An Example from TEKUN Nasional Malaysia

GLOBAL SUSTAINABLE FINANCE
CONFERENCE 2013
SME Finance for Sustainable Development –
An Example from TEKUN Nasional Malaysia
@ Karlsruhe, Germany
4 & 5 July 2013
DATUK ABDUL RAHIM HASSAN
Managing Director & CEO
TEKUN Nasional, Malaysia
TEKUN NASIONAL
MALAYSIA
TEKUN Nasional was formed from the resolution of an
Economic Convention held in the Science University of
Malaysia at Penang Island in 1994
organised by a Non - Governmental Organisation
( NGO ) with the support from The Implementation &
Coordination Unit, Prime Minister Department of
Malaysia.
During the Convention, several participants raised the
issue of the difficulties of the people especially petty
traders and small business community to obtain
microcredit and small business loan to initiate their
business or enhance their existing businesses.
TEKUN NASIONAL
MALAYSIA
Accepting the importance of the issue, the
Convention passed a resolution appealing the
Government to provide a special fund in the form
of easy and fast approving microcredit and small
business loans to assist the petty traders and
small business community.
As a follow up to the resolution, the Prime
Minister Department has requested the Centre for
Policy Research, Science University of Malaysia
to carry out the study and subsequently run a
pilot program
TEKUN NASIONAL
MALAYSIA
With the successful implementation of this pilot
program, in 1998 the Government of Malaysia
decided to set up the so called Tabung Ekonomi
Kumpulan Usaha Niaga ( TEKUN ) or the
Economic Fund for Small Business Financing and
subsequently incorporate TEKUN Nasional
as the entity to manage the fund.
TEKUN NASIONAL
MALAYSIA
TEKUN Nasional
was incorporated on the 9th November 1998
as a Company Limited by Guarantee,
( a non - profit Development Finance Institution )
wholly owned by the
Government of Malaysia
under the
Ministry of Entrepreneur Development.
TEKUN NASIONAL
MALAYSIA
DEVELOPMENT FINANCE INSTITUTIONS ( DFI’S )
IN MALAYSIA
1) The Bank :
Bank Simpanan Nasional,
SME Bank, Agrobank,
Bank Pembangunan, Bank Rakyat
( Under the Ministry of Finance and
Regulated by The Central Bank of Malaysia )
2) The Non – Bank : TEKUN Nasional
MARA, AIM, PUNB, MIDF
( under the relevant Ministries )
The Bank and the Non Bank DFI’s in Malaysia
are the members of ADFIM
TEKUN NASIONAL
MALAYSIA
OBJECTIVE OF TEKUN NASIONAL
To contribute to the enhancement of the socioeconomic standard of the people through their
participation in business activity and
entrepreneurship.
THE ROLE OF TEKUN NASIONAL
To provide fast and easy financing to micro, small
and medium entrepreneurs.
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL
“ NURTURING ENTREPRENEURSHIP
DEVELOPING ENTREPRENURS ”
TEKUN NASIONAL
MALAYSIA
ORGANISATION STRUCTURE OF
TEKUN NASIONAL
The Government
Of Malaysia
Board of Trustee
Management Committee
222 Operating Units ( Branches
) @ All Parliamentary
Constituencies in Malaysia
950 TEKUN
Officers
MODUS OF OPERANDI
TEKUN NASIONAL
GOVERNMENT
OF MALAYSIA
FUN
D
SOFT LOAN
OBJECTIVE &
SUSTAINABILITY
REPAYMENT
TEKUN NASIONAL
FINANCING
PLOUG
H
BACK
MSME’s
REPAYMENT
TEKUN NASIONAL
MALAYSIA
TEKUN’S LOAN
•Eligibility :
•Age
:
•Loan Size :
All Malaysian citizen
18 – 65 years
RM 1,000 – RM 100,000
( USD 330 – USD 33,000 )
•Service Charge : 4% per annum
•Repayment Period : 2 – 7 years
•No Collateral and No Guarantor
TEKUN NASIONAL
MALAYSIA
Since the inception in 1998, TEKUN Nasional
has played the role of a Development Finance
Institution ( DFI ) for the MSME’s.
