GEORGE TOWN: The Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) and Bank Rakyat are well placed to manage the RM100mil Chinese micro, small and medium enterprises (MSMEs) financing scheme effectively, says Steven Sim.
The Entrepreneur Development and Cooperatives Minister said both banks, which together operate more than 160 branches nationwide, provide sufficient physical access for applicants who require in-person services.
Sim was responding to former finance minister Lim Guan Eng, who had suggested that Bank Simpanan Nasional (BSN) had a stronger capacity than SME Bank to manage the dedicated loans for Chinese MSMEs.
He described Lim’s remarks as constructive, but stressed that the current arrangement was appropriate, especially as this was the first time such a fund had been introduced by his ministry.
“We take this as a suggestion from a party veteran. I appreciate his experience and views on how we can improve,” he said during a visit to Star Media Group’s Pitt Street office yesterday.
Sim said SME Bank and Bank Rakyat are the two development financial institutions directly under his ministry, making them the most practical channels for implementing the initiative.
He said Lim’s preference for BSN likely stemmed from his experience as finance minister, noting that BSN falls under the Finance Ministry.
Earlier, Lim was reported as saying that SME Bank was too small and had a limited branch network to effectively serve Malaysia’s 1.1 million MSMEs.
Sim said the scheme – part of the ministry’s broader effort to make financing more inclusive and accessible – aims to help businesses expand, upgrade and achieve long-term growth.
The fund will be available until the end of the year or until it is fully utilised, whichever comes first.
Addressing concerns over accessibility, Sim said the scheme is largely driven by digital applications to simplify the process for entrepreneurs.
“Early response has been encouraging, with more than 1,000 applications received by SME Bank and about 300 by Bank Rakyat within less than a week of the launch. About 80% to 90% were submitted online,” he said.
On another matter, Sim, who is Penang DAP chairman, said party decisions, including councillor appointments, are made through long-established processes that emphasise collective decision-making rather than individual authority.
“Whether on policy or appointments, all decisions go through established processes and multiple layers of deliberation,” he said in response to criticism from a party veteran over the decision not to reappoint David Ng Yee Siang as a Seberang Perai City Council councillor this year.
It was reported that a letter seeking an explanation over the matter had been sent to the state DAP headquarters and Chief Minister Chow Kon Yeow.
Sim also reminded party members that DAP has never been about positions or titles, citing the party’s long history in opposition.
He added that members who were not appointed should continue contributing, as appointments are based on suitability, strategy and collective decisions.
