan sewa dan rangsangan pembiayaan yang telah kami sediakan, mampu membantu para pelanggan kami yang sangat memerlukan.

Bagi pihak Lembaga Pengarah, saya berbesar hati membentangkan di sini Laporan Tahunan Bersepadu SME Bank bagi tahun kewangan berakhir 31 Disember 2019 (TK2019).

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

WE RECOGNISE THAT THESE ARE UNSE TTLING

TIMES AND OUR IMMEDIATE PROACTIVE ACTIONS HAVE BEEN TO PROVIDE RELIEF MEASURES TO HELP

THESE SME s WEATHER THE STORM .

KAMI TAHU BAHAWA INI ADALAH MASA YANG

SUKAR DAN TINDAKAN PROAKTIF KAMI

ADALAH UNTUK SEGERA MENYEDIAKAN LANGKAH-

LANGKAH BANTUAN BAGI MEMBANTU PKS MENGHADAPI CA BARAN

INI.

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RECORD BREAKING YEARRECORD BREAKING YEAR

2019 was a record-breaking year for SME Bank when we achieved the highest ever profit before tax and zakat of RM213.9 million. This is a testament to the effectiveness of the Bank’s strategy which further strengthened its position as Malaysia’s leading Development Financial Institution (DFI) in the dynamic banking and finance landscape.

We maintained our positive growth and our competitive edge by continuing to adapt to the fast-changing business environment and by raising finance to bridge the infrastructure gap and promote economic development.

The Bank’s improved business model, with digitalisation being the focus, and the far industry reach and strong support from our diversified stakeholders has enabled us to modernise the business and improve the financial support to the SME sector.

Our focus on innovation and continuous efficiency resulted in sustainable value to our customers and all stakeholders. While innovation is often said to be born out of necessity, it is encouraging to note that the management team of SME Bank has proactively leveraged on the current technology to steer in mobilising resources to deliver on the needs of sustainable infrastructure.

This will lay the foundation for improving the Bank’s offerings while benefitting the stakeholders namely our customers and future generations. SME Bank is thus well positioned to provide solutions for sustainable entrepreneurial development.

TAHUN PENCAPAIAN TERTINGGITAHUN PENCAPAIAN TERTINGGI

2019 merupakan tahun pencapaian terbaik bagi SME Bank apabila kami mencatat keuntungan sebelum cukai dan zakat paling tinggi iaitu sebanyak RM213.9 juta. Ini adalah bukti keberkesanan strategi Bank yang mengukuhkan lagi kedudukannya sebagai Institusi Kewangan Pembangunan (DFI) di Malaysia yang terkemuka dalam landskap perbankan dan kewangan yang dinamik.

Kami mengekalkan pertumbuhan positif dan kelebihan daya saing untuk menyesuaikan dengan persekitaran perniagaan yang pantas berubah dan dengan meningkatkan pembiayaan untuk merapatkan jurang infrastruktur serta menggalakkan pembangunan ekonomi.

Model perniagaan Bank yang ditambah baik, dengan usaha-usaha pendigitalan sebagai tumpuan, dan capaian industri yang luas serta sokongan padu daripada pelbagai pihak berkepentingan membolehkan kami untuk memodenkan perniagaan dan menambah baik sokongan kewangan kepada sektor PKS.

Tumpuan kami terhadap inovasi dan kecekapan berterusan telah berjaya menghasilkan nilai mampan kepada pelanggan dan semua pihak berkepentingan kami. Sungguhpun inovasi sering dikatakan timbul daripada keperluan, ia adalah sesuatu yang membanggakan apabila pada hakikatnya, pihak pengurusan SME Bank telah memanfaatkan secara proaktif teknologi semasa untuk menggunakan sumber bagi memenuhi keperluan infrastruktur mampan.

Ini akan menjadi asas untuk menambah baik penawaran Bank sementara memanfaatkan pihak-pihak berkepentingan iaitu pelanggan dan generasi masa depan. Maka itu, SME Bank berada dalam kedudukan yang betul untuk menyediakan penyelesaian bagi pembangunan mampan.

