Bank Pembangunan And SME Bank To Separate April 1

25 January 2008
Bernama

BUTTERWORTH, Jan 25 (Bernama) -- Bank Pembangunan and SME Bank will be undergoing a demerger exercise beginning April 1 to further strengthen and increase their respective capacities and banking service efficiencies.

Second Finance Minister, Tan Sri Nor Mohamed Yakcop said SME Bank's financial position and operational achievements were now sufficient for it to be directly placed under the Finance Ministry.

Prior to this, SME Bank was a subsidiary of Bank Pembangunan but with the separation the bank will be upgraded and come under the direct supervision of the MoF.

Speaking at the launching here today of the Seberang Jaya SME Bank branch, the bank's second branch in Pulau Pinang, Nor Mohamed said the move would also allow the two banks to provide
more effective services to their respective target markets.

Bank Pembangunan will continue to play its role of providing medium to long term financing to the infrastructure, maritime and high technology sectors while SME Bank will provide financing and advisory services to entrepreneurs from the small and medium industries.

There will be no changes in their administrative structures, and they will function as usual and in synch with their respective directions, Nor Mohamed said.

Under the Ninth Malaysia Plan, the government has allocated funds of RM690 million to the SME Bank for the purpose of financing and developing entrepreneurs.

Speaking to reporters later, Nor Mohamed said the increased per capita income in the country, from 13.5 percent during the period 2000-2003 to 39.5 percent in 2004-2007, has enabled it to bear the effects of an economic downturn in the US.

Meanwhile, chairman of SME Bank, Datuk Gumuri Hussain said that 10 funds for SMI entrepreneurs were channelled through the SME Bank and they covered the areas of biotechnology, handicraft, halal and graduate entrepreneurs.

http://www.smebank.com.my/news_detail.asp?id=86