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VISION
A full-fledged specialised
financial institution;
an international benchmark
for nurturing SME excellence.
MISSION
CORE VALUES
(PaCT)
PASSION
Passion in all actions derive
fulfillment while ensuring success
COMMITMENT
Commitment turns a promise
into reality
ENVIRONMENT
COMMUNITY
MARKETPLACE
WORKPLACE
CONTENTS
This annual report is available on the web at
http://www.smebank.com.my/
publication/2014-annual-report/
www.smebank.com.my
1-800-88-3 131
facebook.com/smebank
HIGHLIGHTS 2014
CORPORATE VISITS
12
16
BOARD OF DIRECTORS
18
S
ENIOR MANAGEMENT
20
22
E
NGAGING WITH OUR STAKEHOLDERS
24
28
CORPORATE GOVERNANCE
32
54
72
82
SUSTAINABILITY
REPORT
2014
SCOPE OF REPORT
Reporting period
1 January to 31 December 2014 unless specified.
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
B
ursa 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
INCORPORATING SUSTAINABILITY INTO BUSINESS MOVING TOWARDS A SELF SUSTAINING & GLOBAL
STANDARD BANK
Five-year Transformation Key Milestones
Year
2015
2014
Inclusiveness & Sustainable Growth Towards Self Sustaining & Global Standards
2013
Inclusiveness &
Sustainable Growth
2012
2011
2010
Restructuring &
Transformation
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
fulfil our commitments and surpass the expectations
of all key stakeholders.
In 2014, we identified four key sustainability focus
areas. They represent both risks to be managed and
significant 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.
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
Preserving
the Environment
Promoting
Environmental
Awareness
Promoting Environmental
Awareness
Sustainability Reporting
Stakeholders Inclusivity
Materiality Study
Formalising a Sustainability Strategy
SUSTAINABILITY
REPORT
2014
HIGHLIGHTS 2014
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
88.8%
93.3%
184
clients
achieved upward migration
under the Specific
Intervention Programme
GREEN BUILDING
CONCEPT
7
CORPORATE VISITS
FEB
AUG
12
27
Visit by YB. Datuk Hj. Ahmad Bin Hj. Maslan, Deputy Minister
of Finance
APR
JUN
04
24
JUL
16
SEP
02
AUG
05
SEP
19
NOV
05
10
AUG
08
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.
CHAIRMAN
10
SUSTAINABILITY
REPORT
2014
A MESSAGE FROM
THE CHAIRMAN CONTD
11
12
SUSTAINABILITY
REPORT
2014
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.
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 fulfil new contracts, providing
expertise to manage their cash flow or
advancing funds to expand their portfolios.
14
SUSTAINABILITY
REPORT
2014
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 specific knowledge so they
can envisage entrepreneurship as their
future careers.
Our CR programmes enrich the lives and
fulfil 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
Ramadhan Programme. In addition to various
activities undertaken at the Head Office level,
RM5,000 is allocated to each branch network
to fund their own Ramadhan programmes
including food distribution, zakat and bubur
lambok distributions.
16
SUSTAINABILITY
REPORT
2014
BOARD OF DIRECTORS
17
10
18
SUSTAINABILITY
REPORT
2014
SENIOR MANAGEMENT
19
20
SUSTAINABILITY
REPORT
2014
SHARIAH COMMITTEE
MEMBERS
1
21
22
SUSTAINABILITY
REPORT
2014
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
C
ollaborating 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
Certification
A
ssisting entrepreneurs by providing access to
financing
Briefing on access to financing 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
C
ontributing to economic growth
Helping address key SME needs
Identifying opportunities and assisting in the
development of local SMEs
Employees
W
orking 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
B
eing an exemplary corporate citizen
Giving back through philanthropic activities
Nation-building
Community engagement
Philanthropic activities
Donations
Shareholders and
Investors
Suppliers
T
ransparent supply chain process
Sustainable economy by prioritising local
suppliers
E-bidding
Updates through online,
written and face-to-face
engagement
Branch networks
Social media
Website
Online engagement
Customer service hotline
24
SUSTAINABILITY
REPORT
2014
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
d tion
I nfr
al and Regula
Leg nvironmen tory
t
E
st
es
Development
H u m a n C a pita l
c
Ac
25
OUR ROLE
As a development financial institution, it is our
responsibility to be more involved in developing the
sector.
We promote and help achieve the Governments specific
social and economic objectives.
We do whatever necessary to help SMEs succeed.
