AmBank partners CGC to provide RM30 million for start-ups

KUCHING: AmBank (M) Berhad (AmBank) and Credit Guarantee Corporation Malaysia Berhad (CGC) have entered a new strategic partnership to fulfil the financing needs of Small and Medium Enterprises (SMEs).

AmBank and CGC yesterday launched SME Biz Start Up-i which is aimed at assisting startups who have been in business between one to three years and lack collateral as well as access to financing.

The syariah- compliant facility offering RM30 million in financing is a partially secured financing package that comes with 70 per cent of CGC’s guarantee coverage. The facility offers financing ranging from RM30,000 to RM300,000 to qualified SMEs.

“AmBank is committed to supporting SMEs at all stages of their business life- cycle. With the introduction of SME Biz Start Up-i, we are able to provide SMEs with much needed working capital to propel their growth. We are excited to partner with CGC to address the financing needs of SMEs that are the backbone of the economy,” said Datuk Sulaiman Mohd Tahir, Group chief executive officer, AmBank Group at the launch ceremony. To further complement the ongoing strategic collaboration between AmBank and CGC, to empower the SME segment in Malaysia, an additional RM500 million has been allocated as part of CGC’s Portfolio Guarantee tranche continuation with AmBank SME Banking to support the growing demand of the SME industry.

The additional allocation is targeted at medium sized SMEs, with financing ranging from RM100,000 to RM1 million. With CGC’s guarantee, AmBank SME Banking is able to provide applicants with higher term loan facilities and faster financing approval.

“I am pleased to share that over the last four years, both AmBank and CGC have successfully launched 15 Portfolio Guarantee schemes totalling RM2.88 billion and benefitting over 2,700 SMEs,” president and chief executive officer Datuk Mohd Zamree Mohd Ishak.

Also present at the launch event were AmBank managing director ofretailbankingJadeLee,AmBank Islamic chief executive officer Eqhwan Mokhzanee, AmBank Group managing director of business banking Christopher Yap, CGC chief business officer Leong Weng Choong, AmBank head of SME banking David Yeoh and CGC chief corporate officer Rahim Raduan along with the senior management from AmBank and CGC.