PETALING JAYA: AMMB Holdings Bhd (AmBank Group) projects loan growth of between 6% and 7% for the small and medium enterprise (SME) industry this year, driven by diverse businesses in the sector.
According to group CEO Datuk Sulaiman Mohd Tahir, SME loan growth is usually projected higher by 1% to 2% compared with the entire industry, as it takes into account business diversity.
He remarked that private consumption is mostly driven by SMEs, particularly those in the food and beverage (F&B) sector, which experienced growth due to participation in many sub-sectors.
“For every sector that (SMEs) do well in, they’re also the beneficiary ... their growth is normally at 1% or 2% higher and this is where we are participating,” he told reporters during the SME BizConference, Building Engines for Growth, today.
Furthermore, Sulaiman said, the SME landscape is quite diversified as it supports many industries and if one sector excels, then it will balance other sectors as well.
“SME (sector) is very diversified (and) supports many industries, whether it’s exports, F&B, retail, services ... in that sense, it is very fragmented (which is) is good and we need it because it’s the engine for our growth in Malaysia, not to mention the job opportunities for the people out there,” he added.
Sulaiman said the bank has seen double-digit SME loan growth over the past eight years, but expects to see it “come down a little bit” this year. However, he said that it is still the major engine of growth for the bank.
“We are very strong on the corporate side but that has been our traditional (loan) and that growth has been quite flat ... retail has also been very strong,” Sulaiman said.
Touching on the event, he said, “We are very pleased to provide a platform through this SME BizConference where SME can seize the opportunity to gain knowledge, build networks, access resources and get inspiration.”
