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
Saturday, January 26, 2008
SME Bank to be separated from Bank Pembangunan
25 January 2008New Straits Times
SMALL and Medium Enterprise Bank Bhd (SME Bank) will be upgraded and made a separate entity from its parent company, Bank Pembangunan Group, beginning this April.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the decision was in line with the government's plan to provide a better support to the small and medium-sized enterprises (SMEs).
He said with the move, the government expected SME Bank to be more efficient.
Nor Mohamed said SME Bank would continue with its core business of providing financing to SME players while Bank Pembangunan would focus on bigger and long-term financing services.
"The move is meant to strengthen the capacity, efficiency and the effectiveness of both banks in helping their targeted sectors," he said.
However, Nor Mohamed said the separation process was merely a move to enhance SME Bank's services and did not involve major structural changes in both organisations.
"With the separation, SME Bank will be given the autonomy to make its own decisions without having to go through Bank Pembangunan," he said after opening SME Bank's latest branch in Seberang Jaya, Bukit Mertajam, yesterday.
The branch is its second in Penang and 19th nationwide.
Present at the event were SME Bank chairman Datuk Gumuri Hussain, its managing director Datuk Azmi Abdullah, Bank Pembangunan group president and managing director Datuk Tajuddin Atan and state exco Datuk Jahara Hamid.
Bank Pembangunan is a wholly owned subsidiary of the Finance Ministry (MoF).
Following the separation, the SME Bank will be another subsidiary under the MoF.
The SME Bank was formed three years ago following the merger between Malaysian Development and Infrastructure Bhd and the Malaysian Industrial and Technological Bank Bhd.
Gumuri said SME Bank had distinguished itself not only in providing financing, but also consultancy, problem-solving and guidance services to its customers.
Up to November last year, the SME Bank had approved financing for 1,539 projects nationwide worth RM2.9 billion.
Meanwhile, Tajuddin said the separation would enable Bank Pembangunan to focus on providing financing facility to three core sectors - maritime, infrastructure and high-tech industries.
http://www.smebank.com.my/news_detail.asp?id=87
SMALL and Medium Enterprise Bank Bhd (SME Bank) will be upgraded and made a separate entity from its parent company, Bank Pembangunan Group, beginning this April.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the decision was in line with the government's plan to provide a better support to the small and medium-sized enterprises (SMEs).
He said with the move, the government expected SME Bank to be more efficient.
Nor Mohamed said SME Bank would continue with its core business of providing financing to SME players while Bank Pembangunan would focus on bigger and long-term financing services.
"The move is meant to strengthen the capacity, efficiency and the effectiveness of both banks in helping their targeted sectors," he said.
However, Nor Mohamed said the separation process was merely a move to enhance SME Bank's services and did not involve major structural changes in both organisations.
"With the separation, SME Bank will be given the autonomy to make its own decisions without having to go through Bank Pembangunan," he said after opening SME Bank's latest branch in Seberang Jaya, Bukit Mertajam, yesterday.
The branch is its second in Penang and 19th nationwide.
Present at the event were SME Bank chairman Datuk Gumuri Hussain, its managing director Datuk Azmi Abdullah, Bank Pembangunan group president and managing director Datuk Tajuddin Atan and state exco Datuk Jahara Hamid.
Bank Pembangunan is a wholly owned subsidiary of the Finance Ministry (MoF).
Following the separation, the SME Bank will be another subsidiary under the MoF.
The SME Bank was formed three years ago following the merger between Malaysian Development and Infrastructure Bhd and the Malaysian Industrial and Technological Bank Bhd.
Gumuri said SME Bank had distinguished itself not only in providing financing, but also consultancy, problem-solving and guidance services to its customers.
Up to November last year, the SME Bank had approved financing for 1,539 projects nationwide worth RM2.9 billion.
Meanwhile, Tajuddin said the separation would enable Bank Pembangunan to focus on providing financing facility to three core sectors - maritime, infrastructure and high-tech industries.
http://www.smebank.com.my/news_detail.asp?id=87
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