Académique Documents
Professionnel Documents
Culture Documents
ll-f
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SME E ex
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ions
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COMMITMENT
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e Ourr com ommitment to raising the quality
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afrms our hope for a truly
su
ussttaia na
n bl
ble e fu utu
ture
re..
MARKETPLACE
ENVIRONMENT
WORKPLACE
COMMUNITY
CONTENTS
2 ABOUT THIS REPORT
This annual report is available on the web at 4 SME BANKS JOURNEY OF GROWTH
http://www.smebank.com.my/
2014-sustainability-report/ 6 HIGHLIGHTS 2014
7 CORPORATE VISITS
www.smebank.com.my
8 A MESSAGE FROM THE CHAIRMAN
1-800-88-3 131
facebook.com/smebank 12 GROUP MANAGING DIRECTORS STATEMENT
16 BOARD OF DIRECTORS
18 SENIOR MANAGEMENT
28 CORPORATE GOVERNANCE
This is our rst sustainability report making us the rst the public at large. This report is structured in a manner
development bank to disclose our annual sustainability which helps readers understand our approach to sustaining
progress in line with the Global Reporting Initiative (GRI) our economic, social and environmental responsibilities.
Guidelines. We are committed to operating sustainably and We have presented our data in the most accurate manner
efciently. This includes assessing the impact of our possible.
business and making improvements when required.
Protecting people and the environment, promoting local The report aims to be inclusive and address all material
economic development and partnering with communities issues our stakeholders may have. We have also
are part of business operations. We integrate sustainability endeavoured to increase the level of transparency and the
throughout our products life cycles from concept to delivery. objectivity of this report, using quantitative indicators for
accuracy wherever possible.
Together with the annual report, which highlights the
nancial aspects of our business, the two reports provide a In 2015, we aim to produce a sustainability report in-line
clear, comprehensive and transparent representation of our with the GRI G4 guidelines for 2015. We will conduct a
performance in managing the economic, social and detailed stakeholder and materiality study to identify
environmental aspects of operations. areas that are material to our stakeholders and us. This
information will include business areas that signicantly
This report follows the GRI guidelines, an internationally inuence our business and can potentially affect
recognised standard for sustainability reporting. We have stakeholders. This stakeholder and materiality study is
also considered several other local and international scheduled to commence in 2015. The results will be
guidelines that are relevant to our business. We have disclosed in our next sustainability report.
structured this report according to the Bursa Malaysia
Corporate Social Responsibility (CSR) Guidelines, which
dedicates separate sections to Workplace, Marketplace,
Environment and Community. We have also considered
input from stakeholders including the GRI and the judging
panels of various CSR awards.
Reporting period
1 January to 31 December 2014 unless specied.
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.
Principal Guidelines
Additional Guidelines
SME BANKS
JOURNEY OF GROWTH
Bank Perusahaan Kecil dan Sederhana Malaysia Berhad Development Bank Malaysia Berhad in 2013 to reect its
or SME Bank was established as a subsidiary of Bank developmental role in nurturing SMEs.
Pembangunan dan Infrastruktur Malaysia Berhad in
October 2005. The Bank became a separate entity in The SME sector plays an important role in driving the
2008 to further strengthen its mission to develop SMEs economy. Up to this point, SME Bank has had numerous
to be the nations engine of growth which is in line with successes in various industries. The Bank had nurtured
the Governments economic agenda. several entrepreneurs from the beginning until some
have also achieved international success. However, the
In 2012, the Bank has taken a signicant decision to list goes on but what keeps us ticking is not the list of
change its conventional banking platform to become a successes that has been built but what we are currently
fully edged Shariah compliant DFI. The Bank changed building for the future.
its name and logo to Small Medium Enterprise
INCORPORATING SUSTAINABILITY INTO BUSINESS MOVING TOWARDS A SELF SUSTAINING & GLOBAL
STANDARD BANK
Year
Inclusiveness & Self sustaining & Leading Business Partners for SMEs
2015
Sustainable Growth Global Standard Global referral for other DFIs
2014
Inclusiveness & Sustainable Growth Towards Self Sustaining & Global Standards
Sustainability has been a key driver since the Companys SME Banks Four Key Sustainability Focus Areas
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 People First
sustainable business. We aggressively pursue other Diversity and Inclusivity
Training and Development
goals that touch all areas of business including our Rewarding Achievements
employees health and safety, environmental footprint Health and Safety in the Workplace
Nurturing Our Employees
and community engagement. Reaching these goals Welfare
Our sustainability roadmap begins with active We hope to conduct a materiality study to ascertain
engagement with our stakeholders to understand their stakeholder priority areas and match them against the
priorities. This year, we produced our rst sustainability Banks business goals. This will help to set a strong
report to illustrate our commitment to superior foundation for our sustainability strategy.
governance and transparency. It also serves as a general
overview of our social performance and environmental Understanding the areas which matter the most to our
stewardship for employees, surrounding communities, stakeholders helps us focus on delivering exceptional
supply chain partners, industry peers and authorities. In performance which will result in long-term meaningful
recent years, we have included stakeholders in various stakeholder relationships.
corporate events and engagement sessions to
understand their perspectives more clearly.
HIGHLIGHTS 2014
RM
2.90BILLION
of financing from
3000
participated in the Impeccable
health
January to December 2014 ENGAGEMENT and safety
ZERO
injuries and
ZERO
fatalities
from 2012 to
An average of 2014
88.8%
clients
achieved upward migration
under the Specific
recorded occupancy rate Intervention Programme
GREEN BUILDING
CONCEPT
adopted for our newly renovated
office building
7
CORPORATE VISITS
Visit by YB Datuk Hj. Ahmad Bin Hj. Maslan, Deputy Minister Visit by IBFIM (Afghanistan Banks Association)
of Finance
Visit by YB Datuk Chua Tee Yong, Deputy Minister of Visit by YB Dato Noraini Ahmad, Chairman of MATRADE
Finance
8 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
9
As part of the Governments continued focus Over the years, entrepreneurship and
on steering the country towards becoming a enterprise have gained steady recognition in
developed nation with a high-income economy economic theory for their role in propelling
by 2020, numerous programmes and and sustaining a countrys economy.
incentives have been introduced by various Entrepreneurs are considered to be economic
agencies and development bodies in order to agents that drive innovation and economic
encourage entrepreneurship at all levels of growth. They introduce an element of human
Malaysian society. SME Bank is one such productivity and creativity into the previously
body that recently welcomed an allocation of considered passive rms in the classic
RM550 million in the 2014 Budget presented models of economic theory. At SME Bank,
by the Prime Minister in October 2013. initiatives to encourage entrepreneurship are
This funding consisted of RM50 million for the not limited to providing start-up funds for
Graduate Entrepreneur Fund and RM300 aspiring beginners and capital for successful
million for the Bumiputera Equity Fund. The business.
remaining RM200 million was earmarked for
development programmes in Malay reserve We recorded 1,570 approvals with RM2.9
land located in strategic areas. billion worth of nancing for the period of
January to December 2014. This has been
affected by the various engagement activities
and the Specic Intervention Programme that
we undertake.
OVER THE YEARS, ENTREPRENEURSHIP
AND ENTERPRISE HAVE GAINED STEADY
RECOGNITION IN ECONOMIC THEORY FOR THEIR
ROLE IN PROPELLING AND SUSTAINING
A COUNTRYS ECONOMY.
