For business. For growth. For life. Vol. 9/2017

SME BankSehati Sejiwa for the Growth of the Nation’s SMEs

CONTENTS

ADVISORDato’ Razman Mohd Noor

EXECUTIVE EDITORKhairil Anuar Mohammad Anuar

EDITORAbdul Latiff Puteh

CONTRIBUTORSNorhisham Hamzah

Haslin Othman Sarah Hanis Abdullah Sani

Hayati Abu Seman

PHOTOGRAPHERWan Badaru Sukry Wan Abdullah

PUBLISHED BY

Small Medium Enterprise DevelopmentBank Malaysia Berhad (49572-H)

Menara SME Bank, Jalan Sultan IsmailTel: +603 2615 2020 Fax: +603 2698 1748

Call Centre : 1800 88 3131

www.smebank.com.my

04 SME Bank Excels at ADFIAP Awards 201705 BID-it: the Secrets to Digital Excellence06 Ihya’ Ramadan SME Bank 07 Salam Syawal bersama SME Bank

08 Warga SME Bank Menyelamat Nyawa09 Let’s Get Fit! 12 Going Back to Nature17 I Scream for Ice Cream SME Bank bantu Rakyat Syria

16 How to Network Effectively

13 Embracing Industry 4.0

10 Accelerate Your Business Through SME Bank Xcess 2017

11 Mini Xcess 2017

EDITORIAL TEAM

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From Desk ofCOO

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CEDAR

Dear Readers,

We have come to the third quarter of 2017 and we are now into an overdrive mode to achieve our business goals after a month of

Ramadan and a month of Syawal activities. The Bank is now ready to once again engage with the customers through our dedicated Meet Your Customer Day at 12 identified locations scheduled to be held throughout the month of August 2017. In addition, the second leg of the Mini XCESS 2017 will also begin in August 2017. The first leg has proven to be a success when the overall turn-up for the XCESS and Mini XCESS 2017 was more than 1,200 entrepreneurs with financing approval totalling more than RM230 million.

In conjunction with the upcoming National Day, I would like to urge the staff of SME Bank to come together and strengthen the teamwork which is in line with this year’s theme, “Negaraku, Sehati Sejiwa.” Let’s embrace the spirit of Nationalism in our everyday life including when performing our daily duties.The contribution that SME Bank has made in delivering the mandate of nurturing and developing the SMEs since its inception in 2005 is strong looking at the statistics.

Hence, in celebrating the spirit of ‘Merdeka’ we will keep the momentum going and aims for greater goals. We will not hold back despite the challenges or changes that the Bank is facing. As portrayed by Michael Korda, a writer, “One way to keep momentum going is to have constantly greater goals.” That means, in order to continue delivering the expectation to develop SMEs to be the Nation’s engine of growth, we must constantly be on the move to be able to achieve higher goals, higher expectations and improving ourselves and the Bank. Once again, I would like to take this opportunity to wish everyone “Selamat Menyambut Hari Kemerdekaan ke-60” and let’s embrace the spirit of “Negaraku, Sehati Sejiwa.”

Thank you.

DATO’ RAZMAN MOHD NOORChief Operating Officer,Operations & Group Corporate Management

Assalamualaikum warahmatullah hiwabarakatuh and Salam Sejahtera

COOFrom the Desk of

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SME BANK Excels at ADFIAP Awards 2017SME Bank continues to receive

international accolades for the work done in nurturing

and developing the SMEs in the country when it received 3 awards during the ADFIAP’s (Association of Development Financing Institutions in Asia and the Pacific) Development Awards 2017 held in Macau from 10 to 12 May 2017.

SME Bank received the Trade Development Award for its Best Exporters Programme, Merit Award for the Human Capital Development Category for SME Bank’s Employee Capacity Building Programme and ADFIAP Best Website Award.

Receiving the awards for SME Bank was YBhg. Dato’ Razman Mohd Noor, Chief Operating Officer,

Operations & Group Corporate Management. With these new awards, SME Bank has received a total of 23 awards locally as well as internationally.

