PUBLIC Bank Bhd has entered into a strategic collaboration with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), a credit guarantee agency under the Finance Ministry, to provide RM1 billion in financing to support small and medium enterprises (SMEs).
This financing initiative encompasses all current and future financing schemes guaranteed by SJPP, including the working capital guarantee scheme and the Pemulih government guarantee scheme.
Public Bank MD and CEO Tan Sri Tay Ah Lek expressed that this partnership with SJPP will significantly enhance SMEs’ access to much-needed financing.
“With a substantial domestic exposure of RM67 billion 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 said.
The announcement of the collaboration took place during a special ceremony held on Sept 21, 2023, at Menara Public Bank, where key executives from Public Bank and SJPP were present, including Public Bank’s deputy CEO Datuk Chang Kat Kiam, SJPP’s COO Juanita Rusmini Abdul Jalil and senior general manager (guarantee schemes management) Azlan Mohd Agel, among others.
In addition to the collaboration with SJPP, Public Bank also disclosed its participation in the“Government Guarantee Scheme Madani (GGSM)”.
GGSM is the latest financing scheme designed to revitalise eligible Malaysian SMEs and mid-sized companies, with a particular focus on businesses in four economic sectors: High technology, agriculture, manufacturing and tourism.
Qualified businesses in these sectors will benefit from SJPP’s higher guarantee coverage of up to 90% and a guarantee fee as low as 0.5%.
Furthermore, Public Bank and SJPP are jointly working on the development of ESG-focused financing schemes, aimed at encouraging SMEs to adopt sustainability best practices.
The collaborative effort aligns with Public Bank’s proactive approach in seizing growth opportunities aligned with the nation’s digital and sustainable economic transformation.
“The new collaboration with SJPP aims to support the business community’s growing demand for ESG-related products and solutions which is also fully aligned with Public Bank’s proactive approach in embracing growth opportunities presented by the nation’s aspirations to grow and transform towards a digitally and sustainably driven economy,” Tan concluded.
Source: https://themalaysianreserve.com/2023/09/25/public-bank-joins-forces-with-sjpp-in-sme-financing/