SMEs’ approved credit limit plunges 26%

New small and medium-sized enterprise (SME) credit limits approved by local banks in the second half of 2024 totaled MOP3.3 billion, down 25.9% from the first half of the year.

Statistics from the Monetary Authority of Macao show that as of 2024, the outstanding balance of SME loans fell by 3.2% from the end of June to MOP78.4 billion, mainly due to the repayment of high-denomination loans.

Compared to the previous survey period, outstanding SME loans to the “education” sector and the “transport, storage, and communications” sector increased by 15.8% and 9.2%, respectively, whereas those to the “wholesale and retail” sector and the “construction” sector decreased by 7.7% and 1.1%, respectively.

Amid economic recovery, several SMEs are still waiting for a boost in revenues, with several associations calling for new rounds of subsidies.

Recently, the Economic and Technological Development Bureau (DSEDT) announced that it is exploring additional campaigns aimed at boosting business in community neighborhoods.

Government data show that the number of new companies incorporated in Macau declined, with a total of 4,555 newly registered businesses, representing a year-on-year drop of 456.

This decline was accompanied by a 37.5% reduction in the total value of registered capital, which fell to MOP1.03 billion.

Additionally, 1,098 companies were dissolved during the year, with their total registered capital amounting to MOP451 million.

At the end of 2024, the outstanding balance of delinquent SME loans was MOP4.9 billion. The fraction of delinquent loans compared to total SME loans outstanding (the delinquency ratio) was 6.2%.