Singaporean SMEs want their own bank

Bank will focus financing small- and medium-enterprises. SMEs have renewed their call for a bank that will focus on providing financing to their sector. They also want a one-stop agency that will help them with all issues ranging from applying for government schemes to doing business overseas.

These points were brought up at a discussion with Minister of State for Trade and Industry Teo Ser Luck held this week during the SME Convention organized by the Singapore Business Federation. SMEs noted that larger banks have different priorities.

The SME units of these large banks target very large SMEs and not the bulk of SMEs that are much smaller. Singapore once had SME banks like Keppel TatLee but these banks have since merged with other banks. Teo said whether an SME bank is necessary today depends on the policy intent of the government and that bank’s sustainability.