Alliance Bank sees 20pc increase in SME loans[ 02-08-2010 ]
ALLIANCE Bank Malaysia Bhd expects its loan to small and medium
enterprises (SMEs) to increase by 20 per cent in the next two years as
more SMEs are established.
Its head of SME banking Steve Miller attributes the anticipated increase to the government's effort to encourage SME growth.
"Other countries have high gross domestic product (GDP) contributed by
SMEs, therefore it will be more room for expansion in Malaysia's SMEs,"
he told reporters after the launch of Alliance Bank SME seminar "Rich
Biz, Poor Biz, Success and Sustainability" in Kuala Lumpur yesterday.
Alliance Bank has some 60,000 SME clients.
"We serve all
segments of the value chain according to the government definition, from
core SMEs to smaller commercial companies," he added.
Last year, the SME segment contributed 25 per cent to the bank's growth.
"And now besides financing, we're also focusing on cash management
products as there is always a need for SMEs to better manage and sustain
their cash flow," Miller said, noting that not all SMEs need financing.
Asked
if most local SMEs will be affected by a possible double-dip recession
in the global economy this year, Miller said it was unlikely as their
businesses are predominantly locally-based.
"However, it might
affect SMEs that solely focus on exporting to Europe and US as these
two economies are having a hard time," he added.
Meanwhile,
Deputy Minister of Domestic Trade, Cooperative and Consumerism Datuk Tan
Lian Hoe urged commercial banks to be more proactive and aggressive in
helping SMEs, especially at the district levels.
"Because
commercial banks are not playing an active role in assisting them, many
SMEs are turning to Ah Longs (loan sharks) when they face any problems,"
she added.
There are currently 548,267 registered SMEs in Malaysia in various sectors.
"SMEs are very important business entities as the economic future of
Malaysia will depend on their continued success," she said.
Last year, SMEs contributed 31.4 per cent to Malaysia's GDP. Under 10th
Malaysia Plan, the government allocated RM10 billion for SMEs.
