KUALA LUMPUR: AmBank and Credit Guarantee Corporation Malaysia Bhd (CGC) are providing RM400mil in working capital to help the small and medium sized enterprises (SMEs).
In a joint statement on Monday, they said the financing facilities are provided through the SME portfolio guarantee (SPG) revival scheme/-i.
The scheme is to provide the crucial working capital to SMEs revive and support their business growth during the Covid-19 pandemic.
Group CEO of AmBank Datuk Sulaiman Mohd Tahir (pic) said: “Despite the challenging domestic and global environment, SMEs remain as a substantial backbone of the Malaysian economy.
“Having said that, it is crucial for financial institutions to work closely with this sector to support them in restarting their businesses and gearing towards recovery.”
CGC president/ CEO Datuk Mohd Zamree Mohd Ishak said the SME sector was the hardest hit by the pandemic.
“At CGC, we are continuously aligning our strategies and intensifying our support to SMEs, ” he said, adding the RM400mil scheme is a coordinated collaboration with AmBank to support SMEs weather these crises by providing timely guarantee to entrepreneurs in need.
AmBank’s managing director, retail banking, Aaron Loo said since their partnership in 2016, AmBank has entered total agreement tranches of more than RM3.8bil.
“We are now working on upcoming tranches that are targeting different segments of SMEs to help them survive the economic repercussions arising from the unprecedented Covid-19 pandemic, ” Loo said.
Under this scheme, eligible SMEs can apply for financing facilities of up to RM1mil with a loan tenure of seven years, where 70% of the principal financing amount is guaranteed by CGC.
AmBank managing director, business banking Christopher Yap said the bank was working with CGC to eliminate pain points in the existing process as well as enable its systems to link seamlessly to CGC’s digital submissions and approvals.
“By working together with CGC to digitalise this process, we hope to create a seamless experience for SMEs.
“CGC has been a supportive partner of AmBank throughout the years and we hope to strengthen this partnership further with forward-thinking initiatives for the betterment of SMEs in Malaysia, ” said
AmBank is also exploring another upcoming tranche totalling RM300mil namely the extended SPG revival, together with the sub programme of merchant segment.