Guan Eng: Bank profits surged RM6.5b, time to help struggling MSMEs with relief package

“KUALA LUMPUR, May 8 — The government should urgently channel RM5 billion in interest-free loans and a one-year loan moratorium to help struggling small businesses, Bagan MP Lim Guan Eng said today, arguing that strong banking profits justify broader support for MSMEs. He said Bank Negara Malaysia’s decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent has helped banks sustain robust earnings, while many micro, small and medium enterprises are under mounting financial pressure. “Maintaining the OPR at 2.75 per cent will help maintain the banking industry’s strong profit growth thereby justifying a RM 5 billion interest-free loans of RM 50,000 to 100,000 MSMEs and a one year interest rate moratorium for MSMEs existing loans,” he said in a statement. Lim added that the manufacturing sector is facing worsening conditions due to global disruptions, with industry groups warning of rising costs, weaker demand and potential job losses. “The Federation of Malaysian Manufacturing states that Malaysia’s manufacturing sector is not just facing a crisis but a deepening crisis as the ongoing conflict in West Asia cripples supply chains, inflates costs, and now threatens jobs,” he said, citing industry feedback. He also highlighted concerns over liquidity pressures among firms, noting that “68 per cent of manufacturing companies are facing cash flow pressure, of which 13 per cent stating it is severe enough to affect their ability to pay suppliers.” Lim further pointed to the banking sector’s high profits as reason to help cushion small businesses facing economic stress. “The banking sector’s profits in 2025 surged by RM6.5 billion or 13.5 per cent from RM48.3 billion in 2024 to RM54.8 billion in 2025,” he said. He argued that such earnings should be shared more broadly with borrowers, especially MSMEs, rather than concentrated within financial institutions. “If the banking sector can afford it, why let only banks profit at the expense of MSMEs suffering from the current economic crisis?” he added.

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