Public bank ties up with gov’t to finance SMEs

Domestic exposure for SME-based commercial lending is equivalent to an 18.6% industry market share.

Public Bank Berhad has entered into a strategic collaboration with Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), the credit guarantee agency under the Ministry of Finance (MoF), to provide RM1b in financing to small and medium enterprises (SMEs).

“With a substantial domestic exposure of RM67b for SME-based commercial lending as at end of 2022, equivalent to an 18.6% industry market share, Public Bank remains committed to serve the SME segment and helping them to prosper, expand and further contribute to the country’s economic growth”, Tan Sri Tay said during the special ceremony to commemorate the strategic collaboration on 21 September at Menara Public Bank.

The financing initiative will encompass all existing and forthcoming financing schemes guaranteed by SJPP, including the Working Capital Guarantee Scheme (WCGS), PEMULIH Government Guarantee Scheme (PGGS), and others. 

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The goal of this collaboration is to enhance SMEs' access to much-needed financing.

Public Bank also announced its participation in the 'Government Guarantee Scheme MADANI (GGSM).' 

GGSM is the latest financing scheme guaranteed by the government, with the primary aim of revitalising eligible Malaysian SMEs and mid-sized companies. This scheme places special emphasis on companies operating in four key economic sectors: High Technology, Agriculture, Manufacturing, and Tourism.

Qualified businesses within these four focus sectors will benefit under GGSM, including higher SJPP guarantee coverage of up to 90% and a guarantee fee as low as 0.50%.

Additionally, Public Bank and SJPP are collaborating to create financing schemes that focus on Environmental, Social, and Governance (ESG) principles. These schemes are designed to encourage SMEs to adopt sustainability best practices and align their operations with ESG standards, promoting responsible and sustainable business practices.