List Of Dfis Not Under The Dfi Act Finance Essay - Free Essay Example

Malaysian Industrial Development Finance Berhad (MIDF) was established on 30 March 1960 and has become the first and the only development finance institution (DFI) listed on Kuala Lumpur Stock Exchange. MIDF was the company that established with the main purpose to promote the development of the manufacturing industry in Malaysia by provides the medium and long-term loans for SMEs. The provisions include financing to SMEs to purchase new fixed assets for new industrial venture as well as to provide capital for enterprises to undertaking expansion, modernization or relocation their businesses. Apart from this, Malaysian Industrial Development Finance Berhad (MIDF) as a private sector financial institution have a poverty of personnel who are experienced and knowledgeable in the financing for start-up companies and operations of manufacturing businesses in the country. Thus, Malaysian Industrial Development Finance Berhad (MIDF) had combining their strength with valuable experience and expertise to become a leading institution in providing fixed assets financing to manufacturers in Malaysia. Recent years, MIDF has enjoyed the advantages of being one of the Development Finance Institution (DFIs) designated by the Government to manage and disburse capital under various special loan schemes. Development In 30 March 1960, Malaysian Industrial Development Finance Berhad (MIDF) was incorporate and the main purpose establish MIDF was to ensuring access to financing for manufacturing-based small-and-medium enterprises (SMEs) as a part of Malaysias strategy to stimulate the development of industrial sector. In recent years, MIDF has transformed into a diversified group to promote as Malaysias maiden development finance institution. Recently, the MIDFs had formed an investment bank called MIDF Amanah Investment Bank Berhad which integration with Amanah Short Deposits Berhad, Malaysia Discount Berhad, MIDF Sisma Securities Sdn. Bhd. and the former Utama Merchant Bank Berhad. Besides that, MIDFs also create a Development Finance Division to provide medium and long-term conventional and Shariah-based financing for new project as well as modernization, expansion, and relocation program in the manufacturing-based small-and-medium enterprises (SMEs) in Malaysia. Between the years of 2003 till 2009, MIDFs had merger with Amanah Capital Partner Berhad, the acquisition of Utama Merchant Bank Berhad (UMBB), and the establishment of MIDF Amanah Investment Bank Berhad (MIDF Investment). MIDF Group accentuated its ambition to become a leading financial service s provider in three core business areas, which are investment banking, asset management and development finance. Organization structure/ overview Malaysian Industrial Development Finance Berhad (MIDF) is an investment holding company that provides financial service, leasing, and industrial hire purchase service to manufacturing-based small-and-medium enterprises (SMEs). The ownership of MIDF was owned by government (0.26%), foreign investor (6.86%) and public (92.88%). The Managing Director of MIDF was MR. Mohd Najib Abdullah., figure below is the key executives in MIDF: Mr.Mohd Najib Abdullah Managing Director Mr.Wahid Bin Ramli Chief Executive Officer of Amanah Property Trust Managers Berhad Mr. Allen Nicomedes Lopez Chief Financial Officer Mr. Abdul Aziz Mustafa Chief Operating Officer Mr. Md. Rahim Chief Executive Officer of Malaysia Discounts Berhad. Figure 1: Key Executive of MIDF Besides that, MIDF is a large company which had more than 1100 employee in whole Malaysia and the company operates in four departments, which are Investment Banking, Development Finance, Asset Management, and Industrial Property. The first division in MIDF is Investment Banking division which in charge to provides financial advisory, underwriting of equities and debt instruments, treasury activities, and equity-broking services. The second division is Development Finance division which is responsible to provides medium and long-term financing for new projects, expansion, modernization, and relocation programs. Besides that, it also provides financing fund to manufacturing, manufacturing-related services, infrastructure and utilities, and tourism sectors in Malaysia. However, the third division is Asset Management division which provides investment management services, as well as engages in venture capital activities and invests in companies that require fund for expansion and growth. And the last division is Industrial Property division which helping to develops industrial estates for sale and rental to industries and businesses in Malaysia. It also provides other service such as logistics and warehousing services, as well as engages in the construction of residential properties. Figure 2 had show the MIDF group corporate structure (Notes: The below structure does not