KUALA LUMPUR: The small and medium enterprises (SMEs) loans underneath the compensation help remained excessive at 36.5 per cent of complete SME loans in December 2021 or 5.7 per cent of complete loans from banks and improvement monetary establishments however moderated from its peak in July 2021 .
Financial institution Negara Malaysia (BNM) stated the share of SMEs that rolled over their compensation help with banks additionally edged larger in direction of the top of 2021 pushed by SMEs within the motels, wholesale and retail commerce, and transport and storage sectors that skilled a slower restoration.
“New rescheduling and restructuring (R&R) functions by SMEs have, nonetheless, moderated considerably from its peak in July 2021, indicating better confidence amongst SMEs of their potential to service their debt,” the central financial institution stated in its Monetary Stability Overview Second Half 2021 launch right here at present.
It stated compensation help and different measures by monetary establishments, the federal government and the financial institution, together with flood reduction packages, have additionally contained any notable improve in defaults amongst SMEs.
Nonetheless, it stated SMEs in sectors most affected by the pandemic are carefully monitored by banks
as help measures are progressively unwound.
It stated a sustained financial restoration would mitigate credit score losses from banks exposures to SMEs.
“For SMEs that proceed to face issue servicing their loans, enhancements to debt exercise mechanisms for SMEs underneath the Credit score Counseling and Debt Administration Company (AKPK) might assist avert large-scale insolvencies,” it added. – Bernama