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

THE BANK’S IMPROVED

BUSINESS MODEL,

WITH DIGITALISATION

BEING THE FOCUS,

AND THE FAR

INDUSTRY REACH AND

STRONG SUPPORT FROM

OUR DIVERSIFIED

STAKEHOLDERS

ENABLE US TO

FURTHER PROVIDE

AND FACILITATE

FINANCING TO THE

SME SECTOR.

MODEL PERNIAGAAN

BANK YANG DITAMBAH

BAIK, DENGAN USAHA-

USAHA PENDIGITALAN

SEBAGAI TUMPUAN,

DAN CAPAIAN

INDUSTRI YANG LUAS

SERTA SOKONGAN

PADU DARIPADA

PELBAGAI PIHAK

BERKEPENTINGAN

MEMBOLEHKAN

KAMI UNTUK

TERUS MENYEDIA

DAN MEMUDAHKAN

PEMBIAYAAN KEPADA

SEKTOR PKS.

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E C O N O M I C L A N D S C A P EE C O N O M I C L A N D S C A P E

FY2019 POSED A CHALLENGING OPERATING

ENVIRONMENT FOR THE GLOBAL ECONOMY,

MARKED BY TRADE TENSIONS NAMELY BETWEEN

U.S. AND CHINA, INTEREST RATE HIKES AND

MARKET FRAGILITY.

Economic growth slumped to an over one-decade low in the fourth quarter as the U.S.-China trade war-battered Malaysia’s external sector. China as the nation’s strongest trading partner recorded lower than expected economic growth due to this trade war and its domestic issues.

The uncertainty of trade policy to geopolitical tensions continued to weigh on global economic activity. The countries with more advanced economy were growing at a slower pace mostly due to softer growth in the U.S. (2019: 2.4%, 2018: 2.9%) while emerging market economies have grown weaker than expected due to subdued business activities.

Malaysia’s economic growth of 4.3% in 2019 (2018: 4.7%) was at its slowest pace since the global financial crisis in 2008, as it lost further steam during the year due to external factors. The sluggish investment and weak external trade dragged the economy while the trade war with India also affected our commodity exports, particularly refined palm oil.

Notwithstanding this, solid domestic demands from private consumption and investment supported the Malaysian economy for it to remain in an expansion mode.

While these factors might have dampened overall sentiments, we are encouraged with our strong set of financials, including an all-time high profit before tax and zakat of RM213.9 million. Overall, we are confident that our business model and healthy financial condition will put us in a strong position to withstand any external adversities.

L A N D S K A P E K O N O M IL A N D S K A P E K O N O M I

T K 2 0 1 9 M E N Y A K S I K A N P E R S E K I T A R A N

O P E R A S I Y A N G M E N C A B A R K E P A D A E K O N O M I

G L O B A L , D E N G A N K E T E G A N G A N D A G A N G A N

A N T A R A A . S . D A N C H I N A , K E N A I K A N

K A D A R F A E D A H D A N K E T I D A K K U K U H A N

P A S A R A N .

Pertumbuhan ekonomi menjunam kepada tahap paling rendah dalam tempoh lebih satu dekad pada suku keempat apabila perang dagangan A.S.-China mengancam sektor luar negara Malaysia. China sebagai rakan dagangan paling besar, mencatat pertumbuhan ekonomi lebih rendah daripada jangkaan akibat perang dagangan ini dan isu-isu domestiknya.

Ketidaktentuan dasar dagangan terhadap ketegangan geopolitik terus memberi kesan kepada aktiviti ekonomi global. Pertumbuhan ekonomi negara-negara maju adalah lebih perlahan kebanyakannya disebabkan oleh pertumbuhan lebih rendah di A.S.(2019: 2.4%, 2018: 2.9%), sementara pertumbuhan ekonomi pasaran-pasaran baharu adalah lebih lemah daripada jangkaan berikutan aktiviti perniagaan yang lebih pasif.

