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CEO FORUM VIIIDECEMBER 5 – 7

THIMPHU,KINGDOM OF BHUTAN

MICROFINANCING IN THE DEVELOPMENTOF ENTREPRENEURS

A MICROFINANCE INSTITUTION IN MALAYSIA

INTRODUCING TEKUN NASIONAL

MALAYSIA

MFIs IN MALAYSIA

MFI

GOVERNMENTAGENCY/INSTITUTION

BANKS

BSN & 9 FIs

Agro Bank

Bank Rakyat

TEKUN Nasional

MARA

AIM

TEKUN Nasional is Company Limited by Guarantee registered in 1998

TEKUN is under the supervision of the Ministry of Agriculture & Agro-Based Industry (MOA)

TEKUN NASIONAL

GOVERNMENT OF MALAYSIA NEW ECONOMIC POLICY

To Generate Income, Creating Wealth

&Enhancing Standard of Living.

Objectives of

TEKUN NASIONAL To provide start-up fund and additional capital for small business/ entrepreneurs in the form of microcredit

TEKUN Nasional as a strategic and ideal entrepreneur development institution

To provide Micro Financing And Entrepreneurship Development Support

Services

VISION

MISSION

TEKUN NASIONALRoles

• Entrepreneurship Information

• Business Opportunities

• Financing Facilities

• Advisory Services

• Business Support

• Entrepreneurs Networking

PERFORMANCE

FROM 1998 – 31 OCT. 2011

LOAN AMOUNT RM 1.85 billion (USD529.1 million)

NUMBER OF LOANS245,933

NUMBER OF BORROWERS196,053

SOURCE OF FUND

Total Fund Received From The Government In The Form of Loan :

1999 – 2011

RM 1.3 Billion

Total Loan Disbursement

RM 1.85 billion

FINANCING OFFEREDLoan Amount : RM 500 – RM 50,000

(USD 154 – USD14,286)

Repayment : 1 month – 5 years

Service Charge : 7.6 % per annum

Savings : 5% of the loan amount per annum (loan tenure)

Repayment : Monthly / weekly

Method of repayments :

Loan Officers (Collectors), TEKUN Mobile, Business Centres, appointed banks, Post-dated Cheques

ELIGIBILITY Bumiputera (indigenous) Aged 18 to 65 years old Have viable business or business plan Posses valid business license/permit Specific place to run the business Directly involved in the business Existing business loan not exceeding RM 50,000 (USD14,286) * We do pre sanction visit

SAVINGS

Compulsory savings imposed on borrowers ; The amount of savings is 5% of the loan

amount per year (loan tenure) The savings amount is included in the

weekly/monthly repayment; Withdrawal of savings is only allowed when

the loan is fully settled.

GUIDANCE AND ADVISORY

Experienced staff/officer to provide guidance and advice to borrowers ;

Monitor the development of the business ;

To find new market for the products Business skills through training Advise on business improvement.

BASIC ENTREPRENEURSHIP COURSE

BUSINESS OPPORTUNITIES

TEKUN provides business opportunities to new entrepreneurs via Smart Partnership programme between ‘anchor company’ and TEKUN Nasional

Business activities such as contract farming, retail, beauty saloon, frozen food etc.

TEKUN ENTREPRENEURS COMMUNITY

As a platform for entrepreneurs to know each other and develop networking

To market their products To find suppliers

BUSINESS CENTRES

• To provide information on :

: business opportunities

: roles of other agencies

• Entrepreneurs discussion / meeting point

• 8 BCs have been in operation

• 4 BCs to be operational soon

• Located in major towns

BUSINESS CENTRES

ENTREPRENEUR DEVELOPMENT PROGRAMS

• Business Opportunities Programs

( Mentor Mentee Program )

• Graduate Entrepreneurs Development

• Women Entrepreneurs Development ( Home Based Program )

• Income Enhancement Program

TEKUN NASIONALEntrepreneur Development Programs

• Entrepreneurs Development for Ex- Prisoners & Drug Addict

• Entrepreneurs Development for Poverty Eradication

• Entrepreneurs Development for Indian Youth ( SPUMI )

HOME BASED PROGRAMS

GROUP FINANCING

POVERTY ERADICATION PROGRAM

POVERTY ERADICATION PROGRAM

SPECIAL PROGRAMME

SECOND CHANCE PROGRAMME PRISON / DRUGS AGENCY SPECIAL GROUP

REQUIRED TO ATTEND COMPULSORY COURSE CONDUCTED BY TEKUN

MALACCA GOVERNMENT POVERTY FINANCING SCHEME

MAKSIMUM RM5,000

TO POOR AND HARDCORE POOR

KEDAI TEKUN ( RETAIL SHOP )

• Opportunities for entrepreneurs to display and sell their products

• Financing offered to operators

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TEKUN Nasional’s RolesTEKUN Nasional’s RolesIn SupportingIn Supporting

SMEs FinancingSMEs Financing

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Groom BigExit Policy

TEKUN’s Entrepreneurs being successful in their businesses ( with good business and payment track record)

and need to expand may gain access/recommended to Financial Institutions supporting/financing SMEs

thus continuing to provide facilities (with larger loan size) and will no more be classified as microcredit.

( Institutions involved :- MARA, SME Bank, Bank Pembangunan,PNS, AGRO Bank, etc)

ENTREPRENEURSHIP ENTREPRENEURSHIP DEVELOPMENTDEVELOPMENT

Noridah Hitam Retail and tailor

1st Loan : RM5,000.00 2nd Loan : RM15,000.00

SalesBefore : RM9,000.00 / monthAfter : RM15,000.00 / month

Hamidah Mohd. AminCOSMETICS & BEAUTY CENTRE

1st Loan : RM5,000.00 2nd Loan : RM21,000.00

SalesBefore : RM 70,000.00 / monthAfter : RM120,000.00 / month

Rosli bin Ahmadchillies

1st Loan : RM50,000.00

Sales Before : RM800.00 / monthAfter : RM3,500 / month

Johan bin KosninKulai, Johor

1st Loan : RM 10,000.00

Sales : RM70,000.00 / month

Md Amil bin HassanSimpang Renggam, Johor

1st Loan : RM20,000.00

SalesBefore : RM20,000.00 / monthAfter : RM50,000.00 / month