SME credit activity hits lowest level since H1 2017

[Photo: Ricaela Diputado]

Outstanding loans to small and medium-sized enterprises (SMEs) in Macau have dropped to their lowest level since the first half of 2017, according to new data from the Monetary Authority of Macao.

As of the second half of 2025, SMEs in the city carried MOP67.32 billion in outstanding credit. That figure represents a decline of nearly 14% compared with the same period in 2024, and a sequential drop of approximately 9.7% from the first half of 2025.

The sustained reduction in borrowing activity points to a broader deleveraging trend among smaller businesses in the gaming hub. SME loans now account for just 13.7% of total bank lending to the private sector — the smallest share since official records began in 2008.

The banking authority also reported that overdue loans fell to approximately MOP5.3 billion in the second half of 2025, with a corresponding delinquency ratio of 7.9%. That marks a 6.3% decline from the previous six months and a 1% drop year-on-year.

However, problem loans in the SME sector more than doubled in the second half of 2022, reaching MOP1.16 billion. That figure continued to increase, peaking at a record MOP5.64 billion in the first half of 2025.