Singapore to loosen loan restrictions for SMEs

The Monetary Authority of Singapore (MAS) on February 14 announced changes to strengthen the resilience of finance companies and enhance their ability to provide funding to small- and medium sized enterprises (SMEs).

Tuesday, February 14, 2017 21:13

Singapore to loosen loan restrictions for SMEs ảnh 1

Illustrative image (Source: fintechnews.sg)

Singapore (VNA) – The MonetaryAuthority of Singapore (MAS) on February 14 announced changes to strengthen theresilience of finance companies and enhance their ability to provide funding tosmall- and medium sized enterprises (SMEs).

The decision is expected to increasefinancial channels, meeting the demand of young businesses with high growth andhope to innovate through technology infrastructure, in line with recentrecommendations proposed by the Committee on the Future Economy.

Under the new regulation, the limit on afinance company’s aggregate uncollateralised business loans will be raised to25 percent of its capital funds, from the current 10 percent. The limit onuncollateralised business loans to a single borrower will also be raised to 0.5percent of capital funds.

These changes will better enable financecompanies to serve their SME customers, many of whom require unsecured creditfor working capital needs, stated the MAS.

Besides, finance companies will be able toprovide more comprehensive credit and deposit services to SMEs, since they willalso be allowed to join electronic payment networks, including Inter-bank GIRO,Fast and Secure Transfers (FAST) and Electronic Funds Transfer at Point of Sale(EFTPOS).

To safeguard prudential standards, the MASwill also require finance companies to enhance their corporate governance andrisk management, including stricter rules on related party transactions andlimits on exposures to the property sector.

Currently, Hong Leong Finance, SingInvestments and Finance and Singapura Finance are three licensed financecompanies by the MAS with around 16 billion SGD (11 billion USD) in combinedassets. Those companies accounted for seven billion SGD (about five billionUSD) of outstanding SME loans, by the second quarter of 2016.-VNA

VNA

#Singapore #SMEs #finance company Singapore

See more

Delegates cut the ribbon to inaugurate the ASEAN Hall in Seoul (Photo: VNA)

ASEAN Hall inaugurated in Seoul

08/08/2025 19:53

Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.

Rice displayed for sale at a supermarket in Bangkok, Thailand. (Photo: AFP/VNA)

Thailand promotes rice exports to key markets

08/08/2025 19:32

Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.

Malaysia 🌄PM calls on ASEAN countries to continue prom༺oting peace

08/08/2025 17:34

The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.

Ambassadors of ASEAN member states pose for a photo at the ceremony. (Photo: VNA)

ASEAN Day in Prague celebrates bloc’s founding a💙nniversary

08/08/2025 16:58

Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.

Indonesian Agriculture Minister Andi Amran Sulaiman (right) and New Zealand Minister of Agriculture, Forestry, Trade, and Investment Todd McClay pose for a photo after signing a memorandum of understanding on agricultural cooperation in Jakarta on August 7. (Photo: en.antaranews.com)

Indonesia expands export of k𝓰ey agricultural products to New Zealand

08/08/2025 14:37

The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.

Thai Finance Minister Pichai Chunhavajira (//www.nationthailand.com/)

Thailand unveils 6-point🐷 plaܫn to boost innovation among businesses

08/08/2025 14:37

Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.

Vietnamese Ambassador to Israel Ly Duc Trung speaks at the event celebrating ASEAN's 58th founding anniversary. (Photo: VNA)

ASEAN’s founding anniversary marked in Israel

08/08/2025 14:00

Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.

A general view inside a shopping mall in Bangkok, Thailand, on June 20, 2025. (Photo: Reuters)

Thai consumer confidence hits lowest leღvel in over two ye🌼ars

08/08/2025 11:25

The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.

Vietnamese Ambassador to Hungary Bui Le Thai (second, left) poses for a group photo with Deputy Speaker of the Hungarian National Assembly Istvan Jakab (centre) and other ambassadors of ASEAN countries (Photo: VNA)

Hungarian NA Deputy Speaker hails ASEAN’s 🌱role, backs stronger tie🔴s

08/08/2025 11:22

Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.

Thai prosecutors indic🦄t 23 over deadly bu♔ilding collapse

08/08/2025 11:11

The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.

Indonesia seeks to prevent 70% of waste from entering sea by 2029

Indoneꦉsia seeks to prevent 70% of waste from entering sea by 2029

08/08/2025 06:58

Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.

A worker installs the battery of a Hyundai IONIQ 5 electric car on April 6, 2023, at the Hyundai Motor Manufacturing Indonesia (HMMI) assembly plant in Cikarang, West Java. (Photo: Jakarta Post)

Indonesia doubles lithium imports to boost EV battery♋ prꦺoduction

08/08/2025 04:03

Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.

Malaysia boosts investment in innovation

08/08/2025 03:13

Malaysia’s gross expenditure on R&D (GERD) reached 1.01% of gross domestic product in 2022, a notable increase, with more than 51% contributed by the industry sector. The country is targeting GERD to reach 2.5% by 2030, in line with the national goal of transforming into a high-technology nation.