include dormant companies and companies which are currently under volunteer winding-up process.). Figure 2: MIDF Group Corporate Structure Vision and Mission/ Objective and goal The mission of Malaysian Industrial Development Finance Berhad (MIDF) is to help clients/customers to prosper and support nation economic growth by providing diversity superior products and service in investment banking, development finance, asset management and industrial property The vision of MIDF is to be reputable and preferred integrated financial services provider by creating superior value for the stakeholder. Besides that, MIDF will be continuously progressive and innovative in utilizing strong expertise in capital market to strive for opportunities that strengthen competitive position. Apart from this, the core value of MIDF was integrity, commitment and excellence. The value of integrity means to pursue the highest standard of social and ethical conduct in all our dealings with the clients, shareholders, employees and the public. The second value is commitment which is define as to have dedication and zeal to complete and s ucceed all tasks and always strives to achieve excellence in providing superior services to our clients. And the third value is excellence to deliver superior standard of services with requisite knowledge and expertise. In additions, the objective of Malaysian Industrial Development Finance Berhad (MIDF) can be dividing into 3 parts, which are human capital development, image branding and community. Firstly, the Human Capital development is to assist and realize the national agenda in developing human capital especially in the field of Development Finance. Besides, MIDS will offer revising workplace incorporating equal opportunities for employments, career advancement and work life balance. Second part is Image Branding part which enhances MIDF reputation and brand not merely in the best service commitment within the business but also amongst the communities and employees as socially responsible corporate organization, partnering the Government in all effort toward nation build ing. Lastly, the objective of Community is to create awareness on nature resource and environment conservation. MIDF also embraces corporate governance and poises ethical business policy which outlines the companys position on socially responsible in investing and financing area. Activity Malaysian Industrial Development Finance Berhad was involved investment banking, asset management, development finance and other business such as Venture Capital, Serviced Residency, Issuing House and Share Registrar and Money Broking. In investment banking sector, the MIDF was involved in Debt Capital Market, Corporate Finance, Treasury and Equity Market. The Debt Capital Market offers advisory services to prospective issuers including and arranging debt securities. The Debt Capital Market team has to date brought many deals to the market, underscoring their ability to implement transactions successfully. MIDF Debt Capital Market team provide optimum financial solutions to help clients to structure difference type of debt as they undertake the promoting, managing, arranging, underwriting and dealing with Private Debt Securities, Islamic Securities, Asset Backed Securities and Underwriting. However in Equity Market, MIDFs stock broking services allow company, institutional, corporate and retail clients to choose the exactly way to invest in the equity markets to best suit clients individual requirements. The service include Stock Shares Trading, Share placements, Underwriting of Stocks Shares, Share margin financing, Market research performance analysis, Authorized Depository Agent and Custody nominee services. The MIDF offers a wide range for clients to invest in Conventional Treasury and Islamic Treasury, including mutual funds, insurance companies, pension funds, corporations, government agencies and domestic interbank parties. MIDF offers ideas and advice as well as trade on a diverse range of Conventional and Islamic money market and capital market fin ancial instruments. However the MIDFs Corporate Finance Department provides advisory services in the areas of Mergers and Acquisitions, Initial Public Offerings on the main board, second board and Mesdaq Market of the Bursa Malaysia Securities Berhad, Establishment of Real Estate Investment Trust, capital rising from primary and secondary equity and equity-linked offering and other related advisory services. In asset management sector, MIDF provides discretionary and non- discretionary mandates to corporate, institutional and individual clients. The main objective is to achieve the optimum total returns on the customers assets and commensurate with the degree of risk specified as acceptable by the clients. On the other hands, MIDFs Development Finance Division provides medium and long-term conventional and Shariah-based financing for new