Pertumbuhan ekonomi Malaysia sebanyak 4.3% pada 2019 (2018: 4.7%) adalah pada kadar terendah sejak krisis kewangan global pada 2008, oleh kerana ia kehilangan lonjakan akibat faktor-faktor luaran. Kelembapan pelaburan dan perdagangan luar yang lemah telah memperlahankan ekonomi sementara perang dagangan dengan India juga memberi kesan terhadap eksport komoditi negara, khususnya minyak sawit.

Meskipun begitu, permintaan domestik yang kukuh daripada penggunaan peribadi dan pelaburan, menyokong ekonomi Malaysia untuk ia kekal berkembang.

Walaupun faktor-faktor ini telah melembapkan sentimen keseluruhan, kami terdorong oleh kewangan kami yang kukuh, termasuk keuntungan sebelum cukai dan zakat paling tinggi yang pernah dicatatkan, iaitu sebanyak RM213.9 juta. Secara keseluruhannya, kami yakin bahawa model perniagaan dan kewangan kami yang kukuh akan meletakkan SME Bank dalam kedudukan yang teguh untuk menghadapi sebarang kesukaran daripada faktor luaran.

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

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R E V I E W O F 2 0 1 9R E V I E W O F 2 0 1 9

FROM THE ONSET OF 2019, THE BANK’S

PRIORITY IS TO CONTINUE TO BUILD A STRONG

FOUNDATION, YET AGILE ENOUGH TO EVOLVE

TO CATER TO PRESENT NEEDS. THE FOCUS

WAS ON FORMULATING DECISIVE POLICIES

AND ADMINISTRATIVE MEASURES WITH A VIEW

TO INCREASE OVERALL PRODUCTIVITY AND

EFFICIENCY.

During the year, major policies have been finalised to enhance operational performance management, transparency and accountability in line with changing trends and stakeholder demands. One notable achievement is the Bank’s Digital Transformation Programme in offering new facilities and solutions to SMEs through the ecosystem.

The Bank’s Two-year Accelerated Programme that focuses on a digital transformation started in early 2019. It includes key digital initiative such as ODELA, launched as one of the initiatives under the National SME Digital Platform. ODELA enables the Bank to provide access to a more systematic and informative e-Commerce platform especially for business-to-business (B2B) activities. Our ScoreXcess, a one-stop platform for micro and small entrepreneurs to obtain financing from participating Government agencies, is also another game-changer to the SME ecosystem. Embarking on this journey towards digital initiatives helps us to revolutionise the way financing applications and business transactions are made. In addition, we continue to provide other kinds of specialised and personalised support to SMEs, such as business advisory and coaching services.

The shift from traditional banking model into the strategic initiatives has proven to be very successful as it contributed significantly to the Bank’s exceptional and highest profit recorded since its establishment. This has strengthened the platform for our next wave of growth.

U L A S A N 2 0 1 9U L A S A N 2 0 1 9SEJAK DARI AWAL 2019, KEUTAMAAN BANK

ADALAH UNTUK TERUS MEMBINA ASAS YANG

KUKUH, NAMUN TANGKAS UNTUK BERUBAH

BAGI MEMENUHI KEPERLUAN SEMASA. TUMPUAN

ADALAH TERHADAP MERANGKA DASAR YANG

JELAS DAN LANGKAH-LANGKAH PENTADBIRAN

YANG BERTUJUAN UNTUK MENINGKATKAN

KESELURUHAN PRODUKTIVITI DAN KECEKAPAN.

Sepanjang tahun 2019, dasar-dasar utama telah dimuktamadkan untuk meningkatkan prestasi pengurusan operasi, ketelusan menerusi kebertanggungjawaban seiring dengan trend dan permintaan pihak berkepentingan yang berubah. Salah satu pencapaian cemerlang adalah Program Transformasi Digital Bank dalam menawarkan kemudahan dan penyelesaian baharu kepada PKS menerusi ekosistemnya.

