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OECD/THAILAND SEMINAR ON
FINANCIAL INCLUSION AND FINANCIAL LITERACY
IN ASIA
“ACCESS TO FINANCE” -
CAMBODIA, LAO PDR, MALAYSIA,
MYANMAR, & THAILAND
Ratchada Anantavrasilpa CFA CIPM
Senior Financial Sector Specialist
December 17, 2014
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CAMBODIA AND MALAYSIA PERFORM BETTER THAN OTHER
COUNTRIES IN GETTING CREDIT
CAMBODIA LAOS MALAYSIA MYANMAR THAILAND
Getting credit (rank) 12 116 23 171 89
Getting credit (DTF
higher = better)
80 35 70 10 45
Strength of legal
rights (0-12)
11 7 7 2 3
Depth of credit
information index
(0-8)
5 0 7 0 6
Credit registry
coverage (% of
adults)
0.0 3.5 56.2 0.0 0.0
Credit bureau
coverage (% of
adults)
29.3 0.0 78.6 0.0 52.7
Top
performers
Bottom
performers
WEF GLOBAL COMPETITIVNESS
REPORT 2014-2015
8th pillar:
Financial market
development
KHM LA MA MM TH KHM LA MA MM TH
Availability of
financial services 4.1 4.3 5.6 2.8 5.3 91 79 17 139 28
Affordability of
financial services 3.9 4.2 5.6 3.0 5.0 92 57 12 136 35
Financing through
local equity market 2.2 2.9 5.1 1.9 4.6 131 100 8 137 18
Ease of access to
loans 2.7 2.8 4.8 1.4 3.6 80 71 2 144 23
Venture capital
availability 2.7 2.5 4.6 1.6 3.0 60 85 2 143 44
Soundness of banks 4.5 4.8 5.7 3.5 5.7 88 76 35 131 37
Regulation of
securities exchanges 3.2 3.9 5.5 2.2 5.0 118 79 13 135 27
Legal rights (0-10,
10=best) 8 4 10 4 5 29 96 1 96 85
SCORE (1-7; 7 = the best) RANKING (OUT OF 144)
CAMBODIA: EASE OF DOING BUSINESS SUMMARY
(RANKINGS)
4
(Outer means better ranking)
CAMBODIA: BASIC DATA – ICA 2011
• 95% of listed business establishments have 5 or less employees (Source: KHM 2011 Economic
Census)
• Firms with line of credit and / or bank loan by size of firm
• Firms with line of credit and / or bank by sector
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Size Percentage
Small 24.0
Medium 23.5
Large 16.5
Total 23.8
Sector Percentage
Agro processing 18.8
Manufacturing (excl. agro processing) 24.8
Trade 24.1
Tourism 26.5
Other 15.8
Total 23.8
CAMBODIA : BASIC DATA
• Firms with a current loan by status
• Reasons for not applying for credit
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Status Percentage
Formal 37.2
Informal 19.1
Note: a firm is defined as formal if it did register with MoC
according to the sampling frame (Establishment Listing 2009 /
Census Listing 2011)
Reasons Percentage
No need for a loan 81.75
Application procedures are complex 8.93
Interest rates were not favorable 5.96
Collateral requirement were too high 1.10
Size of loan and maturity were insufficient 0.03
Did not think it would be approved 0.31
Do not loan? 0.31
Circle loaning 0.21
Do not want to get a loan from someone 1.41
Total 100
LAO PDR: EASE OF DOING BUSINESS SUMMARY
(RANKINGS)
(Outer means better ranking)
LAO PDR: DESPITE HIGH GROWTH OF BANKING
SECTOR, ACCESS TO FINANCE IS AN ISSUE FOR
SMALL AND MEDIUM ENTERPRISES
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Banking industry is tripled in
size in the past 5 years……
but….
Access to finance remains the
main obstacles…. especially
for SMEs
Small Firms
(1-19
Employees)
Large Firms
(100+
Employees)
Medium Firms
(20-99 Employees)
Biggest business obstacles
$12 m
illion
$ 3
millio
n
$ 12 million
$ 20 million
$ 3
0 m
illion
TA
1 TA to DOSMEP
2 TA to Participating FIs
3 TA to SMEs
$ 5
millio
n
$ 47 million
$ 15 million
LAO PDR: SME ACCESS TO FINANCE AND RSF
MALAYSIA: EASE OF DOING BUSINESS SUMMARY (RANKINGS)
(Outer means better ranking)
MALAYSIA:SME IS ONE OF THE MOST IMPORTANT
SECTOR CONTRIBUTING 97% OF FIRMS, 22% OF
LABOUR FORCE AND 33% OF GDP
SMEs contribute significant proportion of the country’s employment
SMEs also contribute significant proportion to the GDP, especially
SMEs in manufacturing and services industry
Source: SME Corporation Malaysia
MALAYSIA: SMES LANDSCAPE
MOST SMEs are in services
More than 75% of SME
employment is from micro
and small enterprises;
Source: SME Corporation Malaysia
MALAYSIA: ACCESS TO FINANCE REMAINS AN
ISSUE FOR SMES
Source: SME Corporation Malaysia
MALAYSIA: LARGE MAJORITY OF FINANCING
OUTSTANDING COMES FROM BANKING INSTITUTIONS
A
K
A K B C
D E
F
G H I J
C
J
H
Source: SME Corporation Malaysia
MYANMAR: EASE OF DOING BUSINESS SUMMARY
(RANKINGS)
15
(Outer means better ranking)
MYANMAR: BASIC DATA
• Domestic Credit to GDP = 4.7%
• Over 70% of adults do not have formal access to credit (19%), savings (6%) and deposits
• Available financial products do not fully meet the clients’ needs (in term of loan size, loan term,
cost, quality) - > only simple financial products are available
• Limited credit card, mortgage, mutual funds, equity investment, etc.
• Penetration ratio of L & NL insurance products < 3% (Source: MAP 2013)
• Private firms identify access to finance as the largest obstacle to do business in MM. (Source: ICA
2014)
16
THAILAND: EASE OF DOING BUSINESS SUMMARY
(RANKINGS)
17
(Outer means better ranking)
THAILAND: GDP 2013 (THB TRILLION)
18
Non-Agri
Source: Office of SME Promotion, Thailand
THAILAND: SME DATA 2013
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Enterprise # (million) % of Ent % of SME
SE 2.75 96.7 99.52
ME 0.013 0.47 0.48
LE 0.007 0.26
Total 2.844
Enterprise Employment % of Ent % of SME
SE 10.4 73.79 91
ME 1 7.17 9
LE 2.6 19.03
Total 14.09
Source: Office of SME Promotion, Thailand
Thank You
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