projects for expansion, modernization and relocation program in the manufacturing, manufacturing-related services and services sector in Mala ysia. MIDF is designated by the Government of Malaysia which focuses on small and medium enterprises to process application for financing under soft loan scheme. Below are the soft loan schemes. Credit Guarantee Corporation Malaysia Berhad (CGC) History The Credit Guarantee Corporation Malaysia Berhad (CGC) is the sole provider of guarantee and ancillary service to help Small and Medium (SMEs) with no collateral to gets loans from financial institutions. In 1972, CGC was established on 5 July in and is based in Petaling Jaya. CGC was founded under the Companies Act 1965 and it ownership belongs to Bank Negara Malaysia (76.4%) and commercial bank (23.6%). In the beginning, CGC was focused on assist small enterprises in the agricultural, commercial and industrial sectors. In 1973, CGS was introduced the Credit Guarantee Corporation Guarantee Scheme (small loans), credits facilities eligible for guarantee under the scheme could be used for working capital or for capital ass ets. The amount of the individual loans is depending on the purpose and size of the enterprise. Since 1994, Credit Guarantee Corporation Malaysia Berhad (CGCs) target groups have been develop to include medium-sized businesses so as to better complement the governments efforts in promoting and expanding businesses in certain industries, Development Credit Guarantee Corporation Malaysia Berhad is the leading provider of credit enhancement in Malaysia and it has been instrumental in the establishment of more than 365,000 SMEs since its inception 37 years ago. The CGC providing loans guarantee coverage for partly secured as well as unsecured credit facilities from RM10,000 up to RM10 million to helps SMEs. Currently, CGC has 16 branches nationwide and CGC also represented by all the commercial bank and finance companies. The CGC manages viable credit guarantee schemes with the participant of its partners (lending institution) which has more than 2,600 branches in Malaysia. However, Credit Guarantee Corporation Berhad help SMEs from the based for industrial development by the assistance of the Government. CGC took a holistic approach to expansion the products and play part as advisory service on financial and business development. In early 2006, CGC was embarked on its 3-years business transformation plan and strive to transform CGC from traditional guarantee provider into an effective and financially sustainable institution that provides variety products and service for SMEs at competitive terms. The major focus of its new mission is for the Corporation to achieve financial independence by weaning itself from its current dependence on subsidized funds from the government and Bank Negara Malaysia (BNM). Hence, the CGC now classified as a Development Financial Institution. Organization structure/ overview The CGC is committed to the highest standard of corporate governance. As a governing corporation, the board is fully aware of its responsibil ity and acts in the best interest rate of the corporation. Credit Guarantee Corporation Malaysia Berhad was engages in the formulation and management of viable credit guarantee schemes and its help SMEs via the networking of branches of the commercial banks and finance companies by providing guarantee coverage for partly secured and unsecured credit facilities if manufacturing and other sectors. The chairman of CGC was Dato Zamani Abdul Ghani and Managing Director was Datuk Wan Azhar Wan Ahmand. Figure 2 is showing the organization chart in CGC. Figure 2: Organization chart of Credit Guarantee Corporation Malaysia Berhad Vision and Mission/ Objective and goal The primary objective to establish CGC is to become a sole provider of guarantee schemes and ancillary services to assist Small and Medium Enterprises (SMEs) those without collateral or with inadequate collateral to get loans from financial institution. Besides that, CGC also playing a role to complement the Governments effort to promoting and developing business sector to spurring the economy. The mission of Credit Guarantee Corporation Malaysia Berhad is to enhance the viability of small and medium enterprises through the provision of products and services at competitive term and with the highest degree of professionalism, expertise, effectiveness and efficiency. However, the vision of CGC was to be an effective financial institution dedicated to promoting and stimulate the growth of competitive and dynamic small and medium enterprises. Activity As Malaysias leading credit enhancer for more than three decades, CGC has to date bee n instrumental in the establishment of more than 365,000 businesses, guaranteeing over RM36 billion worth of loans. It currently offers both conventional and Islamic guarantee facilities for SMEs from the various sectors of the