Sustainability Report 2014 - SME Bank

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This annual report is available on the web at
http://www.smebank.com.my/
2014-sustainability-report/
www.smebank.com.my
1-800-88-3 131
facebook.com/smebank
ABOUT THIS REPORT
SME BANKS JOURNEY OF GROWTH
HIGHLIGHTS 2014
CORPORATE VISITS
A MESSAGE FROM THE CHAIRMAN
12
GROUP MANAGING DIRECTORS STATEMENT
16
BOARD OF DIRECTORS
18
SENIOR MANAGEMENT
20
SHARIAH COMMITEE MEMBERS
22
ENGAGING WITH OUR STAKEHOLDERS
24
SMES AS THE ENGINE OF GROWTH
28
CORPORATE GOVERNANCE
32
SUSTAINABILITY IN THE WORKPLACE
54
SUSTAINABILITY IN THE MARKETPLACE
74
SUSTAINABILITY IN THE COMMUNITY
84
SUSTAINABILITY IN THE ENVIRONMENT
ENVIRONMENT
COMMUNITY
MARKETPLACE
WORKPLACE
CONTENTS
SUSTAINABILITY
REPORT
2014
ABOUT THIS REPORT
This is our rst sustainability report making us the rst

development bank to disclose our annual sustainability
progress in line with the Global Reporting Initiative (GRI)
Guidelines. We are committed to operating sustainably and
efciently. This includes assessing the impact of our
business and making improvements when required.
Protecting people and the environment, promoting local
economic development and partnering with communities
are part of business operations. We integrate sustainability
throughout our products life cycles from concept to delivery.
Together with the annual report, which highlights the
nancial aspects of our business, the two reports provide a
clear, comprehensive and transparent representation of our
performance in managing the economic, social and
environmental aspects of operations.
This report follows the GRI guidelines, an internationally
recognised standard for sustainability reporting. We have
also considered several other local and international
guidelines that are relevant to our business. We have
structured this report according to the Bursa Malaysia
Corporate Social Responsibility (CSR) Guidelines, which
dedicates separate sections to Workplace, Marketplace,
Environment and Community. We have also considered
input from stakeholders including the GRI and the judging
panels of various CSR awards.
In producing this report, we have collated information on
our CR practices. We have examined issues affecting our
stakeholders both direct and indirect including
employees, shareholders, the surrounding community and
the public at large. This report is structured in a manner

which helps readers understand our approach to sustaining
our economic, social and environmental responsibilities.
We have presented our data in the most accurate manner
possible.
The report aims to be inclusive and address all material
issues our stakeholders may have. We have also
endeavoured to increase the level of transparency and the
objectivity of this report, using quantitative indicators for
accuracy wherever possible.
In 2015, we aim to produce a sustainability report in-line
with the GRI G4 guidelines for 2015. We will conduct a
detailed stakeholder and materiality study to identify
areas that are material to our stakeholders and us. This
information will include business areas that signicantly
inuence our business and can potentially affect
stakeholders. This stakeholder and materiality study is
scheduled to commence in 2015. The results will be
disclosed in our next sustainability report.
SCOPE OF REPORT
Reporting period
1 January to 31 December 2014 unless specied.
Reporting Cycle
Annually
Coverage
Small Medium Enterprise Development Bank Malaysia
Berhad (SME Bank): References to SME Bank,
the Company, the Organisation, the Bank and
we refer to Small Medium Enterprise Development
Bank Malaysia Berhad.
REFERENCE AND GUIDELINES
Principal Guidelines
GRI Sustainability Reporting Framework
Additional Guidelines
Bursa Malaysias Corporate Social Responsibility
(CSR) Framework
ACCA Malaysia Sustainable Reporting Guidelines
for Malaysian Companies
ISO 26000: Guidance on Social Responsibility
SUSTAINABILITY
REPORT
2014
SME BANKS
JOURNEY OF GROWTH
Bank Perusahaan Kecil dan Sederhana Malaysia Berhad

or SME Bank was established as a subsidiary of Bank
Pembangunan dan Infrastruktur Malaysia Berhad in
October 2005. The Bank became a separate entity in
2008 to further strengthen its mission to develop SMEs
to be the nations engine of growth which is in line with
the Governments economic agenda.
In 2012, the Bank has taken a signicant decision to
change its conventional banking platform to become a
fully edged Shariah compliant DFI. The Bank changed
its name and logo to Small Medium Enterprise
Development Bank Malaysia Berhad in 2013 to reect its

developmental role in nurturing SMEs.
The SME sector plays an important role in driving the
economy. Up to this point, SME Bank has had numerous
successes in various industries. The Bank had nurtured
several entrepreneurs from the beginning until some
have also achieved international success. However, the
list goes on but what keeps us ticking is not the list of
successes that has been built but what we are currently
building for the future.
INCORPORATING SUSTAINABILITY INTO BUSINESS MOVING TOWARDS A SELF SUSTAINING & GLOBAL
STANDARD BANK
Five-year Transformation Key Milestones
Year
Self sustaining &

Global Standard
Inclusiveness &
Sustainable Growth
2015
Self sustaining &

Global Standard
Leading Business Partners for SMEs

Global referral for other DFIs
2014
Inclusiveness & Sustainable Growth Towards Self Sustaining & Global Standards
2013
Inclusiveness &
Sustainable Growth
Expansion and market outreach

Well balanced and far reaching developmental role
2012
2011
2010
Restructuring &
Transformation
Key functions re-alignment

Service delivery enhancement
Robust compliance framework
Integrated IT infrastructure
Human capital development
Structural reform - balance sheet strengthening
Self sustaining and value creation business model
Initiatives
5
Sustainability has been a key driver since the Companys
formation. Over the years, we have improved our
performance in many areas. We created a solid
foundation on which we can continue to build a
sustainable business. We aggressively pursue other
goals that touch all areas of business including our
employees health and safety, environmental footprint
and community engagement. Reaching these goals
ensures that we full our commitments and surpass the
expectations of all key stakeholders.
In 2014, we identied four key sustainability focus areas.
They represent both risks to be managed and signicant
opportunities. These focus areas are aligned with the
delivery of our business transformation while also being
responsive to stakeholders. Over the coming months,
the Bank will focus on improving these areas.
SME Banks Four Key Sustainability Focus Areas
People First
Diversity and Inclusivity
Training and Development
Rewarding Achievements
Health and Safety in the Workplace
Nurturing Our Employees
Welfare
Community
Development
Reaching out to
the Community
Nation-building
SME Bank's
Key
Sustainability
Focus Areas
Integrity in the
Marketplace
Delivering Service
Excellence
Prioritising
Customers
Growing the SME
Industry
Environmental Protection
Preserving the Environment
Promoting Environmental Awareness
Preserving the Environment
Promoting Environmental
Awareness
Sustainability at SME Bank Moving Forward

Our sustainability roadmap begins with active
engagement with our stakeholders to understand their
priorities. This year, we produced our rst sustainability
report to illustrate our commitment to superior
governance and transparency. It also serves as a general
overview of our social performance and environmental
stewardship for employees, surrounding communities,
supply chain partners, industry peers and authorities. In
recent years, we have included stakeholders in various
corporate events and engagement sessions to
understand their perspectives more clearly.
We hope to conduct a materiality study to ascertain

stakeholder priority areas and match them against the
Banks business goals. This will help to set a strong
foundation for our sustainability strategy.
Understanding the areas which matter the most to our
stakeholders helps us focus on delivering exceptional
performance which will result in long-term meaningful
stakeholder relationships.
SME Bank Stakeholder Engagement Model
Sustainability Reporting
Stakeholders Inclusivity
Materiality Study
Formalising a Sustainability Strategy
Active Engagement with Stakeholders
Identifying Stakeholder Needs and Aligning

Them with SME Banks Business
Addressing Stakeholders Needs

Measuring Stakeholders
Satisfaction
Delivering Stakeholders Expectations
SUSTAINABILITY
REPORT
2014
HIGHLIGHTS 2014
1,570 approvals for
2.90BILLION
RM
of financing from
January to December 2014
More than
3000
participated in the
ENGAGEMENT
SESSIONS
Impeccable
health
and safety
record with
ZERO
injuries and
ZERO
fatalities
from 2012 to
2014
An average of
55
TRAINING HOURS
costing RM3,900 per employee

in 2014
Entrepreneur Premises
Programme (EPP)
88.8%
recorded occupancy rate
Customer satisfaction rate of
93.3%
184
clients
achieved upward migration
under the Specific
Intervention Programme
GREEN BUILDING
CONCEPT
adopted for our newly renovated

office building
7
CORPORATE VISITS
Visit by YB Datuk Hj. Ahmad Bin Hj. Maslan, Deputy Minister

of Finance
Visit by Libyan and Islamic

Development Bank (IDB)
Delegations
Visit by IBFIM (Afghanistan Banks Association)
Visit by Saudi Credit &

Savings Bank (SCSB)
Visit by Minister of Commerce, Republic of Guinea
Visit by YB Dato Lee Chee Leong, Deputy Minister, Ministry of

International Trade and Industry (MITI)
Visit by Delegation from Sri Lanka
Visit by Delegation from Ministry of Micro Small

and Medium Enterprises (MSME) Government
of India
Visit by YB Datuk Ir. Dr. Wee Ka Siong, Minister in the Prime
Ministers Department
Visit by YB Datuk Chua Tee Yong, Deputy Minister of

Finance
Visit by YB Dato Noraini Ahmad, Chairman of MATRADE
SUSTAINABILITY
REPORT
2014
A MESSAGE FROM
THE CHAIRMAN
AS WE CONTINUE
TO GROW, WE ARE
GUIDED BY OUR
SUSTAINABILITY
FOCUS FOR THE
NEXT GENERATION
- FOR BOTH
OUR BUSINESS
AND SOCIETY.
On behalf of the Board of Directors of SME

Bank, I am pleased to present SME Banks
Sustainability Report 2014. This year, we have
implemented a wide range of initiatives aimed
at fundamentally transforming our business
and developing the nation. Our commitment
to sustainability is integral to the success of
our operations, whether it relates to
streamlining our supply chain, developing
innovative
entrepreneurial
activities,
supporting the growth of emerging markets
or creating professional development
opportunities for employees. This is an
increasingly important part of being a
responsible corporate citizen and improving
corporate performance. As we continue to
grow, we are guided by our sustainability
focus for the next generation - for both our
business and society. We intend to continue
building on our long track record of social
responsibility. I am proud to share the Banks
sustainability milestones in this inaugural
sustainability report.
CHAIRMAN
As part of the Governments continued focus

on steering the country towards becoming a
developed nation with a high-income economy
by 2020, numerous programmes and
incentives have been introduced by various
agencies and development bodies in order to
encourage entrepreneurship at all levels of
Malaysian society. SME Bank is one such
body that recently welcomed an allocation of
RM550 million in the 2014 Budget presented
by the Prime Minister in October 2013.
This funding consisted of RM50 million for the
Graduate Entrepreneur Fund and RM300
million for the Bumiputera Equity Fund. The
remaining RM200 million was earmarked for
development programmes in Malay reserve
land located in strategic areas.
OVER THE YEARS, ENTREPRENEURSHIP

AND ENTERPRISE HAVE GAINED STEADY
RECOGNITION IN ECONOMIC THEORY FOR THEIR
ROLE IN PROPELLING AND SUSTAINING
A COUNTRYS ECONOMY.
Over the years, entrepreneurship and

enterprise have gained steady recognition in
economic theory for their role in propelling
and sustaining a countrys economy.
Entrepreneurs are considered to be economic
agents that drive innovation and economic
growth. They introduce an element of human
productivity and creativity into the previously
considered passive rms in the classic
models of economic theory. At SME Bank,
initiatives to encourage entrepreneurship are
not limited to providing start-up funds for
aspiring beginners and capital for successful
business.
We recorded 1,570 approvals with RM2.9
billion worth of nancing for the period of
January to December 2014. This has been
affected by the various engagement activities
and the Specic Intervention Programme that
we undertake.
10
SUSTAINABILITY
REPORT
2014
A MESSAGE FROM
THE CHAIRMAN CONTD
Given the fast-paced changes in the Malaysian

economy, we will continue to play an active
role in developing the SME sector and building
our nation as a one-stop nancing and
business development centre. Our strong
collaboration and close engagement with
customers, regulators, employees, business
partners and the public at large helps us
address sector-related issues on a timely
basis.
Finally, I would like to record my deepest
gratitude to the Board of Directors,
management team and employees for their
dedication to drive the Company to achieve a
year of impressive growth. I would also like to
thank our valued shareholders, business
associates and all stakeholders for their vote
of condence. We look forward to your
continued support in the many years to come.
THE ULTIMATE AIM OF THIS INITIATIVE

IS TO ENSURE SELECTED CUSTOMERS CAN
PROGRESS AND SUBSEQUENTLY
ESTABLISH SMES THAT CAN SUSTAIN
THEIR BUSINESSES.
The Specic Intervention Programme focuses
on selected Bank customers. Direct
intervention is identied at the beginning
through structured gaps analysis. Various
tools were applied to identify customers with
the ability to migrate upward. We facilitate
upward migration by changing delinquents to
performing clients; improving the risk or
SCORE rating; improving from NEED to
MERIT; moving from BEST to TERAS; and
progressing from local sales to exports.
We ensure selected customers can establish
SMEs that can sustain their businesses,
which ensures a quality portfolio for SME
Bank.
TAN SRI AB AZIZ KASIM

CHAIRMAN
11
12
SUSTAINABILITY
REPORT
2014
GROUP MANAGING DIRECTORS

STATEMENT
DATUK MOHD RADZIF

MOHD YUNUS
GROUP MANAGING
DIRECTOR
WE UNDERSTAND THAT
BEING A RESPONSIBLE
CORPORATE CITIZEN
IS ESSENTIAL FOR BUSINESS
SUCCESS AND OUR STRATEGY
OF CREATING VALUE FOR
OUR CLIENTS, EMPLOYEES,
SHAREHOLDERS AND
COMMUNITIES.
SME Bank has reached a milestone in the

release of its rst sustainability report.
We understand that being a responsible
corporate citizen is essential for business
success and our strategy of creating value for
our clients, employees, shareholders and
communities. Stakeholders have told us they
care deeply about corporate responsibility
(CR), particularly as it relates to workplace,
marketplace, community and environmental
sustainability. This report examines these
four areas of our CR strategy extensively and
I welcome you to read each aspect in detail.
13
programmes covering functional, technical
and soft-skills, we also focused on two main
initiatives to meet the Banks annual strategic
objectives. Firstly, a full-scale training
programme is delivered that supports the
New Operating Model (NOM). This programme
promotes sales and marketing to ensure the
Banks sustainability while supporting the
Governments agenda of developing the SME
entrepreneurs. Secondly, we initiated Project
Wisdom with the aim of achieving Shariah
compliance by 2015.
SUSTAINABILITY IN THE MARKETPLACE
Every day, we see examples of how our
support helps fuel the success of Malaysian
SMEs, whether by enabling them to purchase
equipment to full new contracts, providing
expertise to manage their cash ow or
advancing funds to expand their portfolios.
SUSTAINABILITY IN THE WORKPLACE

