Hong Leong Bank to help SMES secure financing under Penjana

PETALING JAYA: Hong Leong Bank Bhd (HLB) will help eligible small and medium enterprises (SMES) secure working capital of up to RM500,000 under the Penjana SME financing (PSF) scheme.

The bank said it was taking part in the PSF scheme by providing support to local SMES adversely impacted by Covid-19.

“The Hong Leong Bank PSF scheme is available to all SMES including emerging SMES (i.e. SMES with a minimum of 12 months business operations or SMES with no credit/ borrowing history) as part of their business recovery and continuity journey,” it said.

There is no collateral required for a term loan up to five years, with a financing rate capped at 3.50% per annum for eligible SMES.

For the first six months upon receiving the financing, SMES only need to service the interest.

HLB’S group managing director and CEO Domenic Fuda said as Malaysians were starting to resume social activities, and businesses in almost all sectors are now allowed to operate in this recovery phase of the movement control order (MCO), economic recovery will take time.

“Cash flow still remains a serious concern for SMES which had to deal with a heavy blow to their finances amidst the weaker economy and a subdued marketplace where consumer sentiment is still low.

“While the more established and digitally prepared SMES may be able to withstand the blow, new and emerging SMES are particularly vulnerable especially when only 50% of

SMES are able to sustain their businesses within the first five years of establishment,” Fuda said.

He also pointed out SMES are the engine of the economy as they represent 98.5% of the total business establishments in Malaysia.

“Hence, HLB, as a bank with a strong entrepreneurship heritage would help SMES reboot their businesses with this financing scheme aimed at providing short-term financial buffers as a way to protect the business continuity plans,” he said