10 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.
BOARD OF DIRECTORS
4 2 1 3
5 6 7 8 9 10
SENIOR MANAGEMENT
DATO MOHD RIZAL MOHD JAAFAR DR. SHEIKH GHAZALI SHEIKH ABOD
Group Chief Operating Officer Chief Operating Officer
Finance & Corporate Services CEDAR
SHARIAH COMMITTEE
MEMBERS
1 PROF. DR. ABDUL BASIR MOHAMAD 4 PROF. MADYA DR. YUSOF RAMLI
Chairman Member
2 PROF. MADYA DR. AHMAD BASRI IBRAHIM 5 PROF. DR. NORHASHIMAH MOHD YASIN
Member Member
2 3 4 1 5 6
21
22 SUSTAINABILITY
REPORT 2014
nt, Regula
ernme t
Gov ies and Authori ory
Bod ties Cu ene
s
G
st ral
er
om Pub
pli
ers lic
Sup
and
SME Bank
and
Inv reh
s
Sha
ye e
e s ol
to de
plo
rs
Em
rs
C o m m u n it y
23
We have always considered that the SME sector plays We work together with the Government to increase
an important yet varied role across countries and Access to Financing. This factor is most relevant to us
regions. In high-income countries, they support the and ensures that creditworthy SMEs have access to
economy; in middle and low-income countries, they nancing for working capital and investment.
contribute to employment and GDP. We achieve this through our comprehensive and
consistent development and intervention roles to:
Worldwide, more than 95% of enterprises are estimated Strengthen the current customer base;
to be SMEs, providing approximately 60% of private Improve the Banks customers business
sector employment. This may be due to SMEs being sustainability;
more labour intensive and therefore providing Implement technology tools to improve client
substantial employment. communication and relationships; and
Programme-based nancing.
SMEs are also an important contributor to innovation in
economies. They tend to be more nimble and
technologically driven, especially when collaborating
al and Regula
with the larger corporate sector. Leg nvironmen tory
E t
M
Ad an
op
ar
Government to boost economic growth through the
olo ion
ke
Techn novat
t
active contribution of SMEs to the national economy.
gy
Acc
The plan outlines six factors that may inuence the
ess
In
st
es
c
e
OUR ROLE
During its establishment in 2005, SME Banks Islamic This decision complements Malaysia becoming the hub
nancing was only 15% of the total banks portfolio. In for Islamic nance, which is part of Bank Negara
June 2011, SME Bank decided to transform its business Malaysias Financial Master Plan. The growth of Islamic
into an operationally efcient Islamic nancial provider banking in Malaysia has been impressive and the
under Project Wisdom which ofcially commenced in potential for further growth is huge. The Islamic
May 2012. All new approvals on conventional loans were nancial services industry is now at the threshold of its
replaced with Islamic nancing following an internal next stage of development. Signicant progress has
circulation dated 22 February 2011. been made over the last decade and Islamic nance is
now more widely accepted as a form of nancial
We identied gaps and raised awareness of the process, intermediation.
people, product and system. In May 2012, the Islamic
nancing portfolio was estimated to be 44.5%; by SME Bank has become a competitive form of nancial
December 2014, the portfolio had increased to 85.4% intermediation that is able to meet the differentiated
with a total amount of RM4.1 billion. The total Islamic requirements of economies. In an environment of rapid
fund acceptance increased to 100% from 57.6%, an change, a key factor inuencing future prospects of the
increase of 42.4%. The total Islamic fund placement Islamic nancial services industry will be investments
also increased to 98.8% from 51.6%, a total increase of to build the foundations on which further progress can
47.9%. Several Islamic nancing contracts have also be achieved. Investing in the future; research and
been developed. Commodity Murabahah and Ijarah development; and developing talent and expertise will
Muntahiah Bitamlik serve SMEs needs in service be differentiating factors that will contribute to the
industries. Since the Banks portfolio and competency industrys effectiveness, resilience and competitiveness.
levels have improved signicantly, the Bank has set a This undertaking must be the joint responsibility of the
target to become a full-edged Shariah compliant DFI private and public sectors to mutually elevate the
by 2015. industrys performance, thereby increasing its wealth
creation potential for the prosperity of our nation.
As at 31 May 2012
b b b
15 24 49
.8
.5
.6
M1
M1
M1
44 . 5 % - R
42 . 4 % - R
48 . 4 % - R
Financings Portfolio Fund Acceptance Fund Placement
Composition Composition Composition
Banks Total Financing Total Fund Total Fund
55.5%
57.6%
51.6%
Portfolio: Acceptance Placement:
RM4.081b RM3.596b RM3.409b
-R
-R
-R
M
M
2. 2. 1.
26 07 76
6b 1b 0b
As at December 2014
04m % - RM21.5m
7 1.2
RM
-
6%
14.
98.8
RM4.837b RM3.461b RM1.748b
%
-R
%
-R
-
M
4. M RM
13 3.4 1
3b 6 1b .72
b 7
Islamic Portfolio
Conventional Portfolio
28 SUSTAINABILITY
REPORT 2014
CORPORATE GOVERNANCE
The Board of Directors (Board) is committed to high The Chairman and all Directors are experts in their
standards of Corporate Governance. The Board respective elds and have contributed signicantly to
subscribes to Bank Negara Malaysias Guideline on the Boards decision making process. The Group
Corporate Governance Standards on Directorship for Managing Director executes the policies of the Board
Development Financial Institutions (BNM/RH/GL 005- and manages the day-to-day affairs of the Bank.
14) to achieve an optimal governance framework and
maximise shareholder value. The Board is responsible for ensuring the effectiveness of
the Banks operations. This includes the responsibility for
BOARD OF DIRECTORS determining the Banks overall strategic direction, approval
of performance targets, monitoring of management
The Board is governed by nine members consisting of achievements, providing overall policy guidance and
one Non-Executive Chairman, one Non-Independent ensuring that policies and procedures for the internal
Executive Director who is the Banks Group Managing control system and succession planning are in place.
Director, two Non-Independent Non-Executive
Directors representing Minister of Finance Incorporated The Board meets at least once a month to discuss
(MOF) and Ministry of International Trade and Industry matters relating to policies, strategies, performance,
(MITI) respectively and ve Independent Non-Executive resources, overall conduct of the Banks business and
Directors. nancial matters as well as to monitor the Banks
overall performance.
The diversity of the Directors backgrounds from the
elds of Management, Banking, Finance, Accounting, The appointment of the Chairman and all the Directors
Legal and Entrepreneur Development were accumulated are with accordance to the Guidelines on Corporate
while serving in both private and government sectors. Governance for DFIs and the Banks Articles of
It brings the necessary range of expertise and experience Association.
required by the Board to effectively perform its functions.
The composition of the Board of Directors during 2014
is presented below. In 2014, fteen meetings were held.
Board of Directors Meetings Held in 2014
* The number of meetings attended during the time the Director held ofce.