Employees play a pivotal role in increasing
stakeholder value and we focus on talent
management and developing a knowledge
culture. Building a strong foundation for a
motivated and talented workforce, exemplies
our core values with particular emphasis on
passion and compassion. We expand our
initiatives and improve the working
environment for our employees. Embracing
the culture of exible working hours, in-line
with global best practice, has allowed us to
boost staff productivity.
We introduced a wide range of training
programmes to help employees develop their
careers. A Certicate in Islamic Development
Banking & Finance (CIDBF), SME Business
Counsellor Certification Programme,
Graduate Trainee Programme (GTP) and
Onboarding Programme are some of the
career development programmes we deliver.
In addition to standard core training
SME Bank also provides factory space rental,

nancing, entrepreneurship training, advisory
and technical assistance as well as
operational improvements under the
Entrepreneur Premises Programme (EPP).
This programme was created for Bumiputera
SMEs that are interested in expanding their
businesses, establishing their business
presence and eventually competing with
industrys largest players.
Our Entrepreneur Premises Complex (EPC) is
under the purview of the EPP unit that
provides suitable factory space rental to
potential business owners. Not limited to
space rental, the eligible tenants at EPCs
across Malaysia have the privilege of nancing
facilities, entrepreneurial training as well as
nancial and intervention services.
The Centre for Entrepreneur Development
and Research (CEDAR) was established in
response to one of the six focus areas under
the SME Masterplan. It builds capacity and
capability of not only entrepreneurs but also
the general workforce involved in developing
SME entrepreneurs. It conducts entrepreneur
14
SUSTAINABILITY
REPORT
2014
GROUP MANAGING DIRECTORS

STATEMENT CONTD
development activities such as business

coaching and consultancy; research and
development; seminars and conferences; and
publications.
SUSTAINABILITY IN THE COMMUNITY
We enrich the lives of our stakeholders and
build Malaysias human capital in support of
the Governments vision of nurturing
a knowledge-rich and skilled nation.
We introduced a special CR initiative to
promote entrepreneurship in Malaysian
secondary school students. This CR
15
programme is a competition entitled
Program Inovasi Usahawan Muda SME
Bank Y-Biz Challenge. We implemented this
programme with the Ministry of Education
(MoE) to groom and nurture future
entrepreneurs. We created interest in
entrepreneurship and helped students
explore their creativity and innovativeness.
The programme also provides students with
experience and specic knowledge so they
can envisage entrepreneurship as their
future careers.
Our CR programmes enrich the lives and
full the dreams of the underprivileged
including orphans. As we operate in a
multi-cultural country, we are proud to
celebrate many festive seasons throughout
the year by sharing the joy with those who are
less fortunate. One example of our signatory
CR activities is the SME Bank Annual
Ramadan Programme. In addition to various
activities undertaken at the Head Ofce level,
RM5,000 is allocated to each branch network
to fund their own Ramadan programmes
including food distribution, zakat and bubur
lambok distributions.
OUR CR PROGRAMMES ENRICH

THE LIVES AND FULFIL THE DREAMS
OF THE UNDERPRIVILEGED
INCLUDING ORPHANS.
SUSTAINABILITY IN THE ENVIRONMENT

Like other financial institutions, our
environmental footprint is relatively small as
we are an ofce-based business. However,
our initiatives minimise our environmental
footprint in each area of business, from the
design of the ofce building, to the installation
of xtures and ttings. In 2014, we introduced
a green building concept in the upgrading of
our ofce building based on Malaysias Green
Building Index (GBI) rating. We have also
launched a number of initiatives that help
reduce our energy requirements and the
amount of waste we produce, reuse and
recycle.
ACKNOWLEDGEMENT
I would like to take the opportunity to extend
my gratitude to all our stakeholders who
encourage us to perform better with their
feedback, opinions and support while we
continue to invest in the future of the SMEs
and our country. On behalf of the management,
I would like to express my deepest
appreciation to all employees for their
continuous dedication, commitment and
contribution. Together, we build capacity for
growth in the SME sector. We measure our
success by how we have helped customers
develop and sustain their businesses for the
future. We hope you nd our report useful and
informative and we appreciate your feedback.
Your input is vital for rening our sustainability
initiatives and developing our future.
DATUK MOHD RADZIF MOHD YUNUS

GROUP MANAGING DIRECTOR
16
SUSTAINABILITY
REPORT
2014
BOARD OF DIRECTORS
TAN SRI AB AZIZ KASIM

Non-Executive Chairman
ENCIK KHAIRUZZAMAN MUHAMMAD

Independent Non-Executive Director

Group Managing Director
DATO ADZMY ABDULLAH

17
ENCIK ISHAK ISMAIL

DATO ABD MAJID KUTIRAN

Non-Independent Non-Executive Director
DATUK MOHD NASIR AHMAD

DATO JAMELAH JAMALUDDIN

ENCIK ASRI HAMIDON

Non-Independent Non-Executive Director
10 PUAN HASMAH RAZALI

Group Company Secretary
10
18
SUSTAINABILITY
REPORT
2014
SENIOR MANAGEMENT
FROM LEFT TO RIGHT

DATO RAZMAN MOHD NOOR

Chief Risk Officer
DATO MOHD RIZAL MOHD JAAFAR

Group Chief Operating Officer
Finance & Corporate Services
DR. SHEIKH GHAZALI SHEIKH ABOD

Chief Operating Officer
CEDAR
DATUK KAMALUDDIN ISMAIL

Chief Operating Officer
Banking
ENCIK ASBULLAH ADNAN

Director
Development Banking & Liaison
19
FROM LEFT TO RIGHT
ENCIK MOHAMAD SABIR MOHAMAD SABRI

Director
Group Financial Management
ENCIK ABD KARIM AHMAD

Director
Enterprise Banking
ENCIK ISMAIL KAMARUDDIN

Group Chief Internal Auditor / Director
ENCIK MOHAMMAD HARDEE IBRAHIM

Director
Treasury, Investment and Corporate Finance
ENCIK SHAHRIR AMRAN

Acting Director
Group Human Capital Management
PUAN ROKIAH RAJAK

Director
Operations
PUAN HASMAH RAZALI
Group Company Secretary
20
SUSTAINABILITY
REPORT
2014
SHARIAH COMMITTEE
MEMBERS
1
PROF. DR. ABDUL BASIR MOHAMAD

Chairman
PROF. MADYA DR. YUSOF RAMLI

Member
PROF. MADYA DR. AHMAD BASRI IBRAHIM

Member
PROF. DR. NORHASHIMAH MOHD YASIN

Member
HAJI JALIL HAJI SAID

Member
DR. ASMAK AB RAHMAN

Member
21
22
SUSTAINABILITY
REPORT
2014
ENGAGING WITH OUR

STAKEHOLDERS
Stakeholders play an essential role in our continued

success and we consider their varied perspectives.
We engage with stakeholders worldwide to share
information; discuss our sustainability priorities,
programmes and performance; and determine
collaboration opportunities to achieve common goals.
Operating responsibly and addressing the needs of
these interconnected groups, help us maintain
commercial success. This in turn allows us to deliver on
our sustainability promises.
We engage with stakeholders on key aspects of our
business and products. Stakeholders are dened as any
group or individual who can affect or be affected
by the achievement of the organisations objectives.
Our primary stakeholder groups are illustrated in the
adjacent table. Examples of the value we bring each are
summarised below.
nt, Regula
ernme
t
Gov ies and Authori ory
ties
d
o
B
Sup
pli
er
s
and
ers lic
om Pub
st ral
Cu ene
G
SME Bank
Em
plo
ye e
rs
to de
e s ol
Inv reh
Sha
and
rs
C o m m u n it y
23
Stakeholder Groups
Value Provided
Method of Engagement
Government,
Regulatory Bodies
and Authorities
Collaborating with the Government to provide

solutions that develop SMEs
Realising the Governments aspirations
including the 10th Malaysia Plan and National
Key Economic Areas (NKEA)
Compliance
Regular meetings
Certication
NGOs, IPTA and

Business
Organisations
Assisting entrepreneurs by providing access to

nancing
Brieng on access to nancing issues
Organisations we work with include:
Branding Association of Malaysia
United Malays National Organisation (UMNO)
Associated Chinese Chambers of Commerce
and Industry of Malaysia (ACCCIM)
Special Secretariat for Empowerment of
Indian Entrepreneurs (SEED)
Customers and
General Public
Contributing to economic growth

Helping address key SME needs
Identifying opportunities and assisting in the
development of local SMEs
Employees
Working to protect the safety and health of

employees
Creating an inclusive and diverse workforce
Providing employees with professional growth
opportunities
Regular engagement
Get-together sessions
Performance appraisal
sessions
Internal newsletters
Community
Being an exemplary corporate citizen

Giving back through philanthropic activities
Nation-building
Community engagement
Philanthropic activities
Donations
Shareholders and
Investors
Creating and maintaining shareholder value
Annual general meetings

Annual reports and other
publications
Performance updates
Suppliers
Transparent supply chain process

Sustainable economy by prioritising local
suppliers
E-bidding
Updates through online,
written and face-to-face
engagement
Forums and briengs

Panel discussions
Helpdesk
Collaboration and joint
initiatives
Dialogue sessions
Branch networks
Social media
Website
Online engagement
Customer service hotline
24
SUSTAINABILITY
REPORT
2014
SMEs AS THE ENGINE

OF GROWTH
SMEs are also an important contributor to innovation in

economies. They tend to be more nimble and
technologically driven, especially when collaborating
with the larger corporate sector.
ess
Acc
In
Techn novat
olo ion
gy
Ad an
op
t
ke
ar
M
n cin
SME Masterplan
in a
ru
oF
a st
ct
e
ur
These factors also serve as focus areas to formulate

policies that improve SMEs performance.
d tion
I nfr
The SME Masterplan was launched by the Malaysian

Government to boost economic growth through the
active contribution of SMEs to the national economy.
The plan outlines six factors that may inuence the
performance of SMEs and the achievement of the
following four strategic goals:
Increasing the formation of businesses by an average
annual increase of 6%;
Expanding the number of high growth and innovative
rms by an average annual increase of 10%;
Doubling productivity increase from 2010 to 2020; and
Intensifying the formalisation of SMEs at the rate of
15% of the Gross National Income (GNI).
al and Regula
Leg nvironmen tory
t
E
st
Worldwide, more than 95% of enterprises are estimated

to be SMEs, providing approximately 60% of private
sector employment. This may be due to SMEs being
more labour intensive and therefore providing
substantial employment.
We work together with the Government to increase

Access to Financing. This factor is most relevant to us
and ensures that creditworthy SMEs have access to
nancing for working capital and investment.
We achieve this through our comprehensive and
consistent development and intervention roles to:
Strengthen the current customer base;
Improve the Banks customers business
sustainability;
Implement technology tools to improve client
communication and relationships; and
Programme-based nancing.
es
We have always considered that the SME sector plays

an important yet varied role across countries and
regions. In high-income countries, they support the
economy; in middle and low-income countries, they
contribute to employment and GDP.
c
Ac
Development
H u m a n C a pita l
25
OUR ROLE
As a development nancial institution, it is our
responsibility to be more involved in developing the
sector.
We promote and help achieve the Governments specic
social and economic objectives.
We do whatever necessary to help SMEs succeed.
This role lls the void left by commercial banks that are
driven more by market forces and protability than the
overall development of smaller companies.
We provide medium and long-term nancing of projects,
which require specialised skills and focus. This type of
nancing carries higher credit or market risks as they
typically have longer investment tenures.
We focus on ve National Key Economic Areas: oil, gas
and energy; wholesale and retail; education; healthcare
and tourism. The potential and numerical value brought
to the economy is considered when assessing SMEs
viability.
26
SUSTAINABILITY
REPORT
2014
SMEs AS THE ENGINE

OF GROWTH CONTD
Moving Towards Becoming A Full-Fledged Shariah Compliant DFI

During its establishment in 2005, SME Banks Islamic
nancing was only 15% of the total banks portfolio. In
June 2011, SME Bank decided to transform its business
into an operationally efcient Islamic nancial provider
under Project Wisdom which ofcially commenced in
May 2012. All new approvals on conventional loans were
replaced with Islamic nancing following an internal
circulation dated 22 February 2011.
We identied gaps and raised awareness of the process,
people, product and system. In May 2012, the Islamic
nancing portfolio was estimated to be 44.5%; by
December 2014, the portfolio had increased to 85.4%
with a total amount of RM4.1 billion. The total Islamic
fund acceptance increased to 100% from 57.6%, an
increase of 42.4%. The total Islamic fund placement
also increased to 98.8% from 51.6%, a total increase of
47.9%. Several Islamic nancing contracts have also
been developed. Commodity Murabahah and Ijarah
Muntahiah Bitamlik serve SMEs needs in service
industries. Since the Banks portfolio and competency
levels have improved signicantly, the Bank has set a
target to become a full-edged Shariah compliant DFI
by 2015.
This decision complements Malaysia becoming the hub

for Islamic nance, which is part of Bank Negara
Malaysias Financial Master Plan. The growth of Islamic
banking in Malaysia has been impressive and the
potential for further growth is huge. The Islamic
nancial services industry is now at the threshold of its
next stage of development. Signicant progress has
been made over the last decade and Islamic nance is
now more widely accepted as a form of nancial
intermediation.
SME Bank has become a competitive form of nancial
intermediation that is able to meet the differentiated
requirements of economies. In an environment of rapid
change, a key factor inuencing future prospects of the
Islamic nancial services industry will be investments
to build the foundations on which further progress can
be achieved. Investing in the future; research and
development; and developing talent and expertise will
be differentiating factors that will contribute to the
industrys effectiveness, resilience and competitiveness.
This undertaking must be the joint responsibility of the
private and public sectors to mutually elevate the
industrys performance, thereby increasing its wealth
creation potential for the prosperity of our nation.
The Banks Shariah Committee ensures that all aspects
of the Banks Islamic banking business are conducted
in accordance with the Shariah principles. It adds
another level of oversight which inherently safeguards
against irresponsible practices.
27
Banks Islamic Financing and Treasury Portfolio
RM3.409b
M1
.6
M1
.5
42 . 4 % - R
48 . 4 % - R
07
2.
44 . 5 % - R
Fund Placement
Composition
Total Fund
Placement:
-R
-R
RM3.596b
b
49
51.6%
Fund Acceptance
Composition
Total Fund
Acceptance
57.6%
-R
RM4.081b
55.5%
Financings Portfolio
Composition
Banks Total Financing
Portfolio:
b
24
0b
b
15
76
1.
M1
.8
As at 31 May 2012
1b
26
2.
6b
RM3.461b
%
-
3.4
6 1b
3b
13
4.
Conventional Portfolio
RM1.748b
-R
-R
Islamic Portfolio
Fund Placement
Composition
Total Fund
Placement:
98.8
RM4.837b
Fund Acceptance
Composition
Total Fund
Acceptance
100.0
%
85.4%
Financings Portfolio
Composition
Banks Total Financing
Portfolio:
14.
6%
% - RM21.5m
1.2
04m
7
.72
7
RM
1
RM
As at December 2014
28
SUSTAINABILITY
REPORT
2014
CORPORATE GOVERNANCE
The Board of Directors (Board) is committed to high

standards of Corporate Governance. The Board
subscribes to Bank Negara Malaysias Guideline on
Corporate Governance Standards on Directorship for
Development Financial Institutions (BNM/RH/GL 00514) to achieve an optimal governance framework and
maximise shareholder value.
BOARD OF DIRECTORS
The Board is governed by nine members consisting of
one Non-Executive Chairman, one Non-Independent
Executive Director who is the Banks Group Managing
Director, two Non-Independent Non-Executive
Directors representing Minister of Finance Incorporated
(MOF) and Ministry of International Trade and Industry
(MITI) respectively and ve Independent Non-Executive
Directors.
The diversity of the Directors backgrounds from the
elds of Management, Banking, Finance, Accounting,
Legal and Entrepreneur Development were accumulated
while serving in both private and government sectors.
It brings the necessary range of expertise and experience
required by the Board to effectively perform its functions.
The Chairman and all Directors are experts in their

respective elds and have contributed signicantly to
the Boards decision making process. The Group
Managing Director executes the policies of the Board
and manages the day-to-day affairs of the Bank.
The Board is responsible for ensuring the effectiveness of
the Banks operations. This includes the responsibility for
determining the Banks overall strategic direction, approval
of performance targets, monitoring of management
achievements, providing overall policy guidance and
ensuring that policies and procedures for the internal
control system and succession planning are in place.
The Board meets at least once a month to discuss
matters relating to policies, strategies, performance,
resources, overall conduct of the Banks business and
nancial matters as well as to monitor the Banks
overall performance.
The appointment of the Chairman and all the Directors
are with accordance to the Guidelines on Corporate
Governance for DFIs and the Banks Articles of
Association.
The composition of the Board of Directors during 2014
is presented below. In 2014, fteen meetings were held.
Board of Directors Meetings Held in 2014

