Cover Story
@ Halal | MARCH-APRIL . 2023
Export facilitation and assistance for SMEs
Various training programmes and financial assistance are available to assist SMEs in penetrating the export market .
BY KHIRTINI K KUMARAN
THE Malaysian export market is growing and is a potential area for local SMEs and entrepreneurs to explore . As such , many training and financial agencies are available to assist and facilitate Malaysian SMEs and companies to be export-ready .
The Market Penetration Forum at the Selangor International Halal Convention ( SELHAC ) 2023 featured the ‘ SME Export Development – Facilitation & Assistance for Business to Export ’ forum , which highlighted several of the facilities and assistance available for local SMEs and entrepreneurs .
SME Corporation Malaysia ’ s ( SME Corp ) Director of International Cooperation Division , Amrul Nazri Abdullah , shared that SME Corp served as the central point of reference for research and data dissemination on SMEs and entrepreneurs . It also provides business advisory services for SMEs and entrepreneurs throughout the country .
Apart from the business advisory , he added that SME Corp also provided accreditation services to validate the SME status of all business establishments to ensure assistance and incentives by the government are appropriately delivered .
Meanwhile , Selangor Youth Community ( SAY ), a leading youth network founded by Raja Muda Selangor , Tengku Amir Shah , has several flagship programmes to assist Selangor ’ s youth entrepreneurs .
SAY ’ s Manager Abdullah Muaz Mohd Norman shared : “ We identified the gaps in the entrepreneurship ecosystem . Most
THE Islamic banking and financing industry continues to grow and evolve , especially on the world stage . And Malaysia has always been one of the active participants in developing Islamic banking and financing products and services .
The Islamic Finance Seminar held on the first day of Selangor International Halal Convention ( SELHAC ) 2023 featured the forum ‘ Bridging Halal Industry & Finance ’ with panellists Wan Rumaizi Wan Husin ( Shariah Advisor for Islamic Financial Institutions ), Amir AlFatakh Yusof ( Senior Vice President , Islamic Banking , UOB Bank Berhad ) and Mohd Nazri Chik ( Group Chief Financial Inclusion Officer , Bank Islam Malaysia ).
The forum , moderated by former CEO of Islamic Fund Management Companies Ameer Ali Vali Mohamed , discussed Malaysia ’ s Islamic banking and financing industry landscape .
The panel agreed that the Islamic banking and financing industry has considerable growth potential .
“ Islamic banking and financing are a
From left : Dr Khairil Ismahafiz muhadzir , Amrul Nazri Abdullah , Abdullah Muaz Mohd Norman , Bazilah Dalila Omar , and Rizal Mohd Yusof .
Huge growth potential
From left : Wan Rumaizi Wan Husin , Ameer Ali Vali Mohamed , Mat Ghazali Abd Rakim , Amir AlFatakh Yusof , and Mohd Nazri Chik . youth entrepreneurs have sound business models but lack the knowledge and facilities to expand and maximise their business .
“ We established our signature programme , SAY Aspire , in 2018 to help youth entrepreneurs to grow their businesses and penetrate the global market .”
The programme is open for registration annually for youth-owned SMEs interested in exporting their products and services .
Export training will be provided to selected businesses and companies . They will require to undergo interview sessions and showcase their export plan at the end of the programme . The winner will receive the SAY Aspire grant , including a trade advisor to help them penetrate the selected foreign market .
Bazilah Dalila Omar , Acting Manager of Corporate Equity from TERAJU , shared : “ TERAJU is mandated as a strategic agency to oversee the formation of entrepreneurial culture across various levels to foster Bumiputeras as successful entrepreneurs .
One such programme under TERAJU is the High-Performing Bumiputera Companies Programme ( TeraS ), established in 2011 .
“ TeraS monitors and ensure high-potential Bumiputera companies grow at the local ,
national agenda spearheaded by the government . Bank Negara Malaysia ’ s ( BNM ) Financial Sector Blueprint 2022-2026 also provides a guiding principle for the industry to advance value-based finance through Islamic finance leadership ,” said Nazri .
Amir explained the consumer market , in general , was looking for something fair , justifiable , and beneficial for them . As such , there regional , and global market levels .
“ The Teras Fund aims to facilitate companies ’ business expansion under TeraS . Allocation under the Teras Fund is for working capital and asset purchases .
“ The fund is provided in collaboration between TERAJU and financial institutions and is managed entirely by RHB Islamic and Hong Leong Islamic Bank .”
Bank Islam Malaysia Berhad ’ s SME Banking Division Director , Rizal Mohd Yusof , shared some of Bank Islam ’ s financial support and solutions for SMEs .
“ The SME Exporter Financing programme , jointly developed by Bank Islam and Malaysia External Trade Development Corporation ( MATRADE , is one such financing package exclusively for MATRADE registered SMEs member to expand into the global market . We have about RM100 million allocation for this programme .”
He also informed that banks usually have relevant products and services to support smaller and unbankable SMEs until they are financing worthy .
“ For example , Bank Islam offers GO Halal SME Financing Programme , which helps to maximise the business by positioning themselves as a halal business .”
is enormous potential for Islamic finance and banking products and services because it has the advantage of having Shariah oversight and requirements .
Regarding differences between Islamic and conventional banking , Amir shared that Islamic banks had structures such as Waqaf , which traditional banks cannot replicate .
“ So , this can be our differentiators . We have value-based intermediation , social financing , and venture financings such as the musharakah and mudarabah , which is about sharing risks and profits . These structures are alien to conventional banks ,” said Amir .
“ We have a vast option of Shariah contracts that still need to be deployed into the market . And as long as we keep looking into public and consumer needs , we can always find a structure within the Islamic space that can cater to these needs .
“ However , although Islamic banks have been around for such a long time , especially in Malaysia for the past 30 years , there are many misconceptions about Islamic banking products and services .
“ We must do more on the awareness . The information is already available in the market . It ’ s the matter of how we communicate to the masses and whether they will take the time to discover the benefits of Islamic finance .”