Strategic management analysis: MIDF Sabah loan processing / Cecilia Amid and Raymond Batahong

MIDF is one of the key Development Financial Institutions (DFIs) in Malaysia with specific mandate to facilitate access of financing for Small & Medium Enterprises or SMEs; an economic sector that has been and will continue to play a pivotal roles in the economic development agenda of the nation. MIDF has instituted in its processes to obtain feed back from customers on a regular basis. Customers had put forward to MIDF their values for shorter cycle time in loan application; whereby 155 days KPIs duration between the day application submitted to the day the applied financing is being disbursed is to be shorten. Therefore, the objectives of this applied business research are to identify factors that affecting the cycle time and to recommend solutions through, the strategic management tools. Through qualitative methods in data gathering of face-to-face interview session, factors such as processes and procedures, people and information system have an impact to the loan application processing cycle time. Through literature review and strategic management tools of SWOT analysis, SWOT matrix and QSPM, an improved version of process flow supported by review of policies and procedures as well as use of technology is necessary to shorten the cycle time.