This role fills the void left by commercial banks that are
driven more by market forces and profitability than the
overall development of smaller companies.
We provide medium and long-term financing of projects,
which require specialised skills and focus. This type of
financing carries higher credit or market risks as they
typically have longer investment tenures.
We focus on five 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
27
48 . 4 % - R
M1
.5
42 . 4 % - R
44 . 5 % - R
M1
.6
RM3.596b
b
49
Fund Placement
Composition
Total Fund
Placement:
51.6%
RM4.081b
Fund Acceptance
Composition
Total Fund
Acceptance
57.6%
55.5%
Financings Portfolio
Composition
Banks Total Financing
Portfolio:
b
24
RM3.409b
-R
-R
-R
07
2.
0b
b
15
76
1.
M1
.8
As at 31 May 2012
1b
26
2.
6b
Fund Acceptance
Composition
Total Fund
Acceptance
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
100.0
%
RM4.837b
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
Name of Director
Designation
1.
Non-Executive Chairman
(appointed w.e.f. 1 May 2014)
2.
3.
Non-Independent
Non-Executive Director
(representing MITI)
(appointed w.e.f. 1 October 2014
2/2
29
No.
Name of Director
Designation
4.
Non-Independent
Non-Executive Director
(representing MOF)
14/15
5.
15/15
6.
14/15
7.
15/15
8.
14/15
9.
12/13
10.
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 office.
SUPPLY OF INFORMATION
BOARD COMMITTEES
TRAINING OF DIRECTORS
un
m
itt
er ee
a ti
on
ee
om
itt o
m m a ti
o
n
C
mi
No
Re
SME Bank
Board
Committees
Asset Quali
ty
Comm Revi
itte
ew
e
Committee
Audit
ment
nage
Ma ittee
sk
m
Ri Com
SUSTAINABILITY IN THE
WORKPLACE
HUMAN
CAPITAL
DEVELOPMENT
32
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE
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
I
B u n te r
s in n a l i
S
P r 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 )
Culture
Transformation
In
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
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
e
Fo
nc
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 officially 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.
34
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
Internship Programme
We recognise our community service role to provide
Malaysian students with an opportunity to join the
Internship Programme for a specific duration. The
Internship Programme is offered to students from
recognised higher learning institutions that:
H
ave obtained a current cumulative GPA
of at least 3.0;
Are undergoing a diploma, degree or equivalent
programme in a field of study specified 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, finance, Islamic
banking, IT or human resources. In 2014, we welcomed
10 internship candidates who were attached to various
functions.
1
2
Information Technology
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
Sta
ff fi
na
nc
ing
su
bs
idy
ing
ork ce,
e w an e
ibl dv re
ex h a st f es
, fl 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
fi
on rogr
ati
uc e P
ed tanc
e
s
e
i
s
fr
st As
ere ion
Int ucat
d
E
Key
Benefits
Allowances
sch
em
ef
or
an hou
d v sin
eh g
icl
e
Insurance
Scheme
Staff
Financing
Others
Medical
Benefits
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.
Benefits are defined as forms of value other than
payment that are provided to employees in return for
their contribution to the organisation. We offer various
employment benefits to all levels of employees.
Key benefits 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 fit to work may be advised to
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
SUSTAINABILITY IN THE
WORKPLACE CONTD
Hours
4,000
60 4,000
60
3,900
3,900
62
58
56
3,800
3,700
3.600
55
3,700
56
54
52
2012
2013
2014
per employee
37
Name of Programme
Background
Objective
Certificate in Islamic
Development Banking &
Finance (CIDBF)
On-boarding Programme
for Executive (COPE)
Professional Credit
Certification (PCC)
38
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
Name of Programme
Background
Objective
Up-skilling and
Re-skilling
Redeployment
Programme
39
40
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
Expected Outcomes
Up-skilling
RMs to RMs
Credit Admin to General Intervention
Re
ng
lli
ki
-s
Master S
Professioales
nal
New
Operating
Model
41
MSP taught participants ways to stay motivated to achieve
Up-skilling and Re-skilling
We introduced NOM to strengthen operations, which included extraordinary targets in a competitive environment. They
learned the role of Relationship Managers so they could fully
moving non-operations staff to different job functions.
support the teams, apply the MSP Quantum-leap mindset
Our Redeployment Programme ensures that proper and support each other to achieve ambitious targets.
learning and development initiatives are provided to
employees deployed to business operational functions.
