SME Bank first DFI in Asean to join The Montreal Group

KUALA LUMPUR: SME Bank has been recognised as the first development financial institution (DFI) in Malaysia and Asean to be a member of The Montreal Group (TMG).

TMG is an exclusive global forum for state-owned development banks focused on assisting micro, small and mediumsized enterprises.

Founded in 2012 by seven members with a total estimated combined assets of US$2 trillion (RM8.9 trillion), TMG was established to encourage exchange of ideas, best practices and foster greater understanding of the international market for the growth of SMEs.

SME Bank group managing director Datuk Mohd Radzif said it does not just offer financing but also carry the role of nurturing and developing SMEs through the bank’s various intervention programmes.

“Our business model is the result of our continuous efforts in improving ourselves to ensure we are able to fulfill the government’s mandate and support the unserved and underserved segments of the SMEs while ensuring our sustainability,” said Radzif in a statement.

Since its establishment in 2005, SME Bank has approved a total financing amounting RM26 billion and assisted more than 15,000 SME entrepreneurs. The bank’s Upward Migration program has successfully upgraded more than 800 SME businesses to a higher level.

Meanwhile, Centre for Entrepreneur Development and Research Sdn Bhd (Cedar), a wholly owned subsidiary of SME Bank, has coached more than 33,000 participants in various SME entrepreneurial training programs.

Being accepted to the group is part of the bank’s journey in achieving its vision towards becoming a full-fledged specialised financial institution; an international benchmark for nurturing SME excellence.

There are eight current members of TMG, namely Business Development Bank of Canada, Banco Nacional De Desenvolvimento Economico E Social (Brazil), Banque Publique d’Investissement (France), China Development Bank, Nacional Financiera Banca de Desarollo (Mexico), Small Industrial Development Bank of India, Finnvera (Finland) and Saudi Industrial Development Fund (Saudi Arabia).

With the addition of SME Bank, there will be nine TMG members in the group.