Kuala Lumpur, Thursday, 10 November 2016: The Association of Banks in Malaysia would like to clarify a recent news report that Malaysian banks are turning cautious on lending.
Commercial banks in Malaysia have played an essential role in the country’s economic growth by providing credit facilities to businesses and households, and they will continue to do so.
Commercial banks are in the business of lending and viable businesses will continue to be able to obtain financing. Recent data has shown that commercial banks remain supportive of businesses and households by extending loans to eligible applicants. As at end September, the outstanding business loans of the banking system recorded an annual growth of 2.0%, with loans being granted to the real estate; agriculture; manufacturing; and finance, insurance and business services sectors. In particular, both the annual growth in outstanding SME loans and the level of loans disbursed to SMEs continue to improve. Meanwhile, lending to households continues to grow, albeit at a slower pace with outstanding loans to this segment expanding by 5.6% in September 2016.
Many types of financing are available to SMEs/entrepreneurs based on the size of businesses, such as micro-financing and/or the various grants and funds offered by the Government. In addition, there are various funds and options available to SMEs such as Bank Negara Malaysia’s SME Funds, Credit Guarantee Corporation’s Guarantee schemes, Green Technology scheme, and SME Emergency Fund.
Businesses which face challenges in their loan applications should work with their financiers when making the suitability and affordability assessments for any facility they applied for. Banks on their part are committed to enhance their capability to support businesses and entrepreneurs which include the offering of various loan packages to meet the needs of innovative enterprises.
ABM also provides avenues for businesses and entrepreneurs to highlight issues which they may face with their banks in connection to their loans or loan applications. Entrepreneurs may contact ABMConnect at 1-300-88-9980 or write in to eABMConnect via its website, www.abm.org.my
with regard to general queries on financing or specific issues related to commercial banks.