These awards speak volume of the work SME Bank has done and the contributions it made to achieve the goal of 41% contributions by the SME sector to the GDP.

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BID-it: the Secrets to Digital ExcellenceI nnovative and creative

entrepreneurs who aspire to expand their businesses using

digital technology can now turn their creative ideas into successful e-business with SME Bank’s Business in Digital Startup Programme or known as BID-it. Launched on 24 May 2017 by Deputy Minister of International Trade and Industry, YB. Datuk Haji Ahmad Maslan, BID-it is aimed at propagating new and innovative business ventures that incorporates Digitalization and Cross Border Transaction through technology and e-Commerce as business enablers.

BID-it started with an awareness campaign held at 11 locations nationwide in March and April where the participants were given an insight on current trend of doing e-business and various opportunities available for them to expand the business. At the end of the session, participants were invited to submit their ideas for the Bank’s evaluation. A total of 163 business ideas from 137 participants were submitted and out of this, 72 business ideas from 68 participants passed the first round screening. The 68 participants then presented their ideas during the elevator pitch session on 23 May 2017 and 20 finalists were chosen and announced during the launching ceremony. The 20 finalists are currently undergoing a comprehensive development programme with possible funding solutions upon completing the BID-it programme.

Satu majlis berbuka puasa SME Bank telah diadakan pada 16 Jun 2017 di Menara SME Bank. Majlis

yang diadakan pada setiap tahun ini adalah untuk mengukuhkan ukhwah di antara pihak pengurusan dan staf Bank. SME Bank juga turut meraikan dan menyalurkan sumbangan Duit Raya kepada 20 orang pelajar tahfiz dari Pusat Tahfiz Khalifa, Kampung Sungai Merab, Kajang serta anak-anak yatim dari kalangan staf SME Bank.

Ihya’ Ramadan SME BankMajlis Ihya’ Ramadan SME Bank dimulakan dengan sesi perkongsian ilmu oleh penceramah jemputan, Ustaz Ahmad Alyamani bertajuk “Kelebihan Seorang Muslim di Bulan Ramadan.” Ustaz Khairul dari Pusat Tahfiz telah mengimamkan solat Magrib dan Isyak manakala Ustaz Jumadi, Ketua Jabatan Pembangunan dan Pengurusan Shariah mengimamkan solat Sunat Tarawikh.

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Salam SyawalbersamaSME Bank

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Majlis Rumah Terbuka Hari Raya SME Bank pada tahun ini disambut meriah dengan kehadiran lebih 600 orang tetamu kehormat, rakan-rakan strategik, para pelanggan dan staf Bank. Diadakan pada 24 Julai 2017, rumah terbuka SME Bank dimeriahkan lagi dengan dendangan lagu oleh Lah Ahmad dan kumpulan busker Chantique Skully. Acara rumah terbuka ini telah dapat mengeratkan tali silaturrahim antara kakitangan Bank dengan tetamu yang lain.

Warga SME Bank Menyelamat Nyawa

S eramai 73 orang warga SME Bank telah menderma 73 pint darah yang dapat menyelamatkan

sekurang-kurangnya 200 nyawa semasa kempen derma darah yang diadakan pada 11 April 2017 di Menara SME Bank dengan kerjasama Pusat Darah Negara (PDN). Program

yang diadakan pada setiap tahun ini bertujuan untuk menggalakkan orang

ramai terutamanya warga SME Bank untuk menjadikan aktiviti menderma darah sebagai rutin tahunan di samping membantu menambah bekalan darah di PDN.

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Let’s Get Fit!Coming to the office is more fun and healthier with the launching of SME Bank’s Recreation Centre located at Level 15, Menara SME Bank. The main objective is to promote a healthy and balanced work-life culture amongst the staff.

The Recreational Centre is equipped with complete facilities which include Male and Female Gymnasiums, Squash Court, Playstation 4, Snooker Pool, Foosball, Karaoke Room and Dart game. Other facilities include laundry room, locker and shower rooms. The Recreational Centre was officiated by YBhg. Datuk Mohd Radzif Mohd Yunus, accompanied by Encik Mohammad Hussain Mohammad Dawood, President of Kelab Sukan dan Rekreasi and Encik Wan Zainuddin, Covering Director of Group Human Capital Management.

