Halal Finance
@ Halal | May-June . 2022
The SME Exporter Financing Programme will assist MATRADE members in meeting their financial needs for exports .
Bank Islam gives halal
BY FATIHAH MANAF
SMEs a boost Bank ’ s RM100 million SME Exporter Financing Programme to help SMEs tap the global market
SMALL AND medium-sized enterprises ( SMEs ) are the backbone of Malaysia ’ s economy .
Realising SMEs ’ full potential will help the country to escape the middle-income trap and achieve its goal of becoming a high-income nation . Malaysia ’ s SMEs must redefine their business models and expand their market reach to remain competitive .
According to Rizal Yusof , the Director of SME Banking Division , Bank Islam Malaysia Berhad ( Bank Islam ), Malaysia ’ s halal export value from the SME segment only amounts to RM40 billion . In contrast , the global halal market is estimated to be worth around US $ 2.3 trillion .
“ The market share from Malaysian SMEs is only RM40 billion out of the US $ 2.3 trillion . There ' s a huge disparity between Malaysian products with other players in the global market , which local companies need to tap into . They need to participate in the global halal economy ,” he told @ Halal .
As part of BIMB Group ’ s LEAP25 strategic business plan , the Bank aims to address the gaps in the halal industry and meet the needs of halal SMEs . The Bank , through its SME Banking Division , supports the Halal Development Agenda with initiatives that facilitate ease for halal SMEs ’ growth , business expansion and local and international market penetration .
Some of the Bank ’ s initiatives include forging collaboration with strategic partners to provide a complete halal ecosystem for
Rizal Yusof , Director of SME Banking , Bank Islam Malaysia Berhad .
SMEs and enabling their digital transformation journey .
On Sept 9 , 2021 , Bank Islam set a new milestone by signing a Memorandum of Understanding ( MoU ) with the Malaysia External Trade Development Corporation ( MATRADE ) at the launch of the Malaysia International Halal Showcase ( MIHAS ) 2021 .
“ The MoU with MATRADE will mainly involve collaboration with Bank Islam ’ s SME Banking Division towards supporting the growth of Malaysian SMEs . Our aim is to assist SMEs to remain competitive in a fastevolving market and facilitate their digital transformation journey ,” explained Rizal .
Through the partnership , Bank Islam will complement MATRADE ’ s export facilitation services and accelerate the internationalisation of SME exporters . It will also help strengthen MATRADE ’ s initiatives and support SMEs ’ export activities , which are vital to the growth of Malaysia ’ s economy . The collaboration also shows Bank Islam ’ s commitment to promoting halal exports and Shariah-compliant financial solutions .
SME Exporter Financing Programme
As part of its collaboration with MATRADE , Bank Islam has introduced the SME Exporter Financing Programme ( SME Exporter )— a multi-financing product package with a portfolio of RM100 million to assist MATRADE members in gaining access to financing , particularly halal financing .
MATRADE conducted a webinar on April 14 , 2022 to introduce Bank Islam ' s SME Exporter Financing Package and SMEXpert , especially for MATRADE members . Over 140 participants from various business sectors attended the session .
“ The SME Exporter Financing Programme is a full suite multi-financing product package including Business Financing-i , Cash Line-i , Trade Facilities and Foreign Exchange Contract-i . The package is to assist MATRADE members in gaining access to banking solutions for Working Capital Requirement ( WCR ) and Capital Expense ( CAPEX ), including import and export financing ,” shared Rizal .
He explained the financing programme did not require any collateral from participating SMEs . It would be secured under a Syarikat Jaminan Pembiayaan Perniagaan ( SJPP ) guarantee of up to 80 per cent , subject to the eligibility of the SMEs . Many MATRADE members showed their interest in the programme , and the Bank would continue to promote it to more SMEs nationwide .
“ As part of the programme package , SME Exporter is also bundled with our SMEXpert mobile app to facilitate SMEs with their branding activities ,” he added .