PUNB Aims To Disburse RM170 Mln In Loans To SMI's ... (Bernama Online, 25 November 2008)
Perbadanan Usahawan Nasional Bhd (PUNB) is targeting to disburse RM170 million in loans to small and medium industries (SMIs) next year, up from RM130 million this year.
Its chief executive officer Datuk Mohd Nasir Ahmad said today that PUNB would be looking at business segments in need of funds.
He said development finance institutions (DFIs) such as PUNB were taking risks when looking at disbursing more loans under the current economic situation but it expects the non-performing loan (NPL) ratio to remain stable.
"We are still hoping to disburse a lot of money. The role of DFIs is always long term in funding," said Mohd Nasir, who is also chairman of the Association of Development Finance Institutions of Malaysia (ADFIM).
He was speaking to reporters after the launch of the two-day Fifth International CEO Forum of DFIs 2008 here.
The forum, organised by ADFIM in collaboration with the Association of Development Financing Institutions in Asia and the Pacific, was officiated by Second Finance Minister Tan Sri Nor Mohamed Yakcop.
Earlier, Nor Mohamed said DFIs needed to exercise greater flexibility and work together with customers in structuring appropriate financing facilities to meet the varied requirements of viable businesses facing a difficult business environment.
The text of his speech was read by Finance Ministry's advisor Datuk Siti Hadzar Mohd Ismail.
"The business operating environment is likely to be increasingly challenging. In these circumstances, while there is need for financial institutions to be more vigilant and strengthen their risk management processes, it is equally important to ensure that there is no unjustified rejection credit lines or indiscriminate witholding of approvals to deserving and viable businesses," Nor Mohamed said.
In a scenario of a prolonged and deeper global economic slowdown, he said there may also be instances calling for rescheduling or restructuring of existing credit facilities.
DFIs are specialised institution established by the government to develop and promote strategic sectors of the economy.
Nor Mohamed said loan growth expanded on an annual basis by over 10 percent as of September this year while non-performing loans remained low.
"Our financial institutions are not exposed to the collateralised debt securities derived from the subprime mortgages. The exposure of the Malaysian banking sector to the subprime market has also been minimal," he said.
Malaysia's financial sector remained strong and resilient and the sector continued to sustain its growth momentum, according to Nor Mohamed.
"It is now a major contributor to the growth of services sector," he said.
Supported by adequate levels of capitalisation and ample liquidity, the banking sector was well-positioned to continue with its lending activities to support domestic economic growth, he added.