No.
Name of Director
Designation
1.
Tan Sri Ab. Aziz bin Kasim
Non-Executive Chairman
(appointed w.e.f. 1 May 2014)
2.
Datuk Mohd Radzif bin Mohd Yunus

(Non-Independent
Executive Director)
3.
Dato Abd Majid bin Kutiran
Non-Independent
Non-Executive Director
(representing MITI)
(appointed w.e.f. 1 October 2014)
No. of Meetings Attended

9/9
15/15
2/2
29
No.
Name of Director
Designation
No. of Meetings Attended
4.
Encik Asri bin Hamidon
Non-Independent
Non-Executive Director
(representing MOF)
14/15
5.
Datuk Mohd Nasir bin Ahmad
15/15
6.
Dato Adzmy bin Abdullah
14/15
7.
Encik Ishak bin Ismail
15/15
8.
Encik Khairuzzaman Muhammad Independent Non-Executive Director
14/15
9.
Dato Jamelah Jamaluddin

(appointed w.e.f. 1 February 2014)
12/13
10.
Dato Abdul Ghafar bin Musa
Non-Independent Non-Executive
Director (representing MITI)
(ceased w.e.f. 1 May 2014)
*4/5
* The number of meetings attended during the time the Director held ofce.
SUPPLY OF INFORMATION
organised by The Iclif Leadership and Governance

Centre.
Directors are provided with notices and board papers

prior to Board meetings. This gives Directors time to
deliberate on issues raised at meetings.
BOARD COMMITTEES
All Directors have direct access to the services of the

Group Company Secretary and senior management.
Independent professional advice is also made available
to Directors in furtherance of their duties in the event
such services are required.
There are ve board committees established to assist

the Board in discharging of its duties
and
responsibilities, namely the Audit Committee (AC), Risk
Management Committee (RMC), Nomination
Committee (NC), Remuneration Committee (RC) and
Asset Quality Review Committee (AQRC) (established
effective 28 October 2014).
TRAINING OF DIRECTORS
om
un
m
itt
er ee
a ti
on
ee
itt o
m m a ti
o
n
C
mi
No
Re
The Directors of the Bank in 2014 attended the Financial

Institutions Directors Education (FIDE) Programme
SME Bank
Board
Committees
The Bank also organises AMLA and talks on relevance

topics and encourages Directors to attend talks, training
programmes and seminars to update themselves on
new developments in the business environment.
Asset Quali
ty
Comm Revi
itte
ew
e
The members of the Board keep abreast with

developments in the banking industry by attending
conferences and seminars held in Malaysia and abroad.
Committee
Audit
ment
nage
Ma ittee
sk
m
Ri Com
It is the Banks practice that each new Director is given

a Board Kit. An on-boarding session briefs the Directors
on the Banks history, operations and nancial
performance to enable them to have rst-hand
understanding of the Banks operations.
SUSTAINABILITY IN THE
WORKPLACE
HUMAN
CAPITAL
DEVELOPMENT
32
SUSTAINABILITY
REPORT
2014
WORKPLACE
Our competitive benets package help us attract and

retain a skilled workforce so we can remain relevant in
the market. Our rigorous career development
programmes are specically designed to increase
productivity, maintain a safe environment, boost
employee engagement and encourage innovation.
We engage with each and every employee regularly. Our
effective safety and health programmes have resulted in
zero injuries and fatalities over the last three years.
AN EMPLOYER OF CHOICE
Our ambition is to be the employer of choice both for our
current and future employees as this will lead to
business success. While we continue to attract talented
and qualied individuals, we also challenge ourselves
to do whatever necessary to remain an attractive
employer. Our approach is straightforward. We take
feedback from current and potential future employees
and act to continually improve our employment
performance. We measure this through employee
engagement and benchmarking ourselves against

industry best practice.
Companies focusing on organisation strategy, systems,
organisational structure and climate, shared values,
workforce skills, individual attitudes, beliefs and
competencies are able to transform themselves into
highly effective and efcient businesses. This process is
used by a large number of national and global organisations
to achieve superior performance. It supports leaders,
managers and teams to drive change and transform
situations in their respective business units.
Our transformation journey commenced with the
Corporate Team Building Programme (CTP) from 2010
to 2011. It continued with the Internalising Business
Mindset and Shared Values Programme (InMINDs) in
2012; followed by Service Transformation for Excellent
Performance (STEP) in 2013. The Brand Internalisation
Programme (BRAIN) commenced in 2014.
CHANGE MANAGEMENT - CULTURE TRANSFORMATION
ill
, S s,
h n tyl
ol e
og
y
et
,A
u p t t it u
des
er
,
st i
ti o n
s
Sk
s
y,
eg em c
t
a
Str Syst , Te
,
s
ue
ture
Struc d Val
e
r
a
Sh
Culture
Transformation
I
B u n te r
s in n a l i
P r S h e ss s i n g
M in d
og are
set
d
ra
mm Values
e (I
nMIN
Ds)
t e r B ra n d
na
( B R li s a t i o n
AIN )
m
ea
eT
)
ra t
C o r p o i l d i n g CT P
Bu
e(
a mm
s
nd
M i efs
li
Be
,S
Progr
The Process of
Change and
Transformation
In
atives
Initi
ge
an
Ch
Organis
atio
na
Behav
iou l
r
Organisational
Performance
n
e
vic io
S e r r m at nt
P)
le
sfo
Tran xcel (STE
E
r
Fo
nce
rma
Perfo
33
BRAIN encompasses our core values of Passion,
Commitment and Trust (PaCT); and behaviour
competencies of Leadership, Integrity, Performance,
Competent and Innovation (LIPCI). We devised a brand
identity that is demonstrated through the Brand
Personality of Care, Empathy and Subject Matter Expert
(S.M.E.).
BRAIN was ofcially launched by our Group Managing
Director on 14 April 2014 and incorporated as part of the
Banks strategic plan. Progress is assessed during the
monthly BRAIN Steering Committee (BSC) meeting
chaired by the Group Managing Director.
Brand Personality We Desire Employees to

Demonstrate
i. Care - be fair, sincere and attentive to all internal
and external customers. Several programmes and
activities were conducted to instil this personality:
Iron Man & Iron Lady: A designated SMC member
for each region was assisted by co-agents from
head ofce, regional ofce and enterprise
centres.
Acknowledgements and small celebrations
such as weddings, child birth and childrens
examinations
Recognition: Long service awards and excellent
service awards
NGO association
ii. Empathy be responsive, reliable and go the extra
mile. Hospitalisation visits, death or funeral visits
are some of the activities and programmes offered
to instil this personality. Kita-Kita Aje, are informal
sessions with respective Iron Men or Ladies to
discuss personal or work related issues.
iii. Subject Matter Expert (S.M.E.) - be knowledgeable,
solution provider and good listeners. Planned activity
is be a referral point by establishing a referral point
group within the organisation for employees easy
reference. A newcomer induction programme
(Corporate On-boarding), talks by guest speakers,
benchmarking visits and training are some of the
activities and programmes that emphasise this
personality.
BRAIN commenced with Team Bonding and BRAIN

Launch Pad sessions. A total of 31 sessions were
delivered throughout August and September 2014. In
2014, 1,000 employees enrolled and graduated.
The SME Bank Way consists of SALAM, SAPA, MESRA,
SOPAN, MATA, HATI, HELO and CLEAN. It was
introduced to standardise bank behaviours to internal
and external customers. The SME Bank ways are
promoted via various communication channels such as
posters, quizzes and events.
34
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
PRIORITISING LOCAL TALENT

We make a difference to the communities where we
operate and seek ways to assist them. The hiring and
development of local people are prioritised and we work
with local supply chains wherever possible. We take
part in various career fairs to attract graduates from
our country and offer various forms of work
opportunities including internship programmes.
Breakdown of Internship Candidates in 2014
Internship Programme
We recognise our community service role to provide
Malaysian students with an opportunity to join the
Internship Programme for a specic duration. The
Internship Programme is offered to students from
recognised higher learning institutions that:
Have obtained a current cumulative GPA
of at least 3.0;
Are undergoing a diploma, degree or equivalent
programme in a eld of study specied by the
heads of department from a recognised higher
learning institution;
Demonstrate an acceptable level of interpersonal
skills;
Are active in curriculum activities in universities
or colleges; and
Have strong initiative and are able to work
independently.
The internship period varies between universities or
college programmes. Most candidates had a
background in economics, accounting, nance, Islamic
banking, IT or human resources. In 2014, we welcomed
10 internship candidates who were attached to various
functions.
1
2
Finance and Accounting
Human Capital Services
Human Capital Development
Information Technology
COMPETITIVE BENEFITS AND REMUNERATION

A fair and adequate remuneration system is critical to
motivate, attract and retain competent and highpotential employees. Our internal equity promotes fair
and equitable compensation for all employees with
remuneration that is proportionate to their contribution.
We also believe in external equity, which delivers
remuneration packages that are fair and equitable in
comparison to the external market.
We conduct remuneration reviews regularly to
determine adequate remuneration for employees. This
helps us align our remuneration packages with the
changing business environment. It allows us to be more
equitable in rewarding high achievers in the workplace,
develop employee talent and determine our
competitiveness vis--vis the market.
35
Ge
ma nero
rep rria us a
lac ge, nnu
em ma al
en ter lea
t a ni ve
nd ty/ , m
ret pat ed
itr ern ica
em it l, c
en y, s om
t
pe pa
cia ss
l p ion
aid at
, H e,
ajj
,
Education
Leave
Group Term Life (GTL), Group Personal Accident (GPA)

and Group Hospitalisation & Surgery (GHS)
Sta
ff
na
nc
ing
su
bs
idy
ing
ork ce,
e w an e
ibl dv fre
ex h a st es
, as re tiv
ips cy c inte ecu
rsh en d Ex
be erg s an onem em gift r N
b m rs, ent e fo
clu ou m nc
te g h tire dva
ora kin re sh a
rp or ry
Co ift w iona al ca
h et
iv
s, s cr fest
ur dis
ho
e
ye
plo
Em
d
an
ing e
nc
na amm
on rogr
ati
uc e P
ed tanc
e
s
e
i
s
fr
st As
ere ion
Int ucat
d
E
Key
Benets
Unlimited outpatient, hospitalisation and surgical for

employees, maternity, health screening, dental and
spectacles
Allowances
East Malaysia, COLA for Non-executives, car,

petrol, mobile phone, treasury dealers, subsistence,
accomodation, mileage, miscellaneous, short-term
placement and secondment
sch
em
ef
or
an hou
d v sin
eh g
icl
e
Insurance
Scheme
Staff
Financing
Others
Medical
Benets
A percentage of employees basic salaries is given to the

Employees Provident Fund (EPF) as per statutory
requirements. This is inclusive of the employers
contribution to EPF required by law.
Benets are dened as forms of value other than
payment that are provided to employees in return for
their contribution to the organisation. We offer various
employment benets to all levels of employees.
Key benets are illustrated in the diagram above.
Practices for Retiring Employees
Retirement Age
On 16 August 2012, the Malaysian Government
announced the enforcement of the minimum retirement
age for private sector employees, upon reaching the
age of 60 years, through the enforcement of Minimum
Retirement Age Act 2012.
Employees may opt to retire early at any time once
reaching 50 years of age. However, approval is subject
to the managements discretion. Employees who are
not medically or physically t to work may be advised to
retire earlier by a doctor from one of our panel clinics,

hospitals or any government medical practitioner.
Employees retiring in the normal course of service who
have reached the retirement age receive one months
paid leave.
Retirement Benet
Employees who joined the Bank are eligible for
retirement benet in terms of additional employers
EPF contributions based on the years of service. These
benets vary slightly depending on when the employee
joined the Company.
Additional EPF Contributions
Additional Contributions (% Basic Salary)
Length of
Service
Joined before
1 July 2012
Joined after
1 July 2012
< 5 years
2%
2%
5 - 10 years
4%
4%
> 10 years
6.5%
5.5%
36
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
LEARNING AND DEVELOPMENT

appraisal process and considers information from the
appraisal form and competency assessment. The
Human Capital Development and Learning and
Development divisions determine the appropriate
training and non-training interventions. They develop a
training plan based on the performance appraisal and
competency gap results.
Employees need to develop their technical, behavioural

and leadership competencies in relation to their
employment functions, which are aligned with the
Banks business strategy, vision and mission.
The average annual training requirement is ve days for
executive level and above and three for non-executives.
The average number of hours of training spent per year
per employee for the past three years is listed below.
Superiors are responsible for nominating their
employees to attend programmes in the annual learning
and development calendar as and when required.
Employees are provided with opportunities to attend
external training that is not in this calendar. Such
training is assessed on a needs basis and requires
approval by the respective division.
Employees learning and development needs are

identied as a result of:
Corporate, organisation requirements and business
plan;
The performance appraisal process and competency
gaps;
Feedback from superiors or heads of department;
and
Regulatory requirements.
Annual learning and development needs are identied

for all employees. It is conducted during the performance
Background information from some of our signicant

training programmes held in 2014 is presented below.
Training Budget and Hours

RM
62
4,000
4,000
Hours
3,900
60
3,900
60
58
56
3,800
3.600
56
55
3,700
3,700
54
Average annual training budget

3,500
52
2012
2013
2014
per employee
37
Name of Programme
Background
Objective
Certicate in Islamic
Development Banking &
Finance (CIDBF)
Currently, SME Bank is transforming To build capacity by providing fundamental

into an operationally efcient Islamic
knowledge for DFI executives considering
Financial Provider under Project
incorporating Islamic nancing products
Wisdom. All new approvals for
in their business operations
conventional loans have ceased and To improve DFI executives appreciation of
been replaced with Islamic nancing.
the concept and application of Islamic
The Bank identies gaps and creates
nance and its relevance in day-to-day
awareness on the process, people,
banking operations
product and system. 278 employees
enrolled and 202 graduated from a
course
in
Certified
Islamic
Development Banking (CIDB). 305
employees enrolled and 287 graduated
from a course in Professional Islamic
Development Banking (PIDB).
On-boarding Programme
for Executive (COPE)
COPE is part of the Talent Management To allow employees to understand some

Programme that provides a systematic
of the Companys values and priorities
and comprehensive approach to To encourage socialisation and create a
orienting new employees.
sense of belonging
To build an optimistic attitude towards the
Company
Professional Credit
Certication (PCC)
Developed by AICB in consultation To raise credit management awareness

with senior credit practitioners, the
of the Malaysian nancial system and
specialist
PCC
professional
regulations governing lending in Malaysia
certification demonstrates the To brief employees on types of borrowers,
achievement of the minimum
securities and credit support as well as
professional standard of core
credit processes specic to consumer or
competency for credit personnel in the
business lending
banking and nance industry.
Sales and Marketing

(Master sales professional
programme) - MSP
The MSP is under the Value Creation To equip and improve ofcers skills to be
Programme to support the Banks
more condent in selling and nalising
transformational agenda.
deals
To inculcate a mentally tough salesoriented mindset to overcome objections
and increase the closing rate
38
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
Name of Programme
Background
Objective
Up-skilling and
Re-skilling
Redeployment
Programme
New operating model strengthens the To ensure proper learning and development
Banks operation by moving staff to
interventions are provided to employees
different
job
functions.
The
redeployment programme equips staff
with related skills and knowledge of
operations.
SME Business Counsellor

