Small and medium sized enterprises (SMEs) have been ear-marked as one of Malaysia’s key drivers for economic growth. These businesses are increasingly expanding beyond local shores. As they expand, these SMEs face a myriad of challenges and one of these challenges is access to financial solutions that meet all their needs. As such, selecting the right bank is vital. Businesses want to build a lo...

The Small and Medium Enterprise (SME) plays an important part towards achieving economic growth in our country. Although SME business may be considered risky, our experience has shown that it is a profitable and rewarding business for the banks – and mutually beneficial to SMEs as well. SMEs contributed 32 per cent of the country’s Gross Domestic Product in 2005 and have targeted to increase t...

Exposure to risk is part and parcel of any business. There are risks of losses that arise from damage to business property, liability and the deterioration of health and loss of employees’ lives, especially key employees. As risk is part and parcel of running a business, the practice of risk management for an enterprise is a crucial aspect. As long as a company operates a business, it faces expo...

According to BNM Annual Report 2006, there were 94 Government funds/financing schemes for SMEs with a total allocation of RM25 billion, as at end-2006. Five of these special funds were established by Bank Negara Malaysia with a total allocation of RM11.4 billion. SME BANK SME Bank or Bank Perusahaan Kecil & Sederhana Malaysia Berhad is the result of a...

The following are the types of loan facilities offered by commercial banks: 1. Overdraft An overdraft allows a current account holder to withdraw in excess of his/her credit balance up to an approved limit. The utilised portion of the overdraft will be subject to interest charges. 2. Br...