JOHOR BARU: The Entrepreneur Development Ministry clarified today that the non-performing loans (NPLs) related to small and medium entrepreneurs (SMEs) as reported in the media referred to the NPLs of development financial institutions (DFIs).
In a statement issued here, the ministry said the NPL ratio of the DFIs stands at 15%, according to official figures from Bank Negara Malaysia.
“DFIs currently provide only 5% of total SME financing whereas banks (financial institutions) provide the balance of 92%.
“When aggregated, the NPL for Malaysia is only 3.5%, which is lower than that in most countries in the world,“ the ministry said.
The statement clarified today’s news reports which had quoted the minister as saying that the NPL ratio among Malaysian small and medium enterprise entrepreneurs is among the world’s highest at between 15% and 20%. – Bernama