Page 87 - Bank-Muamalat-AR2020

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Our Performance Sustainability Statement Our Governance Our Numbers Other Information
Governance

ENTREPRENEUR DEVELOPMENT to market financing solutions to their members. A total of
RM121 million in financing was approved for seven (7)
The Bank’s financing strategy is in alignment with the co-operatives in FY2020.
Government’s agenda to boost micro, small and medium
entrepreneurships (“SMEs”), with the goal of meeting Budget We also continued to empower entrepreneurs through
2020’s target for SMEs to contribute 50% to GDP by 2030. knowledge transfer sessions targeted to improve their
SME financing has grown into a full-fledged department ‘bankability’. Due to the pandemic and MCO measures
focused on providing supportive financial solutions to help in place throughout most of the year, these sessions were
SMEs thrive and bring positive economic multipliers within marketed via social media and the actual knowledge transfer
local communities such as more employment and raising the sessions were conducted online to targeted co-operative
standard of living. For SMEs, the Bank focuses on structured members. This paves the way for more product-related social
growth based on collaborations with identified parties media marketing as we commit to increase our customer base
and government agencies to leverage on partly secured for entrepreneur development related programmes.
guarantees. In addition, we have engaged in direct
collaborations with several organisations such as GRAB, RESPONSIBLE FINANCING
TNB and PUSRAWI in supporting their vendors and
business partners through financing facilities. The Bank is mindful of the responsible role we can play to
improve the overall quality of lives of the broader community
The facilities made available to SMEs during the year, ranged through our products, advisory services and relief measures.
from Special Relief Fund, SJPP Financing Programme, Penjana
Tourism Fund, Targeted Relief & Recovery Facility (“TRRF”), Relief Measures & Debt Management
and Vendor Financing Programme (“VFP”).
In response to significant economic disruption wreaked by
RM56.8 million was approved for TRRF which was directed the COVID-19 outbreak, the Bank offered financial relief
towards Malaysian SMEs in services sector affected by the measures to alleviate customers’ financial constraints. These
reintroduction of COVID-19 containment measures since June included up to six (6) months moratorium for the monthly
2020. RM25.5 million has been disbursed at end-December instalment of financing, as well as accommodating requests
2020. Having secured approval to launch Vendor Financing by customers to restructure and reschedule their financing.
Programmes (“VFP”) totalling RM600 million, the Bank
subsequently inked MoU agreements with Petronas and We also proactively engage customers with financial hardship
PERNISMA for the above VFPs, wherein the target is to serve under the debt management programme spearheaded by
1,552 Petronas vendors involved in direct supply and services Agensi Kaunseling and Pengurusan Kredit (“AKPK”),
to Petronas Group; and 658 members of PERNISMA who are whereby customers are given the opportunity to regain
TNB’s Bumiputra vendors. RM5.5 million worth of approvals control of their finances with personalised payment plans. In
have been secured, with RM5 million disbursed under the special circumstances should customers encounter payment
programme by end-December 2020. difficulties owing to natural disasters, the Bank also provides
a temporary reprieve for them by granting a moratorium on
The Bank launched two (2) more entrepreneur targeted financing payment.
programmes during the year, namely the Commercial
Property Financing (“CPF”) and KLINIK PUSRAWI Licensing Our commitment to Debt Management and Financial
programme which will be opened for applications from Planning extends towards educational initiatives in our
customers in the second quarter of 2021. effort to raise the level of financial literacy among society.
The Bank has organised a series of briefings, talks and
Recognising the Bank’s commitment to the SME market, seminars via collaborations with organisations, government
several SME-related organisations invited Bank Muamalat as bodies, associations and NGOs; to highlight the importance
a panel participant for their webinars in order to offer advice of managing personal finances prudently. These educational
on financial management. This opened up opportunities sessions also served to inculcate good saving habits.