Why is BSN proposed to manage RM50m Chinese MSME loans over SME Bank?

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Bank Simpanan Nasional Proposed to Manage RM50 Million Chinese MSME Loans Due to Superior Reach and Proven Track Record

DAP's Bagan MP Lim Guan Eng has proposed that Bank Simpanan Nasional (BSN) should manage the RM50 million in dedicated loans for Chinese micro, small and medium enterprises (MSMEs) instead of Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank). This suggestion is based on BSN's significantly larger nationwide branch network and its demonstrated ability to efficiently disburse similar financing schemes in the past without additional conditions, making it more accessible and convenient for the 1.1 million MSMEs across Malaysia.
BSN's Extensive Nationwide Network Offers Greater Accessibility

SME Bank's limited branch network, which Lim Guan Eng noted as having only 17 listed branches, presents a significant hurdle for MSMEs, particularly those located in more remote areas or in states like Sabah and Sarawak. In contrast, BSN boasts a substantially larger presence with 387 branches spread across the nation, including smaller towns. This widespread network ensures that Chinese MSMEs, regardless of their geographical location, can more easily access and apply for the dedicated financing, avoiding the need for long-distance travel to major cities.
Proven Efficiency in Disbursing Dedicated MSME Financing

BSN has a strong and established track record of successfully managing similar dedicated financing schemes for Chinese MSMEs. Specifically, BSN rapidly and efficiently disbursed RM50 million in 2019 and RM100 million in 2020 under previous Ministry of Finance approvals. These disbursements were carried out swiftly, without complaints from the recipients, and crucially, without the imposition of any additional or extraneous conditions, highlighting BSN's capability and reliability.
Enhanced Convenience for MSME Loan Applicants

The proposal to shift the management of these loans to BSN is rooted in the desire to provide greater convenience to Chinese MSMEs. If SME Bank were to manage the loans, many businesses would be compelled to travel considerable distances, often to state capitals or even Kuala Lumpur, to complete the application and approval process. By entrusting BSN with the responsibility, MSMEs could utilize the branch nearest to their business operations, streamlining the access to much-needed capital for working expenses or asset acquisition.

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Why is BSN proposed to manage RM50m Chinese MSME loans over SME Bank?

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