Certication Programme
This programme is an adaptation of To develop a pool of expertise accessible

similar certication from Japan.
to SMEs to improve competitiveness in
Certied business counsellors are
local and global markets
highly sought after and play a To ensure high quality counselling
important role in improving SME
services are provided
businesses in the country. 26
employees enrolled and graduated
from this programme.
Staff Training Fund
International Mobility Programme
The Staff Training Fund (STF) acts as a deterrent against

recruiting experienced personnel from other nancial
institutions. The hiring institution is required to contribute
a maximum of six months of the personnels new gross
salary to the STF. The STF is applicable if the recruitment
is made within six months of the employees resignation
whose previous salary exceeded RM5,000 per month.
In 1993, staff pinching rules were liberalised and
redened to refer to the recruitment of new employees
who had not been released by a previous employer.
We value employees with global skill sets and

international technical exposure. SME Bank and
selected international nancial institutions collaborate
on the International Mobility Programme. This
programme exposes employees to various international
assignments and provides international exposure
opportunities. It supports the development and
retention of banking professionals.
All contributions to the STF are used to fund training

courses for banking personnel. This scheme is in
collaboration with Asian Institute of Chartered Banker,
which was previously known as Institut Bank-Bank
Malaysia.
Secondments or engagements vary from a short-term

of between three and 12 months, to long-term of
between one and three years.
The programme is designed to improve global
knowledge, teach skill sets, build cross-cultural
capabilities and develop leadership or management
competencies. Employees selected to undergo this
international programme are bonded for a minimum of
one year, depending on the total cost. These employees
are expected to share their knowledge, experience and
39
newly acquired skills with the Bank upon the

programmes completion.
To be eligible for this programme, employees must:
Be procient in English;
Be of managerial level with at least three years of
experience with SME Bank;
Possess a degree or equivalent technical
qualication;
Have exceeded expectations in the past two
performance appraisals;
Be aged between 35 and 50 years old with
potential; and
Be willing to relocate during the programme.
In 2014, we collaborated with Kalkinma on this
programme, which ran from 26 May to 6 June. Three
candidates were seconded to the Development Bank of
Turkey for this programme.
Graduate Trainee Programme (GTP)
The SME Bank Graduate Trainee Programme is
designed to accelerate learning and development
opportunities to prepare young talents for future
managerial and leadership roles within the Bank. GTP
provides young talent with an opportunity to launch
their careers in development banking through an on-job
learning traineeship. The Bank selects trainees from
local and international tertiary institutions.
Trainees undergo a training programme consisting of

formal training, on-job training and assessments to
meet the Banks entry level of requirements. Mentors
are assigned to coach and guide trainees throughout
the programme.
In 2014, 30 new trainees have undergone this
programme and have been placed in various
departments within Enterprise Banking, Corporate
Finance and Enterprise Centres.
On-Boarding Programme
Our guidelines ensure all new employees are effectively
and efciently introduced to their new positions. They
are given access to all relevant policies, systems and
processes to perform and develop their roles.
The objectives of this programme are to:
Facilitate new employees abilities to contribute
to the new role;
Increase new employees comfort levels in their
new roles;
Reinforce employees decisions to stay longer in
their roles;
Enhance productivity; and
Encourage commitment and employee
engagement.
40
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
Expected Outcomes
New Operating Model
An employee who has participated in the on-boarding

programme will:
In 2014, we focused on two main initiatives in addition to

our core functional, technical and soft-skill training
programmes that support our strategic objectives.
Understand their role and the work required

of them
Feel valued, supported and involved in the
organisation
Work successfully in the context of department
Understand and know how to access relevant
policies, guidelines and procedures
Understand the professional standards and
behaviour expected of them
Our full-scale training programme supported the New

Operating Model (NOM) that covered sales and
marketing. This programme contributed to the Banks
sustainability and supported the government agenda of
developing SME entrepreneurs.
We also supported one programme from Project Wisdom
that aimed to make the Bank fully Shariah compliant
by 2015.
Training Programmes that supports NOM
Non-executive to Relationships Managers (RMs)

Non-operations to RMs
Credit Admins (CAs) to RMs
Up-skilling
RMs to RMs
CAs to General Intervention
Re
ng
lli
ki
-s
Master S
Professioales
nal
New
Operating
Model
Stage 1
(Professional selling methods, continuous
learning mind-set and commitment to win
methods, continuous learning mind-set and
commitment to win)
Stage 2
(Review, difference applications and C-level
approaches)
41
Up-skilling and Re-skilling
We introduced NOM to strengthen operations, which included
moving non-operations staff to different job functions.
Our Redeployment Programme ensures that proper
learning and development initiatives are provided to
employees deployed to business operational functions.
The training is delivered by internal trainers to equip staff
with the necessary skills and knowledge required for
relationship management job functions and general
intervention. We deliver the programme in batches
depending on the number of trainees and new functions
created. This approach ensures employees are equipped
with the necessary skills and knowledge for the specic
function they are assigned to.
Redeployment Programme - Job Familiarisation
We upskilled non-operations staff to Relationship Managers
from 3 to 5 June 2015 at the Premiere Hotel. 30 selected
employees attended the programme. We also trained
existing relationship managers to improve their skills and
knowledge based on the NOM. 64 employees were involved
in this redeployment programme.
Master Sales Professional
Our Master Sales Professional (MSP) programme inculcated
a mentally tough sales achieving mindset to sustain growth
and achieve quantum high performance. Achieving sales
targets is no longer the sole responsibility of the sales and
marketing team. Every single employee must work together
to meet the quantum sales target quickly.
MSP raised the commitment of the Relationship Management
Team to believe that marketing can make a difference and
every small contribution counts. 326 relationship managers
and 30 heads of department took part in this programme.
MSP covers four stages:
Stage 1. Professional selling methods, continuous learning
mindset and commitment to win;
Stage 2. Review, different applications and C-level
approaches;
Stage 3. Creative applications and high performance
motivation (MSP Transformation); and
Stage 4. MSP, assessment, grading of sales projects and
certication.
MSP taught participants ways to stay motivated to achieve

extraordinary targets in a competitive environment. They
learned the role of Relationship Managers so they could fully
support the teams, apply the MSP Quantum-leap mindset
and support each other to achieve ambitious targets.
Relationship management staff attended the rst Stage 1
course on 28 January 2014 at the Premiere Hotel. A total of
326 employees attended Stages 1 and 2. Stage 3 is scheduled
for completion in 2015.
Project Wisdom
In June 2011, we decided to transform into an operationally
efcient Islamic nancial provider under Project Wisdom.
All new conventional loan approvals ceased and were
replaced with Islamic nancing following an internal
circulation on 22 February 2011.
Project Wisdom ofcially commenced in May 2012 with an
Islamic nancing and treasury portfolio. Our initiatives
included identifying gaps and raising awareness of the
process, people, product and system. Our learning and
development training programmes focus on people.
Initiatives carried out by Human Capital Development with
the cooperation of CEDAR and the Shariah Management
Department are highlighted below.
Certied Islamic Development Banking
Our Certied Islamic Development Banking (CIDB)
programme offers practical working knowledge of Islamic
nance and banking with an emphasis on developmental
roles. It caters to middle and upper-level executives within
development nancial institutions (DFIs).
The scope of Islamic nance has broadened signicantly
with related products and their mode of transactions
growing rapidly. The programme increases DFI executives
understanding of Islamic nance and its relevance to
day-to-day banking operations. These executives acquired
fundamental knowledge to incorporate Islamic nancing
products in their business operations.
In 2014, a total of 305 had completed CIDB training and 287
passed the examination.
42
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
Professional Islamic Development Banking

Professional Islamic Development Banking (PIDB) is
advanced level certication for bank ofcers in Islamic
development banking and nance. The modules cover:
Financial management and controls in SMEs and
development banking
Business process and best practices of SMEs and
development banking
Risk management in SMEs and development banking
Credit analyses and entrepreneur proling in SMEs
nancing
Contemporary issues of DFIs and entrepreneurships
The modules covered in this initiative include:

Continuous structured training modules on Islamic
banking operations and the application of Shariah
requirements on legal and security documents via
SOJT at our headquarters, enterprise centres,
business centres or regional centres;
Islamic banking nancing packaging and structuring;
The application and execution of standardised
transaction documents;
Shariah applications and requirements of security
documentations for all Islamic nancing contracts;
Performing assessments of participants and learning
facilitators; and
Developing resource persons in their workplaces.
TALENT MANAGEMENT AND
SUCCESSION PLANNING
Talent management and succession planning is the
process of pinpointing key needs for intellectual talent
and leadership. It prepares employees for present and
future work responsibilities needed by the Bank.
It emphasises the internal development of people. Talent
management and succession planning is treated as a
business continuity plan for our sustainability.
PIDB was delivered to 10 groups and attended by

customer-facing employees. Approximately 278
employees have attended PIDB and 127 passed the
examination.
Structuring Job Training
The Learning and Development Section of Human
Capital Development departments also work with the
Shariah Management Department on structuring job
training. This training enriches and increases employees
understanding, competency and knowledge of Islamic
banking. It focuses on outcomes and translates into
application and execution.
Each year, all heads of department name three

performing employees with the potential to rise to the
next level.
Candidates are selected objectively based on set criteria.
The potential subordinates will be assessed for suitability
and will be provided with learning and development
opportunities as well as relevant exposure on a priority
basis. The respective heads of departments and Human
Capital Development jointly develop the career paths
and development plans for the named successors.
43
COMPETENCY ASSESSMENT
The ongoing development of the employees personal and
professional competencies is essential. Each position has
a dened set of core competencies and functional
competencies which are required at specic prociency
levels.
The competency assessment is performed as and when
required for specically measuring and evaluating an
employees competencies. The outcomes of the
competency assessment help in identifying the learning
and development needs.
The assessment processes may include multiple-choice
tests, structured interviews, proling questionnaires, jobknowledge tests, social skills inventories, executive
assessment centres, language-learning ability tests and
professional examinations for managers and executives.
The results of the competency assessment are analysed to
identify the learning and development requirements of
employees. The employee competency assessment is
conducted by Human Capital Development to measure the
employees competency.
MANAGING PERFORMANCE
We are committed to inculcating a high performance
work culture. We provide each employee with clear
performance objectives, professional development,
ongoing performance coaching and feedback. We
recognise performers and rehabilitate under-performers.
Performance management is ongoing and linked to the
Banks nancial cycle. There are three main activities in
performance management:
Performance planning;
Mid-year performance review; and
Year-end Review.
Employees at executive level and above undertake all
three activities; non-executive level employees only
receive a year-end review.
Management may adjust performance ratings for
evaluation consistency. We may also use information
from performance management forms in decisions
involving promotions, performance-based disciplinary
action, performance-based salary increases and
workforce resizing. Performance management forms

become permanently entered on employees personal
les.
Performance Planning
We perform all performance planning at the beginning
of each nancial year. Management communicates and
cascades down the Banks Key Performance Indicators
(KPIs) to all heads of department who align their
respective divisional or departmental KPIs with the
Banks. The approved divisional and departmental KPIs
are raised to the next supervision level. This process
takes place for individual employees in each respective
division, department, section or unit.
At this stage, clear performance planning is established
and communicated to employees. Expectations
regarding employees performance are established.
The criteria by which employees actual performance
will be measured and their success determined is
specied. Employees are also clear about how meeting
these expectations will contribute to the achievement of
divisional, departmental and the Banks KPIs.
Employees and their immediate superiors must agree
with the performance planning. In the event that the
parties do not agree, the managers decision is nal.
Mid-year Performance Review
Employees meet informally with their immediate
superiors throughout the performance cycle to discuss
a broad range of issues and resolve any problems.
Employees are responsible for meeting their
performance expectations. Immediate superiors use
appropriate supervisory techniques that help
employees meet or surpass their performance
expectations.
A formal mid-year performance review is held during
an informal supervision meeting. Generally, this takes
place in the sixth month after the performance planning.
Performance expectations are measured, reported,
discussed and documented during this review.
When expectations alter during the course of the
performance cycle, managers communicate these
changes and modify performance planning accordingly.
Modications must be agreed by both parties.
44
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
Year-End Review
Superiors conduct year-end reviews to measure
employees performance against agreed KPIs. The
evaluation is performed at the end of the nancial year
and the process is as transparent as possible.
Supervisors use veriable information collected and
documented throughout the cycle. They determine the
extent to which actual performance has met the
expectations dened in the performance planning.
The PIP does not apply to employees who are under

probation and periodic or temporary employees,
outsourced employees and contractors who are not under
our direct employment.
The evaluation is documented in the Performance

Management System. The annual performance
appraisal uses a six-level rating scale for reporting
overall performance.
Employees understand what is expected of them and ways

they can contribute to achieving organisational goals.
Immediate superiors guide their employees in achieving
their goals and objectives. They ensure employees know
what is expected of them how to meet specic goals within
a reasonable timeframe.
Performance Improvement Plan
EMPLOYEE ENGAGEMENT
We are committed to fostering an environment in which

employees can perform to the best of their ability. The
Performance Improvement Plan (PIP) promotes an
organisational culture that educates and improves
underperformers. We do not terminate employees
employment contracts without rst giving them a
chance to improve.
We encourage closer and stronger relationships between

employees. Various events are held throughout the year
such as family days, annual dinners, employee gatherings
during the festive season, employee competitions and
sports tournaments. These events increase employee
engagement and their commitment to the Bank.
The PIP specically addresses employees performance

that requires improvement in critical areas. We ensure
a fair and consistent approach to enforcing performance
standards across all divisions.
Employee event management is facilitated by the Employee

Relations Section. Annual events are aligned with the
corporate vision and mission. An annual employee event
calendar is prepared based on the annual budget allocation.
45
Methods of Engagement in 2014

Regular Engagement
Details
Frequency
Knowledge Sharing Talk
Monthly
Ramadan Gift Giving to All Employees
Annually
Iftar Ramadan: Distribution of Iftar for Those Doing Overtime

During Ramadan
Annually during Ramadan
Quarterly Assembly: GMD Disseminating Information to Employees
Quarterly
Group MD Walkabout to Branches
Monthly and when required
Employee Engagement Survey
Annually
Grievance Process
As and when required
Donation Drive such as Fires or Floods
Table Get Togethers

Details
Frequency
Family Day or Annual Dinner
Annually
Chinese New Year Lunch with the Senior Management Committee (SMC)
Annually
Deepavali Lunch with the SMC
Annually
Kuliah Zohor
Monthly
Kuliah Muslimat
Monthly
Hari Raya Celebration
Annually
MITI Gathering in SME Bank
Annually
Recognition
Details
Frequency
Education Incentives to Employees or Their Children According

to the Guidelines
Annually
Taska Pintar Graduation Day for Children
Annually
Retirement Event
46
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
PROMOTING EMPLOYEES WELLBEING
EMPLOYEES PERSONAL DATA PROTECTION
We are committed to helping our employees achieve

well-being in many facets of their lives. Whether health,
nancial, personal or professional well-being, we
conduct numerous programmes that help them achieve
their personal goals. Some of the many programmes
provided at the Bank are highlighted below.
Our employees personal data is subject to applicable

data protection and privacy requirements as mandated
by the PDPA. We only process employees personal
data if:
It is for a lawful purpose directly related to
employment;
Necessary and directly related to managing the
employee;
It is adequate but not excessive in relation to the
employment purpose;
The employees consent is obtained to use it; and
Explicit consent of the employee is obtained to
process sensitive personal data.
Childcare Centre (Taska Pintar )

