Give more loans to small businesses, Guan Eng urges banks

Finance Minister Lim Guan Eng speaking to reporters at Masjid Kampung Bharu, Air Itam, Penang today.

GEORGE TOWN: Finance Minister Lim Guan Eng today called on banks and financiers to lend more to growing small and medium enterprises and small businesses to stave off the effects from the current trade war between US and China.

“This way, there will be cash flow among businesses, so as to ensure a circulating credit and a liquid credit,” he told reporters while on a constituency visit at Masjid Kampung Bharu in Jalan Air Itam here today.

Lim called on financiers to also go easy with restrictions on home loans for first time buyers, saying the banking industry played an important role in keeping the country’s finances healthy.

Lim said the economy was doing well with a higher than expected 4.5% GDP this year compared to earlier predictions of 4.1% by international forecasters before.

He also said the government was committed to supporting Islamic development citing an additional RM100 million allocation for that purpose this year, bringing it to a total of RM1.2 billion.

Earlier, Lim handed hampers of necessities to 100 disadvantaged families and senior citizens in his Air Putih state constituency.