Ri Com
sk
Ma ittee
itte
ty
nage
Asset Quali
ee
m m
n
un itt
er ee o m m a ti
C n
a ti
on mi
The Directors of the Bank in 2014 attended the Financial No
Institutions Directors Education (FIDE) Programme
SUSTAINABILITY IN THE
WORKPLACE
HUMAN
CAPITAL
DEVELOPMENT
32 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
WORKPLACE
Our competitive benets package help us attract and engagement and benchmarking ourselves against
retain a skilled workforce so we can remain relevant in industry best practice.
the market. Our rigorous career development
programmes are specically designed to increase Companies focusing on organisation strategy, systems,
productivity, maintain a safe environment, boost organisational structure and climate, shared values,
employee engagement and encourage innovation. workforce skills, individual attitudes, beliefs and
We engage with each and every employee regularly. Our competencies are able to transform themselves into
effective safety and health programmes have resulted in highly effective and efcient businesses. This process is
zero injuries and fatalities over the last three years. used by a large number of national and global organisations
to achieve superior performance. It supports leaders,
AN EMPLOYER OF CHOICE managers and teams to drive change and transform
Our ambition is to be the employer of choice both for our situations in their respective business units.
current and future employees as this will lead to
business success. While we continue to attract talented Our transformation journey commenced with the
and qualied individuals, we also challenge ourselves Corporate Team Building Programme (CTP) from 2010
to do whatever necessary to remain an attractive to 2011. It continued with the Internalising Business
employer. Our approach is straightforward. We take Mindset and Shared Values Programme (InMINDs) in
feedback from current and potential future employees 2012; followed by Service Transformation for Excellent
and act to continually improve our employment Performance (STEP) in 2013. The Brand Internalisation
performance. We measure this through employee Programme (BRAIN) commenced in 2014.
Organisational
Performance
Ch
iou l
na
an
atio
ge
Initi
Organis
Behav
The Process of
atives
Culture
Change and Transformation
C o r p o i l d i n g CT P
( B R li s a t i o n
Progr
Transformation
t e r B ra n d
Bu
AIN )
ra t
a mm
na
eT
ea
e(
M i efs
In
m
Be
, S s,
ol e
nd
y
h n tyl
ill
et
og
li
Sk
s
I
)
,S ,A B u n te r
u p t t it u y, s e
vic io
n
des t eg em c s in n a l i
S e r r m at nt
er
st i , a
Str Syst , Te P r S h e ss s i n g P)
og are M in d sfo le
ti o n
s ture
,
ue
s ra d set Tran xcel (STE
Struc d Val mm Values r E
e (I Fo nce
Sh a re nMIN rma
Ds) Perfo
33
SUSTAINABILITY IN THE
WORKPLACE CONTD
Internship Programme
1
We recognise our community service role to provide 2
1
Malaysian students with an opportunity to join the
Internship Programme for a specic duration. The
Internship Programme is offered to students from
Finance and Accounting Human Capital Services
recognised higher learning institutions that:
Human Capital Development Information Technology
Key
East Malaysia, COLA for Non-executives, car,
petrol, mobile phone, treasury dealers, subsistence, Benets Group Term Life (GTL), Group Personal Accident (GPA) Insurance
Allowances accomodation, mileage, miscellaneous, short-term and Group Hospitalisation & Surgery (GHS)
placement and secondment Scheme
e
ye Sta
plo ff
d Em na
an nc
ing e ing
ho
nc su
na amm
, H e,
ur dis
bs
ajj
idy
aid at
on rogr
s, s cr fest
Co ift w iona al ca
ati sch
rp or ry
employees, maternity, health screening, dental and
em
h et
ed tanc
cia ss
ef
ora kin re sh a
ee s or
pe pa
fr si
st As an hou
te g h tire dva
en y, s om
ere ion d v sin
clu ou m nc
Int ucat eh g
em it l, c
icl
b m rs, ent e fo
d
iv
E e
itr ern ica
Staff
em em gift r N
ret pat ed
Education t
nd ty/ , m
be erg s an on-
Financing
rsh en d Ex
t a ni ve
en ter lea
, as re tiv
lac ge, nnu
ex h a st es
ibl dv fre
rep rria us a
e w an e
ma nero
ork ce,
Ge
ing
spectacles
Leave Others
Medical
Benets
A percentage of employees basic salaries is given to the retire earlier by a doctor from one of our panel clinics,
Employees Provident Fund (EPF) as per statutory hospitals or any government medical practitioner.
requirements. This is inclusive of the employers
contribution to EPF required by law. Employees retiring in the normal course of service who
have reached the retirement age receive one months
Benets are dened as forms of value other than paid leave.
payment that are provided to employees in return for
their contribution to the organisation. We offer various Retirement Benet
employment benets to all levels of employees.
Key benets are illustrated in the diagram above. Employees who joined the Bank are eligible for
retirement benet in terms of additional employers
Practices for Retiring Employees EPF contributions based on the years of service. These
benets vary slightly depending on when the employee
Retirement Age joined the Company.
SUSTAINABILITY IN THE
WORKPLACE CONTD
Employees need to develop their technical, behavioural appraisal process and considers information from the
and leadership competencies in relation to their appraisal form and competency assessment. The
employment functions, which are aligned with the Human Capital Development and Learning and
Banks business strategy, vision and mission. Development divisions determine the appropriate
training and non-training interventions. They develop a
The average annual training requirement is ve days for training plan based on the performance appraisal and
executive level and above and three for non-executives. competency gap results.
The average number of hours of training spent per year
per employee for the past three years is listed below. Employees learning and development needs are
identied as a result of:
Superiors are responsible for nominating their Corporate, organisation requirements and business
employees to attend programmes in the annual learning plan;
and development calendar as and when required. The performance appraisal process and competency
Employees are provided with opportunities to attend gaps;
external training that is not in this calendar. Such Feedback from superiors or heads of department;
training is assessed on a needs basis and requires and
approval by the respective division. Regulatory requirements.
Annual learning and development needs are identied Background information from some of our signicant
for all employees. It is conducted during the performance training programmes held in 2014 is presented below.
4,000 62
4,000
3,900 60
3,900
60
3,800 58
56
3,700 56
3,700
55
3.600 54
SUSTAINABILITY IN THE
WORKPLACE CONTD
The Staff Training Fund (STF) acts as a deterrent against We value employees with global skill sets and
recruiting experienced personnel from other nancial international technical exposure. SME Bank and
institutions. The hiring institution is required to contribute selected international nancial institutions collaborate
a maximum of six months of the personnels new gross on the International Mobility Programme. This
salary to the STF. The STF is applicable if the recruitment programme exposes employees to various international
is made within six months of the employees resignation assignments and provides international exposure
whose previous salary exceeded RM5,000 per month. opportunities. It supports the development and
In 1993, staff pinching rules were liberalised and retention of banking professionals.
redened to refer to the recruitment of new employees
who had not been released by a previous employer. Secondments or engagements vary from a short-term
of between three and 12 months, to long-term of
All contributions to the STF are used to fund training between one and three years.
courses for banking personnel. This scheme is in
collaboration with Asian Institute of Chartered Banker, The programme is designed to improve global
which was previously known as Institut Bank-Bank knowledge, teach skill sets, build cross-cultural
Malaysia. capabilities and develop leadership or management
competencies. Employees selected to undergo this
international programme are bonded for a minimum of
one year, depending on the total cost. These employees
are expected to share their knowledge, experience and
39
newly acquired skills with the Bank upon the Trainees undergo a training programme consisting of
programmes completion. formal training, on-job training and assessments to
meet the Banks entry level of requirements. Mentors
To be eligible for this programme, employees must: are assigned to coach and guide trainees throughout
Be procient in English; the programme.
