BUDGET 2008 WILL HELP SMEs MOVE UP VALUE CHAIN

Alliance Bank in Budget dialogue with customers

Kuala Lumpur, 25 September 2007 --- Small- and Medium-sized Enterprises (SMEs) should take advantage of the incentives granted under Budget 2008 to expand their operations and move up the value chain, according to Alliance Bank Group Head Commercial Banking, Fung Kai Jin.

"The Government has clearly made the development of SMEs a high priority. The tax relief provided under Budget 2008 has been put in place to further boost the performance of SMEs. SMEs should take advantage of these incentives," said Fung when welcoming participants to the Alliance Commercial Banking Post Budget 2008 Dialogue.

"SMEs are expected to contribute up to 37% of the national gross domestic product and 22% of Malaysia's total export value in 2010. To achieve the target, it is imperative that SMEs step up by acquiring and building the necessary capital base, financial savvy and technical know-how to operate through these changing times," added Fung.

The Alliance Commercial Banking Post Budget 2008 Dialogue forms part of the financial services group's on-going business enhancement programme for its SME customers. Ernst & Young Tax Consultants Sdn Bhd was invited to present on the Corporate and Individual Tax Implications of Budget 2008 at the Dialogue. It was attended by more than 150 of the Bank's SME customers.

Commented Fung: "Alliance Bank is constantly striving to build true and lasting partnerships with our customers and this talk is part of our continuous effort in bringing value to our clients and partners."

"SMEs make up approximately 30% of the Bank's total loan portfolio and we expect to grow faster than the industry by 4-5 times."

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About Alliance Financial Group

Alliance Financial Group is a dynamic, integrated financial services group offering end-to-end financing solutions through its consumer banking, commercial banking, wholesale banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management by providing products and services that are suited for every customer at every stage of their life.

The Group has five decades of proud history in contributing to the financial community in Malaysia with its innovative and entrepreneurial business spirit. Today, the Group is involved in the provision of financial services through its principal subsidiaries, Alliance Bank Malaysia Berhad, Alliance Investment Bank Berhad and Alliance Investment Management Berhad. It provides easy access throughout the country by serving its broad base of customers via multi-pronged delivery channels which include 77 retail branches, 14 Privilege Banking Centres, 19 Hire Purchase hubs, 24 Business Centres, 12 Investment Bank branches, 8 direct marketing offices and 3 unit trust agent offices located nationwide in a mix of rural and urban areas.

The Group's aspiration is to be Malaysia's premier integrated financial services group delivering the best customer experience and creating long term shareholder value. Strategic alliances, enhanced group synergy, excellent technology and human capital will be the key to creating long term value for all stakeholders.