AmBank, CGC widen financing facilities worth RM400m

by AZALEA AZUAR / pic by MUHD AMIN NAHARUL

AMBANK Group has collaborated with the Credit Guarantee Corp Malaysia Bhd (CGC) to extend its financing facilities worth RM400 million through the SME Portfolio Guarantee (SPG) Revival Scheme/-i.

This is in line with both parties’ efforts to assist the small and medium enterprises (SMEs) in providing working capital to revive and support their business growth.

AmBank group CEO Datuk Sulaiman Mohd Tahir said SMEs are important to the country’s economy although it is facing a challenging domestic and global environment.

“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,” he said.

CGC president and CEO Datuk Mohd Zamree Mohd Ishak said the health and economic crises have greatly impacted the nation, where SMEs have been hit the hardest.

“At CGC, we are continuously aligning our strategies and intensifying our support to SMEs.

“This RM400 million SME Portfolio Guarantee Revival Scheme is a coordinated collaboration with AmBank to support SMEs weather these crises by providing timely guarantee to entrepreneurs in need,” he said.

Meanwhile, AmBank retail banking MD Aaron Loo said the bank has entered total agreement tranches of more than RM3.8 billion ever since the partnership with CGC began back in 2016.

Eligible SMEs can register for financing facilities of up to RM1 million with a loan tenure of seven years, where 70% of the principal financing amount is guaranteed by CGC.

According to AmBank business banking MD Christopher Yap, the bank is currently working with CGC to eliminate pain points in the existing process, as well as enabling their 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,” he said.

AmBank is also looking at the Extended SPG Revival, together with the sub-programme of the merchant segment, in which it would explore another upcoming tranche totalling RM300 million. Interested parties can visit ambank.com.my for more information on the SPG scheme.