| James Kon |
REALISING the importance of nurturing the development of local business enterprises from start-up to growth, Bank Islam Brunei Darussalam (BIBD), the largest financial institution in Brunei Darussalam with a vision to become globally recognised as a benchmark Islamic finance institution, is heeding the government’s call to support the agenda to develop small and medium enterprises (SMEs) with an array of initiatives.
“Critical to the diversification and growth of a sustainable and inclusive economy, SMEs also provide a fundamental source of employment opportunities. They are major proponents of local and regional development, particularly in developing countries and emerging markets,” BIBD said in a statement.
“A World Bank Group study suggests that there are between 365-445 million MSMEs in emerging markets, contributing up to 60 per cent of total employment and 40 per cent of national income (GDP), demonstrating their exponential potential for growth.
“In the EU, SMEs represent approximately 99 per cent of all enterprises, according to a study conducted by Eurostat, and there has been immense support that has been exhibited to foster the growth of small and innovative players in the sector.
“However, access to finance remains a key constraint to SME growth. Capital funding is essential for the development of innovation, allowing nascent ideas to gain critical mass and pushing the industry forward,” the statement noted.
“Introduction of government initiatives and grant schemes aimed at corroborating the growth of SMEs have eased the process to a great degree.
“In Brunei Darussalam, DARe (Darussalam Enterprise) was set up as a statutory body with the sole purpose of holistically nurturing the development of local business enterprises from start-up to growth.
“Correspondingly, BIBD also heeded this call to support the national agenda to develop SMEs.
“In 2016, BIBD SME 360 was launched to offer comprehensive banking solutions catered towards the needs of budding enterprises which include dedicated relationship management teams, financial solutions and digital payments to help SMEs as key drivers of economic growth.
“DARe has also worked in partnership with BIBD to introduce the Microcredit Financing Scheme, rolling out up to BND15,000 to support these budding industries.
“Similarly, BIBD’s Ar-Rahnu Micro Financing Scheme provides a short-term secured financing facility using gold items as collateral for quick start-up capital,” the statement said. “Recently, to further inculcate better financial management among MSMEs, BIBD launched its BIBD MSME account, specifically for micro, small and medium enterprises (MSMEs), which requires a minimum opening balance of only BND50, much lower from the normal opening requirement of BND1,000 for corporate accounts.
“The BIBD MSME Account will allow for MSMEs to have better financial discipline by managing their businesses and personal finances separately. Besides having access to financing facilities, MSMEs will also receive corporate banking services that include digital banking and being listed as a biller on BIBD’s online banking application.
“BIBD also played an important role in nurturing the business development of new players in the oil and gas industry by collaborating with Brunei Shell Petroleum Co Sdn Bhd (BSP) as one of the local banks involved in BSP’s Credit Facility Programme.
“On April 26, 2018, local startups were invited to participate in an ‘I-Usahawan’ talk held in Seria to obtain knowledge on banking services as well as business advisory. BIBD has also been appointed as the local bank for LiveWIRE’s Business Awards Start-up Funding Scheme 2018, an initiative aimed to support and finance winning business plans prepared by local start-ups to kick start their businesses,” the statement added.
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