Our childcare centre provides a family-orientated
workplace environment to employees with young
children. The childcare centre is managed efciently
with set rules and regulations for childrens safety and
security.
Employees may enrol their children on a rst-come,
rst-served basis at the Banks discretion. The centre
delivers an accredited child development curriculum
and programme. It is regulated by requirements
stipulated in the Child Care Centre Act 1984 and
Department of Social Welfare policies.
We will not disclose the employees personal data for

other purposes or to third parties without the employees
consent.
Flexi Hours
EMPLOYEES RIGHTS AT WORK

We acknowledge our responsibility to respect
employees rights in accordance to the Human Rights
Commission of Malaysia (SUHAKAM). We do not tolerate
any form of workplace harassment, discrimination or
violence. We are governed by our own Terms and
Conditions of Service but also comply with the labour
practice and legislation such as Employment Act 1955
and Code of Conduct of Industrial Harmony.
At SME Bank, we understand that individuals who are

able to balance the needs of work and home are more
effective employees and more successful family and
community members. We recognise blending personal
and professional lives is different for each person and
can also vary over time. We strive to provide our
employees with a supportive work environment and a
choice of exible work hours from 8.30am to 5.30pm or
9.00am to 6.00pm.
We respect employees rights to bargain collectively

under the National Union Commercial Workers
(NUCW). 20% of our non-executive workforce was
represented by NUCW as at 31 December 2014. We
conduct regular meetings and enjoy good relations with
the union and its representatives. In 2014, issues raised
included promotion and working hours. These issues
were resolved with mutual understanding between the
parties.
The centre is open to all employees with children aged

between two and four years old. It has a maximum
capacity of 25 children.
47
We also protect supply-chain personnel and local
community members. The Human Resources Policy
recognises that while governments are primarily
responsible for human rights protection, the rights of
individuals may be affected by company activities.
All operations:
Provide a safe and healthy workplace for associates;
Do not use child, forced, prison, indentured, bonded
or involuntary labour;
Prohibit discrimination in their hiring and
employment practices;
Forbid actual and threats of physical abuse and
harassment of associates; and
Support freedom of association and the rights of
workers and employers to bargain collectively.
All employees are governed by their Terms and
Conditions of Service; contractors and vendors are
governed by their general contract with the Bank. All
standard agreements protect all parties.
Everyone should be treated with dignity and respect and
we conduct business in a manner consistent with this
principle. We comply with all applicable employment
and human rights laws and regulations where we have
operations and our suppliers must do the same. All
employees, including security personnel, are issued
with an Employee Handbook and Code of Conduct.
These documents clearly dene the scope of our ethical
responsibilities.
We comply with the Children and Young Persons
(Employment) Act 1966. Individuals aged below 18 years
cannot be employed as mandated in the Malaysian
Employment Act 1955. Although we do not have a
dedicated non-discrimination policy, there is ample
protection in the Employee Code of Conduct. This code
governs all aspects of employment including
discrimination.
We have had no incidents of discrimination or risk to
freedom of association and collective bargaining. There
have been no reported incidents of risks of child, forced
or compulsory labour. No violations of human rights
involving the rights of indigenous people have occurred
at any time in the Companys history.
EMPLOYEE GRIEVANCE HANDLING

A grievance is dened as reasonable and legitimate
dissatisfaction by an employee in his or her work
environment. Grievance handling is performed as and
when issues occur. Problems are resolved promptly and
employees have the option to elevate their grievances to
higher levels of authority if necessary.
It is each and every employees right to air employment
grievances or raise complaints about working
conditions. The employees future employment
prospects are not affected in any way.
An employee who has a grievance or complaint may
write or complete the Grievance Information Form.
The complaint must be submitted to an immediate
superior, head of department or Human Capital
Relations.
We try to resolve grievances within the department.
The employees immediate superior or head will review
and respond to the complainant.
If a grievance cannot be resolved, it is escalated to
Human Capital Relations who will assess the case and
lead the investigation. If there is a case, Human Capital
Relations will take necessary disciplinary action in
accordance with the Industrial Relations process. If not,
Human Capital Relations will respond to the complainant
to resolve the case amicably.
Year
No. of
Grievances
Received
No. of
Grievances
Solved
2012
2013
2014
48
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
OCCUPATIONAL SAFETY AND HEALTH (OSH)

We are committed to providing a safe, healthy and secure
workplace for all employees, contractors, visitors and
customers. Our commitment to implementing a safety
and health policy is integrated into the daily activities of
all people frequenting our places of work effectively.
Raising staff awareness of occupational safety and

health awareness so they view good health as
common practice in work or society.
Providing employees with basic welfare facilities.
Reviewing and revising the policy when necessary.
We meet our safety and health commitments by:

Acknowledging our legislative requirement and
ensuring compliance as the minimum acceptable
standard.
Holding all levels of management accountable for the
safety and health of employees under their leadership.
Establishing a continuous and organised occupational
safety and health management system in accordance
with the law.
Creating safe and healthy working conditions and
providing appropriate safety equipment.
Providing our people with information, training,
instruction and supervision so they have the required
skills and competencies for their roles.
Investigating all accidents, illnesses, injuries, poisoning
and dangerous occurrences and taking preventative
measures to ensure incidents do not recur.
The Occupational Safety and Health Act, 1994 requires the

appointment of a safety and health committee (SHC). Our
SHC is represented by 0.9% of the workforce and was
established to:
Assist in the development of safety and health rules
and safe systems of work.
Review the effectiveness of the existing safety and
health programme.
Conduct studies on trends of accidents, near-misses,
dangerous occurrences, occupational poisoning and
disease that occur in the workplace.
Report any unsafe or unhealthy conditions or
practices in the workplace with recommendations for
corrective action.
Review workplace safety and health policies and
recommend any revisions.
Health Safety and Environment (HSE) Committee

Dato Mohd Rizal Mohd Jaafar
Chairman (COO, Finance & Corporate Services)
Mohd Zuhar Mohamed Nor/Mohd Tarmizi Mohamad

Secretary SHO
EMPLOYER REPRESENTATIVES
Shahrir Amran
Acting Director, Group Human Capital Management
EMPLOYEE REPRESENTATIVES
Mustafar Maarof
Head, Employees Relations
Mohamed Khairil
Mohamed Khalid
Head, Facility Management
Zainal Osman
President, KSR SME
Yoshran Zaidon
Business, Continuity
Management
Zaihani Abdul Hamid

Director, Operations
Noor Nazmi Ahmad

Head, Operational Risk
Saipul MD Ramli
In house Committee
Chairman of NUCW
Mohamad Ridzuan
Mansor
Head, General Services
49
SHC meetings are held at least quarterly or as required by the Occupational Safety and Health Act, 1994. Minutes
of each meeting are recorded to document problems, issues, proposed corrective action and actions taken.
Attendance is compulsory and committee members failing to attend are removed.
Safety and health inspections of individual departments are conducted periodically to:
Identify hazards and unsafe acts for correction;
Evaluate programme effectiveness; and
Assign corrective responsibility;
Report identified problems and progress to improve
workplace safety and health.
Safety and Health Committee responsibilities are guided by the Occupational Safety and Health Act, 1994 to
Identify potential hazards;
Recommend corrective action; and
Evaluate these hazards;
Follow up on implemented recommendations
Occupational Safety and Health (OSH)
2012
2013
2014
957
631
1,833
Injury Rate
Fatality Rate
Absentee Rate (AR) for Total Workforce *
*Sick Leave Taken

Safety and Health Training
We collaborate with the National Institute of OSH Indicator in delivering employee safety and health training
modules. We have developed comprehensive health and safety procedures that are updated regularly to comply
with governmental regulations, standards and business best practice. Job safety analyses and risk assessments
support these policies and procedures. We conduct audits and inspections to determine the effectiveness of these
measures.
Training Programme Relevant to Safety and Health Conducted in 2014
Programme Title
Organiser
Ergonomics and Manual Handling in the Workplace
NIOSH
Occupational Safety and Health in Offices
NIOSH
Fire Safety Seminar 2014
BOMBA
Emergency Preparedness and Response Plan
NIOSH
Oil and Gas Safety Passport
NIOSH
OSH Management System: MS 1722 & OHSAS 18001 Interpretation

& Implementation: Module 1 of 2 (Lead Auditor)
NIOSH Certification
Sdn Bhd
Understanding, Evaluating and Implementing an Effective HIRARC at Work
NIOSH
Construction Safety & Health Officer (CSHO)
CIDB
Effective Security Management A 21 Century Perspective
U Performa
Resources
Safety and Health Officer Course
CONSIST
Occupant Safety Briefing and Indoor Evacuation Procedures at the SME Bank Tower
BOMBA
21
st
No. of Participants
50
SUSTAINABILITY
REPORT
2014
WORKPLACE CONTD
DIVERSITY AT THE WORKPLACE

We believe diversity and inclusion are essential to living
our values, achieving our business goals and building a
stronger SME Bank. We believe that diversity and an
inclusive company culture are key drivers of creativity

and innovation. Embedding diversity and inclusion in
our corporate culture helps us deliver excellent results.
600
233
800
809
Non Executive
777
Executive
200
731
400
2012
2013
2014
Total
Workforce by Gender
2013
2014
70
76
694
600
676
800
62
1,000
800
657
1,000
488
No. of Employees
1,200
482
Non Permanent Staff
Workforce by Age Group
1,200
476
Permanent Staff
2012
No. of Employees
600
22
1,060
1,040
1,020
1,000
980
960
940
920
900
880
1,022
1,044
1,008
1,024
29
964
1,000
935
1,200
16
No. of Employees
235
Workforce by Employment Contract
No. of Employees
247
Workforce by Employment Type
30-50
2012
2013
2014
Workforce by Ethnicity
No. of Employees
900
850
0 6 27
1,005
950
982
1,000
920 0 6 34
1,050
0 6 31
1,100
2012
2013
2014
Malay
Chinese
Indian
Others
274
200
278
200
245
< 30
556
400
Male
542
Female
488
400
2012
2013
2014
> 50
51
Employee Turnover
2012
2013
2014
Employee Turnover Rate
4.90%
6.60%
7.90%
Male
27
34
43
Female
18
34
39
< 30
16
26
28
30-50
28
41
50
> 50
12.50%
11.30%
13.30%
0.40%
0.40%
Age Group
Women in Management
% Women in Management
% Women in Top Management
MARKETPLACE
FINANCING
PROGRAMME
FOR WOMAN
ENTREPRENEUR
54
SUSTAINABILITY
REPORT
2014
MARKETPLACE
We engage regularly with our customers through a variety

of programmes and initiatives. We provide the necessary
support so entrepreneurs can concentrate on innovation
and running their businesses. Our client charter
demonstrates our desire to provide efcient and effective
services to all our customers. Our stand-alone coaching
centre, CEDAR, builds the capacity and capability of both
SME and DFI employees.
PRIORITISING OUR CUSTOMERS
Maximising customer lifetime value helps us compete in
a competitive environment. We develop long-term
relationships with customers through our products.
Providing the right information at all times ensures
customers are able to make informed decisions. Two-way
communications allow us to serve all market segments
effectively. We prioritise relationships over building
brands to remain competitive in the marketplace.
Close to the Customer: Competent Contacts,

Comprehensive Services
We support our customers and deal with any concerns or
complaints they may have. Our customer service
department welcomes feedback in person, by telephone,
post or email. We handle requests promptly and reliably
without any unnecessary bureaucracy. Complaints
handling is a learning process. We try to meet customers
expectations the best as we can so they can be inspired
and continue innovating.
Keeping the Customer Happy: Our Complaints
Management
Complaints receive a prompt and sympathetic response.
Our detailed guidelines state that complaints must be
dealt with politely and competently. Goodwill must be
shown to customers. Our up-to-date database is
55
analysed and management updates senior management
regularly. This analysis helps identify problems so
corrective action can be taken. It is also useful in the
development of new concepts.
Customer complaints or improvement suggestions are
valuable to us. Customers who highlight potential
weaknesses are an asset. They present an opportunity
for us to improve our service quality and make
customers happy once more.
How to keep in touch with us
Type
Details
1-800-88-3131
customercare@smebank.com.my
ENSURING CUSTOMER SATISFACTION

We work to improve our service standard. An internal
delivery charter and client charter guide employees in
monitoring customer satisfaction. Data from our internal
and external customer satisfaction surveys are used as a
yardstick for our Customer Satisfaction Index (CSI).
The surveys measure the overall customer service
satisfaction performance we provide to external
customers and internal service delivery to employees.
External customer satisfaction survey respondents
consist of both existing and potential new customers.
Results for the past three years show that customer
satisfaction has increased each year: 87.2% in 2012,
92.2% in 2013 and 93.3% in 2014. While respondents are
generally satised with our overall services, they also
offer suggestions for further improvement. These
suggestions help us understand and respond to
emerging internal and external issues such as policies,
process, systems and service delivery.
www.smebank.com.my
Internal Customer Satisfaction Survey (ICSS) and
External Customer Satisfaction Survey (ECSS)
All nearest SME Banks branches
All feedback related to products, nancing facilities and

services are:
Submitted to the Head of Customer Relations and
Liaison;
Treated as condential and cannot be accessed by
unauthorised employees;
Recorded or documented; and
Handled in accordance with the timeline set in the
procedures.
Customers are informed they have an option to escalate
their complaints, suggestions or appeals within the
organisation. They also have an alternative forum if they
are not fully satised with the Banks response.
Customer Service Management works to resolve
complaints, suggestions and appeals once they become
aware of them. Complaints root cause analysis is also
performed periodically.
In normal cases, we aim to provide a solution within 10
working days. Solutions and status updates must be
submitted to customers within 30 working days for
complex cases.
The biannual ICSS solicits feedback from internal

customers. It gauges satisfaction levels of services
provided by the various departments within SME Bank.
The quarterly ECSS solicits feedback from external
customers to determine their satisfaction levels of the
Banks services. This survey measures the effectiveness
of the overall customer service satisfaction performance
provided.
The survey covers new and existing walk-in customers
experiences at the point of entry and EPC tenant
feedback.
Customer Service Management is responsible for
preparing both surveys and presenting the ndings to
senior management. Periodically, Customer Service
Management reviews the questionnaire based on:
Feedback from stakeholders;
Management requirements;
The objective; and
The nature of the survey.
56
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
Increase awareness of access for nancing to SMEs

entrepreneurs and strengthen the business growth of
the Bank.
SME Bank Customer Satisfaction

%
92.2
2012
2013
89.9
96.7
87.6
96.7
75
Internal
91.5
80
82.9
85
87.2
95
90
93.3
100
External
CSI
2014
Customer service is at the core of everything we do and

goes beyond simply listening to customer feedback.
It begins with understanding customers needs clearly
and identifying their expectations. We propose solutions
based on customers individual requirements.
The agenda of each engagement session was tailored to

assist SMEs in current issues. During an engagement
session held in 2014, PriceWaterHouse Coopers and
Royal Malaysia Customs were invited to deliver talks on
GST. Participants were given an overview of the Banks
nancing and non-nancing facilities. They were also
introduced to CEDARs functions in building the capability
and capacity of the entrepreneurs.
We aim to delight our customers and employees are

expected to uphold this commitment. They must be fully
aware that delivering quality and customer satisfaction
are their most important goals.
The demand for these engagement programmes was

overwhelming. A total of 415 customers from 250
companies attended this engagement session.
Customers had an opportunity to meet the Group
Managing Director, the Management Directors and the
Heads of the Regional and Enterprise Centres. Customers
also networked with each other to establish new business
opportunities.
CUSTOMERS ENGAGEMENT
ENTREPRENEUR PREMISES PROGRAMME
Customer engagement activities over the past two years

have included networking, appreciation, promotion and
referral based arrangement. A mixture of existing and
potential customers attended from all six regions.
Management became better acquainted with customers by
listening to issues, considering top potential businesses
and promoting the Banks facilities.
The Entrepreneur Premises Programme (EPP) is an

integrated programme that provides factory space rental
and intervention to Bumiputera Entrepreneurs.
Intervention encompasses entrepreneurial training,
market link and possible collaboration with our strategic
partners. EPP also provides eligible tenants with access
to nancing.
This engagement served as a touch-point between

management and related parties and was well received
by all involved.
This programme will help to accelerate Bumiputera