In 2008, TEKUN Nasional has undergone a
Transformation Process by transforming it from
just a Development Finance Institution ( DFI ) to a
Strategic Entrepreneur Development Organisation
( EDO ) while retaining providing the financial
facilities to the MSME’s
as its Core business
TEKUN NASIONAL
MALAYSIA
The New Roles of TEKUN NASIONAL
• Providing Information
• Providing Business
Opportunities
• Providing Financial Facilities
• Providing Advisory Services
• Providing Business Support
• Creating Entrepreneurs Networking
TEKUN NASIONAL
MALAYSIA
TYPES OF TEKUN FINANCING FACILITIES
1.TERM LOAN
( RM 1,000 – RM 100,000 )
2.CONTRACT FINANCING / FACTORING
( RM 20,000 – RM 100,000 )
3.TEKUN GUARANTEE SCHEME
( RM 50,000 – RM 100,000 )
TEKUN NASIONAL
MALAYSIA
TOTAL LOAN DISBURSED
1998 – 31th May 2013
RM 2.72 billion ( USD 903 mil )
No. of Entrepreneurs / Borrowers : 258,676
Total Funding by the Government
RM 1.72 billion ( USD 573 mil )
Disbursement From Repayment
RM 1.0 billion ( USD 330 mil )
TEKUN NASIONAL
MALAYSIA
TOTAL REPAYMENT COLLECTED
1998 – 31th May 2013
RM 1.58 billion ( USD 526 mil )
VS
TOTAL FUNDING BY THE GOVERNMENT
RM 1.72 billion ( USD 573 mil )
TEKUN NASIONAL
MALAYSIA
REPAYMENT RATE
85 %
The 15% non - repayment shoud be
treated as the cost of development to
develop entrepreneurs
TEKUN NASIONAL
MALAYSIA
NO.
NUMBER OF
FINANCING
1
FIRST TIMER
2
TOTAL
( 1998 - 2013 )
NO.
AMOUNT ( RM )
258,676
1,742,191,000
2nd TIME
60,370
743,444,700
3
3rd TIME
10,730
191,703,800
4
4th TIME
1,049
26,320,600
5
5th TIME
96
2,240,000
6
6th TIME
11
376,000
TOTAL
324,275
2,706,276,100
TEKUN LOAN BY SECTOR
SECTOR
%
SERVICES
45
RETAILING
AGRICULTURE & AGRO
BASED
OTHERS
35
TOTAL
10
10
100
TEKUN LOAN BY GENDER
GENDER
NO. OF
ENTREPRENEURS
WOMEN
131,450
50.82%
MEN
127,226
49.18%
TOTAL
258,676
100%
LOAN SIZE – CURRENT YEAR
LOAN AMOUNT
( RM )
NO. OF
BORROWERS
%
1,000 - 5,000
9,593
46.49
5,001 - 10,000
6,140
29.76
10,001 - 20,000
2,958
14.34
20,001 - 30,000
974
4.72
30,001 - 40,000
322
1.56
40,001 - 50,000
646
3.13
20,633
100.0
AVERAGE LOAN SIZE + RM 10,000
( 1 USD = RM 3
TEKUN LOAN BY AGE
AGE
18 - 30
31 - 40
41 - 50
51 - 65
TOTAL
NO. OF BORROWERS
58,741
84,021
74,675
41,239
258,676
%
23%
32%
29%
16%
100%
AGE 18 – 45
= 70 %
TEKUN NASIONAL
MALAYSIA
TEKUN ENTREPRENEUR
DEVELOPMENT PROGRAM
1.YOUNG ENTREPRENEURS DEVELOPMENT
PROGRAM
2.YOUNG GRADUATE ENTREPRENEURS
DEVELOPMENT PROGRAM
3.WOMEN ENTREPRENEURS DEVELOPMENT
PROGRAM
4.EX ARMY SERVICE MEN ENTREPRENEURS
DEVELOPMENT PROGRAM
TEKUN NASIONAL
MALAYSIA
TEKUN’s FINANCIAL INCLUSION PROGRAM
1.SPECIAL FINANCING PROGRAM
FOR EX – PRISONERS
2.SPECIAL FINANCING PROGRAM FOR
INMATES FROM DRUG REHABILITATION CENTRE
3.SPECIAL FINANCING PROGRAM
FOR THE DISABLED
4.SPECIAL FINANCING PROGRAM
FOR THE ABORIGINES
5.SPECIAL FINANCING PROGRAM
FOR THE POOR
( INCOME ENHANCEMENT PROGRAM )
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL
INNOVATIVE FINANCING
( YOUNG GRADUATES APPRENTICE PROGRAM )
1.>>> BUSINESS PLAN
