FINANCING THE SERVICES SECTOR CEO FORUM VII SOKHA

FINANCING THE SERVICES SECTOR -CEO FORUM VII SOKHA ANGKOR RESORT HOTEL, SIEM REAP, CAMBODIA 17 – 19 NOVEMBER 2010

1. MALAYSIA’S OVERVIEW 2. UNDERSTANDING SERVICE SECTOR IN MALAYSIA 3. SME BANK MALAYSIA’S - AN OVERVIEW 4. SME BANK’s FACILITIES & PACKAGING 5. OUR EXPERIENCE IN SERVICES SECTOR

MALAYSIA OVERVIEW

Malaysia - Towards Achieving Vision 2020 GTP : National Key Result Areas (NKRAs) ▪ Crime N 1 1 MALAYSIA People First, Performance Now ▪ Education N 2 ▪ Corruption N 3 ▪ Low Income Households N 4 ▪ Urban Public Transport N 5 ▪ Rural Basic Infrastructure N 6 NEM : Strategic reform Government Transformation Programme (GTP) 6 NKRAs New Economic Model (NEM) 8 SRIs 10 th Malaysian Plan P 6 Ensuring equality of opportunities and safeguarding the vulnerable P 2 Leveraging on our diversity internationally P 7 Concentrated growth, inclusive development P 3 Transforming to high income, through P 8 Supporting effective and smart partnerships specialization P 9 Valuing environmental endowments P 4 Unleashing productivity led-growth and innovation P 10 Government as a competitive corporation P 5 Nurturing, attracting and retaining top talent P 1 Internally driven, externally aware initiatives (SRIs) S 1 ▪ Re-energizing the private sector ▪ Developing a quality workforce S 2 ▪ Creating a competitive domestic S 3 economy ▪ Strengthening the public sector S 4 ▪ Transparent and market friendly S 5 affirmative action ▪ Building the knowledge base and S 6 infrastructure ▪ Enhancing the sources of growth S 7 ▪ Ensuring sustainability of growth S 8 Together We Create Value Towards Sustainable Success 4

Malaysia – Economic Transformation Program (ETP) 6% p. a. real GDP growth target for 2011 -2020 Raise the GNI from USD 188 B to USD 523 B by 2020 Lift per capita income from USD 6, 700 to USD 15, 000 by 2020 USD 444 B in funding and investments 8% public sector; 92% private sector (Private sector lead; Government facilitated) 131 Entry Point Projects with 60 Business Opportunities Entry Point Projects Business Opportunities Investment Requirement [USD billion] Private-Public Split [%] 1, Oil Gas & Energy 12 7 68 98: 1 2. Financial Services 10 6 66 96: 4 3. Palm Oil 8 4 39 98: 2 4. Wholesale & Retail 15 1 80 100: 0 5. Tourism 12 4 64 98: 2 6. Electronics & Electricals 11 4 24 88: 12 7. Business Services 8 9 13 91: 9 8. Education 13 4 6 94: 6 9. Communication Content & Infras. 10 4 16 98: 2 10. Healthcare 6 5 7 99: 1 11. Agriculture 16 11 7 62: 38 12. Greater KL 10 1 54 66: 34 131 60 444 92: 8 National Key Economic Area TOTAL Together We Create Value Towards Sustainable Success

Malaysia - National Key Economic Activities - NKEA SME Bank is in line with the government’s focus on the service sector Service Sector Together We Create Value Towards Sustainable Success

Malaysia - Customer Groups Definition of SMEs by National SME Development Council 2004 Manufacturing Including agro-based manufacturing and manufacturing related services MEDIUM SMALL MICRO Services Including Information & Communication Technology MEDIUM SMALL MICRO Together We Create Value Towards Sustainable Success 7

UNDERSTANDING SERVICE SECTOR IN MALAYSIA

Malaysia – Importance Of Service Sector v Liberalised the 27 services sub- sector to attract more foreign investments – 2009 v These sub-sectors - health and social services, tourism services, transport services, business services and computer and related services. v National Committee for Approval of Investments in the Services Sector established under MIDA. v Act as a focal point to receive and process applications of investments in the services sector Logistic Business & Professional ICT Construction Service Sector Distributive Trade Education & Training Tourism Health Together We Create Value Towards Sustainable Success

Malaysia – Service Sector Contribution To GDP Continue To Expand Malaysia’s service sector continued to expand over the years Together We Create Value Towards Sustainable Success

Malaysia – Service Sector Contribution To GDP Continue To Expand Malaysia’s service sector continued to expand over the years Together We Create Value Towards Sustainable Success

Malaysia - Common Facilities Extended To Service Sector Term Loan Revolving Credit Overdraft Financing. Service Sector Trade Finance Leasing Hire Purchase Contract / Project Financing Together We Create Value Towards Sustainable Success

SME BANK OF MALAYSIA - AN OVERVIEW

Ownership & Mandate Shareholder Ministry OF Finance Inc. Supervising Ministry Regulator under DFIA 2002 Central Bank Malaysia Ministry Of International Trade & Industry SME financing • Manufacturing sector • Services sector • Construction sector SME BANK Together We Create Value Towards Sustainable Success

SME BANK’s FACILITIES & PACKAGING

Financing Facilities & Packaging FINANCING FACILITIES Conventional Islamic Working Capital Financing Fixed Asset Financing Credit Guarantee Scheme (CGS & CGS-I) I-Cash SME PACKAGING SME Start-up SME Franchise SME Professional SME Global SME Procurement Developing SMEs from start-up to expansion and export stages Together We Create Value Towards Sustainable Success

OUR EXPERIENCE IN SERVICES SECTOR

Contribution To SME Development in Malaysia Approval 2005 2006 2007 2008 2009 Aug 2010 Total Approval No 720 1, 227 1, 622 1, 192 1, 095 416 Value (USD Mil) 535 689 984 710 657 160 Total Approval - Service Sector No 467 979 1, 379 1, 025 913 329 Value (USD Mil) 378 549 865 602 534 130 % Contribution 71 80 88 85 81 81 In line with the government focus on the service sector Together We Create Value Towards Sustainable Success

Contribution To SME Development in Malaysia Total Portfolio In line with the government focus on the service sector Together We Create Value Towards Sustainable Success

Contribution To SME Development in Malaysia Portfolio – Services Sub-Sector Our exposure in services sector increase over years, in line with the government plan to boost the sectors Together We Create Value Towards Sustainable Success

Contribution To SME Development in Malaysia Common Facilities Offered Fixed Assets & Working Capital the most common facilities offered in service sector Together We Create Value Towards Sustainable Success

Contribution To SME Development in Malaysia Together We Create Value Towards Sustainable Success

THANK YOU