Entrepreneur involvement in the manufacturing industry
by providing suitable assistance to tenants along their
business cycles. This programme reduces entrepreneurs
burden of initial investment and the pre-operating period
of the project. The tenants development and progress are
monitored throughout their tenancy period. Proper
intervention is injected into their business to ensure
growth and sustainability. A score card is used to track
the tenants progress and possibility of intervention.
The objectives of our customer engagement programme

are to:
Provide management with a platform to meet
potential and existing good customers, help the
enterprise centres increase their loan growth and
promote the Banks facilities.
57
The programme tenure is xed for 3 + 2 years for all

tenants. The additional two years is given based on the
tenants performance. Tenants are required to prepare
a graduation plan that outlines the future business
strategy, expansion plan and post-graduation strategies.
Tenants graduate from this programme by:
Outgrowing EPC facilities or requiring a stand-alone
location;
No longer being an SME as dened by the National
SME Development Council; or
Voluntarily ending the tenure for strategic reasons.
Entrepreneur Premises Complex
The Entrepreneur Premises Complex (EPC) provides
affordable and competitive factory space for rental to
Bumiputera entrepreneurs. Currently, there are 26
EPCs with 454 factory lots that are situated at strategic
locations across Malaysia and come complete with
basic amenities. A few EPCs have been clustered for the
halal, oil & gas and technology-based industries which
are located at EPC Sungai Ramal, EPC Kuantan and
EPC Bangi respectively.
Business Intervention
Business Intervention is part of this programme that
provides advisory services to tenants. The intervention
process helps respective tenants promote growth and
sustainability in their businesses. It also encourages
tenants to migrate upwards and outwards within the
stipulated timeframe. It requires agreement and
commitment from tenants. The business health is
assessed and is subject to a post implementation review.
CENTRE FOR ENTREPRENEUR DEVELOPMENT
AND RESEARCH (CEDAR)
The Centre for Entrepreneur Development and Research
(CEDAR) is a wholly-owned subsidiary of SME Bank. It
was established in 2013 to complement the

developmental role of SME Bank with a vision of
becoming a centre of excellence for entrepreneur
development and transformation. Its mission is to
continuously develop the capability of entrepreneurs to
sustain their growth in support of the national economic
agenda.
Today, SME Bank stands out as the only Malaysian
development bank with a subsidiary like CEDAR.
It continuously develops entrepreneurs to promote
growth and sustainability through various forms of
intervention programmes. Applying the concept of
business coaching, the centre conducts research-based
coaching, function-based facilitation and entrepreneurmentoring. Programmes undertaken by CEDAR dened
the slogan beyond nancing championed by the Bank.
The Focus of CEDAR
CEDAR develops entrepreneurs through coaching and
mentoring; research and development; seminars and
conferences; and publications. The centre achieves this
through collaborations with strategic partners and
established institutions. Extending its research further,
CEDAR also develop the entrepreneurs capacity by
building regional and international networks.
What differentiates CEDAR from the other training
providers is the ability to tailor made and address
entrepreneurs needs at each stage of their journeys.
A holistic learning strategy is adopted from conception to
inception in all the business coaching modules conducted
by CEDAR. To make the programmes more effective,
various coaching pedagogies are employed such as
practical and research-based learning processes.
In line with the Governments SME Masterplan 20122020 which emphasises Human capital and
entrepreneurial development, CEDAR builds the
capacity and capability of entrepreneurs as well as local
58
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
Local target markets

Certication and non-certication
programmes
Capability building for internal staff
Training modules on key niche areas
Capacity building on business-driven
products and services
Research and Undertake market based and

Development entrepreneur-driven research
Collaboration with R&D bodies and

government agencies
Collaboration with universities/
institutions
Consultancy
(Coaching
and
Mentoring)
attachment with key players
Others
- Events and
Publications
Event management
Joint collaborative programmes
with universities/ADFIMI/ADFIAP
Reports, proceedings and research
ndings publications on SME/
entrepreneurship development
g
rin
ha ers
nk ts
n
ct to SME B
Dire inancing ank
F
Unique
Selling
Proposition
Of CEDAR
Ca
se
M Trai based
et
ho nin g
d ol
ogy
Cu
Co S st
ac t
hi
ed
li s
n a ng g
o
s
Pe r a c hi rin
C o nto
e
and M
Strong
R
e
s
Orientat earch
ion
Strategic alignment of governments

Strategic
Collaboration SME Masterplan etc.
Strategic collaboration with local
and
and international institution
Networking Industry collaboration and
CEDARs programmes are categorised into fund based

and non-fund based. Fund-based coaching programmes
are offered to participants who wish to apply for loans
from the Bank. Non-fund based programmes are offered
to entrepreneurs looking to enhance specic aspects of
their business.
nd
da
ise red les
om ctuModu
ru ng
Networking with successful

entrepreneurs
Offering consultancy and coaching
services for young and new
entrepreneurs
Collaboration with panel of
consultants/ESPs
Knowledge Management
Capacity
and
Capability
Building
CEDAR recognises that the needs of each entrepreneur

differ. Entrepreneurial requirements change through
seven stages of growth from ideation to harvest. The
needs of a start-up company would be different
compared to more established enterprises. The
entrepreneurial development roadmap allows CEDAR to
develop programmes that cater specically to the needs
of SMEs at various stages of growth.
Kno
w
of S led
g
an ME B e-s
dC a
lie
CEDAR Operating Model
Programmes
ased
ue-b
Val opment of
l
e
v
eurs
De trepren
En
and international DFI professionals. As a subsidiary of

SME Bank, CEDAR is able to leverage on the strengths
and experiences of SME Bank, to reach out to a broader
segment. This competitive advantage is utilised for the
benet of entrepreneurs and SMEs.
59
CEDAR has developed several fund-based

programmes to serve the various segments utilising
its Leaders Entrepreneurship Acceleration
Programme (LEAP) framework. LEAP is a holistic
entrepreneurship development framework that
manages the whole entrepreneur system from precommercialisation to commercialisation. LEAP
spurs the growth of entrepreneurs who intend to
establish new businesses. It also helps expand
existing businesses by generating and rening their
ideas into a viable, bankable and sustainable
business. The various programmes CEDAR offers
are summarised in the table below.
Stages of Growth
Harvest
Expansion
Sustainability
Growth
Survival
Foundation
Ideation
Types of entrepreneurs
Start-ups
Medium entrepreneurs
Micro entrepreneurs
Large SMEs
Small entrepreneurs
Fund-Based Programme
Description
Target Segment
Graduate Entrepreneur
Innovation Programme
(PIUS-LEAP)
Holistic entrepreneur development programme for Aspiring and existing

graduates that manages the entire development process graduate entrepreneurs
from pre-commercialisation to commercialisation
below the age of 40
Women Entrepreneur
Financing Programme
(WEP-LEAP)
Integrated coaching-cum-financing programme Existing entrepreneurs

dedicated to women entrepreneurs aspiring to accelerate aspiring to expand their
their business performance
business
SME-LEAP
Integrated coaching-cum-financing programme Existing entrepreneurs

dedicated to SMEs aspiring to accelerate their business aspiring to expand their
growth
business
Young Entrepreneur
Programme (YEP)
Essential entrepreneur development programme that Aspiring and existing

enables youths to establish and run protable small young
entrepreneurs
businesses
below the age of 30
Non-Fund Based
Rapid Entrepreneur
Series of short programmes comprising nancial Existing SMEs at the
Acceleration Programme management, three steps to prot, strategic planning, growth stage within two
(REAP)
and business modelling and branding
years of incorporation
Vendor Development
Programme (VDP)
Strategically designed to coordinate, train, coach and Vendors anchored

monitor Bumiputera Anchor Vendors to become Government-Linked
competitive and sustainable companies
Companies (GLCs)
to
60
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
Success Stories
Future Plans
Since its inception, CEDAR has engaged more than

12,000 entrepreneurs. The number of participants
completing CEDAR programmes grew signicantly
from 5,450 in 2013 to 6,804 in 2014.
CEDAR will continue to support the National Economic

Agenda in making entrepreneurship the nations engine
for growth. CEDAR will continue to work towards
gaining further traction and sustainability in the
Malaysian market. Moving forward, the centre plans to
extend its reach beyond the local market. It shall
venture into ASEAN and other emerging economies
through its strategic partnerships and publication
initiatives.
As a well-known organisation in the market, CEDAR

has also established over 30 strategic partnerships with
renowned MNCs, GLCs, government agencies, higher
learning institutions, nancial institutions and NGOs.
Publications
CEDAR will also utilise technology-based learning to

reach out to a wider audience and help more
entrepreneurs benet from its activities. On this note,
CEDAR is currently hosting a learning management
system that offers more effective delivery of online
learning and coaching programmes.
CEDAR has released more than 12 publications to date.

These comprise six volumes of industry research, two
case studies and a bimonthly magazine called ACE
that focuses on ASEAN entrepreneurs. ACE highlights
the achievements of entrepreneurs in the ASEAN region
while the industry research publication presents the
key factors affecting SMEs successes and failures in
their respective industries.
Breakdown of Participants by Type
4,000
CSR-Based Programmes
3,164
1,193
2,000
2013
2014
5,070
6,000
4,257 5,450
8,000
3,640 6,804
10,000
3,500 8,570
No. of Participants
2015 Target
Coaching-Based Programmes
61
SPECIFIC INTERVENTION INITIATIVE

SME Bank has designed a Specic Intervention initiative
that is undertaken by senior employees known as
business counsellors. A special committee chaired by
the Chief Operating Ofcer (COO), Banking ensures the
effectiveness and success of the initiative. The
Intervention & Nurturing Committee (INC) strategises,
leads, facilitates and guides its implementation.
The Special Intervention initiative identies selected
customers for direct intervention at the onset.
Structured gap analysis is employed by applying various
tools such as the SME Competitiveness Rating for
Enhancement (SCORE) that has been established in the
country. The ultimate aim of the initiative is ensuring
these customers can migrate upwards, and
subsequently develop SMEs that can sustain their
businesses and providing a quality portfolio.
Business counsellors are selected from experienced
staff in the Bank to implement this initiative. Certied
Business Counsellor Courses train business
counsellors to integrate business solutions and

consultation. The Bank invested in this human capital
development with the belief that the customers
sustainability can be further enhanced with proper
intervention.
The Bank devises Specic Intervention through capacity
and capability building to achieve very specic targets
using the following ve key measurements or indicators:
1. Changing Delinquent Accounts to Performing
Accounts through a concerted effort to diagnose
problems and provide solutions;
2. Internally reclassifying Need-Based to MeritBased customers which have higher chance of
success with a sound nancial standing;
3. Improving the Internal Risk Rating or SCORE
rating;
4. Migrating to TERAS status which is a national high
performance mark for Bumiputera SMEs in
Malaysia; and
5. Expanding the market from domestic to including
exportation.
DEFINE?
WHO?
TOOLS
END GAME
SPECIFIC INTERVENTION
Direct intervention by
Business Counsellor
A pool of identied
clients
Specic initiatives
and action plan
Upward migration
Quality portfolio
62
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
Business counsellors collaborate with various

government agencies, professional bodies, industry
experts and other entities to optimise resources.
In particular, entrepreneur enhancement programmes
are delivered such as business matching, industry
networking and awareness.
In 2014,184 customers migrated upward via the Specic
Intervention initiative in comparison with 177 in 2013.
55% of these customers improved their competitiveness
which was evident in the upward migration of their
SCORE or Risk rating. A group of 31 Bumiputera
companies positioned themselves in the TERAS

programme.
Two customers began exporting their products
internationally. The remaining 11 and 39 customers
migrated to performing accounts and merit based
respectively.
The growth of these 184 customers is being closely
monitored while the Bank develops a new customer
group for 2015.
Capacity
building
Capacity
building
Local market
to EXPORT
INTERVENTION
AND
NURTURING
From BEST
to TERAS
From NEED
to MERIT
Improve RISK
& SCORE RATING
Delinquent to
PERFORMING
63
SUSTAINABLE PROCUREMENT
In 2014, we committed to enhancing our sustainable
procurement by evaluating environmental and social
aspects when procuring products and services. We also
consider suppliers attitudes to sustainability.
For example, we favour suppliers accredited with local
and international standards such as ISO and SIRIM.
We encourage our suppliers to adopt our high standards
and work towards continual improvement. This approach
positively affects the environment and community while
mitigating reputational risks.
Our vendor evaluation assesses environmental, health
and safety commitments. An OSH system, certications,
recycling activities and other social compliance are also
covered. This evaluation process helps us make
informed procurement choices. Understanding how
purchased products and services are made makes us
more aware of their environmental impact. Other factors
considered during the evaluation process included
checking suppliers:
Are registered with MOF, CIDB and other local
authorities and professional bodies,
Are nancially and technically able to carry out the
project,
Have an excellent track record when performing
similar projects,
Have prices that are within the approved budget.
Prioritising Local Suppliers
Our procurement processes stipulate that we obtain a
minimum of three quotations from Ministry of Finance (MOF)
registered suppliers. Purchases ranging from between
RM50,000 and RM100,000 are awarded to local suppliers,
vendors or service providers registered with the MOF.
Tender or e-Bidding
A tender is a written invitation sent to potential tenderers
containing detailed specications of the sought goods or
services. Tendering is used when the purchase amount
exceeds our purchasing policy. The tender process
covers the invitation, preparation and evaluation of
tenders. It also covers the establishment of a Tender
Opening Committee, Tender Committee, Financial
Evaluation Committee and Technical Evaluation
Committee.
Effective communication between stakeholders and

relevant parties ensures efcient, cost-effective
tendering is performed with a high degree of integrity
and transparency. This approach reduces the risk of
misconduct in tender requisitions, evaluations and
selection activities.
We introduced an e-bidding process to promote
transparency and equal opportunities during the
tendering process. This is part of our efforts to promote
fairness, transparency and competition in the market
for the benet of society. All suppliers must be
registered in the e-procurement system before they can
participate in any tender.
STRATEGIC PARTNERSHIP WITH SMEs
SMEs are the growth generators for economies
worldwide and are frequently the incubators of ideas
and inventions. We have introduced special schemes
that promote entrepreneurship across priority and
growth sectors. We are able to assist start-ups and
micro businesses to grow and provide entrepreneurs
with nancing or business development advice as part
of our business support programmes.
The three main focus areas underlying our assistance in
Malaysia include:
Building the capacity and capability of SMEs,
specically in the areas of entrepreneur
development, human capital development, advisory
services, awareness and outreach, technology
enhancement and product development;
Strengthening and enabling infrastructure for SME
development. This involves developing and
enhancing physical infrastructure and information
management as well as ensuring conducive
regulations and operating requirements relating to
SMEs; and
Enhancing access to SME nancing. This develops
and strengthens institutional arrangements to
support SME nancing requirements.
64
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
Products and Programmes That Help SMEs Grow in Malaysia

Programme Name
Description
Young Entrepreneur Fund

(YEF)
YEF is a special fund allocated by the Government as part of its strategy of

acculturation and creation of new young Malaysian entrepreneurs. This fund
provides alternative nancing options so young people can establish new
businesses and support their existing enterprises. The nancing concept is
based on the Shariah nancing concept.
Graduate Entrepreneur Fund 2

(TUS 2)
TUS 2 is a special fund that helps graduates venturing into business.