Be of managerial level with at least three years of
experience with SME Bank; In 2014, 30 new trainees have undergone this
Possess a degree or equivalent technical programme and have been placed in various
qualication; departments within Enterprise Banking, Corporate
Have exceeded expectations in the past two Finance and Enterprise Centres.
performance appraisals;
Be aged between 35 and 50 years old with On-Boarding Programme
potential; and
Be willing to relocate during the programme. Our guidelines ensure all new employees are effectively
and efciently introduced to their new positions. They
In 2014, we collaborated with Kalkinma on this are given access to all relevant policies, systems and
programme, which ran from 26 May to 6 June. Three processes to perform and develop their roles.
candidates were seconded to the Development Bank of
Turkey for this programme. The objectives of this programme are to:
Facilitate new employees abilities to contribute
Graduate Trainee Programme (GTP) to the new role;
Increase new employees comfort levels in their
The SME Bank Graduate Trainee Programme is new roles;
designed to accelerate learning and development Reinforce employees decisions to stay longer in
opportunities to prepare young talents for future their roles;
managerial and leadership roles within the Bank. GTP Enhance productivity; and
provides young talent with an opportunity to launch Encourage commitment and employee
their careers in development banking through an on-job engagement.
learning traineeship. The Bank selects trainees from
local and international tertiary institutions.
40 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
An employee who has participated in the on-boarding In 2014, we focused on two main initiatives in addition to
programme will: our core functional, technical and soft-skill training
programmes that support our strategic objectives.
Understand their role and the work required
of them Our full-scale training programme supported the New
Feel valued, supported and involved in the Operating Model (NOM) that covered sales and
organisation marketing. This programme contributed to the Banks
Work successfully in the context of department sustainability and supported the government agenda of
Understand and know how to access relevant developing SME entrepreneurs.
policies, guidelines and procedures
Understand the professional standards and We also supported one programme from Project Wisdom
behaviour expected of them that aimed to make the Bank fully Shariah compliant
by 2015.
Up-skilling
RMs to RMs
Re CAs to General Intervention
-s
ki
lli
ng
New
Operating
Professioales
Master S
Stage 1
(Professional selling methods, continuous
Model learning mind-set and commitment to win
methods, continuous learning mind-set and
commitment to win)
nal
Stage 2
(Review, difference applications and C-level
approaches)
41
Up-skilling and Re-skilling MSP taught participants ways to stay motivated to achieve
We introduced NOM to strengthen operations, which included extraordinary targets in a competitive environment. They
moving non-operations staff to different job functions. learned the role of Relationship Managers so they could fully
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 rst 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 specic efcient Islamic nancial provider under Project Wisdom.
function they are assigned to. All new conventional loan approvals ceased and were
replaced with Islamic nancing following an internal
Redeployment Programme - Job Familiarisation circulation on 22 February 2011.
We upskilled non-operations staff to Relationship Managers Project Wisdom ofcially commenced in May 2012 with an
from 3 to 5 June 2015 at the Premiere Hotel. 30 selected Islamic nancing and treasury portfolio. Our initiatives
employees attended the programme. We also trained included identifying gaps and raising awareness of the
existing relationship managers to improve their skills and process, people, product and system. Our learning and
knowledge based on the NOM. 64 employees were involved development training programmes focus on people.
in this redeployment programme. Initiatives carried out by Human Capital Development with
the cooperation of CEDAR and the Shariah Management
Master Sales Professional Department are highlighted below.
Our Master Sales Professional (MSP) programme inculcated
a mentally tough sales achieving mindset to sustain growth Certied Islamic Development Banking
and achieve quantum high performance. Achieving sales Our Certied Islamic Development Banking (CIDB)
targets is no longer the sole responsibility of the sales and programme offers practical working knowledge of Islamic
marketing team. Every single employee must work together nance and banking with an emphasis on developmental
to meet the quantum sales target quickly. roles. It caters to middle and upper-level executives within
development nancial institutions (DFIs).
MSP raised the commitment of the Relationship Management
Team to believe that marketing can make a difference and The scope of Islamic nance has broadened signicantly
every small contribution counts. 326 relationship managers with related products and their mode of transactions
and 30 heads of department took part in this programme. growing rapidly. The programme increases DFI executives
understanding of Islamic nance and its relevance to
MSP covers four stages: day-to-day banking operations. These executives acquired
fundamental knowledge to incorporate Islamic nancing
Stage 1. Professional selling methods, continuous learning products in their business operations.
mindset and commitment to win;
Stage 2. Review, different applications and C-level In 2014, a total of 305 had completed CIDB training and 287
approaches; passed the examination.
Stage 3. Creative applications and high performance
motivation (MSP Transformation); and
Stage 4. MSP, assessment, grading of sales projects and
certication.
42 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
Professional Islamic Development Banking The modules covered in this initiative include:
Continuous structured training modules on Islamic
Professional Islamic Development Banking (PIDB) is banking operations and the application of Shariah
advanced level certication for bank ofcers in Islamic requirements on legal and security documents via
development banking and nance. The modules cover: SOJT at our headquarters, enterprise centres,
Financial management and controls in SMEs and business centres or regional centres;
development banking Islamic banking nancing packaging and structuring;
Business process and best practices of SMEs and The application and execution of standardised
development banking transaction documents;
Risk management in SMEs and development banking Shariah applications and requirements of security
Credit analyses and entrepreneur proling in SMEs documentations for all Islamic nancing contracts;
nancing Performing assessments of participants and learning
Contemporary issues of DFIs and entrepreneurships facilitators; and
Developing resource persons in their workplaces.
SUSTAINABILITY IN THE
WORKPLACE CONTD
Year-End Review
We are committed to fostering an environment in which We encourage closer and stronger relationships between
employees can perform to the best of their ability. The employees. Various events are held throughout the year
Performance Improvement Plan (PIP) promotes an such as family days, annual dinners, employee gatherings
organisational culture that educates and improves during the festive season, employee competitions and
underperformers. We do not terminate employees sports tournaments. These events increase employee
employment contracts without rst giving them a engagement and their commitment to the Bank.
chance to improve.
Employee event management is facilitated by the Employee
The PIP specically addresses employees performance Relations Section. Annual events are aligned with the
that requires improvement in critical areas. We ensure corporate vision and mission. An annual employee event
a fair and consistent approach to enforcing performance calendar is prepared based on the annual budget allocation.
standards across all divisions.
