CGC, Standard Chartered launch RM70 mln financial facility for SMEs

KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) and Standard Chartered Malaysia have launched a RM70 million financial tranche to provide small and medium enterprises (SMEs) with working capital, bringing the total amount of tranches jointly launched by both parties to RM1.71 billion.

Standard Chartered is also the highest contributor among foreign banks in terms of SME financing in Malaysia.

In a joint statement, the companies said under a Portfolio Guarantee (PG) agreement, the financing facility is expected to help ease the burdens of SMEs and sustain their business as they recover from the effects of the pandemic.

CGC president and chief executive officer (CEO) Datuk Mohd Zamree Mohd Ishak said the PG aimed to provide working capital for SMEs with viable business but lack collaterals to obtain the required credit facility, providing SMEs with the opportunity to revitalise their businesses.

"It is also aligned to Malaysia's Short-Term Economic Recovery Plan or PENJANA as we gear up to bounce back," he said.

Standard Chartered Malaysia managing director and CEO Abrar A. Anwar said the PG came on the back of several financing initiatives announced by the government tailored specifically for SMEs.

"As more businesses leverage on technology, the facility will be timely in financing their digital transformation and penetration of new markets," he said.

He said the bank wanted to ensure that consumers have access to the assistance they needed, ranging from payment deferrals to interest-only repayments and debt restructuring which would not be reflected in their record.

"Our focus is on ensuring the consumers are informed of the options available to them and that we are operationally prepared to provide much-needed financing," he added.

-- BERNAMA