economy and the guarantee coverage ranges from 30% to 100%. Nevertheless, there have 7 guarantee programs that CGC provide to SMEs. The CGC broadly categorized as main schemes and program lending schemes which are Credit Enhancer Scheme. Islamic Banking Guarantee Scheme, Direct Access Guarantee scheme, Islamic Direct Access Guarantee Scheme, small Entrepreneur Guarantee Scheme, Flexi Guarantee Scheme and Franchise Financing Scheme. MECD MITI MHR ICU MOSTI MOF Lead Agencies NSDC -promoting -promotion -providing -technical training -providing -marketing training accessibility support management infrastructure BNM (CGCs major shareholder) CGC -incentive to finance RD Supervision Supervision Funds Reporting (Formulating policies) Supervision Financial Institutions Figure 4: Relationship between CGC and Related Government Agencies. NSDC- National SME Development Council MITI- Ministry of International Trade and Industry MECD- Ministry of Entrepreneurial and Cooperative Development MOF- Ministry of Finance MOSTI- Ministry of Science, Technology and Innovation MHR- Ministry of Human Resources ICU- Implementation and Coordinating Unit, Prime Ministers Department BNM- Bank Negara Malaysia (the Central Bank of Malaysia) Lembaga Tabung Haji History In earlier years, many of Malaysian Muslim especially those from rural area which are used traditional methods of saving made them enables to perform Hajj. E.g. they keep their money in pillows under mattress or they purchased land and sold it later to get the money needed for Hajj. However, these traditional methods were very risky in term of securities and value depreciation. Besides that, these traditional methods of saving money are detrimental to the rural economy and urban economy of Malaysia. As a result, pilgrims face difficulties an d financial hardship upon their return from the haji. To overcome these problems, one of the projects was establishment of a saving institution that carries out its activities according to Shariah principles. This project was propose by Royal Professor Ungku Abdul Aziz and he submitted a plan-A Plan to Improve the Economic Position of Future Pilgrims to the government in 1959. In his plan, he recommended that future pilgrims should have save in bank of financial institutions which was untainted by Riba but still gain profits. This suggestion marked as the beginning of the formation of Tabung Haji . However, the concept paper pertaining to the organization and activities of Tabung Haji was presented to Seikh Mahmound Al-Shahltut who is Rector of Al-Azhar University of Cairo. After he investigates the paper, he was convinced and believed that the recommendations made were not violate to Islamic Laws. In August 1962, The Pilgrims Saving Corporation was incorporated and was launch ed on 30 September 1963. Development Tabung Haji beginning its business in 1963 with only 1281 members and total deposits of Rm46,600, the quasigovernment body (under parliament act 1969) now has an around 4 million account holders and more than 2 billion USD deposits. In 1969, the corporation was merged with the Pilgrims Affairs Office which had been operate since1951 in Penang giving cert. to the Pilgrims Management and Fund Board under the Laws of Malaysia Act 8,the Pilgrims Management and Fund Board 1969 and Act A 168, the Pilgrims Management and Fund Borad (Amendment 1973). Apart from this, Tabung Haji has 12 subsidiaries and engaged from the traditional sectors of agricultural, plantation or real estate business to modern information technology. In 1995, Tabung Haji has been allowed to expend its operating framework under an amendment in the act, and now, Tabung Haji is able to extend its business activities even in outside Malaysia. Organization structure/ overvie w Tabung Haji (Malay  Jawi:  ÃƒÆ'ËÅ" ªÃƒÆ'ËÅ"ÃÆ'ËÅ" ¨ÃƒÆ'â„ ¢Ãƒâ€¹Ã¢â‚¬  ÃƒÆ'Ã… ¡Ãƒâ€šÃ‚   ÃÆ'ËÅ" ­ÃƒÆ'ËÅ"ÃÆ'ËÅ" ¬Ãƒâ€šÃ‚  1) is the Malaysian name for the Pilgrims management and Fund Board or we can called it Lembaga Tabung Haji. This organization was formed in 1963 and was formerly known as Lembaga Urusan dan Tabung Haji(LUTH). The headquarters is located at Kuala Lumpur. Besides that, the main function of Tabung Haji is to administer and entirely manage of Malaysian to go for Hajj. Apart from administer Malaysian go for Hajj, Tabung Haji also will facilitates saving for the pilgrimage to makkah through investment in Shariah-compliant vehicles. Below is the organization chart of Tabung Haji. Prime Ministers Department Financial Advisory Council Board of Directors Hajj Operations Advisory Council Finance Committee Welfare Committee Director General Administration and Quality Department Investment Department Finance Department Hajj Department Figure 5: Organizational Structure Tabung Haji Vision and Mission/ Objective and goal The objective of Tabung Haji is to enables Muslims to gradually accumulate savings and used them for Malaysian Muslims