45
Regular Engagement
Details Frequency
Knowledge Sharing Talk Monthly
Ramadan Gift Giving to All Employees Annually
Iftar Ramadan: Distribution of Iftar for Those Doing Overtime Annually during Ramadan
During Ramadan
Quarterly Assembly: GMD Disseminating Information to Employees Quarterly
Group MD Walkabout to Branches Monthly and when required
Employee Engagement Survey Annually
Grievance Process As and when required
Donation Drive such as Fires or Floods As and when required
Recognition
Details Frequency
Education Incentives to Employees or Their Children According Annually
to the Guidelines
Taska Pintar Graduation Day for Children Annually
Retirement Event As and when required
46 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
WORKPLACE CONTD
We are committed to helping our employees achieve Our employees personal data is subject to applicable
well-being in many facets of their lives. Whether health, data protection and privacy requirements as mandated
nancial, personal or professional well-being, we by the PDPA. We only process employees personal
conduct numerous programmes that help them achieve data if:
their personal goals. Some of the many programmes It is for a lawful purpose directly related to
provided at the Bank are highlighted below. employment;
Necessary and directly related to managing the
Childcare Centre (Taska Pintar ) employee;
It is adequate but not excessive in relation to the
Our childcare centre provides a family-orientated employment purpose;
workplace environment to employees with young The employees consent is obtained to use it; and
children. The childcare centre is managed efciently Explicit consent of the employee is obtained to
with set rules and regulations for childrens safety and process sensitive personal data.
security.
We will not disclose the employees personal data for
Employees may enrol their children on a rst-come, other purposes or to third parties without the employees
rst-served basis at the Banks discretion. The centre consent.
delivers an accredited child development curriculum
and programme. It is regulated by requirements EMPLOYEES RIGHTS AT WORK
stipulated in the Child Care Centre Act 1984 and We acknowledge our responsibility to respect
Department of Social Welfare policies. employees rights in accordance to the Human Rights
Commission of Malaysia (SUHAKAM). We do not tolerate
The centre is open to all employees with children aged any form of workplace harassment, discrimination or
between two and four years old. It has a maximum violence. We are governed by our own Terms and
capacity of 25 children. Conditions of Service but also comply with the labour
practice and legislation such as Employment Act 1955
Flexi Hours and Code of Conduct of Industrial Harmony.
At SME Bank, we understand that individuals who are We respect employees rights to bargain collectively
able to balance the needs of work and home are more under the National Union Commercial Workers
effective employees and more successful family and (NUCW). 20% of our non-executive workforce was
community members. We recognise blending personal represented by NUCW as at 31 December 2014. We
and professional lives is different for each person and conduct regular meetings and enjoy good relations with
can also vary over time. We strive to provide our the union and its representatives. In 2014, issues raised
employees with a supportive work environment and a included promotion and working hours. These issues
choice of exible work hours from 8.30am to 5.30pm or were resolved with mutual understanding between the
9.00am to 6.00pm. parties.
47
SUSTAINABILITY IN THE
WORKPLACE CONTD
We are committed to providing a safe, healthy and secure Raising staff awareness of occupational safety and
workplace for all employees, contractors, visitors and health awareness so they view good health as
customers. Our commitment to implementing a safety common practice in work or society.
and health policy is integrated into the daily activities of Providing employees with basic welfare facilities.
all people frequenting our places of work effectively. Reviewing and revising the policy when necessary.
We meet our safety and health commitments by: The Occupational Safety and Health Act, 1994 requires the
Acknowledging our legislative requirement and appointment of a safety and health committee (SHC). Our
ensuring compliance as the minimum acceptable SHC is represented by 0.9% of the workforce and was
standard. established to:
Holding all levels of management accountable for the Assist in the development of safety and health rules
safety and health of employees under their leadership. and safe systems of work.
Establishing a continuous and organised occupational Review the effectiveness of the existing safety and
safety and health management system in accordance health programme.
with the law. Conduct studies on trends of accidents, near-misses,
Creating safe and healthy working conditions and dangerous occurrences, occupational poisoning and
providing appropriate safety equipment. disease that occur in the workplace.
Providing our people with information, training, Report any unsafe or unhealthy conditions or
instruction and supervision so they have the required practices in the workplace with recommendations for
skills and competencies for their roles. corrective action.
Investigating all accidents, illnesses, injuries, poisoning Review workplace safety and health policies and
and dangerous occurrences and taking preventative recommend any revisions.
measures to ensure incidents do not recur.
Health Safety and Environment (HSE) Committee
Shahrir Amran
Mohd Zuhar Mohamed Nor/Mohd Tarmizi Mohamad Acting Director, Group Human Capital Management
Secretary SHO
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
We collaborate with the National Institute of OSH Indicator in delivering employee safety and health training
modules. We have developed comprehensive health and safety procedures that are updated regularly to comply
with governmental regulations, standards and business best practice. Job safety analyses and risk assessments
support these policies and procedures. We conduct audits and inspections to determine the effectiveness of these
measures.
SUSTAINABILITY IN THE
WORKPLACE CONTD
We believe diversity and inclusion are essential to living inclusive company culture are key drivers of creativity
our values, achieving our business goals and building a and innovation. Embedding diversity and inclusion in
stronger SME Bank. We believe that diversity and an our corporate culture helps us deliver excellent results.
22
1,040
16
1,000
235
1,020
247
233
800 1,000
600 980
29
960
400 Executive Permanent Staff
940
1,008
1,022
Non Executive 920 Non Permanent Staff
935
731
777
809
200
Total 900
0
880
1,000 1,000
800 800
476
482
488
657
676
694
600 600
400 Female 400 < 30
542
556
245
278
274
0 0
> 50
Workforce by Ethnicity
No. of Employees
1,100
0 6 27
1,050
0 6 31
1,000 Malay
920 0 6 34
950 Chinese
1,005
900 Indian
982
850 Others
Male 27 34 43
Female 18 34 39
Age Group
< 30 16 26 28
30-50 28 41 50
> 50 1 1 4
Women in Management
% Women in Management 12.50% 11.30% 13.30%
% Women in Top Management 0 0.40% 0.40%
SUSTAINABILITY IN THE
MARKETPLACE
FINANCING
PROGRAMME
FOR WOMAN
ENTREPRENEUR
54 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
MARKETPLACE
We engage regularly with our customers through a variety Close to the Customer: Competent Contacts,
of programmes and initiatives. We provide the necessary Comprehensive Services
support so entrepreneurs can concentrate on innovation
and running their businesses. Our client charter We support our customers and deal with any concerns or
demonstrates our desire to provide efcient and effective complaints they may have. Our customer service
services to all our customers. Our stand-alone coaching department welcomes feedback in person, by telephone,
centre, CEDAR, builds the capacity and capability of both post or email. We handle requests promptly and reliably
SME and DFI employees. without any unnecessary bureaucracy. Complaints
handling is a learning process. We try to meet customers
PRIORITISING OUR CUSTOMERS expectations the best as we can so they can be inspired
and continue innovating.
Maximising customer lifetime value helps us compete in
a competitive environment. We develop long-term Keeping the Customer Happy: Our Complaints
relationships with customers through our products. Management
Providing the right information at all times ensures
customers are able to make informed decisions. Two-way Complaints receive a prompt and sympathetic response.
communications allow us to serve all market segments Our detailed guidelines state that complaints must be
effectively. We prioritise relationships over building dealt with politely and competently. Goodwill must be
brands to remain competitive in the marketplace. shown to customers. Our up-to-date database is
55
SUSTAINABILITY IN THE
MARKETPLACE CONTD
SME Bank Customer Satisfaction Increase awareness of access for nancing to SMEs
% entrepreneurs and strengthen the business growth of
100 the Bank.
