KUALA LUMPUR, Feb 4 — DAP’s Bagan MP Lim Guan Eng today urged SME Bank to restore public confidence after Bank Negara Malaysia (BNM) fined the institution RM460,000 for failing to promptly submit suspicious transaction reports (STR).

He said the penalty raised concerns about SME Bank’s ability to meet compliance standards and deliver for micro, small and medium enterprises (MSMEs).

“Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) should come clean and reassure the public that it is up to the job in ensuring compliance with banking standards of professionalism, accountability and transparency following an Administrative Monetary Penalty (AMP) of RM460,000 imposed by Bank Negara Malaysia (BNM),” Lim said.

“Can SME Bank be trusted to look after the MSMEs in Malaysia if they have compliance issues and inadequate staff awareness?” he added.

He noted that SME Bank’s ability to safeguard MSMEs carries national weight, given that they contribute 38 per cent of Malaysia’s GDP, provide 48 per cent of jobs and make up 13 per cent of the country’s exports.

BNM announced on January 29 that the penalty was imposed on November 20 last year, citing inadequate staff awareness of STR requirements. SME Bank paid the fine on December 3.

Lim pointed out that SME Bank had been entrusted with nearly RM2 billion in government initiatives to support MSMEs, stressing that beyond the financial cost of the penalty, the bank must urgently rebuild trust in its ability to perform.