Malaysia to set up SME-oriented bank

Malaysia to set up SME-oriented bank

KUALA LUMPUR: Malaysia will set up a development bank to
assist small- and medium-scale enterprises (SMEs) in 2005, Prime
Minister Abdullah Ahmad Badawi said on Monday.

"The banks, at present, are focusing their attention on loan
applications from big industries and the SMEs are having a
problem getting capital," he said.

"The SMEs require greater attention in the form of capital and
loans and the setting up of an SME bank will give them the
opportunity for growth."

Abdullah gave no further details, saying these would be worked
out by the Treasury.

He was speaking to reporters after an annual conference of the
National Economic Action Committee, which includes government and
private sector leaders.

Abdullah said the question of revaluing the ringgit against
the U.S. dollar, a subject of widespread speculation, was not
discussed at the meeting.

The government has said it had no immediate plans to review
the peg of 3.80 ringgit to the falling U.S. unit but has not
ruled out such a move in future. -- AFP