SME Bank is set to boost its financing approvals by RM2.5 billion this year, with the aim of supporting over 1,000 small and medium enterprises (SMEs).
The bank’s Group President and CEO, Datuk Wira Aria Putera Ismail, highlighted that of the RM2.7 billion approved in the previous year, approximately 90% was allocated to SMEs.
“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 Minister of Entrepreneur Development and Cooperatives Datuk Ramanan Ramakrishnan to SME Bank’s headquarters here today.” he said.
This year’s focus remains on SMEs facing challenges in securing financing from traditional banks, with key sectors identified for targeted funding including technology, healthcare, construction, and government-recognized high-growth potential service sectors.
Aria emphasised a holistic approach, encompassing financing, capacity building, and facilitation of market access, particularly for ventures into global markets such as the United Kingdom and Europe.
“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.
Deputy Minister of Entrepreneur Development and Cooperatives, Datuk Ramanan Ramakrishnan, disclosed a total growth approval target of RM3.5 to RM4 billion for 2024. Of this, RM2.5 billion is earmarked for SMEs, while the remaining RM1.5 billion is allocated for commercial financing, including environmental, social, and corporate governance development.
“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 be also an allocation for SMEs to penetrate international markets and cross-border programmes,” he said.
Commending SME Bank’s collaboration with the Centre for Entrepreneur Development and Research Sdn Bhd (CEDAR) to enhance the number of registered social enterprises, Ramanan highlighted plans to extend CEDAR’s nationwide assistance, subject to approval at the ministry level before reaching the Prime Minister.
“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.
“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.
SME Bank’s strategic initiatives align with national efforts to stimulate economic growth, promote social enterprises, and empower SMEs in their expansion endeavors.
