Global Symposium: Innovative Financial...
Transcript of Global Symposium: Innovative Financial...
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% (645,136) business establishments
in the country are SMEs
SMEs cut across all sectors of the economy
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
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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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