KUALA LUMPUR, July 7 (Bernama) -- SME Bank is on target to disburse RM1.5 billion in loans by year-end, said its managing director, Datuk Mohd Radzif Mohd Yunus.

He said the bank gave out RM700 million in loans in the first half of this year in continuing efforts to assist small and medium enterprises (SMEs).

"Under the Five-Year Transformation Plan, we will definitely increase them by two per cent next year and three per cent the following year, based on our significant market share," he told a media briefing after the bank's Entrepreneur Forum Series here Thursday.

Deputy Minister of International Trade and Industry, Datuk Mukhriz Tun Dr Mahathir, officiated at the forum.

Radzif said the bank aimed to increase its market share by between five and ten per cent by 2015, from two per cent now.

He said as a development bank, profits were not the main criteria.

"Instead, the bank will play a more positive role to nurture SMEs in all aspects of their businesses while providing critical financing to ensure that their businesses take off from the drawing board," he said.

He said SMEs had grown with the nation.

"Under the government's New Economic Model, SME Bank has been entrusted to assist SMEs in their business life cycle, especially in the development and growth stage," he said.

SMEs currently contributed about 22 per cent to gross domestic product (GDP), he said, adding that the figure was expected to increase to 40-50 per cent by 2020 (growth of 6.5 per cent annually).

The one-day forum, themed, "Plant a Seed, Plant an Idea," aims to create a sustainable entrepreneurship culture and aspiring entrepreneurs to venture into small and medium-sized businesses from young.

It is jointly organised by SME Bank, Universiti Sains Malaysia, Universiti Teknologi MARA and Mechai Viravaidya Foundation, Thailand.

-- BERNAMA