GX Bank Urges Measures To Lower Borrowing Costs In Budget 2027

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Sept 30 (Bernama) -- The government should extend targeted stamp duty exemptions for small-ticket loans disbursed by digital banks to reduce borrowing costs for small businesses and lower-income borrowers in Budget 2027.

GX Bank Bhd (GXBank) chief executive officer Kaushik Chowdhury said this would result in greater savings for businesses, noting that the government raised the loan or financing limit eligible for stamp duty exemption under the Micro Financing Scheme to RM100,000 from RM50,000 under Budget 2025.  

He said digital banks could pass these savings directly to hawkers, gig workers and micro, small and medium enterprises (MSMEs), helping to lower their borrowing costs.

He also called for government-backed guarantee schemes for MSMEs, including the RM10 billion Bank Negara Malaysia-Credit Guarantee Corporation Malaysia Bhd (BNM-CGC) Guarantee Scheme, to be expanded to support digital lending.

“By leveraging alternative underwriting data, such as real-time cash flows and e-commerce transactions, digital banks can safely provide low-cost, collateral-free working capital to small businesses facing severe margin pressures,” he told Bernama.

Kaushik said digital banks, through their use of technology and focus on financial inclusion, could also play a greater role in improving access to financial services and supporting economic growth.

He also called for tax incentives and public matching grants for financial institutions investing in real-time artificial intelligence-based fraud detection systems.

Such support would strengthen anti-scam protection across the financial system while helping banks absorb the cost of security technology instead of passing it on to lower-income consumers, he said.

Prime Minister Datuk Seri Anwar Ibrahim is scheduled to table Budget 2027 on Oct 9.

-- BERNAMA