expenses in performing the pilgrimage or for other purposes beneficial to them. Besides that, Tabung Haji also enable Malaysian Muslims to participate in investments in industry, commerce, plantations and real estate through their saving according to Islamic principles and provide protection, control and welfare of Muslims while on pilgrimage through the various facilities and services of Tabung Haji. The goals if Tabung Haji is to render the best service to Malaysian pilgrims through the performance of the Hajj and to give the maximum return on their savings. Activity Tabung Haji has provided a product that satisfies two fundamental human needs, which are religious as well as financial. In order to able meet the financial requirement for performing Hajj, Malaysian Muslims used to save money in unsystematic and tra ditional methods which is free of Riba, they less to keep their saving in conventional banks simply because these banks are not operate in Riba-free basic. Tabung Haji operates as an alternative financial institution providing halal investment opportunities to Malaysian Muslim depositors. Its activity can be classified in three major categories, which is Haj service, Depositor and Investments. In category of deposits, any muslim can create his accounts with Tabung Haji with minimum monthly installment Rm10 for adult and Rm2 for children. Tabung Haji has a network of 111 local branches that collect the saving, besides, members also can deposit their saving through post office while reduction from monthly income is another way of collection. An additional facility for accounts holder is Tabung Haji provide an special withdrawal network services to the account holder during Hajj in Saudi Arabia. Apart from saving deposits, Tabung Haji also has an investment council which responsi ble to advice and handle with investment matters. Tabung Haji targets multifaceted investment project under the Shariah principles. Tabung Haji activities are managed under the following Shariah Principles: Al-Musharakah Al-BaiBithaman Ajil Al-Mudharabah Al-Murabaha Al-Qardhul Hasan Al-Ijarah The multi-facted projects which provide by Tabung Haji include short and long-term investments, unit trust investment, real estate investments for office and commercial use, equality investments, schemes offered by government and investment in subsidiary companies. In 1995, Tabung Haji has been allowed to expand their operating framework and now is able to extand its business activities even in foreign countries.Profits that earned from investment will channeled to the depositors accounts, which is bonus, it is not only tax free but also exempted fromzakat. Nevertheless, Tabung Haji also plays an important role in facilitating the performance of Hajj. The most significan t is the cost aspect, the costs involved in performing Hajj for Malaysian are lower than other countries like Indonesia and Singapore.This is because Tabung Haji is in position to subsidize many of the expenses involved in Hajj management. Tabung Haji has an exclusive department responsible to in charge all the service required in respect of Hajj. In additions, security, welfare, medical and other emergency service during Hajj are provided free of charge. Sabah Development Bank Berhad History Sabah Development Bank Berhad (SDB) was incorporated on 9 August 1977 under the name of Bank Pembangunan Sabah as a public limited company under the Companies Act 1965. The following year, Bank Pembangunan Sabah changes its official name to Sabah Development Bank Berhad and its granted with specific consent from the Federal Ministry of Finance to use the word bank in its company name. The establishments of SDB by the State Government of Sabah shows the desire of Sabah government sta te to create a network of financial institutions that can respond and are capable and effective in achieve the needs of economic development in the state. In June 1978, Sabah Development Bank Berhad (SDB) starts operation its first office at Wisma Sabah in Kota Kinabalu under the management of Tan sri Hj Abdul Majid Khan (first chairman) and Datuk Richard W.Maning (as the first managing director and chief executive. In 1981, Sabah Development Bank Berhad moved its office to the Berjaya Headquarters Builiding Karamunsing, after 4 years, SDB relocating to the current address at Wisma Tun Fuad Stephens. In 1996, Sabah Development Banks was privatized when it was acquired by Sabah-based Investment Holding Company and Suria Capital Holdings Berhad. However, SDB was re-acquired by the State Government of Sabah to make SDB become an active financial intermediary of the State Government in 1999 until today. Development Sabah Development Bank Berhad, is a development bank which o ffers financial and non-financial services to public and private sector projects in order to foster a strong and healthy corporate participation in the growth of economy