CGC, Standard Chartered launch RM70 million financing for SMEs

(FROM left) Mohd Zamree Mohd Ishak, Leong Weng Choong, Raj Tatavarty and Abrar A. Anwar, at the signing ceremony.

By ANIS FARHANAH MALEK
anisfarhanah@dagangnews.com

KUALA LUMPUR 14 April - As the small and medium-sized enterprise (SME) sector pick up the pace again following the pandemic, Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Malaysia are extending a helping hand by making available RM70 million in financing to provide SMEs with working capital.

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. 

The agreement brings the total amount of tranches jointly launched by both parties to RM1.71 billion, making Standard Chartered the highest contributor among all foreign banks in Malaysia in terms of SME financing. 

CCG President and Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said, he is pleased to share that this Standard Chartered-CGC RM70 million PG aims to provide working capital for SMEs with viable business but lack collaterals to obtain the required credit facility, more now during this phase of revitalising and reforming Malaysia’s economy. 

“The launch of this tranche is timely as it will provide SMEs with the opportunity to revitalise their businesses. 

“It is also aligned to Malaysia’s Economic Recovery Plan or PENJANA as we gear up to bounce back,” said him in a joint statement today. 

Signing the agreement on behalf of CGC and Standard Chartered Malaysia were Chief Business Officer Leong Weng Choong and Head of Business Banking Raj Tatavarty respectively, with Mohd Zamree and Managing Director and Chief Executive Officer of Standard Chartered Malaysia, Abrar A. Anwar acting as witnesses. 

The Portfolio Guarantee comes on the back of several financing initiatives announced by the government tailored specifically for SMEs. 

Meantime, Abrar said, SMEs have shown great resilience despite being one of the hardest-hit sectors during the pandemic. 

He added, according to a recent Mastercard survey, more than two thirds of SMEs in Malaysia expect their businesses to recover from the effects of the pandemic by April 2021, while 80% indicated they have sufficient resources to see out the rest of the year. 

“Their agility is key to their resilience, allowing them to quickly transform their businesses to adapt to new ways of doing business. 

“The pandemic has accelerated the SME sector’s shift to digital, not just as a means to thrive in the new normal but also to keep up with evolving customer demands.

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

Individuals or businesses who wish to apply for additional financial assistance may contact the bank’s Client Care Centre at 1300-888-111.  - DagangNews.com