Maybank sets aside RM1billion for SME financing in collaboration with CGC
- Also launches first ever PG scheme for Bumiputra SMEs
Kuala Lumpur, 18 March - Credit Guarantee Corporation Malaysia Berhad (CGC) and
Maybank today sealed a new Portfolio Guarantee (PG) agreement reflecting their
commitments to enhance access to financing for all levels of small and medium
enterprises’ (SMEs) in the country.
At the same event, Maybank announced that it will set aside RM1 billion for financing to
viable SMEs under the PG schemes, of which a portion will be allocated for the bumiputra
segment.
This new PG Bumiputra agreement is the first of its kind and the largest to be signed
between CGC and any financial institutions in the country. The agreement will benefit
Bumiputra SMEs that are in need of additional working capital to expand and grow their
business.
Speaking at the event, Datuk Lim Hong Tat, Group Head, Community Financial Services
and CEO, Maybank Singapore said, “Maybank has had a long history of supporting the SME
community. Over the years, we have grown our SME portfolio to over RM40 billion
currently and expect our market share to continue growing this year.”
He also added by saying that Maybank’s success in the SME financing business has also
been due to the strong collaboration with CGC as they have been partnering in disbursing
loans under its various schemes for the benefit of SMEs and micro-businesses.
“This new product is part of our commitment to serve the SME community better. Through
this Portfolio Guarantee arrangement with CGC, both existing and new SME customers who qualify can now have a greater access to financing. This collaboration will enable us to
reach out to more SMEs, not only in urban areas, but also in sub-urban and rural areas
where their financing needs will not be neglected. This is made possible via our extensive
network throughout the country.”
“This is very much in line with our mission to humanise financial services by ensuring easy
access as well as fair terms and pricing” added Datuk Lim
“The signing of the PG agreement with a focus on Bumiputra SMEs is in line with the
national Bumiputera development agenda,” said CGC’s President and CEO Datuk Wan
Azhar Wan Ahmad. “This is a very special PG because it addresses both the need for the
bank to manage risks of availing financing as well as the need of SMEs to enjoy unsecured
financing with simple documentations.”
“Through this initiative, we have resolved to provide a higher level of access to financing
for the marginal but potentially viable Bumiputra SMEs by enhancing the bank’s level of
confidence in providing financing through higher guarantee coverage by CGC. At the same
time, as part of its strategic thrust to humanise banking, Maybank has agreed to minimise
the cost of borrowing in order to assist the SMEs,” said Datuk Wan Azhar.
“As one of the biggest supporters of SME development in the country, Maybank’s
commitment of RM1 billion worth of loans and financing this year augurs well for the SME
sector,” added Datuk Wan Azhar.
He also said that with this PG agreement in place, SMEs that lacks collateral and track
record can now look forward to financing from the country’s largest bank with greater
ease as it has the most extensive and most effective network of branches nationwide.
The PG scheme enables SMEs to gain quicker access to financing with speedier turnaround
time in terms of processing and approvals as applications are evaluated for eligibility
based on a pre-determined and simplified set of criteria.
Essentially, we are offering an innovative financing option that has proven to be a costeffective
and efficient delivery system. The turnaround time is faster and with an
approval rate of almost 100%. SMEs can be rest assured they are getting the best possible
assistance,” added Datuk Wan Azhar.
This PG is also offering Islamic PG financing scheme under the Murabahah concept which
comply to Shariah principles under its subsidiary Maybank Islamic.
The Portfolio Guarantee agreement was signed by CGC’s Executive Vice President for
Business Development, Ms. Kristine Ng Wei Miem and Maybank’s Head, Community
Financial Services, Malaysia, Encik Hamirullah Boorhan.
The signing ceremony was witnessed by Datuk Wan Azhar Wan Ahmad and, Datuk Lim Hong
Tat at the signing ceremony held at Menara Maybank today.
In 2014, CGC is targeting to provide RM 2.7 billion worth of SME financing by focusing on
four main segments namely the Bumiputra entrepreneurs, Start Ups, new growth sectors
and Syariah-based financing.