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ACCELERATE YOUR BUSINESSTHROUGH

DYNAMIC FINANCING FOR BUSINESS EXPANSION

Get your financing facility and otherassistance for your business expansion.

SME Bank continues to deliver its beyond financing promise to the Malaysian SMEs through the Bank’s signature outreach programme, The SME Bank XCESS 2017. Coming into the second year of organising the event, XCESS 2017 saw SME Bank becoming more aggressive in resolving the issue of access to financing faced by SME entrepreneurs. Launched by YB Datuk Haji Ahmad Haji Maslan, Deputy Minister of International Trade and Industry on 29 March 2017, nearly 600 aspiring entrepreneurs and future entrepreneurs attended the SME Bank XCESS 2017. The Bank has up to date approved RM19 million worth of financing from the one day event and in the process of approving more applications.

There was also a special knowledge sharing session with the Bank’s very own successful clients to inspire the uprising entrepreneurs on how to sustain and accelerate their business in this challenging environment. Participants of XCESS 2017 were also given the opportunities to attend specific pocket talks with SME Bank’s partners such as MITI, MATRADE, MIDA, Celcom Axiata and Orizon.

Reaching a wide group of SME entrepreneurs continues with SME Bank Mini XCESS Programme. Started on 19 January 2017, this outreach

programme was held at 6 different locations nation wide.

The first leg of the Mini XCESS 2017 was held from January to May 2017. The second series will be continued in August 2017 and we are confident of reaching more entrepreneurs.

Stay in touch with the updated schedule and locations via facebook.com/smebank and www.smebank.com.my

MINI

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20 Volunteers from various departments had the opportunity to get close

to nature and animals at Zoo Negara after participating in the SME Bank’s Green CSR Programme held on 20 May 2017. Led by Mr. Christopher Caine Xavier from Zoo Negara, the 20 volunteers were divided into three groups with each being given a special task to complete. The teams were required to build food containers for three types of monkeys namely the Marmoset, Siamang and Gibbon. The teams were given the opportunity to enter the cages to witness how the animals responded to the animal enrichment tools that the 20 volunteers built.

Going Back to Nature

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Embracing Industry 4.0

The first Industrial Revolution, beginning in Great Britain at the tail end of the 18th century and ending in the mid-19th century, represented a radical shift away from agriculture-based economy to the introduction of mechanical production methods through the use of steam and first machines. Next was focusing on the use of electricity, the important use of effective assembly line and the birth of mass production. The third era of industry is the beginning era of automation, when robots and machines began to replace human workers on those assembly lines.

The latest development in technology brings along computers and automation working together in an entirely new way and the term

Industry 4.0 came out. The term Industry 4.0 refers to the combination of several major innovations in digital technology, all coming to maturity right now, all poised to transform the energy and manufacturing sectors. These technologies include advanced robotics and artificial intelligence; sophisticated sensors; cloud computing; the Internet of Things; data capture and analytics; digital fabrication (including 3D printing); software-as-a-service and other new marketing models; smartphones and other mobile devices; platforms that use algorithms to direct motor vehicles; and the embedding of all these elements in an interoperable global value chain, shared by many companies from many countries.

A German government memo released way back in 2013 was one of the first times that ‘Industrie 4.0’ was mentioned. The high-tech strategy document outlined a plan to almost fully computerise the manufacturing industry without the need for human involvement.

Angela Merkel, German chancellor, spoke glowingly of the concept as recently as January 2015 at the World Economic Forum in Davos, and called ‘Industrie 4.0’ the way that “we deal quickly with the fusion of the online world and the world of industrial production.”

