Lim Guan Eng questioned SME Bank’s capacity to manage Chinese MSME loans and called for Bank Simpanan Nasional (BSN) to take over the programme in a statement on Facebook.

The DAP Bagan MP said SME Bank lacks the scale and branch reach needed to effectively serve Malaysia’s 1.1 million MSMEs, particularly those outside major urban centres.

He added that businesses in states such as Perlis and Kelantan, as well as Sabah and Sarawak, could face difficulties accessing financing under the current setup.

Lim noted that SME Bank’s website lists 27 branches nationwide, but only 17 are distinct physical locations, including its headquarters.

He questioned how the bank could support MSMEs across the country with such a limited footprint.

Lim argued that BSN would be better positioned to administer the loans due to its nationwide network of about 387 branches and its experience managing earlier dedicated Chinese MSME financing schemes.

Separately, Lim called on SME Bank to restore public confidence after Bank Negara Malaysia fined the institution RM460,000 for delays in submitting suspicious transaction reports, which the central bank linked to staff awareness of reporting requirements.

BNM announced on 29 January that the administrative monetary penalty was imposed on 20 November last year and confirmed that the fine was paid on 3 December.

Lim said the episode raised questions about governance and accountability at a bank entrusted with nearly RM2 billion in government initiatives to support MSMEs.

Last week, the Ministry of Entrepreneur Development and Cooperatives announced a RM100 million federal financing scheme for Chinese MSMEs to support business expansion and long-term growth.

The allocation is split evenly between SME Bank and Bank Rakyat and will remain available until the end of the year or until fully utilised.

Featured image: Edited by Fintech News Malaysia, based on images by Lim Guan Eng’s Facebook channel, and SME Bank