Malaysia. Besides, SDB embrace an idea to enhancing the entrepreneurial and corporate development to provide economic dynamism and growth, particular in Sabah. SDB also playing role and act as financial intermediary for the state of the State of Government Sabah and its agencies to involved in the development of the infrastructure and public projects such as the construction of roads, bridges, low-cost houses, water supply and port extension projects. The development will be focused in establishing a smart partnership in any viable undertaking in fulfilling their roles as a DFI with a cutting edge and aspire to be the leading DFI in Sabah. Organization structure/ overview The company is incorporated as a public company which wholly owned by the State Government of Sabah. Figure 6: Sabah Development Bank Berhad (SDBS) Group Structure The chairman of Sabah Development Bank Berhad is Mr. Peter Siau Wui Kee and The Managing Director/ Chief Executive Officer was YBhg. Datuk Peter Lim Siong Eng. The organization chart of SDB is showing in figure 7. Figure 7: Organization Chart of Sabah Development Bank Berhad Vision and Mission/ Objective and goal The vision of Sabah Development Bank Berhad is to become the leading Development Financial Institution (DFI) in Sabah and to be the DFI that remains on the cutting edge in Malaysia. Sabah Development Bank Berhad also setting company missions as their guideline to operate their businesses. The first mission is striving to provide sound and prompt financial and advisory services to the Sabah State Government and its agencies. Second, is to determine venture into every aspect of development banking for both public and private sectors. And the last mission is to build a Bank of integrity and nurture the people who are Skillful, Adaptable, Believable, Accountable and Honorable (SABAH) in his personality and abilities. Activity The activity that involved by the SDB is to functions as State Governments Financial Intermediary and is committed to raising the funds for projects undertaken by the Sabah State Government, and SDB also become a advisor to advisory service to the government and its agencies related to project financing and investment matters and control the surplus funds of the government. The company provides capital support for the development of infrastructure and public projects, such as the construction of bridges, roads, houses, and water supply and port extension facilities, as well as projects in agriculture, tourism, and manufacturing sectors. Furthermore, SDB lending portfolio comprises project and bridging finance, finance for fixed assets, working capital, and small and medium industries (SMEs). Below is the activities and service that provide by SDB:   Lending   Islamic Banking   Loan Syndication   Corporate Advisory   Venture Capital/Equity Participation   Governments Financial Intermediary and Other Services The company provides loan syndication services; corporate advisory services for project investigate and evaluations. Besi des, SDB offers venture capital/equity participation services; and Governments Financial Intermediary services. In addition, it also offers project rehabilitation services; organizes conferences, seminars, and workshops; and publishes a regular economic bulletin for the general public. Sabah Development Bank Berhad offers its services through a staff force that pursues a mission to nurture a people that are Skillful, Adaptable, Believable, Accountable and Honorable. In this way, SDB endeavors to move forward with strong confidence as a respected and financially sound institution towards the challenging world of the financial industry Sabah Credit Corporation Berhad History Sabah Credit Corporation (SCC) was established in 1955 at Sabah, Malaysia. The earlier name of Sabah Credit Corporation (SCC) was called North Borneo Credit Corporation (NBCC). In 15 June 1955, the North Borneo Credit Corporation (NBCC) was founded under the Credit Corporation Ordinance No.1 of 1955 . North Borneo Credit Corporation start their operations with a launching grant of RM1 million from part of Japanese Compensation Fund. At that time, NBCC was under the British Colonial Administration and was manned with grain staff strength of four. However, North Borneo Credit Corporation (NBCC) changed its name to Sabah Credit Corporation (SCC) in 1972. In 1981, the activities of the Corporation are governed when the ordinance was replaced by the state Enactment No. 22 of 1981. Development The Sabah Credit corporation was founded in 1955 which to promote the economic growth in Sabah through the provision of medium and long-term credit for private investment. It helps to develop light industries, shop house, agriculture, animal husbandry, transport, fisheries and poultry. The resources of the corporation are derived to large extent from low interest loans from the Sabah government. The headquarter of Sabah Credit