Program Pemecutan Dua-tahun Bank yang menumpukan kepada transformasi digital bermula pada awal 2019. Ia merangkumi inisiatif digital utama seperti ODELA, yang dilancarkan sebagai salah satu inisiatif di bawah Platform Digital PKS Kebangsaan. ODELA membolehkan Bank untuk menyediakan akses kepada platform e-Dagang yang sistematik dan informatif khususnya bagi aktiviti perniagaan-kepada-perniagaan (B2B). ScoreXcess, platform sehenti untuk usahawan mikro dan kecil membuat permohonan pembiayaan daripada agensi-agensi Kerajaan yang mengambil bahagian, juga mengubah ekosistem PKS. Memulakan perjalanan ke arah inisiatif digital ini membolehkan kami merevolusikan cara membuat permohonan pembiayaan dan transaksi perniagaan. Di samping itu, kami terus menyediakan bentuk sokongan lain yang khusus dan diperibadikan kepada PKS, seperti khidmat nasihat dan latihan.

Peralihan daripada model perbankan biasa kepada inisiatif strategik sebegini terbukti berjaya menyumbang secara signifikan kepada keuntungan luar biasa dan tertinggi Bank sejak penubuhannya. Ini nyata telah mengukuhkan platform untuk arus pertumbuhan kami selanjutnya.

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

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O U T L O O K F O R 2 0 2 0O U T L O O K F O R 2 0 2 0

Against the backdrop of growing uncertainty over the duration

and overall impact of the Covid-19 pandemic, the continuation

of Movement Control Order (MCO) and volatility in crude

palm oil prices, Bank Negara Malaysia (BNM) expected that

Malaysia’s GDP growth in 2020 to be between -2.5% to 0.5%

(2019: 4.3%). The Malaysian Government has also announced a

stimulus package amounting RM260 billion (as at 6 April 2020)

which would support the economy and decelerate the rate of

economic slowdown, offering some relief to the market.

The banking sector in Malaysia is expected to remain challenging

in 2020. BNM may exercise its discretion to further revise the

overnight policy rate to promote economic growth and stimulate

demand for financial services.

The world is also increasingly defined by disruptive changes in

global governance and trade rules that bring more uncertainty

at different levels. These trends force organisations like ours to

remain vigilant and alert towards elements that can potentially

impact the business. We also have to be very agile in constantly

adapting the business and our organisation to seize new

opportunities as well as address challenges.

To this end, the transformation plan that the Bank is undergoing

will bring a huge impact on the sustainable development of

entrepreneurs in Malaysia. There will be significant changes

in our business operations, and at the same time we ensure

that good governance practices are not compromised. Our

stakeholders remain our utmost priority as we ensure that every

action we take benefits all of them, especially entrepreneurs.

In 2020, the Board will continue to drive entrepreneurship

and facilitate the growth of SMEs, by creating and cultivating

an entrepreneurial environment that is aligned with the local,

regional and global economic reality. Overall, it will be in line

with the government’s National Entrepreneurship Policy (DKN

2030), which aims to develop an entrepreneurial ecosystem in

Malaysia that will enhance the country’s competitiveness in the

global economy.

ECONOMIC IMPACTS

T I N J A U A N 2 0 2 0T I N J A U A N 2 0 2 0

Berdasarkan ketidaktentuan yang semakin bertambah sepanjang tempoh pandemik coronavirus dan keseluruhan kesan daripadanya, penerusan Perintah Kawalan Pergerakan (PKP) dan volatiliti dalam harga minyak sawit mentah, Bank Negara Malaysia (BNM) menjangka KDNK pada 2020 akan berada dalam lingkungan -2.5% hingga 0.5% (2019: 4.3%). Kerajaan Malaysia juga telah mengumumkan pakej rangsangan berjumlah RM260 bilion (pada 6 April 2020) yang akan menyokong ekonomi dan memperlahankan kadar kelembapan ekonomi, yang membantu pasaran.

