SME Bank aims to approve RM2.5 billion in financing 1,000 SMEs
Published on: Thursday, January 11, 2024
By: Bernama
SME Bank will grant growth approval of between RM3.5 billion and RM4 billion, of which RM2.5 billion is allocated to SMEs. (Freepik pic)
PETALING JAYA: Bank aims to approve RM2.5 billion in financing for over 1,000 small and medium-sized enterprises (SMEs) this year, said its group president and CEO Aria Putera Ismail.
Last year, the bank approved RM2.7 billion in financing, with around 90% directed towards SMEs.
ADVERTISEMENT
“For the current year, RM2.5 billion is designated for SMEs, with the remaining funds directed towards commercial financing.
“Our primary focus is on SMEs encountering challenges in securing financing from traditional banks,” he said during a visit by deputy entrepreneur development and cooperatives minister R Ramanan to SME Bank’s headquarters today.
Aria has identified key sectors for targeted financing, including technology, healthcare, construction, and services sectors that are recognised by the government for their high-growth potential.
Additionally, SME Bank aims to prioritise entrepreneurial empowerment programmes in 2024 by expanding markets globally, including the UK and Europe.
ADVERTISEMENT
“In every interaction with SMEs in the market, our approach encompasses various facets: firstly, financing; secondly, capacity-building.
“Furthermore, for ventures into export markets, we emphasise an additional element, facilitating market access,” he added.
ADVERTISEMENT
Meanwhile, Ramanan said the total approved growth target for this year is expected to be around RM3.5 billion to RM4 billion.
“RM3.5 billion to RM4 billion worth of growth approval will be issued from SME Bank. From that amount, RM2.5 billion is for SMEs, and the remaining RM1.5 billion is for commercial financing including environmental, social, and corporate governance development.
“There will also be an allocation for SMEs to penetrate international markets and cross-border programmes,” he said.
Ramanan applauded the bank for its collaborative efforts to enhance the number of registered social enterprises in Malaysia through a strategic partnership with the Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR).
“CEDAR has been initiated from 2021 until 2023, and SME Bank, in collaboration with our department, has appointed 2400 entrepreneurs in stages, including three tiers.
“This development could potentially serve as inspiration for other business owners to actively partake in similar initiatives. SME Bank, in turn, is strategically targeting a surge in participant numbers compared to previous instances,” he said.
He also said the plan to extend CEDAR’s assistance nationwide, beyond being limited to SME Bank, will be presented to the entrepreneur development and cooperatives minister Ewon Benedick before being brought to the prime minister.
“I will bring this matter to the minister for discussion and present such initiatives that can benefit the public. After obtaining approval at the ministry level, we will certainly bring it to the attention of the prime minister,” he added.
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