93.3
92.2
95
87.2
89.9
96.7
96.7
91.5
82.9
External
75
CSI Royal Malaysia Customs were invited to deliver talks on
GST. Participants were given an overview of the Banks
2012 2013 2014 nancing and non-nancing facilities. They were also
introduced to CEDARs functions in building the capability
Customer service is at the core of everything we do and and capacity of the entrepreneurs.
goes beyond simply listening to customer feedback.
It begins with understanding customers needs clearly The demand for these engagement programmes was
and identifying their expectations. We propose solutions overwhelming. A total of 415 customers from 250
based on customers individual requirements. companies attended this engagement session.
Customers had an opportunity to meet the Group
We aim to delight our customers and employees are Managing Director, the Management Directors and the
expected to uphold this commitment. They must be fully Heads of the Regional and Enterprise Centres. Customers
aware that delivering quality and customer satisfaction also networked with each other to establish new business
are their most important goals. opportunities.
Customer engagement activities over the past two years The Entrepreneur Premises Programme (EPP) is an
have included networking, appreciation, promotion and integrated programme that provides factory space rental
referral based arrangement. A mixture of existing and and intervention to Bumiputera Entrepreneurs.
potential customers attended from all six regions. Intervention encompasses entrepreneurial training,
Management became better acquainted with customers by market link and possible collaboration with our strategic
listening to issues, considering top potential businesses partners. EPP also provides eligible tenants with access
and promoting the Banks facilities. to nancing.
This engagement served as a touch-point between This programme will help to accelerate Bumiputera
management and related parties and was well received Entrepreneur involvement in the manufacturing industry
by all involved. by providing suitable assistance to tenants along their
business cycles. This programme reduces entrepreneurs
The objectives of our customer engagement programme burden of initial investment and the pre-operating period
are to: of the project. The tenants development and progress are
Provide management with a platform to meet monitored throughout their tenancy period. Proper
potential and existing good customers, help the intervention is injected into their business to ensure
enterprise centres increase their loan growth and growth and sustainability. A score card is used to track
promote the Banks facilities. the tenants progress and possibility of intervention.
57
The programme tenure is xed for 3 + 2 years for all was established in 2013 to complement the
tenants. The additional two years is given based on the developmental role of SME Bank with a vision of
tenants performance. Tenants are required to prepare becoming a centre of excellence for entrepreneur
a graduation plan that outlines the future business development and transformation. Its mission is to
strategy, expansion plan and post-graduation strategies. continuously develop the capability of entrepreneurs to
sustain their growth in support of the national economic
Tenants graduate from this programme by: agenda.
Outgrowing EPC facilities or requiring a stand-alone
location; Today, SME Bank stands out as the only Malaysian
No longer being an SME as dened by the National development bank with a subsidiary like CEDAR.
SME Development Council; or It continuously develops entrepreneurs to promote
Voluntarily ending the tenure for strategic reasons. growth and sustainability through various forms of
intervention programmes. Applying the concept of
Entrepreneur Premises Complex business coaching, the centre conducts research-based
coaching, function-based facilitation and entrepreneur-
The Entrepreneur Premises Complex (EPC) provides mentoring. Programmes undertaken by CEDAR dened
affordable and competitive factory space for rental to the slogan beyond nancing championed by the Bank.
Bumiputera entrepreneurs. Currently, there are 26
EPCs with 454 factory lots that are situated at strategic The Focus of CEDAR
locations across Malaysia and come complete with
basic amenities. A few EPCs have been clustered for the CEDAR develops entrepreneurs through coaching and
halal, oil & gas and technology-based industries which mentoring; research and development; seminars and
are located at EPC Sungai Ramal, EPC Kuantan and conferences; and publications. The centre achieves this
EPC Bangi respectively. through collaborations with strategic partners and
established institutions. Extending its research further,
Business Intervention CEDAR also develop the entrepreneurs capacity by
building regional and international networks.
Business Intervention is part of this programme that
provides advisory services to tenants. The intervention What differentiates CEDAR from the other training
process helps respective tenants promote growth and providers is the ability to tailor made and address
sustainability in their businesses. It also encourages entrepreneurs needs at each stage of their journeys.
tenants to migrate upwards and outwards within the A holistic learning strategy is adopted from conception to
stipulated timeframe. It requires agreement and inception in all the business coaching modules conducted
commitment from tenants. The business health is by CEDAR. To make the programmes more effective,
assessed and is subject to a post implementation review. various coaching pedagogies are employed such as
practical and research-based learning processes.
CENTRE FOR ENTREPRENEUR DEVELOPMENT
AND RESEARCH (CEDAR) In line with the Governments SME Masterplan 2012-
2020 which emphasises Human capital and
The Centre for Entrepreneur Development and Research entrepreneurial development, CEDAR builds the
(CEDAR) is a wholly-owned subsidiary of SME Bank. It capacity and capability of entrepreneurs as well as local
58 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
programmes
Capability
Capability building for internal staff
Building Training modules on key niche areas CEDARs programmes are categorised into fund based
Capacity building on business-driven and non-fund based. Fund-based coaching programmes
products and services
are offered to participants who wish to apply for loans
from the Bank. Non-fund based programmes are offered
Research and Undertake market based and to entrepreneurs looking to enhance specic aspects of
Development entrepreneur-driven research their business.
Collaboration with R&D bodies and
government agencies
Collaboration with universities/
institutions
om ctuModu
n
g
consultants/ESPs
of S led
lie
da
w
nd
Kno
Strong
Orientat earch
Of CEDAR
e
l
s
ion
v e
En
Rapid Entrepreneur Series of short programmes comprising nancial Existing SMEs at the
Acceleration Programme management, three steps to prot, strategic planning, growth stage within two
(REAP) and business modelling and branding years of incorporation
Vendor Development Strategically designed to coordinate, train, coach and Vendors anchored to
Programme (VDP) monitor Bumiputera Anchor Vendors to become Government-Linked
competitive and sustainable companies Companies (GLCs)
60 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Since its inception, CEDAR has engaged more than CEDAR will continue to support the National Economic
12,000 entrepreneurs. The number of participants Agenda in making entrepreneurship the nations engine
completing CEDAR programmes grew signicantly for growth. CEDAR will continue to work towards
from 5,450 in 2013 to 6,804 in 2014. gaining further traction and sustainability in the
Malaysian market. Moving forward, the centre plans to
As a well-known organisation in the market, CEDAR extend its reach beyond the local market. It shall
has also established over 30 strategic partnerships with venture into ASEAN and other emerging economies
renowned MNCs, GLCs, government agencies, higher through its strategic partnerships and publication
learning institutions, nancial institutions and NGOs. initiatives.
No. of Participants
3,500 8,570
10,000
3,640 6,804
8,000
4,257 5,450
6,000
4,000
CSR-Based Programmes
2,000
5,070
3,164
1,193
Coaching-Based Programmes
0
The Special Intervention initiative identies selected 1. Changing Delinquent Accounts to Performing
customers for direct intervention at the onset. Accounts through a concerted effort to diagnose
Structured gap analysis is employed by applying various problems and provide solutions;
tools such as the SME Competitiveness Rating for 2. Internally reclassifying Need-Based to Merit-
Enhancement (SCORE) that has been established in the Based customers which have higher chance of
country. The ultimate aim of the initiative is ensuring success with a sound nancial standing;
these customers can migrate upwards, and 3. Improving the Internal Risk Rating or SCORE
subsequently develop SMEs that can sustain their rating;
businesses and providing a quality portfolio. 4. Migrating to TERAS status which is a national high
performance mark for Bumiputera SMEs in
Business counsellors are selected from experienced Malaysia; and
staff in the Bank to implement this initiative. Certied 5. Expanding the market from domestic to including
Business Counsellor Courses train business exportation.
