Maybank targets RM28b retail SME loans this year

KUALA LUMPUR: Malayan Banking Bhd (Maybank) aims to grow its retail small and medium enterprise (RSME) loan portfolio by 27% to RM28 billion this year, from RM22.1 billion in 2015, by aggressively expand the financing model across Asean.
"Because of our success in Malaysia, we intend to roll out this RSME platform to other countries where we have franchises, particularly Singapore, Indonesia, the Philippines, Cambodia, Laos and Brunei," Maybank group head community financial services Datuk Lim Hong Tat told reporters at a media briefing yesterday.
"We have rolled out the RSME model in these markets since 2014, but now they are all at different stages," he said.
To Maybank, RSMEs refer to businesses with an annual turnover of up to RM25 million and total debt exposure of not more than RM5 million.
As at the end of 2015, its RSME loans grew more than 35% to RM22.1 billion from RM16.31 billion in 2014 while the group market share in the SME industry, in terms of financing currently stands at 21%.
In terms of RSME financing in Malaysia, Lim said the group targets 40% growth in loans to RM14 billion, from RM10 billion recorded last year.
At the same time, he said, the group also plans to boost its micro-credit financing in the country by 78% this year to RM50 million, compared with RM28 million at the end of 2015.
Lim said the plan is part of the group's initiative to assist small entrepreneurs, as well as to support the government's effort to raise the living standards of the lower income group.
"We see micro-credit financing as a growing market and take it as part of our corporate responsibility in line with our mission of humanising financial services," he said.
As at December 2015, Maybank had disbursed RM36.23 million to micro businesses, benefiting more than 4,500 customers.
Micro-credit financing offers loans ranging from RM1,000 to RM50,000 for micro enterprises that have been in operation for at least three years, and is meant for business financing purposes such as for working capital and capital expenditure.