1st Industrialrevolution

2nd Industrialrevolution

Late 18thcentury

Early 20thcentury

Timeline

Co

mp

lexi

ty

Early 1970s Today/in the nearfuture

3rd Industrialrevolution

4rd Industrialrevolution

Key technologies

Introduction of mechanical production plants using steam power

Introduction of work-division

mass production using electrical

energy

Use of electronics and IT to further

automate production

Based on cyber-physical systems (CPS) and dynamic

data processing

Advancedrobotics

Additivemanufacturing

Augmented reality

Simulation

Horizontal/vertical

integration

Industrial internet

CloudBig data

and analytics

History and development of Industry 4.0

Source: Boston Consulting Group

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In Malaysia, the Ministry of International Trade and Industry (MITI) is taking the lead by conducting study, having

Benefits of Industry 4.0:

talks with the relevant agencies and conducting seminar with the industry players and government officials to

Data & Analytics as core capability

Data & Analytics as core capability

1. Digitis

ation and integration

of ve

rtical and horizontalvalue chains

pro

du

ct and

service oerings

2. D

igitisation of

models and c

usto

mer

acc

ess

3. Dig

ital b

usin

essIndustry

4.0

Mobile devices

IoT platforms

Location detectiontechnologies

Advanced human-machineinterfaces

Authentication &fraud detection

3D printingSmart sensors

Big data analyticsand advancedalgorithms

Multilevel customerinteraction andcustomer profiling

Augmentedreality/wearables

Cloud computing

Additional revenue from: Lower cost and greater eciency from:

Digitising products and services aithin the existing portfolio

Real-time inline quality control based on Big Data Analytics

New digital products, services and solutions Modular, flexible and customer-tailored production concepts

O�ering big data and analytics as a service Real-time visibility into process and product varience, augmented reality and optimisation by data analytics

Personalised products and mass customisation Predictive maintenance on key assets using predictive algorithms to optimise repair and maintenance schedules and improve asset uptime

Capturing high-margin business through improved customer insight from data analytics

Vertical integration from sensors through MES to real-time production planning for better machine utilisation and faster throughput times

Increasing market share of core products Horizontal integration, as well as track-and-trace of products for better inventory performance and reduced logistics

Digitisation and automation of processes for a smarter use of human resources and higher operations speed

System based, real-time end-to-end planning and horizontal collaboration using cloud based planning platforms for execution optimisation

Increased scale from increased market share of core products

formulate the National Industry 4.0 Blueprint by the end of the year.

Source: Boston Consulting Group

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• Data security issues are greatly increased by integrating new systems and more access to those systems. Additionally, proprietary production knowledge becomes an IT security problem as well.

• A high degree of reliability and stability are needed for successful cyber-physical communication that can be difficult to achieve and maintain.

• Maintaining the integrity of the production process with less human oversight could become a barrier.

Bernard Marr, What Everyone Must Know about Industry 4.0: Challenges of adopting Industry 4.0

Digitisedproducts

BENEFITS TO SMEsDIRECTLY

BENEFITS IN PARTNERSHIP WITHLARGER COMPANIES/ADVISORS

• Product range can be made smarter. Smart products can increase the proportion of value added from product sales to doenstream services

Digitisedproducts

• New business models can emerge from 14.0 such as Software as a Service (SaaS) that can a�ord higher margins to SMEs

• Access to 14.0 architecture enables lower costs of production and hence higher margins

Lowercosts

Access to expertise/technology

• SMEs can fill any their own expertise/tech. gaps and di�erentiate, by partnering as and when needed (e.g., on making decisions on investments, on access to specific non-rival technology)

Access to platforms

• SMEs can use partner ships/align with specific platforms so as to prevent “lock-outs” and ensure demand pipeline

• SMEs can leverage partnerships to raise funding/share required investments

Access to funding

• Loss of high-paying human jobs is always a concern when new automations are introduced.

• And avoiding technical problems that could cause expensive production outages is always a concern.

Additionally, there is a systemic lack of experience and manpower to create and implement these systems plus a general reluctance from stakeholders and investors to invest heavily in new technologies.

But the benefits of an Industry 4.0 model could outweigh the concerns for many production facilities. In very dangerous working environments, the health and safety of human workers could be improved dramatically. Supply chains could be more readily controlled when there are data at every level of the manufacturing and delivery process. Computer control could produce much more reliable and consistent productivity and output resulting in many businesses able to increase revenues, market share, and profits.

