This venture is MUFG’s first social loan in Malaysia. MUFG has collaborated with AEON previously, having three other sustainable finance transactions in the Asia-Pacific (APAC) region.
AEON Credit Service and MUFG Bank, a unit of Mitsubishi UFJ Financial Group Inc., have partnered to launch Malaysia’s largest social loan worth RM500 million. This loan initiative benefits low-income households and small businesses, which lack major avenues for financial access.
This venture is MUFG’s first social loan in Malaysia. MUFG has collaborated with AEON previously, having three other sustainable finance transactions in the Asia-Pacific (APAC) region.
According to Daisuke Maeda, Managing Director, AEON Credit, this facility is part of the organisation’s three-year roadmap for sustainable financial inclusion. Maeda said that this initiative will turn its focus to a previously underserved customer base, particularly those individuals whose gross monthly income is RM2,500 or less. The consumer financial services provider also aims to target those regions that are typically underrepresented.
Motohide Okuda, CEO and country head of Malaysia, MUFG, described this facility as a milestone in Kuala Lumpur’s sustainable financial landscape. He also said it reinforces both firms’ commitment to fostering inclusive and resilient growth in Malaysia. Okuda also said that with this agreement, MUFG will also support its clients’ ambitions to create long-term positive impact in the financial and social sectors.
This partnership aligns with Malaysia’s green and sustainability-linked financing solutions and is also part of the UN Sustainable Development Goals (SDGs). This partnership also augments the financial sector’s role in driving social impact across the country, as it also supports the Twelfth Malaysia Plan.
This facility will align with the Social Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association and will therefore adhere to globally accepted standards. AEON Credit will also provide detailed annual disclosures regarding the allocation of the funds and their social outcomes and achievements to the lenders.
AEON Credit also issued a statement announcing that the company’s interim ordinary cash dividend was HKD0.25 per share for the six months ended 31st August 2025. The organisation also declared a 37.1% increase in net profits for the FY 2025-26, with revenue rising 4.3% to HK$897.1 million, driven by sustained sales and receivables growth. The company’s cost-to-income ratio also improved to 43.8% from 47.0% during the same period.
This growth was achieved despite persistent challenges to Hong Kong’s economy, which indicates the organisation’s core operations’ resilience. This also shows that the measures taken by AEON Credit to sustain sales and optimise growth have succeeded in achieving the set targets.
The Group adopted a more guarded approach to growing sales and receivables in response to the difficult economic climate, giving credit risk reduction and return optimisation from its credit card and personal loan portfolios first priority. Overall sales this financial year were still higher than the last, as sufficient credit card sales offset the decline of personal loan sales.
AEON Credit has also implemented credit monitoring measures to combat the alarmingly high credit default rates in the Hong Kong market. These measures will ensure that customers’ payment performance improves while simultaneously mitigating the deterioration of asset quality.
MUFG has also been working to expand its range of operations and influence. In August, MUFG inked a deal with the Malaysian Investment Development Authority (MIDA) to bring in more high-value investments into the country. The MoU aims to increase investments in semiconductors, aerospace, pharmaceuticals, EVs, digital sectors, and green technology. Through this partnership, Kuala Lumpur officials aim to position it as an attractive hub for innovation in Southeast Asia.
With newer avenues opening up to revamp Malaysia’s financial landscape, it can be said with little doubt that there are robust systems in place to expand its sustainability initiatives and drive inclusive growth across the country.