This graduate nancing scheme caters to start-up businesses as well as
existing business expansion. The nancing concept is based on Shariah
nancing concept.
SME-LEAP
SME Financing Programme under the Leaders Entrepreneur Acceleration

Programme (SME LEAP) provides nancing to SME entrepreneurs for
business expansion. Its nancing is based on the Shariah nancing concept.
Women Entrepreneur Financing

Programme under the Leaders
Entrepreneur Acceleration
Programme (WEP-LEAP)
The WEP-LEAP provides female SME entrepreneurs with nancing for

business expansion. Its nancing is based on the Shariah nancing concept.
Skim Pembiayaan Ekonomi Desa SPED improves the industries of rural Bumiputera entrepreneurs so they are
(SPED)
more viable, resilient and committed. It nances rural Bumiputera
entrepreneurs to improve their local economy. SPED also creates a
Bumiputera commercial and industrial community in the rural population.
Its nancing concept is based on Shariah nancing concept.
SME Development Scheme
(SDS)
SDS provides local SMEs with access to nancing to further develop their
businesses and accelerate their growth. Its nancing is based on the Shariah
nancing concept.
SME-Go
SME-Go is a nancing programme that was developed to support the GoingExport (Go-Ex) programme under the Malaysian External Trade Development
Corporation (MATRADE). It is in-line with the Governments initiative to
increase the growth of Malaysian SME exports. Its nancing is based on the
Shariah nancing concept.
Halal Development Fund
The Halal Development Fund is a special fund based on a collaboration with

the Halal Development Corporation (HDC). This fund supports entrepreneurs
involved in Halal-related sectors. Its nancing is based on Shariah nancing
concept.
65
Programme Name
Description
Malay Reserve Development

Financing Programme (MRDF)
Malay Reserve Development Financing Programme (MRDF) is a nancing

facility initiated by the Government as part of the National Budget 2014. MRDF
nances the development of Malay Reserve Land in strategic areas such as
Kampung Baru, Kampung Datuk Keramat and Kampung Pandan. This facility
improves the standards of living of the Bumiputera community in line with the
rapid development of surrounding areas.
Bumiputera Equity (EquiBumi)

Financing Facility
The EquiBumi Financing Facility was allocated by the Government under the
National Budget 2014. It helps credible Bumiputera companies take over
listed companies or companies with potential to be listed on Bursa Malaysia
Securities Berhad.
i-Enterprise Premise Financing

(i-EPF)
i-Enterprise Premise Financing (i-EPF) is a package for renancing and

purchasing shop-houses, shop-lots, ofce space and factories for own
business operations or investment. It also covers the acquisition of completed
or under construction properties.
i-Biz Cash
i-Biz Cash provides working capital to customers without them needing to

pledge collateral. i-Biz Cash supports the growth of targeted SMEs that have
viable business but lack of collateral to secure access of nancing. Customers
do not need to worry about paying a guarantee fee.
66
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
RESPONSIVE SME BANK

Our Customer Relations and Liaison Department is the
main touch point answering customer inquiries via our
Contact Centre 1-800-88-3131. It also deals with
escalated complaints or feedback from customers
commenting on our products and services. All customer
feedback is addressed with courtesy. We respond
promptly to any feedback received through various
channels such as the call centre, letters, SMS and
email. All simple complaints are resolved within 10
working days; complex cases may take up to 30 working
days. All feedbacks received are treated seriously and
endorsed during the monthly Customer Complaint
Committee Meeting.
Number of Complaints Cases

2014
40
2013
48
2012
44
Year
Equivalent to 8 units
Complaint Cases by Type

25
20
15
No. of Cases
Delay/Late
Loan Processing
for Approval
Delay/Late
Processing for
Disbursement
Staff
Related
Process
Related
16
12
10
12
12
2013
18
2012
13
10
2014
Loan
Rejection
STAKEHOLDERS ENGAGEMENT
We engage with stakeholders on an ongoing basis and
through a variety of forums and communication
channels. We undertake networking and collaborative
activities with government agencies and target groups
for image building and business sourcing. We hope
these efforts will positively affect and effectively
outreach to entrepreneurs nationwide.
A total of 42 road shows and brieng sessions were held

nationwide in 2014. This programme has beneted at
least 2,587 entrepreneurs. We are proud that this
programme has improved entrepreneurs access to
nancing.
67
SME Bank Enterprise Centres Open Day 2014
The Enterprise Centres Open Day supported and
increased enterprise centres customer base. There
were 18 open days held in 2014, which were attended by
more than 1,450 people nationwide. Participants were
invited to a talk on GST and were introduced to our LEAP
Programme. We also offered a full days consultation
and clinic sessions to discuss business assistance,
opportunities and ways to assist them.
second session was conducted on 22 - 23 September

2014 at Persada International Convention Center, Johor
Bahru for Southern Region (Johor, Negeri Sembilan
and Melaka). Both programmes were ofciated by YB
Datuk Ir. Hj. Hamim Samuri, Deputy Minister of MITI.
The programme provides:
A platform for business expansion through smart
partnerships or business matching activities as
well as networking opportunities for entrepreneurs
and potential partners.
Opportunities for entrepreneurs to explore new
markets, businesses and business partnerships
with participated parties (i.e. Government-Linked
Companies (GLCs)/ Government-Linked Investment
Companies (GLiCs) under the MITI Vendor
Development Programme); and
Opportunities for entrepreneurs to get information
on the assistance, incentives and advisories from
the participated government agencies and parties
involved with the programme.
Showcase Satu Daerah Satu Industri (SDSI)

Forum Keusahawanan Malaysia 2014 (FOKEM)
Forum Keusahawanan Malaysia 2014 (FOKEM) was
jointly organised by three agencies under the Ministry of
International Trade and Industry (MITI): MIDF, SME
Corp and SME Bank. The forum was held on 18 February
2014 at Dewan Tun Hussein Onn, PWTC. It celebrated
the success of entrepreneurs and SMEs in Malaysia.
This programme provided a platform for successful
entrepreneurs to share their experiences. Participants
discovered the various initiatives and assistance offered
by MITI and agencies.
SME Smart Partnership Programme 2014
The SME Smart Partnership Programme is a
collaboration programme between SME Bank and MITI.
It is a dedicated entrepreneur developmental programme
for Bumiputera SMEs. The SME Smart Partnership
Programme supports the Government Bumiputera
economic empowerment agenda, which was announced
by YAB Prime Minister of Malaysia on 14 September 2013.
The programme was conducted twice. The rst session
was conducted on 19-20 May 2014 at PWTC, Kuala
Lumpur for Central Region (Selangor, KL) and the
SDSI was held from 4 to 7 December 2014 at Melaka

International Trade Centre (MITC) to:
Facilitate and assist in the marketing of products
and services;
Improve the image of SDSIs product and services;
Show the public that SDSIs products are of high
quality; and
Encourage SDSI entrepreneurs business
networking with local and overseas buyers,
distributors, sales agents, stockists, importers and
hypermarkets.
68
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
RISK ASSESSMENT
CUSTOMER PRIVACY
We have embedded a list of activities that do not qualify for

nancing in our Credit Operations Guide. These consist
of:
All activities that contravene Shariah principles as
determined by the Shariah Advisory Council (SAC)
of Bank Negara Malaysia (BNM) and the Banks
Shariah Committee;
Projects and activities that violate the law or our
moral values;
Activities that cause pollution and other adverse
environmental impacts;
The nancing of vessels used in international
waters except for oil and gas related activities;
The processing and trading of scrap metals;
Mining activities except quarrying;
All basic primary agriculture projects;
Entertainment and gambling centres;
Individuals and companies that are blacklisted on
our Negative Counterparty Database (NCD); and
Companies using audit services from blacklisted
rms.
We ensure your personal data is protected in accordance

with the recently enacted Personal Data Protection Act
(PDPA) 2010. We also inform customers how their
personal data is managed.
We also only selectively grant nancing to certain

sectors and activities. A comprehensive credit
assessment is performed for nancing applications
that are on this selective list. This list governs bus
operators, hotel operators and furniture manufacturers.
It also applies to nancial services companies offering
money-changing services, pawnshops and pawn
brokers. We evaluate the applicants business model
and operations. Detailed ndings are highlighted in the
Credit Evaluation Report / Financial Evaluation Report
so that the approving authority can make well-informed
decisions.
Both restriction lists were endorsed by our Risk
Management Committee (RMC) on 24 September 2014.
We ensure that our customers personal data is not

disclosed for any purpose other than it was collected
for. Under the Development Financial Institutions Act
2002, we are obligated to protect customers information
pursuance to Section 119, which covers secrecy. Section
120 on permitted disclosure also covers several
instances when we disclosed customer information.
For example, we may share customers personal data
with any third party to whom we are obligated to comply
with laws or as required by any regulatory or statutory
authority.
We are also guided by Bank Negara Malaysias
Guidelines on (i) the Disclosure of Customer Documents
or Information by Development Financial Institutions
issued on 2 July 2013, and (ii) Guidelines on Data
Management and Management Information System
(MIS) Framework for Development Financial Institutions
among others. These guidelines cover the requirements
for data governance structure, quality and security.
The PDPA came into force in November 2013. On 11
February 2014, we registered as a Data User with the
Jabatan Perlindungan Data Peribadi (Commissioner).
The registration was approved on 17 February 2015.
69
Under PDPA, personal data must be processed and complied in line with the following 7 principles:
Principle
1. General Principle:
Personal Data can only be processed with the consent or explicit consent of the data subject.
2. Notice and Choice Principle:
The Bank must notify the customers, vendors and employees of the purposes for which their personal data will
be collected, used and disclosed in order to obtain their consent.
The notice must be in writing and must be in both English and Bahasa Malaysia.
3. Disclosure Principle:
The Bank is not allowed to disclose personal data to a third party unless permitted under the PDPA.
Disclosure of customers personal data to a third party is NOT ALLOWED unless permitted under the PDPA as follows:
a. There is consent from the data subject;
b. The disclosure is necessary for crime prevention and detection and assisting in an investigation;
c. The disclosure was required or authorized by or under any law or by the order of a court;
d. The data user acted in the reasonable belief that he had in law the right to disclose the personal data to the
other person;
e. The data user acted in the reasonable belief that he would have had the consent of the data subject if the data
subject had known of the disclosing of the personal data and the circumstances of such disclosure; or
f. The disclosure was justied as being in the public interest in circumstances as determined by the Minister.
4. Security Principle:
The Bank must take practical steps to protect the personal data from any loss, misuse, modication, authorized
or accidental access or disclosure, alteration or destruction.
5. Retention Principle:
The Bank is required to cease processing personal data once the purpose of its collection has been fullled.
6. Data Integrity Principle:
Reasonable effort must be taken to ensure that personal data processed is complete, accurate and up to date.
7. Access Principle:
The data subject has the right to:
a. Access his personal data; and
b. Correct his personal data.
70
SUSTAINABILITY
REPORT
2014
MARKETPLACE CONTD
SUSTAINABLE MARKETING
Our reputation is one of our greatest assets and we take
every precaution to protect it. Our commitment to
integrity and honesty is at the core of our values,
standards of conduct and governance principles.
We take these commitments seriously especially when
communicating with clients who entrust us with their
nancial assets and expect us to always work in their
best interests.
Our success is built not only on quality products/
programmes and innovation, but also by the
relationships we develop and nurture. Creating
Platform
understanding, trust and respect takes time, honesty

and transparency.
We employ a variety of tools when engaging with our
stakeholders and facilitating feedback. Our corporate
website and annual reports are the most comprehensive
sources of information for our social, environmental
and nancial performance. We engage with our
stakeholders through social media channels such as
Facebook, Twitter, YouTube and other mobile
applications.
Link
Facebook
https://www.facebook.com/smebank
Twitter
https://twitter.com/SME_Bank
You Tube
https://www.youtube.com/user/smebankmalaysia
Website
www.smebank.com.my
Mobile Apps
Can be downloaded through Play Store and Apps Store.
71
ADVERTISING AND PROMOTION

The Advertising and Promotion Team ensures
compliance with promotional regulations. It reviews
marketing materials to check they are balanced and
accurate when presenting their risks and benets.
We adhere to regulations and standards and all
advertising and promotions are conducted in
accordance with our Corporate Identity Guidelines.
All advertising and promotions are endorsed by the

Shariah Committee. We are sensitive to consumer
interests in the development, marketing and sale of
new products and programmes. The Board approves
policies and procedures that outline parameters and
guidance for the fair treatment of consumers. These
clear procedures help us avoid misselling, unfair terms
and conditions and business practices that restrict
consumers freedom of choice.
COMMUNITY
LENDING
A HELPING
HAND
74
SUSTAINABILITY
REPORT
2014
COMMUNITY
Our business operations develop local

communities. We support entrepreneurs so
they can innovate and provide local
employment opportunities. Our school
programmes develop entrepreneurial and
business thinking in secondary school
students. We also support and make
philanthropic donations to programmes that
provide humanitarian aid.
CR Statement
To embark on a comprehensive Corporate Responsibility
(CR) programme focusing on entrepreneurship and
sustainable activities that will bring impact to the
Banks image and business operations as well as create
value for the stakeholders
SMEs are integral to the economic

development and growth of the Malaysian
economy. They greatly outnumber large
enterprises in both number and share of the
labour force they employ.
SMEs account for more than 97.3% of all
enterprises and 57.5% of domestic
employment. SMEs contribution to GDP is
33.1% and their contribution to exports is
19%. They generate income and employment
while empowering women and young people
through business participation. Their
widespread presence also helps develop nonurban and poorer domestic regions.
SMEs are the backbone of developing countries
and developing them is vital to achieve longterm and sustainable economic growth.
With the strong forces of globalisation,
building SMEs capabilities is essential to
promote competition, innovation and utilising
the economic initiatives and incentives
provided by the government.
SME BANK SIGNATURE CORPORATE

RESPONSIBILITY PROGRAMME :
PROGRAM INOVASI USAHAWAN MUDA
SME BANK Y-BIZ CHALLENGE
In view of the importance of nurturing and
grooming future entrepreneurs, SME Bank
embarked on a special initiative under its
Corporate Responsibility (CR) programme.
The Bank has collaborated for three
consecutive years with the Ministry of
Education (MoE) and Majlis Rekabentuk
Malaysia (MRM) to promote entrepreneurship
amongst secondary school students in
Malaysia. This signature CR programme is in
the form of a competition entitled Program
Inovasi Usahawan Muda SME Bank Y-Biz
Challenge.
75
The Banks initiative to nurture young

entrepreneurs was recognised by the
Association of Development Financing
Institutions in Asia and the Pacic (ADFIAP)
with a Plaque of Merit under the category of
Corporate Social Responsibility.
Entrepreneur
sh
lcate
u
c
In Starting Them Youn ip
g
by
Y-Biz
Challenge
Desired
Outcomes
Career uture
F
Entrepreneurs
eurs
h
i
p
a
repren
Ent hoice Caree s a
r
C
ol of Think
ate Po
e
Cre ong Student rs
s
Am
SME Bank Y-Biz Challenge is a platform for

students that generates interest in
entrepreneurship. It provides an opportunity
for students to explore their creativity and
innovativeness. The programme provides
students to the relevant knowledge and
experience that helps them realise their
entrepreneurial potential.
76
SUSTAINABILITY
REPORT
2014
COMMUNITY CONTD
The nalists of SME Bank Y-Biz Challenge have also

accomplished numerous achievements in national and
international competitions. The 2012 champion from
Sekolah Menengah Sains Hulu Selangor has won a Gold
Medal in the Young Inventor Category of the European
Exhibition of Creativity and Innovation 2013
(EUROINVENT) in Romania.
The nalists excellent performance in the international

competition prompted SME Bank to give a ight ticket
worth RM25,000.00 as an incentive for the students to
compete in an international competition of their choice.
The participation statistics since the introduction of Y-Biz Challenge are presented in the table below.
Participation
2012
2013
2014
TOTAL
No. of Schools
82
81
84
247
No. of Students
325
293
332
950
Sekolah Menengah
Sains Hulu Selangor
NA
Winning School
Sekolah Menengah Sekolah Menengah