Sektor perbankan di Malaysia dijangka kekal mencabar pada 2020. BNM mungkin melaksanakan budi bicaranya untuk mengkaji semula kadar dasar semalaman bagi menggalakkan pertumbuhan ekonomi dan merangsang permintaan terhadap perkhidmatan kewangan.

Dunia kini juga semakin dipengaruhi oleh perubahan dalam tadbir urus global dan peraturan dagangan yang mendatangkan lebih banyak ketidaktentuan pada peringkat yang berbeza. Segala trend ini mendorong organisasi seperti kami untuk terus berjaga-jaga terhadap elemen yang berkemungkinan memberi kesan kepada perniagaan. Kami juga perlu menjadi sangat tangkas dalam menyesuaikan perniagaan dan organisasi untuk meraih peluang serta menangani cabaran.

Untuk itu, rancangan transformasi yang Bank sedang laksanakan akan memberi impak yang besar kepada pembangunan mampan usahawan-usahawan di Malaysia. Perubahan ketara akan berlaku dalam operasi perniagaan kami, dan pada masa yang sama kami memastikan tiada kompromi dalam amalan-amalan tadbir urus yang baik. Pihak-pihak berkepentingan kekal sebagai keutamaan kami dalam kami memastikan bahawa setiap tindakan yang diambil akan memanfaatkan mereka, khususnya usahawan.

Pada 2020, Lembaga Pengarah akan terus memacu keusahawanan dan membantu pertumbuhan PKS, dengan mewujud dan memupuk persekitaran keusahawanan yang dijajarkan dengan realiti setempat, serantau dan sejagat seiring dengan Dasar Keusahawanan Nasional (DKN 2030) dengan sasaran untuk memajukan ekosistem keusahawanan di Malaysia yang akan meningkatkan daya saing negara dalam ekonomi global.

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

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ECONOMIC IMPACT ECONOMIC IMPACT FROM THE FROM THE CORONAVIRUS PANDEMICCORONAVIRUS PANDEMIC

We believe the national and global economy will be greatly impacted by the coronavirus or Covid-19 outbreak. As stated by BNM, the pandemic will affect Malaysia’s economic growth in Q1 2020, with travel and tourism and associated sectors being among the most affected industries in Malaysia. The devastating effects on the Malaysian economy from both external factors namely global supply, demand shocks and domestic factors, i.e. the Movement Control Order (MCO) will disproportionately impact smaller businesses and vulnerable groups such as lower-income individuals and workers.

In view of these impacts, we foresee the Bank to play a role to recharge the economy after the MCO is lifted. The Board shall thus look forward to supporting the work to stimulate the economy thereafter and to help affected businesses rebound. Subject to the regulatory approvals, these may include a revised profit rate for financing, along with cost-alleviation measures and beyond financing assistance.

IMPAK EKONOMI IMPAK EKONOMI DARIPADA PANDEMIK CORONAVIRUSDARIPADA PANDEMIK CORONAVIRUS Kami percaya ekonomi negara dan global akan sangat terkesan daripada wabak coronavirus atau Covid-19. Sepertimana dinyatakan oleh BNM, pandemik ini akan memberi kesan kepada pertumbuhan ekonomi Malaysia dalam suku tahun pertama 2020, dengan sektor perjalanan dan pelancongan dan sektor-sektor berkaitan menjadi industri paling terkesan di Malaysia. Kesan buruk ke atas ekonomi Malaysia daripada faktor luaran iaitu bekalan global, peningkatan atau penurunan ketara dalam permintaan, dan faktor domestik iaitu Perintah Kawalan Pergerakan (PKP) akan memberi impak secara tidak seimbang kepada perniagaan lebih kecil dan golongan mudah terjejas seperti individu dan pekerja berpendapatan rendah.

Berdasarkan segala impak ini, kami menjangkakan Bank akan memainkan peranan untuk menggiatkan semula ekonomi setelah PKP ditamatkan. Oleh itu, Lembaga Pengarah akan menyokong usaha-usaha rangsangan ekonomi dan membantu perniagaan yang terkesan untuk kembali pulih. Tertakluk kepada kelulusan pihak berkuasa dan pengawal selia, ini mungkin termasuk pembiayaan dengan kadar keuntungan yang dikaji semula, berserta langkah-langkah pengurangan kos dan bantuan yang menjangkaui pembiayaan.

