The change in the financial institutions’ corporate culture as a result of their consolidation has left small- and medium-scale enterprises (SMEs) facing difficulties to secure credit.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) claims that profit-making is now the banks’ primary focus instead of helping the SMEs in their business activities which will also boost the economy of the country.
Vice-president Low Kian Chuan said that the rationalisation of local financial institutions has turned them into large corporations that lack the personal touch.
Low, who is also the chairman of the SMEs and Human Resource Development (HRD) committee, said at present banks are more willing to provide loans to housing, car and credit card applicants than to SMEs.
He added that local banks have not been proactive in giving out loans to SMEs because of their rather inflexible and conservative financing policy.