Relationship management staff attended the first Stage 1
course on 28 January 2014 at the Premiere Hotel. A total of
The training is delivered by internal trainers to equip staff 326 employees attended Stages 1 and 2. Stage 3 is scheduled
with the necessary skills and knowledge required for for completion in 2015.
relationship management job functions and general
intervention. We deliver the programme in batches Project Wisdom
depending on the number of trainees and new functions
created. This approach ensures employees are equipped In June 2011, we decided to transform into an operationally
with the necessary skills and knowledge for the specific efficient Islamic financial provider under Project Wisdom.
function they are assigned to.
All new conventional loan approvals ceased and were
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.
42
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
43
COMPETENCY ASSESSMENT
The ongoing development of the employees personal and
professional competencies is essential. Each position has
a defined set of core competencies and functional
competencies which are required at specific proficiency
levels.
The competency assessment is performed as and when
required for specifically 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, profiling 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 financial 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
44
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
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 financial year
and the process is as transparent as possible.
Supervisors use verifiable information collected and
documented throughout the cycle. They determine the
extent to which actual performance has met the
expectations defined in the performance planning.
EMPLOYEE ENGAGEMENT
45
Methods of Engagement in 2014
Regular Engagement
Details
Frequency
Monthly
Annually
Quarterly
Annually
Grievance Process
Frequency
Annually
Chinese New Year Lunch with the Senior Management Committee (SMC)
Annually
Annually
Kuliah Zohor
Monthly
Kuliah Muslimat
Monthly
Annually
Annually
Recognition
Details
Frequency
Annually
Annually
Retirement Event
46
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
Flexi Hours
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 define 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.
No. of
Grievances
Received
No. of
Grievances
Solved
2012
2013
2014
48
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
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
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
2012
2013
2014
957
631
1.833
Injury Rate
Fatality Rate
Organiser
No. of Participants
NIOSH
NIOSH
BOMBA
NIOSH
NIOSH
NIOSH Certification
Sdn Bhd
NIOSH
CIDB
U Performa
Resources
CONSIST
Occupant Safety Briefing and Indoor Evacuation Procedures at the SME Bank Tower
BOMBA
21
50
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
800
600
809
Non Executive
777
Executive
200
731
400
2012
2013
2014
Total
2012
2013
2014
76
694
600
70
800
676
1,000
800
62
1,000
657
1,200
488
No. of Employees
1,200
482
No. of Employees
476
Permanent Staff
Non Permanent
Staff
Workforce by Gender
600
22
1,060
1,040
1,020
1,000
980
960
940
920
900
880
1,022
1,044
16
1,024
1,008
964
1,000
935 29
1,200
235
No. of Employees
247
No. of Employees
233
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
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
SUSTAINABILITY IN THE
MARKETPLACE
FINANCING
PROGRAMME
FOR WOMAN
ENTREPRENEUR
54
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE
All
fin
com anci
ple ng
d
t
co e an i
nd
wi iti
th
Client
Charter
We strive to provide efficient
and effective services to
customers based on
charter as follows:
oon
as s
ed ven
s
es gi
oc be eipt
pr all rec
sh om tion.
fr ta
en
es
s.
c
e
Th
is
s
c
or
re harg
nt
a
la
e
r
a
and
te
be
release of gu
il l
co d to
w
g
mp
n
a n k fi n a n ci d a ys
lete
g
lie
d w it h
en
o r kin
nt
w
i
n
0
f
r
om
tiv
s
full settlement date.
ec
ch
f
f
art
e
er
its
w
ve
ill b
pro
e re
to im
viewed
from time to time
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
www.smebank.com.my
All nearest SME Banks branches
56
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
87.2
2012
2013
89.9
96.7
87.6
75
Internal
96.7
80
91.5
85
82.9
90
92.2
95
93.3
%
100
External
CSI
2014
CUSTOMERS ENGAGEMENT
57
58
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Consultancy
(Coaching
and
Mentoring)
Others
- Events and
Publications
Event management
Joint collaborative programmes
with universities/ADFIMI/ADFIAP
Reports, proceedings and research
findings 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
nd
da
ise red les
om ctuModu
ru ng
Knowledge Management
Capacity
and
Capability
Building
Kno
w
of S led
g
an ME B e-s
dC a
lie
Programmes
ased
ue-b
Val opment of
l
e
v
eurs
De trepren
En
59
Stages of Growth
Harvest
Expansion
Sustainability
Growth
Survival
Foundation
Ideation
Types of entrepreneurs
Start-ups
Medium entrepreneurs
Micro entrepreneurs
Large SMEs
Small entrepreneurs
Description
Target Segment
Graduate Entrepreneur
Innovation Programme
(PIUS-LEAP)
Women Entrepreneur
Financing Programme
(WEP-LEAP)
SME-LEAP
Young Entrepreneur
Programme (YEP)
Non-Fund Based
Rapid Entrepreneur
Series of short programmes comprising financial Existing SMEs at the
Acceleration Programme management, three steps to profit, strategic planning, growth stage within two
(REAP)
and business modelling and branding
years of incorporation
Vendor Development
Programme (VDP)
60
SUSTAINABILITY
REPORT
2014
Success Stories
Future Plans
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
DEFINE?
