MBSB offers govt guarantee scheme to SMEs, MSCs


MBSB Bank Bhd is offering its M-Government Guarantee Scheme (M-GGS) to small and medium enterprises (SMEs), as well as mid-sized companies (MSCs) to commemorate their contributions to the economy.

M-GGS is a government guarantee scheme that is established through an agreement with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) that aims at enhancing the development agenda of SMEs and MSCs as well as assisting them in managing the working capital and investing in capital expenditure to revitalise and to grow their businesses.

SMEs and MSCs can benefit from M-GGS’s offerings such as the low payment against the guarantee coverage amount at 0.75%, 10-year financing tenure, as well as financing up to RM20 million per company.

MBSB group CEO Datuk Nor Azam M Taib said the bank pledges to aid SMEs and MSCs in staying competitive during tough times. 

“We will continue to assist businesses to secure much-needed capital which will be essential for their long-term growth. 

“MBSB Bank targets to achieve approximately RM600 million in approved financing under M-GGS by year-end,” he said in a statement today.

MBSB is also offering the Working Capital Guarantee Scheme (WCGS) to selected SMEs and MSCs, especially those in food production and exports.

They can also apply for other financing programmes such as Equipment Financing-i, Term Financing-i, Cashline-i, Bank Guarantee-i, Contract Financing-i, and M TRADE.

On the other hand, SJPP principal officer Chen Yin Heng said the government has been supporting SMEs through initiatives, products and guarantee schemes, such as those managed by SJPP.

“Since its inception, SJPP has assisted more than 73,000 SMEs with a total amount of financing of approximately RM73 billion. The government in its 2023 Budget has further allocated RM20 billion to assist the SMEs. 

“Currently there are 10 schemes available with guarantee coverage ranges from 70% to 80% and with the new allocation under Budget 2023, new schemes will be introduced for various industries,” he said.

Chen hoped that these schemes will go a long way as SMEs are one of the sectors that have been contributing significantly towards the nation’s economy.

“It is important that all related parties play a role in reaching out and offering assistance to SMEs and continue to support the nation’s economic agenda. 

“I strongly believe that the collaboration with MBSB Bank and equipped with the guarantees provided by the government would encourage Financial Institutions to become more innovative and forward-looking to continuously explore the best solutions to address the challenges faced by SMEs in gaining greater access to financing,” he added.