By BERNAMA
AmBank (M) Bhd and Credit Guarantee Corp Bhd (CGC) will provide an initial working capital of RM300 million under the portfolio guarantee (PG) scheme to qualified small and medium enterprises (SMEs).
AmBank group managing director (wholesale banking), Pushpa Rajadurai, said the bank has already disbursed about RM75 million to 34 SMEs as of yesterday and would further finance up to RM1 billion.
The two entities signed a PG agreement today to provide financing to five main sectors engaged by SMEs — wholesale and retail trade, manufacturing, education, healthcare and construction and resources.
“The SMEs in these sectors can look forward to securing higher financing amount of up to RM3 million and with a loan tenure of up to five years,” she said after the signing ceremony of PG between AmBank Group and CGC and the launch of the bank’s BizSolutions here today.
The five sectors have been identified under the SME Master Plan 2012-2020 with growth potentials where Malaysia has both comparative and competitive advantages with high multiplier effect.
She said SME segment is one of the bank’s key growth areas for this year, and this CGC tie-up is timely for AmBank Group to increase its market share and contribute to economic growth in the country.
To date, AmBank Group had given out about RM12 billion for the SME sector and for the wholesale banking, it has finance about 25% of the total financing.
“We expect the financing loans in SMEs segment to increase double digits for this year, with collaboration as well as with existing financing that we do for SMEs,” said Pushpa.
The PG loan would be 70% guaranteed by CGC and is certain in approval which is almost 100% due to efficiency of the process flow and previous experience, as well as no guarantee fees and hassle-free applications.
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