Forecast: New Business Lending for SMEs in Malaysia

From 2013 to 2023, new business lending to SMEs in Malaysia declined initially but has shown a recovery in recent years. In 2023, the value stood at 76.28 Billion Malaysian Ringgits, reflecting a gradual upward trend post-2020. The year-on-year variations have been oscillating, with a notable growth recovery phase from 2021 to 2023.

Over the last two years, new business lending values experienced year-on-year increases of 2.72% in 2022 and 2.65% in 2023. The compounded annual growth rate (CAGR) for the past five years was 1.84%, indicating a period of moderate recovery and stabilization after previous fluctuations.

Looking forward, the forecast indicates a sustained positive trajectory with a projected CAGR of 1.87% over the next five years, culminating in an expected value of 85.82 Billion Malaysian Ringgits by 2028.

Future Trends to Watch For:

• Policy changes impacting SME lending frameworks.
• Adoption of fintech solutions boosting access to finance for SMEs.
• Economic shifts influencing lending rates and credit availability.