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Business counsellors collaborate with various companies positioned themselves in the TERAS
government agencies, professional bodies, industry programme.
experts and other entities to optimise resources.
In particular, entrepreneur enhancement programmes Two customers began exporting their products
are delivered such as business matching, industry internationally. The remaining 11 and 39 customers
networking and awareness. migrated to performing accounts and merit based
respectively.
In 2014,184 customers migrated upward via the Specic
Intervention initiative in comparison with 177 in 2013. The growth of these 184 customers is being closely
55% of these customers improved their competitiveness monitored while the Bank develops a new customer
which was evident in the upward migration of their group for 2015.
SCORE or Risk rating. A group of 31 Bumiputera
Capacity
building Local market
to EXPORT
INTERVENTION
Capacity AND From BEST
building NURTURING to TERAS
From NEED
to MERIT
Improve RISK
& SCORE RATING
Delinquent to
PERFORMING
63
SUSTAINABILITY IN THE
MARKETPLACE CONTD
SUSTAINABILITY IN THE
MARKETPLACE CONTD
Our Customer Relations and Liaison Department is the Number of Complaints Cases
main touch point answering customer inquiries via our
Contact Centre 1-800-88-3131. It also deals with
escalated complaints or feedback from customers 2014 40
commenting on our products and services. All customer
feedback is addressed with courtesy. We respond 2013 48
promptly to any feedback received through various
channels such as the call centre, letters, SMS and
email. All simple complaints are resolved within 10 2012 44
working days; complex cases may take up to 30 working
days. All feedbacks received are treated seriously and
endorsed during the monthly Customer Complaint
Committee Meeting. Year Equivalent to 8 units
12
12
10
12
16
6
9
3
1
0
3
0 2014
No. of Cases
STAKEHOLDERS ENGAGEMENT
We engage with stakeholders on an ongoing basis and A total of 42 road shows and brieng sessions were held
through a variety of forums and communication nationwide in 2014. This programme has beneted at
channels. We undertake networking and collaborative least 2,587 entrepreneurs. We are proud that this
activities with government agencies and target groups programme has improved entrepreneurs access to
for image building and business sourcing. We hope nancing.
these efforts will positively affect and effectively
outreach to entrepreneurs nationwide.
67
SME Bank Enterprise Centres Open Day 2014 second session was conducted on 22 - 23 September
2014 at Persada International Convention Center, Johor
The Enterprise Centres Open Day supported and Bahru for Southern Region (Johor, Negeri Sembilan
increased enterprise centres customer base. There and Melaka). Both programmes were ofciated by YB
were 18 open days held in 2014, which were attended by Datuk Ir. Hj. Hamim Samuri, Deputy Minister of MITI.
more than 1,450 people nationwide. Participants were
invited to a talk on GST and were introduced to our LEAP The programme provides:
Programme. We also offered a full days consultation A platform for business expansion through smart
and clinic sessions to discuss business assistance, partnerships or business matching activities as
opportunities and ways to assist them. well as networking opportunities for entrepreneurs
and potential partners.
Opportunities for entrepreneurs to explore new
markets, businesses and business partnerships
with participated parties (i.e. Government-Linked
Companies (GLCs)/ Government-Linked Investment
Companies (GLiCs) under the MITI Vendor
Development Programme); and
Opportunities for entrepreneurs to get information
on the assistance, incentives and advisories from
the participated government agencies and parties
involved with the programme.
SUSTAINABILITY IN THE
MARKETPLACE CONTD
We have embedded a list of activities that do not qualify for We ensure your personal data is protected in accordance
nancing in our Credit Operations Guide. These consist with the recently enacted Personal Data Protection Act
of: (PDPA) 2010. We also inform customers how their
All activities that contravene Shariah principles as personal data is managed.
determined by the Shariah Advisory Council (SAC)
of Bank Negara Malaysia (BNM) and the Banks We ensure that our customers personal data is not
Shariah Committee; disclosed for any purpose other than it was collected
Projects and activities that violate the law or our for. Under the Development Financial Institutions Act
moral values; 2002, we are obligated to protect customers information
Activities that cause pollution and other adverse pursuance to Section 119, which covers secrecy. Section
environmental impacts; 120 on permitted disclosure also covers several
The nancing of vessels used in international instances when we disclosed customer information.
waters except for oil and gas related activities; For example, we may share customers personal data
The processing and trading of scrap metals; with any third party to whom we are obligated to comply
Mining activities except quarrying; with laws or as required by any regulatory or statutory
All basic primary agriculture projects; authority.
Entertainment and gambling centres;
Individuals and companies that are blacklisted on We are also guided by Bank Negara Malaysias
our Negative Counterparty Database (NCD); and Guidelines on (i) the Disclosure of Customer Documents
Companies using audit services from blacklisted or Information by Development Financial Institutions
rms. issued on 2 July 2013, and (ii) Guidelines on Data
Management and Management Information System
We also only selectively grant nancing to certain (MIS) Framework for Development Financial Institutions
sectors and activities. A comprehensive credit among others. These guidelines cover the requirements
assessment is performed for nancing applications for data governance structure, quality and security.
that are on this selective list. This list governs bus
operators, hotel operators and furniture manufacturers. The PDPA came into force in November 2013. On 11
It also applies to nancial services companies offering February 2014, we registered as a Data User with the
money-changing services, pawnshops and pawn Jabatan Perlindungan Data Peribadi (Commissioner).
brokers. We evaluate the applicants business model The registration was approved on 17 February 2015.
and operations. Detailed ndings are highlighted in the
Credit Evaluation Report / Financial Evaluation Report
so that the approving authority can make well-informed
decisions.
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.
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 justied 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, modication, 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 fullled.
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
SUSTAINABLE MARKETING
Our reputation is one of our greatest assets and we take understanding, trust and respect takes time, honesty
every precaution to protect it. Our commitment to and transparency.
integrity and honesty is at the core of our values,
standards of conduct and governance principles. We employ a variety of tools when engaging with our
We take these commitments seriously especially when stakeholders and facilitating feedback. Our corporate
communicating with clients who entrust us with their website and annual reports are the most comprehensive
nancial assets and expect us to always work in their sources of information for our social, environmental
best interests. and nancial performance. We engage with our
stakeholders through social media channels such as
Our success is built not only on quality products/ Facebook, Twitter, YouTube and other mobile
programmes and innovation, but also by the applications.
relationships we develop and nurture. Creating
Platform Link
Facebook https://www.facebook.com/smebank
Twitter https://twitter.com/SME_Bank
You Tube https://www.youtube.com/user/smebankmalaysia
Website www.smebank.com.my
Mobile Apps Can be downloaded through Play Store and Apps Store.