WHO?
TOOLS
END GAME
SPECIFIC INTERVENTION
Direct intervention by
Business Counsellor
A pool of identified
clients
Specific initiatives
and action plan
Upward migration
Quality portfolio
62
SUSTAINABILITY
REPORT
2014
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, certifications,
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 financially 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 specifications 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.
64
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Description
SME-LEAP
Women Entrepreneur Financing The WEP-LEAP provides female SME entrepreneurs with financing for
Programme under the Leaders business expansion. Its financing is based on the Shariah financing concept.
Entrepreneur Acceleration
Programme (WEP-LEAP)
Skim Pembiayaan Ekonomi Desa SPED improves the industries of rural Bumiputera entrepreneurs so they are
more viable, resilient and committed. It finances rural Bumiputera
(SPED)
entrepreneurs to improve their local economy. SPED also creates a
Bumiputera commercial and industrial community in the rural population.
Its financing concept is based on Shariah financing concept.
SME Development Scheme
(SDS)
SDS provides local SMEs with access to financing to further develop their
businesses and accelerate their growth. Its financing is based on the Shariah
financing concept.
SME-Go
SME-Go is a financing 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 financing is based on the
Shariah financing concept.
65
Programme Name
Description
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-Biz Cash
66
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
40
2013
48
2012
44
Year
Equivalent to 8 units
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.
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.
68
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
RISK ASSESSMENT
CUSTOMER PRIVACY
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 justified 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, modification, 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 fulfilled.
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
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Platform
Link
https://www.facebook.com/smebank
https://twitter.com/SME_Bank
You Tube
https://www.youtube.com/user/smebankmalaysia
Website
www.smebank.com.my
Mobile Apps
71
SUSTAINABILITY IN THE
COMMUNITY
LENDING
A HELPING
HAND
74
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
COMMUNITY
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
75
Y-Biz
Challenge
Desired
Outcomes
Career uture
F
Entrepreneurs
eurship a
repren
Ent hoice Caree s a
r
C
ol of Think
ate Po
e
Cre ong Student rs
s
Am
te Entrepreneu
ulca ting Them rship
c
n
You
r
I
ng
Sta
by
76
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
COMMUNITY CONTD
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
77
Impact
MoE
T
o 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
T
o 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
Students
78
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
COMMUNITY CONTD
79
80
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
COMMUNITY CONTD
81
SUSTAINABILITY IN THE
ENVIRONMENT
SPIRIT OF
VOLUNTEERISM
84
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
ENVIRONMENT
Green Features
Lighting Zoning
F
lexible 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
Renewable Energy
85
Areas
Green Features
Enhanced
Commissioning
Environmental
Tobacco Smoke
(ETS) Control
S
moking 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 filtration system
Thermal Comfort:
Design & Controllability
of Systems
Air Change
Effectiveness
E
ffective delivery of clean air through reduced mixing with
indoor pollutants to promote a healthy indoor environment
Internal Noise
Levels
86
SUSTAINABILITY
REPORT
2014
SUSTAINABILITY IN THE
ENVIRONMENT CONTD
Environmental Areas
Carbon Footprint
Energy
Transportation
Rationale
87
Environmental Areas
Rationale
Waste
We are committed to
reducing, reusing and
recycling the waste we
produce where possible. The
main waste produced by our
offices is paper, printer toner
cartridges and IT equipment.
A
ll office printers default to double-sided printing
A dedicated recycling box for paper on certain office
floors
Use of electronic media such as email discourages
paper usage
Efficient copying and utilising the size reduction
feature available on most copiers
The use of colour printing is minimised
Water
W
ater-saving taps, showerheads, and low-flush or
dual-flush toilets are installed
Regular maintenance to repair any water leaking
especially from toilets, taps and other water fixtures
88
SUSTAINABILITY
REPORT
2014