SINGAPORE (Apr 9): Most of the peer-to-peer (P2P) financing platform operators in Malaysia were already prepared for a slowing economy before the outbreak of Covid-19, having observed signs that a slowdown could occur since the middle of last year.

These platforms have made the effort to help their small and medium enterprise (SME) issuers and investors by applying a more stringent credit approval process and restructuring repayments, among others.

While it is still too early to forecast what the real impact of Covid-19 will be on the issuers, the platform operators say it is possible that investors will see a higher default rate and lower returns from their investments in the months ahead. But they still believe investors will be able to get mid to high single-digit returns.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook