Overview
Small and Medium-sized Enterprises (SMEs) throughout ASEAN still have the same problem: limited financing access. This classic issue also haunts Malaysian SMEs. Although SMEs significantly impact national economic development, many financial institutions still find it risky to facilitate loans for potential SMEs. The situation causes SME development to stunt. How can SMEs deal with this problem?
We all agree that Small and Medium-sized Enterprises (SMEs) have significant impact on national economic development, however, all of them still facing limited financing option as many financial institutions still find it risky to facilitate loans for potential SMEs. How can SMEs deal with this problem?
Financing gap in Malaysia
According to a study conducted by Deloitte and Visa, since 2013 Malaysian SMEs have contributed 33% of the country’s gross domestic product (GDP). Besides, SMEs also contributed 58% on national employment where it has a high impact on economic development.
Despite SMEs act as the fuel of national growth, based on the same report mentioned, 38% of all SMEs in Malaysia remain unserved and another 10% are underserved by financial institutions. There are 55% of Malaysian SMEs require financing to fund their business operations
Of all the investment on Malaysian SMEs, only 52% are financed by bank funds. Clearly, despite being underserved, many local SMEs still rely on banks.
We need more financing options
An alternative financing solution is required to help the underserved SMEs. Instead of providing fund, the product should be simple and able to provide a quick fund to facilitate SME needs and growth.
With online financing platform like SMEPlus (https://mysmeplus.com), SMEs can apply for a loan easily and get the answer quickly. We make fast loans more accessible.