Maybank set to loan RM18bn to SMEs in 2024
Small and medium sized enterprises in Malaysia are set to benefit from financing worth RM18 billion (around £3bn) from Malayan Banking Bhd (Maybank) this year.
The figure represents an increase of 13% in SME financing, said group chief executive officer for community financial services John Chong, who said the bank released close to RM17 billion in SME financing last year, of which RM5 billion was sustainable financing. This brought total financing for SMEs to RM66 billion from 2019 to 2023.
“We provide expert guidance and tailored support through practical tools, consultancy and advisory services, certification, and accreditation facilitation, as well as financing to cater to all their personalised business requirements,” he said at the launch of myimpact SME Hub by Prime Minister Anwar Ibrahim.
Maybank’s myimpact SME Hub is a one-stop integrated and holistic ecosystem for Malaysian Small and Medium Enterprise (SMEs), “offering value-based solutions established on sustainable and ethical principles”.
The bank said it also serves as a knowledge hub and support system “to facilitate and partner SMEs in their journey to transition towards sustainable practices”.
Along with leading industry partners, Maybank aims to empower SMEs in Malaysia “to achieve a balance between the social responsibility, environmental impact and economic prosperity in navigating through the global supply chain to succeed on the world stage,” it said.
At the hub’s launch, Khairussaleh Ramli, President & Group CEO of Maybank, said: “Maybank has always been a champion of the SME segment, acknowledging them as the backbone of the nation’s economy. With the launch of the myimpact SME Hub and in line with our purpose of Humanising Financial Services, we are taking our support a step further to equip them with the tools and knowledge to navigate the business landscape and invite them to make the empowering impact towards sustainability choices. By fostering a thriving and responsible SME ecosystem, Maybank remains dedicated to not just supporting businesses, but building a brighter, more viable future for all.”
John Chong said since the pandemic, Maybank has supported more than 18,000 SMEs in loan repayment assistance worth RM30.4 billion.
“We want to support the SMEs beyond banking. We want to support them in operational efficiency, such as helping their accounting payroll and solving operational issues.
“We want SMEs to transition into sustainability and get them involved in more environmental, social, and governance initiatives,” he said.
Banks urged to remain competitive
Also speaking at the hub’s launch, Prime Minister Ibrahim has urged the country’s banking industry to remain competitive in dealing with the concurrent ‘three Cs’ phenomenon in post-normal times – complexity, chaos and contradictions.
He said that given the financial industry’s vital role in supporting the national economy, banks need to have a strong ability to stay competitive.
“Banks should bear the responsibility along with the government to ensure the success of economic reforms highlighted in the MADANI Economy (framework).
“The framework aims to effect an economic transformation by raising economic value in the global supply chain as well as improving the sustainability of the national economy,” he said in his speech at the launch of myimpact SME Hub.
Anwar said the MADANI Economy framework focuses on three industries to raise the nation’s status, namely energy transition, food security and digital transformation.
However, to ensure a fair distribution of wealth, the MADANI Economy also stresses the need for the micro, small and medium enterprises to participate in these industries, he said.
Anwar said the financial institutions are a pillar in the national economic system as they assist in building confidence among the public as well as local and foreign investors.
“Other matters related to the speed, efficiency and capability of bank management are (the bank’s) concern about staff well-being and programmes aligned to the nation’s demands,” he said.
Anwar also praised Maybank’s success and performance in Malaysia and the region as a large financial institution that has achieved milestones in tandem with the growth of the national economy.
The Madani Economy strategic roadmap was unveiled in October 2023 in Malaysia’s 2024 National Budget. As part of the Madani concept, the government prioritises six integrated components – sustainability, care and compassion, respect, innovation, prosperity and trust.
