OCBC Targets 12,000 SMEs and SGD 25 Billion by 2028 in Asia’s First Dedicated Sustainable Finance Goal for Small Businesses

OCBC has set a new target to support 12,000 small and medium-sized enterprises with sustainable financing by 2028 across Singapore, Malaysia, Hong Kong, and Indonesia. If achieved, the plan would increase the bank’s SME sustainable finance commitments from nearly SGD 13 billion at the end of 2025 to SGD 25 billion by 2028. OCBC says this is the first time a bank in Asia has announced a dedicated sustainable finance target specifically for SMEs.

The announcement matters because it shifts sustainable finance further into the commercial core of the SME market rather than leaving it concentrated among large corporates and infrastructure borrowers. SMEs account for more than 95% of enterprises in the region and around 70% of the workforce, which means their transition capacity will heavily influence how quickly supply chains and local economies can reduce emissions and adapt to tighter sustainability expectations.

 

The Bank Is Moving From 5,000 SMEs to 12,000 in Three Years

 

OCBC said it had already supported 5,000 SMEs with sustainable financing by the end of 2025, and the new goal would more than double that number within three years. The bank also expects this expansion to push total SME sustainable finance commitments to SGD 25 billion by 2028, up from nearly SGD 13 billion at the end of 2025.

That scale-up is important because it suggests the bank sees SME sustainability financing as a volume business rather than a niche advisory proposition. In practical terms, OCBC is betting that demand from smaller businesses for financing tied to decarbonization, energy efficiency, and sustainability-linked improvements will continue to deepen, especially as these companies face growing pressure from customers, lenders, regulators, and larger supply-chain partners. This is an inference based on the size of the target and the pace of planned growth.

 

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2025 Momentum Suggests SME Demand Is Broadening

 

The bank said that in 2025 the total number of SMEs it supported with sustainable financing rose 34%, while total sustainable finance commitments to SMEs grew by about 40%. It also said the number of sustainability-linked loans to SMEs more than doubled during the year, with over 70% of those borrowers classified as small SMEs employing fewer than 25 people. The strongest growth came from building and construction, manufacturing, and transport and logistics.

These numbers are significant because they show the market is not being driven only by larger mid-sized firms with more internal reporting capacity. A substantial share of the demand is already coming from very small businesses, which suggests sustainable finance is beginning to move downstream into the smaller operational layers of the regional economy. That matters for transition credibility because emissions reduction and resilience efforts will be harder to scale if sustainable finance remains concentrated only among large listed companies. This is an inference drawn from the small-SME share of sustainability-linked borrowers.

 

OCBC Is Building Tools Around Financing, Not Just Offering Loans

 

The new target is backed by a broader support structure the bank has already been developing. OCBC highlighted its SME Start-ESG Programme in Singapore, launched with Enterprise Singapore in 2025, which helps SMEs obtain a baseline sustainability assessment, expert advice, and access to sustainability-linked loans. The bank said more than 180 SMEs had joined the programme since launch, reaching 60% of its three-year target of 300 SMEs in just 12 months.

OCBC also pointed to its SME Energy Efficiency Assessment tool, first launched in Singapore in 2021 in collaboration with the Building and Construction Authority and later extended to Malaysia and Hong Kong in 2024. As of the end of 2025, more than 1,200 SMEs had used the tool across over 1,700 properties. These support systems matter because SME transition finance often stalls not just from lack of credit, but from lack of usable diagnostics, reporting readiness, and a low-cost route into eligibility frameworks.

 

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Women Entrepreneurs and Regional Rollout Add Breadth to the Strategy

 

OCBC said its SME sustainable finance commitments also include social loans for women entrepreneurs, with dedicated programmes rolled out across its four core markets to support the socioeconomic advancement of women and the resilience of women-owned businesses. This expands the strategy beyond climate-only lending and places it within a wider sustainable finance framework that includes social impact as well as environmental transition.

This is relevant because many banks still treat SME sustainability finance as a narrow green lending category. OCBC appears to be taking a broader view by combining environmental transition support with targeted social finance measures, which can help widen the addressable SME base and make sustainable finance more commercially durable across different borrower types. That is an inference based on how the bank describes the mix of commitments in the announcement.

 

A Signal That SME Transition Finance Is Becoming Strategic in Asia

 

The broader significance of the announcement is that it marks a more mature phase of sustainable finance in Asia, where banks are beginning to treat SMEs as a central transition segment rather than as a difficult-to-serve tail of the market. Large corporates may still dominate headlines, but regional decarbonization and resilience goals will depend heavily on whether smaller businesses can access financing and tools that help them adapt without being overwhelmed by reporting or compliance complexity.

OCBC’s 12,000-SME and SGD 25 billion targets suggest the bank sees that opportunity clearly. The next key question will be whether this model can be scaled efficiently across multiple markets while maintaining credit quality and measurable sustainability outcomes. If it can, the SME segment could become one of the more important growth areas in Asian sustainable finance over the rest of the decade.