While there have been consistent double-digit growths for loan requests from small- and medium-sized enterprises (SMEs) over the last eight years, there will be a slight dip for the rest of 2023.
“(Even if) this year may dip slightly, I still believe it will remain as a major engine of growth for Ambank. Hopefully, it will pick up in the second half of 2024 and, (in the meantime,) continue to sustain our double-digit growth,” said from Sulaiman Mohd Tahir, Group CEO, AmBank Group (Ambank).
He shared this insight during a press engagement at the AmBank SME BizCONFERENCE.
As SMEs are an essential business sector for Malaysia, it is critical that they get as much support as possible from — both government and via private sector.
While Bank Negara Malaysia did not raise the overnight policy rate (OPR) from the last increase and is expected to maintain this rate until 2024, SMEs are not likely to apply for loans.
For Sulaiman, the SMEs have become the driving force behind the private sector segments and he expects this segment will help sustain the ongoing double-digit growths for Ambank.
Currently, Ambank expects to see 6% to 7% growth for SME loans.
“SMEs that must be focused on include those operating in the food and beverage sector as they are the ones who directly address consumer demands and are also involved with exports,” he added.
Other growth areas these SMEs are considering include environmental, social, and governance (ESG) measures; enhanced digitalisation; and talent retention.