BANK lending to small and medium-sized enterprises (SMEs) with annual revenues below RM10 million continued its steady growth, reaching RM148.8 billion by the end of 2024, Finance Minister Datuk Seri Anwar Ibrahim has revealed, highlighting sustained support for the sector.
Anwar said this amount represents 35.8 per cent of total SME financing, underscoring the banking sector’s ongoing commitment to small businesses.
The segment has experienced a compound annual growth rate (CAGR) of 7.1 per cent since 2021, driven predominantly by new approvals for working capital requirements.
In 2024 alone, new financing approvals for SMEs in this category increased to RM57.4 billion, up from RM38.5 billion in 2021, with the approval rate improving to 84.2 per cent from 82.8 per cent previously.
“This demonstrates the confidence of financial institutions in the resilience and growth potential of small businesses, as well as the effectiveness of ongoing support initiatives,” Anwar said in a written reply published on Parliament’s website.
He was responding to a parliamentary query regarding statistics on bank loans to SMEs with revenues below RM10 million between 2021 and 2024, including breakdowns by Bumiputera and non-Bumiputera entities and the segment’s share within banks’ total portfolios.
Between 2021 and 2024, Bumiputera businesses accounted for 17.4 per cent of total SME financing applications, while approved financing for this segment represented 16.3 per cent of the overall amount.
Anwar noted that these figures are based solely on data from banking institutions and development financial institutions (DFIs), excluding financing extended through specialised government agencies, cooperatives, or ministry-managed funds.
“As such, the actual volume of financing extended to SMEs, particularly through alternative channels, is likely higher than reported,” he said.
By the end of 2024, approximately 107,900 active SME borrowers in the below-RM10-million revenue category represented 27.4 per cent of all active SME borrowers.
Anwar added that the government and financial institutions remain committed to enhancing the SME financing ecosystem through initiatives such as credit guarantees, support funds, and capacity-building programmes.
“These efforts aim to ensure more inclusive and sustainable access to financing in line with the country’s broader economic development goals,” he said. - October 23, 2025
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