KUALA LUMPUR: Public Bank Bhd, in partnership with Credit Guarantee Corporation Malaysia Bhd (CGC), is set to provide RM1.0 billion in financing to small and medium enterprises (SMEs) natonwide.
The initiative highlights the ongoing dedication of both organisations to fostering the growth and sustainability of SMEs.
Public Bank will allocate the RM1.0 billion to support SMEs through the latest tranche of the PG Scheme, existing CGC schemes and any future CGC initiatives.
The new tranche includes two loan packages: the PG Property package and the PG Clean package.
The PG Property package aims to support new asset acquisitions and working capital needs, providing financing up to 200 per cent of either the property value or purchase price, whichever is lower.
Meanwhile, the PG Clean package provides collateral-free working capital.
Both packages are backed by CGC's guarantee of up to 70 per cent of the loan amount for working capital.
Public Bank managing director and chief executive officer Tan Sri Datuk Sri Dr. Tay Ah Lek said the bank recognises the vital role SMEs play in driving national economic growth and has consistently been a strong advocate for the SME sector.
As at June 2024, the bank extended RM69.3 billion of financing to SMEs, Tay added.
"As the largest SME financier of the nation with a market share of 17.5 per cent in Malaysia's SME financing segment, our partnership with CGC reaffirms our commitment to foster sustainable SME development.
"By offering these tailored financing solutions, we aim to further empower SMEs to seize growth opportunities and continue to contribute to the Malaysian economy," he said.
CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said of the RM1.0 billion financing guaranteed by it, RM280 million had already been released, and today marks the launch of an additional RM150 million.
"Our immediate plan is to jointly work with Public Bank on the remaining RM570 million which will be launched to meet the additional financing needs of SMEs in line with the expected further improvement in the Malaysian economy.
"In line with CGC's vision to promote the growth and development of competitive and dynamic SMEs, these initiatives underscore our dedication to empowering SMEs, ensuring they have the financial resources needed to thrive and contribute to the economy," he said.
Mohd Zamree noted that in the past 52 years, CGC had provided guarantees amounting to over RM96 billion, assisting more than 380,000 SMEs.