GLOBAL SUSTAINABLE FINANCE CONFERENCE 2013

Transcription

1 GLOBAL SUSTAINABLE FINANCE CONFERENCE 2013 SME Finance for Sustainable Development An Example from TEKUN Nasional Karlsruhe, Germany 4 & 5 July 2013 DATUK ABDUL RAHIM HASSAN Managing Director & CEO TEKUN Nasional, Malaysia

2 TEKUN Nasional was formed from the resolution of an Economic Convention held in the Science University of Malaysia at Penang Island in 1994 organised by a Non - Governmental Organisation ( NGO ) with the support from The Implementation & Coordination Unit,, Prime Minister Department of Malaysia. During the Convention, several participants raised the issue of the difficulties of the people especially petty traders and small business community to obtain microcredit and small business loan to initiate their business or enhance their existing businesses.

3 Accepting the importance of the issue,, the Convention passed a resolution appealing the Government to provide a special fund in the form of easy and fast approving microcredit and small business loans to assist the petty traders and small business community. As a follow up to the resolution, the Prime Minister Department has requested the Centre for Policy Research,, Science University of Malaysia to carry out the study and subsequently run a pilot program

4 With the successful implementation of this pilot program, in 1998 the Government of Malaysia decided to set up the so called Tabung Ekonomi Kumpulan Usaha Niaga ( TEKUN ) or the Economic Fund for Small Business Financing and subsequently incorporate TEKUN Nasional as the entity to manage the fund.

5 TEKUN Nasional was incorporated on the 9 th November 1998 as a Company Limited by Guarantee, ( a non - profit Development Finance Institution ) wholly owned by the Government of Malaysia under the Ministry of Entrepreneur Development.

6 DEVELOPMENT FINANCE INSTITUTIONS ( DFI S S ) IN 1) The Bank : Bank Simpanan Nasional, SME Bank, Agrobank, Bank Pembangunan, Bank Rakyat ( Under the Ministry of Finance and Regulated by The Central Bank of Malaysia ) 2) The Non Bank : TEKUN Nasional MARA, AIM, PUNB, MIDF ( under the relevant Ministries ) The Bank and the Non Bank DFI s s in Malaysia are the members of ADFIM

7 OBJECTIVE OF TEKUN NASIONAL To contribute to the enhancement of the socio- economic standard of the people through their participation in business activity and entrepreneurship. THE ROLE OF TEKUN NASIONAL To provide fast and easy financing to micro, small and medium entrepreneurs.

8 TEKUN NASIONAL NURTURING ENTREPRENEURSHIP DEVELOPING ENTREPRENURS

9 ORGANISATION STRUCTURE OF TEKUN NASIONAL The Government Of Malaysia Board of Trustee Management Committee 950 TEKUN Officers 222 Operating Units ( Branches All Parliamentary Constituencies in Malaysia

10 MODUS OF OPERANDI TEKUN NASIONAL FUN D SOFT LOAN GOVERNMENT OF OBJECTIVE & SUSTAINABILITY REPAYMENT TEKUN NASIONAL FINANCING PLOUG H BACK REPAYMENT MSME s

11 TEKUN S S LOAN Eligibility : All Malaysian citizen Age : years Loan Size : RM 1,000 RM 100,000 ( USD 330 USD 33,000 ) Service Charge : 4% per annum Repayment Period : 2 7 years No Collateral and No Guarantor

12 Since the inception in 1998,, TEKUN Nasional has played the role of a Development Finance Institution ( DFI ) for the MSME s. In 2008,, TEKUN Nasional has undergone a Transformation Process by transforming it from just a Development Finance Institution ( DFI ) to a Strategic Entrepreneur Development Organisation ( EDO ) while retaining providing the financial facilities to the MSME s as its Core business

13 The New Roles of TEKUN NASIONAL Providing Information Providing Business Opportunities Providing Financial Facilities Providing Advisory Services Providing Business Support Creating Entrepreneurs Networking

