1. Visioning the Strategic Role of Development Finance Institutions 34th ADFIAP Annual Meeting, Kyrenia, North Cyprus 20th - 23rd April 2011

2. DFIs and SME Finance: Building Capacity for SME Development and Innovative Financing Mechanisms

3. DFIs Challenges: Past, Present and Future... 1. Balancing Act 2. Evolving in Nature 3. Keeping Abreast 4. Staying Relevant 5. Target Market 6. Making the Difference

4. Balancing Act... Developmental Role Financing & Profit Making Merit Based Need Based High Utilization of Open Market Funds High Interventions i.e. Business Advisory Supports

6. Keeping Abreast... Market & Industry Requirement (Domestic & Global) Rapid Technology Advancement (Efficiency; Greater Market Outreach) In-House Knowledge & Capacity Building; i.e. Internal Expertise (Human Capital Development & Resources) SME Customer’s Business & Financial Needs (Products & Services) Socio-Economic Requirement (Government Aspirations & Developmental Policies) Economy; Industry; Market; Technology; & Knowledge Progressions

8. Target Market...

9. Making the Difference... Turning and Changing From: 1. Impossible to Possible 2. Dreams to Reality 3. Design to Redesign 4. Synergy to Energy 5. Domestic to Global 6. Interventions to Inventions 7. Ideas to Bankable Businesses

10. Quick Take: SMEs Development in Malaysia 1. Malaysian Shores 2. SME Significant Contribution to the Economy 3. Shifting Traditional Economy to an Innovation Based Economy 4. SME Significant Contributions to the Economy 5. Important Driver to Achieve a Developed Nation and High Income Status 6. Multi-Facet Challenges and Limitations 7. DFIs: An Integral Component in Executing Government’s Agenda in SME Development

12. SME Significant Contributions to the Economy

13. Shifting Traditional Economy to an Innovation Based Economy

14. Important Driver to Achieve a Developed Nation and High Income Status

15. Multi-Facet Challenges and Limitations

16. DFIs: An Integral Component in Executing Government’s Agenda in SME Development

17. Visioning SME Bank: Building Tomorrow’s Future Today 1. Vision & Mission 2. Raising the Bar 3. IQ-Dagang 4. Moving Forward: - The Importance of SME - Moving from funding standpoint, rather than outcome based - New Business Model: Focused on financing the ecosystem, driven by desired outcomes (i) & (ii)

21. DFI’s who’s socio economic targets are realized, have poor commercial results DFI’s with strong commercial results, no longer focus on the socio economic agenda Based on the initial understanding, socio economic and commercial goals are deemed to be mutually exclusive How then do we measure the success of SME Bank? “ Taking everything into account, what is the appropriate business operating model moving forward? Moving Forward...

22. The Importance of SME YEAR 2010 (GDP VALUE: RM540 bill) Contribution by SMEs (37%): RM200 bill YEAR 2010 (FINANCING REQUIRED) Expected Needs of SMEs: RM120 bill Expected Contribution by SMEs (50%): RM300 bill YEAR 2015 (GDP VALUE: RM740 bill) YEAR 2015 (FINANCING REQUIRED) Expected Needs of SMEs: RM180 bill The needs of SMEs are growing over the years and SME Bank should assume a significant role in meeting the requirement

23. Moving from funding standpoint, rather than outcome based

24. New Business Model: Focused on financing the ecosystem, driven by desired outcomes (i)

25. New Business Model: Focused on financing the ecosystem, driven by desired outcomes (ii)

26. Thank You Together we create Value towards sustainable Success