Sains Hulu Selangor St. Michael,
Penampang, Sabah
77
How Y-Biz Challenge Creates a Positive Impact to Stakeholders

Stakeholders Group
Impact
MoE
To provide an opportunity for government agencies and various private

sectors to collaborate with the Ministry of Education to promote education
in line with the governments aspirations
Schools
To encourage students to be active in extracurricular activities in school

and at the national level
To produce highly motivated students with an interest in science,
technology and entrepreneurship
Teachers
To produce highly motivated teachers

To train teachers in creativity and innovation
To expose teachers to new techniques when teaching students in creativity
and innovation
Students
To inculcate entrepreneurship skills in students

To produce creative and innovative students
To develop future young entrepreneurs
To coach students to become world-class leaders
78
SUSTAINABILITY
REPORT
2014
COMMUNITY CONTD
2014 CORPORATE RESPONSIBILITY PROGRAMMES

We are committed to the communities where we do
business for the betterment of society. We honour our
special responsibilities and roles in helping our
communities thrive. We are committed to making
positive change through community partnerships,
charitable giving and volunteerism. Our charitable
contributions and philanthropy reect our dedication to
the communities we serve. We believe in corporate
responsibility, corporate citizenship and giving back to
those who have made us successful. Our employees
dedicate their time, resources and energy to improving
the communities where they live and where we operate.
Ministry of Education Malaysia and helps students

prepare for major examinations. YB Datuk Ir. Hj. Hamim
Samuri, Deputy Minister of International Trade and
Industry and Member of Parliament Ledang was the
guest of honour at this event.
Back to School Programme
In conjunction with the opening of 2015 school sessions,
we took the initiative to distribute school bags and
stationery to orphans at Rumah Siti Khadijah, Klang.
We also contributed food hampers to this orphanage.
Corporate Responsibility for Ramadan and Hari Raya

Corporate Responsibility in Education
At SME Bank, we recognise the long-term economic,
social and personal gains that result from quality
education. Examples of our educational support are
summarised below.
Tutor Online for School Children
We have distributed 100 Tutor Online ID to students
from Sekolah Menengah Agama Lughatul Quran,
Sekolah Menengah Agama Darul Ulum and Sekolah
Menengah Agama Lughatul Arabiah. Tutor Online is a
holistic e-learning system that follows the syllabus of
We celebrate Ramadan and Hari Raya by sharing the joy

with those who are less fortunate and also local
community members. Some of our initiatives that
brought happiness in this holy month are summarised
below.
Gotong Royong Programme at a Muslim
Cemetery
The SME Bank volunteer squad organised a gotong
royong programme to clean up a Muslim cemetery in
Kg. Sg. Buah, Dengkil. The programme was organised
in conjunction with the coming of the holy month of
79
Ramadan. 11 volunteers teamed up with villagers for

this good cause.
programme. We purchased new baju Raya and

distributed duit Raya in conjunction with the coming
Hari Raya celebrations.
Ramadan Programme at SME Banks Network

In 2014, our annual Ramadan Programme was extended
to the Banks 22 Enterprise Centres and Business
Centres. Each branch network received RM5,000.00 for
organising their own Ramadan programmes.
Zakat Distributions
The Bank distributed Zakat to the Asnaf in parliaments
of Jeli, Kelantan; Pekan, Pahang; and Tambun, Perak.
We hope that these contributions will ease their burdens
in celebrating Ramadan and Hari Raya.
Sharing Food with Local Communities
Ramadan is a time for sharing what you have with

others. In 2014, we continued to distribute packed food
to the public at the Urban Transformation Centre Kuala
Lumpur and Bubur Lambok to patients in the Paediatric
Ward in Hospital Sungai Buloh.
New Baju Raya for Orphans
Sharing happiness with 23 orphans from Rumah
Permata Hatiku was the main objective of this
Distribution of Raya Hampers to Angkatan

Tentera Malaysia
SME Bank is one of the contributors to the annual
programme organised by Angkatan Tentera Malaysia
(ATM). We distributed Raya hampers to appreciate the
ATM who work during the festive seasons in order to
carry out their duties locally and abroad.
Corporate Responsibility for the Disabled
We care about those less fortunate and the disabled.
We aim to improve and enrich their lives through
donations.
Donation of Wheelchairs to Persatuan
Kesejahteraan Rakyat 1 Malaysia
We donated two wheelchairs to Persatuan Kesejahteraan
Rakyat 1 Malaysia (KER1M). KER1M is a nongovernmental organisation that raises funds to help
those less fortunate and the disabled.
80
SUSTAINABILITY
REPORT
2014
COMMUNITY CONTD
Corporate Responsibility for Victims

of Natural Disasters
This is an ongoing effort undertaken by SME Bank to
assist victims of natural disaster. Monetary or in-kind
assistance is given.
Donations to Perdana Global Peace Foundation

We contributed RM10,000 to the Palestine Humanitarian
Fund organised by Perdana Global Peace Foundation to
help victims of the war in Gaza. The donation was given
to YABhg. Tun Dr. Mahathir Mohamad, President of
Perdana Global Peace Foundation.
Flood Relief Programme

The oods that devastated the East Coast of Peninsular
Malaysia touched the hearts of all Malaysians. As an
agency under MITI, we played an active role in providing
assistance to those suffering from this tragedy.
We contributed RM30,000.00 to the victims through the
MOF. We also launched a charity drive for all employees
and clients wanting to contribute supplies of food,
clothing and toiletries. The items were then delivered to
MITI, which distributed them to affected families.
Donations to Other Good Causes
We direct the majority of our philanthropic donations to
humanitarian and social projects. We hope to help build
stronger, healthier communities especially for those
who need them most. We continue to be responsive to
community needs through charity and sponsorship.
Pertubuhan Amal Pembangunan Usahawan OKU

Penglihatan Malaysia (PERKUM)
As a DFI that supports the growth of entrepreneurs as
its nature of business, we never leave behind
entrepreneurs with disabilities. We donated RM1,000.00
in cash to support the associations entrepreneur
development activities.
Donation to SME Banks Former Employee
We never forget the service given by our former
employees. En. Saharudin Rani worked at SME Bank for
more than ve years before leaving through the
Voluntary Separation Scheme. He is now categorised as
disabled due to an illness and we donated RM5,000 to
help ease his burden.
81
Tabung Haji Corporate Partners

SME Bank became a Tabung Haji Corporate Partner by
contributing 3000 hand towels to 2014 Haj pilgrims.
Humanitarian Mission to Cambodia
Students from the Faculty of Political Science, Universiti
Kebangsaan Malaysia organised a humanitarian
mission to Cambodia. They invited SME Bank to
contributed preloved items to this noble cause.
The mission helped underprivileged Muslims in
Cambodia by contributing cash, clothes, toys, stationery
and food.
DEALING WITH INTEGRITY ISSUES
We comply with anti-corruption laws and follow our
guidelines. Our Code of Conduct contains a
comprehensive policy on corruption and gift giving.
Employees must not offer or receive a bribe for their
own or a relatives benet. Employees must also not
receive gifts or favours from contractors, suppliers,
clients, customers or any other party having business
dealings with us. Gifts of nominal value or favours can
be accepted when customary to so. However, employees
must not be unduly inuenced by them.
We also introduced a No Gift Policy, which prevents

employees from receiving gifts. As a rule, gifts should
not be accepted that might compromise the individuals
judgement including lavish or frequent entertainment.
Employees may pay the true value of the entertainment
themselves but it is recommended that accepting
inappropriate entertainment should be discussed with
immediate superiors rst. On occasions, if it is
impractical or harmful to refuse or return a gift, the
situation must be referred to the management or Board.
The Group Audit Division investigates any corruption
allegations to ascertain their validity. Results of the
investigation are reported to the Audit Committee. A
report is lodged to the Malaysian Anti-Corruption
Commission (MACC) if corrupt practices are discovered.
Competition Practice
We support healthy competition in the marketplace as it
encourages efciency, innovation and entrepreneurship.
Competitive markets promote service quality
improvements and wider consumer choice.
ENVIRONMENT
SPIRIT OF
VOLUNTEERISM
84
SUSTAINABILITY
REPORT
2014
ENVIRONMENT
Our environmental footprint is relatively

small and the impact is mainly from our
office-based operations. However, we
minimise our environmental impact as much
as possible. A green building strategy has
been followed in the construction of our new
corporate headquarters. A wide-range of
initiatives has been introduced that reduce
waste and our use of electricity, water and
other natural resources.
In 2014, we began implementing a green
building concept in the renovation of our ofce
building. Greener options were adopted by
evaluating the buildings environmental
performance, financial metrics, waste
reduction and occupant satisfaction. Our
assessments were based on Malaysias Green
Building Index (GBI) rating. In order to achieve
the GBI rating, our building concept and
design covered the six focus areas of indoor
environmental quality, sustainable site
planning and management, innovation, water
efciency, materials and resources, and
energy efciency.
Key Green Features Implemented at SME Bank Building
Areas
Green Features
Lighting Zoning
Flexible lighting controls to maximise energy savings

Individual switches for all individual or enclosed spaces
Auto-sensor controlled lighting with daylighting strategy for
all perimeter zones and daylight areas
Motion sensors that complement lighting zoning for at least
25% of landlord and common areas
Electrical Sub-metering
Sub-metering for all energy use 100kVa

Sub-metering for lighting (one) and power (two) at each oor
or tenancy.
Renewable Energy
Encouraged use of renewable energy
85
Areas
Green Features
Enhanced
Commissioning
Improvements to ensure buildings major energy using

systems are repaired, operated and maintained effectively to
optimise energy performance
Commissioning plan for the buildings major energy-using
systems
Management training to raise awareness and improve skills
in a broad range of sustainable building operations topics
such as energy efciency as well as building, equipment and
systems operations and maintenance
Building operating plan updated to reect any changes in the
occupancy schedule, equipment runtime schedule, design set
points and lighting levels
Environmental
Tobacco Smoke
(ETS) Control
Smoking prohibited in the building and exterior designated

smoking areas set away from entries, outdoor air intakes and
operable windows
Smoking prohibited in the building except in designated
smoking rooms that operate under negative pressure with an
effective air ltration system
Thermal Comfort:
Design & Controllability
of Systems
Individual comfort controls for 50% of building occupants that

allow adjustments to suit individual tasks and preferences.
Air Change
Effectiveness
Effective delivery of clean air through reduced mixing with

indoor pollutants to promote a healthy indoor environment
Internal Noise
Levels
Internal noise levels maintained at a safe level that show 90%

of noise levels do not exceed:
40dBAeq within the entire baseline building general ofce;
and
45dBAeq for open plan or 40dBAeq for closed ofces
within the baseline building ofce space.
86
SUSTAINABILITY
REPORT
2014
ENVIRONMENT CONTD
MINIMISING OUR ENVIRONMENTAL FOOTPRINT

We conduct business with respect for the environment.
As a service organisation, our operations are entirely
ofce based.
Environmental Areas
Carbon Footprint
Energy
Transportation
Our environmental footprint is light compared to

manufacturing companies. However, ofce-based
business can positively affect the environment. Our
initiatives that minimise our environmental footprint in
each area are summarised in the table below.
Rationale
SME Banks Commitment
Climate change is a serious

threat to the natural
environment and we take
proactive steps to reduce our
carbon footprint.
Energy-saving initiatives at our ofces include:

Centralised air conditioning operating during
ofcial work hours only
Air conditioners are automatically switched off
during the lunch hour
Air conditioning systems are serviced regularly and
operate on timers so they are only used when
necessary
Standard orescent tubes are replaced with LED
lights which have a longer life and lower running
costs
Tele-conferencing is encouraged to minimise
business travel
87
Environmental Areas
Rationale
SME Banks Commitment
Waste
We are committed to
reducing,
reusing
and
recycling the waste we
produce where possible. The
main waste produced by our
ofces is paper, printer toner
cartridges and IT equipment.
All ofce printers default to double-sided printing

A dedicated recycling box for paper on certain ofce
oors
Use of electronic media such as email discourages
paper usage
Efcient copying and utilising the size reduction
feature available on most copiers
The use of colour printing is minimised
Water
Our operations use relatively

little water compared with
other industries and we do
not consider water usage a
key environmental impact.
However, we recognise that
water is becoming an
increasingly important issue.
We monitor and aim to reduce
water use locally.
Water-saving taps, showerheads, and low-ush or

dual-ush toilets are installed
Regular maintenance to repair any water leaking
especially from toilets, taps and other water xtures
88
SUSTAINABILITY
REPORT
2014
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ABOUT THIS REPORT

SME BANKS JOURNEY OF GROWTH

A MESSAGE FROM THE CHAIRMAN

GROUP MANAGING DIRECTORS STATEMENT

SHARIAH COMMITEE MEMBERS

ENGAGING WITH OUR STAKEHOLDERS

SMES AS THE ENGINE OF GROWTH

SUSTAINABILITY IN THE WORKPLACE

SUSTAINABILITY IN THE MARKETPLACE

SUSTAINABILITY IN THE COMMUNITY

SUSTAINABILITY IN THE ENVIRONMENT

ABOUT THIS REPORT

This is our rst sustainability report making us the rst

the public at large. This report is structured in a manner

Bank Perusahaan Kecil dan Sederhana Malaysia Berhad

Development Bank Malaysia Berhad in 2013 to reect its

Self sustaining &

Self sustaining &

Leading Business Partners for SMEs

Expansion and market outreach

Key functions re-alignment

SME Banks Four Key Sustainability Focus Areas

Sustainability at SME Bank Moving Forward

We hope to conduct a materiality study to ascertain

SME Bank Stakeholder Engagement Model

Active Engagement with Stakeholders

Identifying Stakeholder Needs and Aligning

Addressing Stakeholders Needs

1,570 approvals for

costing RM3,900 per employee

recorded occupancy rate

Customer satisfaction rate of

adopted for our newly renovated

Visit by YB Datuk Hj. Ahmad Bin Hj. Maslan, Deputy Minister

Visit by Libyan and Islamic

Visit by IBFIM (Afghanistan Banks Association)

Visit by Saudi Credit &

Visit by Minister of Commerce, Republic of Guinea

Visit by YB Dato Lee Chee Leong, Deputy Minister, Ministry of

Visit by Delegation from Sri Lanka

Visit by Delegation from Ministry of Micro Small

Visit by YB Datuk Chua Tee Yong, Deputy Minister of

Visit by YB Dato Noraini Ahmad, Chairman of MATRADE

On behalf of the Board of Directors of SME

As part of the Governments continued focus

OVER THE YEARS, ENTREPRENEURSHIP

Over the years, entrepreneurship and

Given the fast-paced changes in the Malaysian

THE ULTIMATE AIM OF THIS INITIATIVE

TAN SRI AB AZIZ KASIM

GROUP MANAGING DIRECTORS

DATUK MOHD RADZIF

SME Bank has reached a milestone in the

SUSTAINABILITY IN THE WORKPLACE

SME Bank also provides factory space rental,

GROUP MANAGING DIRECTORS

development activities such as business

OUR CR PROGRAMMES ENRICH

SUSTAINABILITY IN THE ENVIRONMENT

DATUK MOHD RADZIF MOHD YUNUS

TAN SRI AB AZIZ KASIM

ENCIK KHAIRUZZAMAN MUHAMMAD