14 TYPES OF TEKUN FINANCING FACILITIES 1.TERM LOAN TEKUN NASIONAL ( RM 1,000 RM 100,000 ) 2.CONTRACT FINANCING / FACTORING ( RM 20,000 RM 100,000 ) 3.TEKUN GUARANTEE SCHEME ( RM 50,000 RM 100,000 )

15 TOTAL LOAN DISBURSED th May 2013 RM 2.72 billion ( USD 903 mil ) No. of Entrepreneurs / Borrowers : 258,676 Total Funding by the Government RM 1.72 billion ( USD 573 mil ) Disbursement From Repayment RM 1.0 billion ( USD 330 mil )

16 TOTAL REPAYMENT COLLECTED th May 2013 RM 1.58 billion ( USD 526 mil ) VS TOTAL FUNDING BY THE GOVERNMENT RM 1.72 billion ( USD 573 mil )

17 REPAYMENT RATE 85 % The 15% non - repayment shoud be treated as the cost of development to develop entrepreneurs

18 NO. NUMBER OF FINANCING TOTAL ( ) NO. AMOUNT ( RM ) 1 FIRST TIMER 258,676 1,742,191, nd TIME 60, ,444, rd TIME 10, ,703, th TIME 1,049 26,320, th TIME 96 2,240, th TIME ,000 TOTAL 324,275 2,706,276,100

19 TEKUN LOAN BY SECTOR SECTOR % SERVICES 45 RETAILING 35 AGRICULTURE & AGRO BASED 10 OTHERS 10 TOTAL 100

20 TEKUN LOAN BY GENDER GENDER NO. OF ENTREPRENEURS WOMEN 131, % MEN 127, % TOTAL 258, %

21 LOAN SIZE CURRENT YEAR LOAN AMOUNT ( RM ) NO. OF BORROWERS 1,000-5,000 9, ,001-10,000 6, ,001-20,000 2, ,001-30, ,001-40, ,001-50, % 20, AVERAGE LOAN SIZE + RM 10,000 ( 1 USD = RM 3

22 TEKUN LOAN BY AGE AGE NO. OF BORROWERS % ,741 23% ,021 32% ,675 29% ,239 16% TOTAL 258, % AGE = 70 %

23 TEKUN ENTREPRENEUR DEVELOPMENT PROGRAM 1.YOUNG ENTREPRENEURS DEVELOPMENT PROGRAM 2.YOUNG GRADUATE ENTREPRENEURS DEVELOPMENT PROGRAM 3.WOMEN ENTREPRENEURS DEVELOPMENT PROGRAM 4.EX ARMY SERVICE MEN ENTREPRENEURS DEVELOPMENT PROGRAM

24 TEKUN s s FINANCIAL INCLUSION PROGRAM 1.SPECIAL FINANCING PROGRAM FOR EX PRISONERS 2.SPECIAL FINANCING PROGRAM FOR INMATES FROM DRUG REHABILITATION CENTRE 3.SPECIAL FINANCING PROGRAM FOR THE DISABLED 4.SPECIAL FINANCING PROGRAM FOR THE ABORIGINES 5.SPECIAL FINANCING PROGRAM FOR THE POOR ( INCOME ENHANCEMENT PROGRAM )

25 TEKUN NASIONAL TEKUN NASIONAL INNOVATIVE FINANCING ( YOUNG GRADUATES APPRENTICE PROGRAM ) 1.>>> BUSINESS PLAN >>> ADVISORY SERVICE >>> TRAINING >>> FINANCING >>> BUSINESS SUPPORT

26 TEKUN NASIONAL INNOVATIVE FINANCING ( THE MENTOR - MENTEE PROGRAM ) 2. >>> BUSINESS OPPORTUNITY >>> TRAINING >>> FINANCING >>> BUSINESS SUPPORT

27 TEKUN NASIONAL INNOVATIVE FINANCING ( THE HOME - BASED BUSINESS ) 3. >>> FINANCING >>> SEWING MACHINE >>> TRAINING >>> SUPERVISION & SUPPORT

28 TEKUN NASIONAL INNOVATIVE FINANCING ( ENTREPRENEURS GRADUATION SCHEME ) TEKUN LESS THAN RM 100,000 SME BANK, AGROBANK MORE THAN RM 100,000

