'SME Bank put under MITI for greater synergy'

Published: 2009/05/27

THE absorption of SME Bank under the Ministry of International Trade and Industry (MITI) will further raise the existing synergy between the bank and the Small and Medium Industry Development Corporation (SMIDEC) in their efforts to strengthen the small and medium industries (SMIs).

International Trade and Industry Minister Datuk Mustapa Mohamed said the SME Bank and SMIDEC, both of which play the same role of developing and meeting the needs of the industry, will complement each other and further strengthen the SMIs role in the country's development.

"With the SME Bank and SMIDEC under MITI, it will provide for more synergy," he told reporters in Kuala Lumpur today.Earlier, he had made his first official visit to SME Bank following its takeover after the dissolvement of the Ministry of Entrepreneurs and Cooperative Development recently.

On the bank's performance, he said: "SME Bank is capable of registering profit despite facing many problems."Overall, the performance is satisfying except that for now the non-performing loans is a challenge that needs to be managed as best as possible," he said.

Its managing director, Datuk Azmi Abdullah meanwhile said that the bank recorded a NPL of eight percent last year, higher than the six percent recorded the year before.Mustapa said in order to tackle the problem, SME Bank will reschedule the repayment of loans to help the SMIs facing difficulties in the current economy.

"What is important is that we assist them during this difficult time. We got to adopt a proactive approach such as advising them," Mustapa added. - Bernama