>>> ADVISORY SERVICE
>>> TRAINING
>>> FINANCING
>>> BUSINESS
SUPPORT
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL
INNOVATIVE FINANCING
( THE MENTOR - MENTEE PROGRAM )
2. >>> BUSINESS OPPORTUNITY
>>> TRAINING
>>> FINANCING
>>> BUSINESS
SUPPORT
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL
INNOVATIVE FINANCING
( THE HOME - BASED BUSINESS )
3. >>> FINANCING
>>> SEWING MACHINE
>>> TRAINING
>>> SUPERVISION
& SUPPORT
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL
INNOVATIVE FINANCING
( ENTREPRENEURS GRADUATION SCHEME )
SME BANK,
AGROBANK
MORE THAN
RM 100,000
TEKUN
LESS THAN RM 100,000
TEKUN NASIONAL
BUSINESS CENTRE
21
TEKUN NASIONAL’S
BUSINESS CENTRES
NATIONWIDE
TEKUN NASIONAL
MOBILE SERVICES
15
TEKUN NASIONAL’S
MOBILE SERVICE
UNITS NATIONWIDE
TEKUN NASIONAL
MOBILE SERVICE – BY BOAT
3
TEKUN NASIONAL’S
MOBILE SERVICES BOAT FOR THE
STATE OF SARAWAK
TEKUN NASIONAL OFFICERS
CONFERENCE 2013
TEKUN NASIONAL HAS ORGANISED A NATIONAL
CONFERENCE FOR ITS 950 EMPLOYEES ON THE
8TH FEBRUARY 2013
WITH THE OBJECTIVE OF ENHANCING THE CAPABILITY
OF THE OFFICERS WITH THE THEME :
INTEGRITY, PROFESIONALISME & CUSTOMER ORIENTED
INTEGRITY & GOOD
GOVERNANCE SEMINAR
TEKUN NASIONAL HAS ORGANISED AN INTEGRITY &
GOOD GOVERNANCE SEMINAR 2012 IN
COLLABORATION WITH THE INTEGRITY INSTITUTE OF
MALAYSIA AND MALAYSIAN ANTI-CORRUPTION
COMMISSION
TEKUN NASIONAL
MALAYSIA
SAFETY, HEALTH & ENVIRONMENTAL
MANAGEMENT
TEKUN NASIONAL HAS GIVEN THE EMPHASIS TO
THE IMPORTANCE OF OCCUPATIONAL SAFETY,
HEALTH AND ENVIRONMENTAL MANAGEMENT.
WE HAVE IN PLACE OUR OCCUPATIONAL SAFETY
& HEALTH MANAGEMENT SYSTEM AND THE
ENVIRONMENT MANAGEMENT SYSTEM AND
PERSUING TO ACHIEVE ISO 14000 AND ISO 18000.
TEKUN ENTREPRENEURS
GATHERING
IN THE YEAR 2012 & 2013,
TEKUN NASIONAL HAS
ORGANISED
44 ENTREPRENEURS
GATHERING SESSION ALL
OVER THE COUNTRY
INVOLVING
28,000 ENTREPRENEURS
TEKUN NASIONAL OUTREACH
PROGRAM ( WALKABOUT )
TEKUN NASIONAL HAS ORGANISED AN OUTREACH PROGRAM
FOR THE MANAGEMENT TO MEET
OUR ENTREPRENEURS AT THE GRASSROOT LEVEL.
IN 2012 & 2013, TEKUN NASIONAL HAS VISITED ENTREPRENEURS
AT 138 BRANCHES NATIONWIDE.
@ BERA, PAHANG
@ PENDANG, KEDAH
@ PONTIAN, JOHOR
@ KEPALA BATAS, PP
@ PASIR MAS, KELANTAN
@ SG SIPUT, PERAK
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
SUCCESSFUL TEKUN
ENTREPRENEURS
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL CONVENTION 2013
OFFICIATED BY THE PRIME MINISTER
ATTENDED BY 7,000 TEKUN ENTREPRENEURS
TEKUN NASIONAL
MALAYSIA
TEKUN NASIONAL IS CONDUCTING A COMPREHENSIVE
OUTCOME STUDY TO DETERMINE THE SUCCESS OF
THE TEKUN’S PROGRAM. IT IS NOT HOW MUCH MONEY
WE DISBURSED, BUT HOW MANY PEOPLE REALLY
BENEFITED FROM THIS PROGRAM
TEKUN NASIONAL
MALAYSIA
QUOTE FROM THE PRIME MINISTER OF MALAYSIA :
“ I WONDER WHAT HAPPENED IF MALAYSIA IS
WITHOUT TEKUN NASIONAL. THE SME’S IN MALAYSIA
HAS BENEFITED FROM THE EXISTANCE OF TEKUN
NASIONAL ESPECIALLY THE MICRO- ENTERPRISE ”
TH
CELEBRATING OUR 15
ANNIVERSARY
ON 9TH NOVEMBER 2013
THANK YOU