OCBC aims to support 12,000 SMEs with sustainable financing by 2028

OCBC Bank is ramping up its green efforts with a new target to support 12,000 small and medium-sized enterprises (SMEs) through sustainable financing.

These SMEs operate in four core markets, Singapore, Malaysia, Hong Kong, and Indonesia, the bank said on 7 April.

Its new target aligns with a new corporate strategy, which includes continuing support for green transition, announced by OCBC chief executive Tan Teck Long during the bank’s earnings briefing in February.

The new target builds on momentum in the bank’s sustainable finance loan portfolio for SMEs.

OCBC has provided sustainable financing to 5,000 SMEs as at end-2025.

In 2025, the number of SMEs supported with sustainable financing rose 34 per cent, while total commitments grew about 40 per cent. The number of sustainability-linked loans to SMEs more than doubled, signalling growing readiness among SMEs to adopt measurable sustainability targets.

Over 70 per cent of these borrowers are small SMEs with fewer than 25 employees in sectors such as building and construction, manufacturing, and transport and logistics.

Once achieved, the target is expected to drive OCBC’s SME sustainable finance commitments from nearly S$13 billion at end-2025 to S$25 billion by 2028.

The bank noted that SMEs play a critical role in tackling climate change. Representing more than 95 per cent of all businesses in the region and employing around 70 per cent of the workforce, they make up an integral part of supply chains and industries that must collaborate to reduce emissions.
 

OCBC head of global commercial banking Elaine Heng said that SMEs in the region are increasingly recognising that sustainability is not just a compliance requirement, but a strategic business imperative.

“Our new and ambitious sustainable financing target for SMEs reflects the growing maturity in this space and builds on the strong expansion of our SME sustainable financing portfolio in recent years,” she said.
 

Atlas Transport & Logistics is one firm that joined the OCBC SME Start-ESG Programme – an initiative that helps firms establish baseline sustainability metrics and provides expert advice on sustainability practices.

The Singapore-based transport and fleet operator identified emissions as a key area of environmental impact.

With the sustainability-linked loan from OCBC, the company put in place measures to optimise fuel efficiency, such as route optimisation. It also installed carbon-tracking tools to provide customers with emissions data.

Atlas Transport managing director Samuel Tey said: “Sustainability has become a business imperative for us, especially with fuel price volatility from geopolitical tensions.”

“Through the OCBC SME Start-ESG Programme, we have taken steps to explore lower-emissions solutions in our planning pipeline, which we believe will help us build operational resilience and give us an advantage in a highly competitive industry.”
 

Another company, Chye Thiam Maintenance, integrated sustainability into its daily operations, optimising manpower, reducing waste, and enhancing resource efficiency on-site.

With OCBC’s support, Chye Thiam is strengthening its ability to take on larger integrated facility services contracts while building out capabilities beyond cleaning and waste management.
 

Chye Thiam CEO Edy Tan said that OCBC has helped to accelerate the firm’s decarbonisation journey, as well as position the firm as a forward-looking integrated facility services provider.

“The investments we have made in integrating sustainability across our operations and technology will significantly improve our operational efficiency, reduce emissions, and build the infrastructure essential for supporting a lower-carbon future,” he noted.
 

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.