29 BUSINESS CENTRE 21 TEKUN NASIONAL S BUSINESS CENTRES NATIONWIDE

30 MOBILE SERVICES 15 TEKUN NASIONAL S MOBILE SERVICE UNITS NATIONWIDE

31 MOBILE SERVICE BY BOAT 3 TEKUN NASIONAL S MOBILE SERVICES - BOAT FOR THE STATE OF SARAWAK

32 TEKUN NASIONAL OFFICERS CONFERENCE 2013 TEKUN NASIONAL HAS ORGANISED A NATIONAL CONFERENCE FOR ITS 950 EMPLOYEES ON THE 8TH FEBRUARY 2013 WITH THE OBJECTIVE OF ENHANCING THE CAPABILITY OF THE OFFICERS WITH THE THEME : INTEGRITY, PROFESIONALISME & CUSTOMER ORIENTED

33 INTEGRITY & GOOD GOVERNANCE SEMINAR TEKUN NASIONAL HAS ORGANISED AN INTEGRITY & GOOD GOVERNANCE SEMINAR 2012 IN COLLABORATION WITH THE INTEGRITY INSTITUTE OF AND N ANTI-CORRUPTION COMMISSION

34 SAFETY, HEALTH & ENVIRONMENTAL MANAGEMENT TEKUN NASIONAL HAS GIVEN THE EMPHASIS TO THE IMPORTANCE OF OCCUPATIONAL SAFETY, HEALTH AND ENVIRONMENTAL MANAGEMENT. WE HAVE IN PLACE OUR OCCUPATIONAL SAFETY & HEALTH MANAGEMENT SYSTEM AND THE ENVIRONMENT MANAGEMENT SYSTEM AND PERSUING TO ACHIEVE ISO AND ISO

35 TEKUN ENTREPRENEURS GATHERING IN THE YEAR 2012 & 2013, TEKUN NASIONAL HAS ORGANISED 44 ENTREPRENEURS GATHERING SESSION ALL OVER THE COUNTRY INVOLVING 28,000 ENTREPRENEURS

36 OUTREACH PROGRAM ( WALKABOUT ) TEKUN NASIONAL HAS ORGANISED AN OUTREACH PROGRAM FOR THE MANAGEMENT TO MEET OUR ENTREPRENEURS AT THE GRASSROOT LEVEL. IN 2012 & 2013, TEKUN NASIONAL HAS VISITED ENTREPRENEURS AT 138 BRANCHES BERA, PENDANG, PONTIAN, KEPALA BATAS, PASIR MAS, SG SIPUT, PERAK

37 SUCCESSFUL TEKUN ENTREPRENEURS

38 SUCCESSFUL TEKUN ENTREPRENEURS

39 SUCCESSFUL TEKUN ENTREPRENEURS

40 SUCCESSFUL TEKUN ENTREPRENEURS

41 SUCCESSFUL TEKUN ENTREPRENEURS

42 SUCCESSFUL TEKUN ENTREPRENEURS

43 SUCCESSFUL TEKUN ENTREPRENEURS

44 TEKUN NASIONAL TEKUN NASIONAL CONVENTION 2013 OFFICIATED BY THE PRIME MINISTER ATTENDED BY 7,000 TEKUN ENTREPRENEURS

45 TEKUN NASIONAL IS CONDUCTING A COMPREHENSIVE OUTCOME STUDY TO DETERMINE THE SUCCESS OF THE TEKUN S S PROGRAM.. IT IS NOT HOW MUCH MONEY WE DISBURSED,, BUT HOW MANY PEOPLE REALLY BENEFITED FROM THIS PROGRAM

46 QUOTE FROM THE PRIME MINISTER OF : I WONDER WHAT HAPPENED IF IS WITHOUT TEKUN NASIONAL. THE SME S S IN HAS BENEFITED FROM THE EXISTANCE OF TEKUN NASIONAL ESPECIALLY THE MICRO- ENTERPRISE

47 15 CELEBRATING OUR TH ANNIVERSARY ON 9 TH NOVEMBER 2013 THANK YOU