Source: Boston Consulting Group : MITI Workshop on Industry 4.0

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Another criterion is to look for people who are truly interested in helping others solve a problem, no strings attached. In other words, don’t think of yourself as a networker but as a problem solver, and look for those same characteristics in someone you will consider adding to your personal network.

Form a strategic alliance

A network is not a collection of business cards, but of people. Take the time to understand the business of those in your network. If you’ve chosen members wisely, this should be a pleasure. And make sure that you educate them completely about what you do and whom you do it with. Give each other updates and encouragement. In effect, you become each other’s sales people.

Remember that the purpose of networking is not to get your contact’s business; instead, you’re trying to get business from everyone this person knows.

You should also be able to turn to those in your network for management

ideas, advice, leads, even vendor recommendations. You will learn from each other and contribute to each other’s growth, both in terms of profit and performance.

Maintenance

As your contact base grows, you have to re-evaluate the people in your information loop. Practice effective time management skills and prioritize your contacts. You will want to get in touch most often with those that can be most useful to you. They will become your inner circle.

Be careful never to burn bridges; you never know when someone will be able to help you, or when you will be able to help them. If you feel as though someone is not useful to you right now, you still will want to check in with them now and again, because they may become important down the road. In other words, be nice to everybody because you never know where they’ll show up.

NETWORKEFFECTIVELY

EVALUATE THEVALUE OF

THE CONTACT

FORMA STRATEGIC

ALLIANCE

GIVE AND GETINFORMATION

MAINTENANCE

Networking is the art of making and utilizing contacts. The goal of networking is to create a pool of people and information that can directly increase the quality of your product or service, decrease customer attrition, and, most importantly, leave your competition wondering how you won a job they never knew was available.

Many small business owners don’t want to network because they think its about shoving your business card in someone’s hand and boasting about what you do. In fact, networking is actually about getting to know people whom you can help and who can help you.

Most business people don’t know how to make networking an effective business tool. If the result of your networking is a stack of business cards in your top right hand desk drawer and not a lot of additional business, then it may be time for you to re-evaluate your methods.

Small business owners should approach meeting people using two goals: get to know as many people as possible, and get them to know you. Then adopt and adapt the following four steps to make your networking work:

Give and get information

Networking is a two-way street. When you meet someone, you want to ask them about their business and tell them about yours. Start with the basics - name, company, affiliation, position, nature of business, etc. You next want to find out if you can benefit each other. Try covering these topics:

• What does your company do?• What types of clients do you serve?• Who makes the buying decision within

a firm for each of your services and/or products?

• What sets you apart from your competition?

Evaluate the value of the contact

You can’t network thoroughly with everyone. Once you have the preliminary information, you need to decide if this person is worth meeting again and creating a relationship with. Can you help them and can they help you? The answer should be “yes” to both.

How to NetworkEffectively

There’s nothing that melts our heart seeing the smile of the kids from Taska Pintar enjoying

their free ice cream.

In conjunction with the celebration of Labor Day, SME Bank distributed ice

I Scream for Ice Cream! cream to all the staff including their children at Taska Pintar SME Bank as a gesture to appreciate their hard work.

In line with this year’s motto, “Creative Workers Spur Innovation,” the Bank hopes that the staff will continue

to strive to become competent, innovative and creative employees who will drive the growth of the Bank.

Pada 4 April 2017, SME Bank telah menyalurkan bantuan dalam bentuk wang tunai berjumlah RM30,460.00 hasil

kutipan wang sumbangan staf serta sumbangan korporat SME Bank kepada Syria Care.

Syria Care merupakan sebuah Badan Bukan Kerajaan yang membantu menyalurkan wang sumbangan, bekalan makanan dan perubatan kepada rakyat Syria yang tertindas akibat peperangan. YBhg. Tan Sri Faizah Mohd Tahir, Pengerusi SME Bank telah menyampaikan cek kepada Ustaz Rizal Ali, wakil Syria Care.

SME BankBantuRakyatSyria

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