Bank Muamalat accelerates financing efforts

by TMR / pic courtesy of Bank Muamalat

BANK Muamalat Malaysia Bhd and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) have signed an agreement to enable Malaysian small-and-medium enterprises (SMEs) and mid-sized companies (MSCs) to access financing under the Pemulih Assistance Package announced on June 28, 2021. 

Under the agreement, Bank Muamalat’s business customers can apply for the Pemulih Government Guarantee Scheme (PGGS), the bank said in a statement yesterday. 

The scheme provides financing assistance via new financing, restructuring of current financing facilities and further funding of working capital to help entrepreneurs revitalise their businesses. 

Bank Muamalat president and CEO Khairul Kamarudin said the agreement affirms Bank Muamalat’s commitment to accelerate efforts to assist SMEs and MSCs to regain their footing and focus on increasing their resilience in the next phase of the Covid-19 crisis. 

“The Covid-19 pandemic has driven radical shifts in demand, buying patterns and disrupted businesses. 

“PGGS will provide SMEs and MSCs the necessary resources to sustain operations in the short term and prosper in the long term. Bank Muamalat will continue to assist businesses to secure much-needed capital which will be essential for their long-term recovery and growth,” said Khairul. 

He added that apart from PGGS, Bank Muamalat has existing financing programmes aimed at assisting selected SMEs and MSCs, namely Teraju Bumiputera Healthcare Supply Chain Financing Programme and MARii Automotive Vendor Financing Programme. 

Eligible SMEs and MSCs can apply up to RM10 million for each of the financing programmes. Both of these programmes are also packaged together with the PGGS. 

SJPP principal officer Chen Yin Heng said the government is committed to providing continuous support to SMEs and MSCs through various initiatives, including PGGS, with an allocation of RM20 billion. 

“This will assist eligible SMEs and MSCs to obtain much needed additional financing, restructuring of existing loans and/or additional working capital to support them in their business recovery and to reduce their financial burden,” said Chen.

In addition, a further allocation of RM10 billion (including RM2 billion for Bumiputeras) was announced with enhancement to the PGGS terms in the Budget 2022 announcement.

Government Guarantee Schemes, established by the government and managed by SJPP, have been vastly utilised by many SMEs in all industries such as in manufacturing, services, retail and trade. 

To date, more than RM47 billion worth of guarantees have been provided to over 45,000 SMEs and this has helped sustain their business especially during the Covid-19 lockdown periods, as well as provide them with some financial reserves for working capital needs to move forward during this economic recovery phase.