Over 100,000 small and medium enterprises (SMEs) have secured RM57 billion in financing from financial institutions as of end-September, says Bank Negara Malaysia (BNM) Assistant Governor Abu Hassan Alshari Yahaya.

He said this amounted to an approval rate of 82% which was very commendable.

Abu Hassan said banking institutions accounted for 94% of the financing to SMEs, which amounted to RM216 billion extended to 617,000 SMEs.

"It also shows that SME financing grew at 12% from the same period last year," Abu Hassan told a press conference after officiating the "Micro Financing Carnival" organised by the central bank in Miri today.

The two-day event, organised by BNM involved financial institutions and government agencies, and offered financial products and services to SMEs and micro entrepreneurs.

Abu Hassan said Sabah and Sarawak SMEs secured financing of more than RM30 billion or 14% from the total SME financing by financial institutions.

At end-September 2014, RM3 billion of BNM's Special Funds was still available for SMEs to seek loans at an interest rate ranging from 3.75% to 6.0% per annum.

Prior to the event, Abu Hassan held a closed-door dialogue with the Business Associations & Chambers of Miri.

He said greater efforts would be undertaken to assist SMEs in Sabah and Sarawak in terms of technical support and high skills training, apart from financial help to improve their competitiveness.

"We will continue to engage with the business community here to ensure that their capacity building and market access is enhanced with the cooperation of SME Corporation Malaysia and Credit Guarantee Corporation," he said.

Abu Hassan added that BNM would also help SMEs accelerate their understanding of the Goods and Services Tax and migration to e-payment. – Bernama, December 7, 2014.