This trip to Sri Lanka has provided a clear objective for SME Factors Malaysia in its future activities in the island. Though not eying any specific sector it would concentrate not only on financing but increasing knowledge as well, said President and CEO of SME Factors Malaysia Syed Zed Syed Mustafa when he met the media at the Kingsbury Hotel in Colombo this evening (15 October).

SME Factors, one of Malaysia’s leading receivables financing houses, announced the expansion of its services into Sri Lanka. Its entry into the country is by invitation from the Deputy Minister of Finance, Sri Lanka, Dr. Sarath Amunugama, who has expressed interest to see SME Factors collaborate with the Finance Ministry on potential business opportunities that can benefit the country’s economy.

Through this collaboration with the Sri Lankan Finance Ministry, SME Factors (SMEF) will be working on initiatives that are aimed at expanding the SME industry in the country. Initial discussions between SME Factors and the Secretary to the Treasury, Ministry of Finance & Planning, Dr. P.B. Jayasundera, have looked at imperative measures that need to be taken to boost the SME industry in Sri Lanka.

SMEs play an integral role in Sri Lanka’s business economy as they amount to 80% of all businesses. The Sri Lankan local business owners engage in various business sectors; which include agricultural (growing spices, fruits, and vegetables) and manufacturing sector (numerous industrial activities amounting to 20% of industrial establishments). Throughout the years, the Sri Lankan government has taken numerous steps towards developing these business sectors and to support the growth of the local SMEs by improving their finance access, technology transfer, skill development, SME networking and advisory services. Through these initiatives, the Sri Lankan SMEs will be able to increase accessibility to various alternatives of financial support and working capital to grow their businesses.

This is where SME Factors will play a crucial role. Backed by a proven track record in Malaysia, SME Factors intends to work with a local partner in Sri Lanka and develop capacity with the objective of building the SME industry. The company has provided financing facilities to over 8,000 SMEs in Malaysia and has also received strong support from the Malaysian government which was exemplified by the launch of its Pemerkasaan Usahawan Bumiputera Program (PUB), where the Government lauded SMEF’s initiative as the only private institution offering RM 250 million worth of financing facilities to help boost the Bumiputera economy. Another notable collaboration was initiated in 2012 when SMEF launched a RM 200 million credit facility exclusively for Persatuan Badan-Badan Berkanun Malaysia (PBBM) members.

“We are proud and honored to be given this opportunity to work and participate in the growth story of Sri Lanka. The Finance Ministry of Sri Lanka is keen to boost the SME industry in the country and we are happy to play an active role to this end. Our company has always remained focused in our objectives to assist SMEs in achieving their business goals and provide financial aid to help the SMEs thrive in challenging economies. It is the Company’s dream to be able to help fulfil the Sri Lankan Government’s aspirations and we hope to become one of the leading receivables financing houses in the Asian region,” said En. Syed Zed Syed Mustafa, President and CEO of SME Factors.

“With this exciting collaboration, SME Factors is poised to become a key party to support the Sri Lankan government by expanding our services and sharing valuable experience and expertise with the objective to develop and boost the SME industry in Sri Lanka. We also hope to further strengthen our support by making significant investments in the near future,” he added.

SME Factors was founded in 2008 to provide cash flow solutions specializing in receivables financing. It offers a comprehensive range of cash flow products for all types of SMEs: ranging from start-ups to mid-sized companies, manufacturers and contractors.

SMEF has expanded its reach to all states in Malaysia, with growth plans overseas. From modest beginnings, SMEF now boasts local financial and sales specialists who manage over RM 8 billion factoring facilities, servicing over 8,000 clients.

Photo caption: (Bottom - from left) Head of Banking Exim Bank Malaysia Nor Shahmir Bin Nor Shahid, Exim Bank Malaysia President Adissadikin Bin Ali, High Commissioner of Malaysia in Sri Lanka Azmi Zainuddin, Special Functions Officer to Malaysian Prime Minister Dato Seri Nijab Pin Tun Abdulla Razak and President and CEO of SME Factors Syed Zed Syed Mustafa