corporation was located at Kota Kinabalu and operate throug hout the State of Sabah with local networking of 11 District Client Center and 5 Collection center. Sabah Credit Corporation will continue its effort to the improvement of the socio-economic of the state and strive to provide high quality service to ensure customer satisfaction in terms of processing speed, attractive interest rate, innovative financial products and service. Furthermore, SCC also emphasis in good corporate governance, risk management, intensive KPIs, ICT and human capital will be the main key pillars for SCC to continually progress. Nevertheless, the practice of corporate finance is critical to SCCs strategic positioning plan as SCC transform from government-support organization to self-sustaining organization. Sabah Credit Corporation believes that is important set global principles that guide the members in streamlining and govern the affairs of the Corporation to maximizing long term value for the government state and the interest of stakeholders. In recent years, SCC has involved the processes and system that enhance good corporations governance through the conduct of regular view for continual improvements. Organization structure/ overview The ownership of Sabah Credit Corporation was fully owned by the Sabah government state in Malaysia and operates under the area of the Sabah State Ministry of Finance. SCC is a type of development finance institution and had around 210 employees. The Chairman of SCC was YB Teo Chee Kang, JP whose leading the corporations and the Deputy Chairman was Datuk Mohamad Bin Jafry and the Sceretacy/ General Manager is Datuk Vincent Pung Yee Kiong. Figure 8 showing the structure of Sabah Credit Corporations. Figure 8: Sabah Credit Corporation Organization Chart. Vision and Mission/ Objective and goal The main objective of the Sabah Credit Corporation is to help contributes toward the socio- economy development of Sabah. SCC playing a role as a financial institution, the corporation complements the Sabah State Governments effort by offers financial credits to promote and encourage private investment involving agriculture, development of rural and urban housing, light industry, public utilities and amenities. The vision of Sabah Credit Corporation was To Make a Difference by devote to the states Economic and Social Agenda. Besides that, the mission of Sabah Credit Corporation has 5 identify keys strategic to support the vision. The first objective was to improve asset quality through controlling non-performing loans and managing investment risks. The second objective is to implanting leadership and accountability within the company by rejuvenating human capital through development program. Beside hat, SCC emphasis their mission whic h is contributing to the environmental improvement through providing financial credits to organic farmers in order to promote organic farming practices. Furthermore, SCC also emphasis in providing easy loans to small businesses by introducing community loans to curb out the rising phenomena of unlicensed money lenders. And the last mission was helping the less fortunate through allocating annual funds for community projects. Activity The activity of Sabah Credit Corporation is providing medium and long-term credit for private investment, such as personal credit loans/ executive loans, residential property loans, hire purchase loans and projects development loans. For example, The projects loans is provide to financing projects or business such as agriculture and animal husbandry, purchase of shop house, bridging, and professional and a bumiputera special scheme however the hire purchase loans is to provide financial credit to civil servants for purchase furniture, personal com puters, electrical goods, motorcycles and cars. Besides that, Sabah Credit Corporation also involved in charitable projects in1997 called Sabah Credit Corporation Social Corporate Responsibility (CSR) programs. CSR is a program which launched as part of the Corporations new training program PRIDE. The programs involved in implementation of a smaller size community and charitable projects, implemented on collaboration basic between the worker of the Corporation and the beneficiaries of the projects. In addition, the Sabah State Government allowed SCC to utilize 5% of the SCCs annual profit after tax for this program. These programs are located at various locations and have benefited thousands of Malaysians in Sabah. The CSR program involved in variety of projects, priority is given to projects that have related with education, single mother, children, women and the disable in the rural areas. Besides that, CSR also involved in the constructions of school hostels, mini library, clinic, water gravity, women and singer mother centers, learning and activity centers for the disable and the less fortunate, suspension bridge and other that approve by the SCC