71
The Advertising and Promotion Team ensures All advertising and promotions are endorsed by the
compliance with promotional regulations. It reviews Shariah Committee. We are sensitive to consumer
marketing materials to check they are balanced and interests in the development, marketing and sale of
accurate when presenting their risks and benets. new products and programmes. The Board approves
We adhere to regulations and standards and all policies and procedures that outline parameters and
advertising and promotions are conducted in guidance for the fair treatment of consumers. These
accordance with our Corporate Identity Guidelines. clear procedures help us avoid misselling, unfair terms
and conditions and business practices that restrict
consumers freedom of choice.
SUSTAINABILITY IN THE
COMMUNITY
LENDING
A HELPING
HAND
74 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
COMMUNITY
SME Bank Y-Biz Challenge is a platform for The Banks initiative to nurture young
students that generates interest in entrepreneurs was recognised by the
entrepreneurship. It provides an opportunity Association of Development Financing
for students to explore their creativity and Institutions in Asia and the Pacic (ADFIAP)
innovativeness. The programme provides with a Plaque of Merit under the category of
students to the relevant knowledge and Corporate Social Responsibility.
experience that helps them realise their
entrepreneurial potential.
Entrepreneur
cu lcate sh
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76 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
COMMUNITY CONTD
The nalists of SME Bank Y-Biz Challenge have also The nalists excellent performance in the international
accomplished numerous achievements in national and competition prompted SME Bank to give a ight ticket
international competitions. The 2012 champion from worth RM25,000.00 as an incentive for the students to
Sekolah Menengah Sains Hulu Selangor has won a Gold compete in an international competition of their choice.
Medal in the Young Inventor Category of the European
Exhibition of Creativity and Innovation 2013
(EUROINVENT) in Romania.
The participation statistics since the introduction of Y-Biz Challenge are presented in the table below.
SUSTAINABILITY IN THE
COMMUNITY CONTD
2014 CORPORATE RESPONSIBILITY PROGRAMMES Ministry of Education Malaysia and helps students
prepare for major examinations. YB Datuk Ir. Hj. Hamim
We are committed to the communities where we do Samuri, Deputy Minister of International Trade and
business for the betterment of society. We honour our Industry and Member of Parliament Ledang was the
special responsibilities and roles in helping our guest of honour at this event.
communities thrive. We are committed to making
positive change through community partnerships, Back to School Programme
charitable giving and volunteerism. Our charitable
contributions and philanthropy reect our dedication to In conjunction with the opening of 2015 school sessions,
the communities we serve. We believe in corporate we took the initiative to distribute school bags and
responsibility, corporate citizenship and giving back to stationery to orphans at Rumah Siti Khadijah, Klang.
those who have made us successful. Our employees We also contributed food hampers to this orphanage.
dedicate their time, resources and energy to improving
the communities where they live and where we operate.
Corporate Responsibility for Ramadan and Hari Raya
Corporate Responsibility in Education
We celebrate Ramadan and Hari Raya by sharing the joy
At SME Bank, we recognise the long-term economic, with those who are less fortunate and also local
social and personal gains that result from quality community members. Some of our initiatives that
education. Examples of our educational support are brought happiness in this holy month are summarised
summarised below. below.
Ramadan. 11 volunteers teamed up with villagers for programme. We purchased new baju Raya and
this good cause. distributed duit Raya in conjunction with the coming
Hari Raya celebrations.
Ramadan Programme at SME Banks Network
Distribution of Raya Hampers to Angkatan
In 2014, our annual Ramadan Programme was extended Tentera Malaysia
to the Banks 22 Enterprise Centres and Business
Centres. Each branch network received RM5,000.00 for SME Bank is one of the contributors to the annual
organising their own Ramadan programmes. programme organised by Angkatan Tentera Malaysia
(ATM). We distributed Raya hampers to appreciate the
Zakat Distributions ATM who work during the festive seasons in order to
carry out their duties locally and abroad.
The Bank distributed Zakat to the Asnaf in parliaments
of Jeli, Kelantan; Pekan, Pahang; and Tambun, Perak. Corporate Responsibility for the Disabled
We hope that these contributions will ease their burdens
in celebrating Ramadan and Hari Raya. We care about those less fortunate and the disabled.
We aim to improve and enrich their lives through
Sharing Food with Local Communities donations.
Ramadan is a time for sharing what you have with Donation of Wheelchairs to Persatuan
others. In 2014, we continued to distribute packed food Kesejahteraan Rakyat 1 Malaysia
to the public at the Urban Transformation Centre Kuala
Lumpur and Bubur Lambok to patients in the Paediatric We donated two wheelchairs to Persatuan Kesejahteraan
Ward in Hospital Sungai Buloh. Rakyat 1 Malaysia (KER1M). KER1M is a non-
governmental organisation that raises funds to help
New Baju Raya for Orphans those less fortunate and the disabled.
SUSTAINABILITY IN THE
COMMUNITY CONTD
Donations to Other Good Causes We never forget the service given by our former
employees. En. Saharudin Rani worked at SME Bank for
We direct the majority of our philanthropic donations to more than ve years before leaving through the
humanitarian and social projects. We hope to help build Voluntary Separation Scheme. He is now categorised as
stronger, healthier communities especially for those disabled due to an illness and we donated RM5,000 to
who need them most. We continue to be responsive to help ease his burden.
community needs through charity and sponsorship.
81
Tabung Haji Corporate Partners We also introduced a No Gift Policy, which prevents
employees from receiving gifts. As a rule, gifts should
SME Bank became a Tabung Haji Corporate Partner by not be accepted that might compromise the individuals
contributing 3000 hand towels to 2014 Haj pilgrims. judgement including lavish or frequent entertainment.
Employees may pay the true value of the entertainment
Humanitarian Mission to Cambodia themselves but it is recommended that accepting
inappropriate entertainment should be discussed with
Students from the Faculty of Political Science, Universiti immediate superiors rst. On occasions, if it is
Kebangsaan Malaysia organised a humanitarian impractical or harmful to refuse or return a gift, the
mission to Cambodia. They invited SME Bank to situation must be referred to the management or Board.
contributed preloved items to this noble cause.
The mission helped underprivileged Muslims in The Group Audit Division investigates any corruption
Cambodia by contributing cash, clothes, toys, stationery allegations to ascertain their validity. Results of the
and food. investigation are reported to the Audit Committee. A
report is lodged to the Malaysian Anti-Corruption
DEALING WITH INTEGRITY ISSUES Commission (MACC) if corrupt practices are discovered.
SPIRIT OF
VOLUNTEERISM
84 SUSTAINABILITY
REPORT 2014
SUSTAINABILITY IN THE
ENVIRONMENT
SUSTAINABILITY IN THE
ENVIRONMENT CONTD
We conduct business with respect for the environment. Our environmental footprint is light compared to
As a service organisation, our operations are entirely manufacturing companies. However, ofce-based
ofce based. business can positively affect the environment. Our
initiatives that minimise our environmental footprint in
each area are summarised in the table below.
Water Our operations use relatively Water-saving taps, showerheads, and low-ush or
little water compared with dual-ush toilets are installed
other industries and we do Regular maintenance to repair any water leaking
not consider water usage a especially from toilets, taps and other water xtures
key environmental impact.
However, we recognise that
water is becoming an
increasingly important issue.
We monitor and aim to reduce
water use locally.
88 SUSTAINABILITY
REPORT 2014