A C K N O W L E D G E M E N T SA C K N O W L E D G E M E N T S

On behalf of the Board of Directors, I would like to put on record our appreciation to the Government, especially the Ministry of Finance (MOF) and our Ministry of Entrepreneur Development and Cooperatives (MEDAC) for their continuous support in spurring the growth of SMEs throughout 2019. I would also like to extend our gratitude to Bank Negara Malaysia (BNM), other ministries and Government agencies, chambers of commerce, key stakeholders as well as business and trade associations for their commitment, support and cooperation throughout the year.

At the same time, I would like to thank all our other stakeholders and customers for their continued support, and to acknowledge the management and employees of the Bank for their hard work throughout the year.

Thank you.

D A T O ’ S E R I N A Z I R A R I F FChairman / Pengerusi

P E N G H A R G A A NP E N G H A R G A A N

Bagi pihak Lembaga Pengarah, saya ingin merakamkan penghargaan kami kepada Kerajaan, khususnya Kementerian Kewangan (MOF) dan Kementerian Pembangunan Usahawan dan Koperasi (MEDAC) atas sokongan berterusan mereka dalam menggalakkan pertumbuhan PKS sepanjang 2019. Saya juga mengucapkan terima kasih kepada Bank Negara Malaysia (BNM), kementerian-kementerian lain dan agensi-agensi Kerajaan, dewan-dewan perniagaan, pihak-pihak berkepentingan utama serta persatuan perniagaan dan perdagangan atas komitmen, sokongan dan kerjasama mereka.

Terima kasih juga saya ucapkan kepada semua pihak berkepentingan dan pelanggan Bank yang terus menyokong kami, kepada pihak pengurusan dan semua kakitangan Bank atas kerja keras mereka sepanjang tahun ini.

Terima kasih.

CHAIRMAN'S STATEMENTPERUTUSAN PENGERUSI

SME BANK INTEGRATED ANNUAL REPORT 2019WHAT'S INSIDECHAPTER 01 | OverviewAbout This ReportSME Bank at a GlanceFinancial HighlightsCorporate HighlightsAwards and AccoladesBranch Network

CHAPTER 02 | A Year in ReviewChairman's StatementSpecial MessageRecord Breaking YearEconomic LandscapeReview of 2019Outlook for 2020Economic Impact from the Coronavirus PandemicAcknowledgements

Group President / Chief Executive Officer's ReviewCoronavirus HighlightsOverviewYear in ReviewInnovative Solutions to Spur SME GrowthExceptional Financial PerformanceRemarkable Beyond FinancingPromoting EntrepreneurshipEnhancing Strategic PartnershipsDeveloping Human Capital ExcellenceStrengthening our PositionLooking Ahead

CHAPTER 03 | Our Visionary LeadersBoard of DirectorsBoard of Directors' ProfileSenior ManagementShariah Committee

CHAPTER 04 | Corporate GovernanceStatement on Corporate GovernanceBoard Nomination and Compensation CommitteeBoard Risk Management CommitteeBoard Audit CommitteeBoard Financing and Investment CommitteeStatement on Risk Management and Internal ControlShariah Committee

CHAPTER 05 | Promoting Sustainable DevelopmentOverviewSustainability FrameworkStakeholder EngagementEconomicEnvironmentSocialGovernance and Compliance

CHAPTER 06 | 2019 RoundupCalendar of EventCorporate Visits

CHAPTER 07 | Financial StatementsDirectors' ReportStatement by DirectorsStatutory DeclarationShariah Committee's ReportIndependent Auditors' ReportStatements of Financial PositionStatement of Comprehensive IncomeStatements of Changes in EquityStatements of Cash FlowsNotes to the Financial Statements

CHAPTER 08 | Branch NetworkBranch Network

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