KUALA LUMPUR: SME Bank is set to propel the growth of more than 1,000 small and medium enterprises (SMEs) through an ambitious RM2.5 billion approval expansion this year.
Its group president and chief executive officer Datuk Wira Aria Putera Ismail has expressed confidence in achieving this significant boost with the bank's allocated financing of RM4 billion.
Highlighting last year's accomplishments, Aria revealed that the bank had successfully approved RM2.7 billion in financing, with approximately 90 per cent of the funds directed towards SMEs.
"For the current year, RM2.5 billion is earmarked for SMEs, while the remainder will be allocated for commercial financing. While some SMEs also access commercial financing, these are typically businesses with stable operations eligible for funding from conventional commercial banks.
"Our primary focus is on SMEs facing challenges securing financing from traditional banks," he said during the visit by Deputy Minister of Entrepreneur Development and Cooperatives, Datuk Ramanan Ramakrishnan, to the SME Bank's headquarters.
Aria identified key sectors for targeted financing, including technology, healthcare, construction, and services — sectors recognised by the government for their high-growth potential.
Additionally, SME Bank aims to prioritise entrepreneurial empowerment programmes this year with plans to expand markets globally, including the United Kingdom and Europe.
"In every interaction with SMEs in the market, our approach encompasses various facets — initially, financing; secondly, capacity building.
"Furthermore, for ventures into export markets, we emphasise an additional element – facilitating market access."
Meanwhile, 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."
"Over the years of executing this programme, a discernible rise in participant engagement has been observed, attributable to CEDAR's provision of training and support aimed at elevating their standing.
"This development could potentially serve as inspiration for other business owners to actively partake in similar initiatives. The SME Bank, in turn, is strategically targeting a surge in participant numbers compared to previous instances," he said.
He also revealed that the plan to extend CEDAR's assistance nationwide, beyond being limited to SME Bank, would 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."