Public Bank and Credit Guarantee Corporation Malaysia Berhad collaborate in SME financing

Public Bank Berhad (Public Bank), in a strategic collaboration with Credit Guarantee Corporation Malaysia Berhad (CGC), has committed to providing RM1 billion in financing to small and medium-sized enterprises (SMEs) across Malaysia.

This initiative underlines the continued commitment of both organisations to supporting the growth and sustainability of SMEs, major contributors to the Malaysian economy.

At a special luncheon attended by senior management of Public Bank and CGC held at Menara Public Bank today, Tan Sri Dato’ Sri Dr. Tay Ah Lek, Managing Director and CEO of Public Bank, said: “Public Bank is always mindful of the crucial role of SMEs in driving the nation’s economic growth and has always been a strong supporter of the SME sector. As of June 2024, the Bank has provided RM69.3 billion in financing to SMEs.”

“As the country’s largest SME financier with a 17.5% market share in Malaysia’s SME financing segment, our partnership with CGC reaffirms our commitment to fostering sustainable SME development. By offering these tailored financing solutions, we aim to further empower SMEs to seize growth opportunities and continue contributing to the Malaysian economy.”

CGC President and CEO Datuk Mohd Zamree Mohd Ishak said: “CGC is pleased to celebrate our over a decade-long strategic collaboration with Public Bank Berhad and our joint aim is to provide financial assistance totalling RM1 billion to Malaysian SMEs. For this RM1 billion financing secured by CGC, RM280 million has been released, and today we will witness the release of another RM150 million. Considering Malaysia’s encouraging economic growth in the first half of 2024, which exceeded economists’ forecasts, our immediate plan is to jointly work with Public Bank on the remaining RM570 million to be released to meet the additional financing needs of SMEs in line with the expected improvement of the Malaysian economy.”

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“In line with CGC’s vision to promote the growth and development of competitive and dynamic SMEs, these initiatives underline our dedication to empowering SMEs, ensuring they have the financial resources to thrive and contribute to the economy. Over the past 52 years, CGC has facilitated over RM96 billion in guarantees, benefiting over 380,000 SMEs.”

As part of this strategic collaboration, Public Bank has committed RM1.0 billion in funding to support SMEs, covering the final tranche of the PG Scheme, existing CGC schemes and any future CGC initiatives.

In the final tranche of the PG Plan, Public Bank will offer two different loan packages, namely the PG Property Package and the PG Clean Package.

The PG Property package is designed to provide financial support for the acquisition of new assets and working capital, offering a financing margin of up to 200% of the property value or the purchase price, whichever is lower.

“Public Bank has always kept in mind the crucial role of SMEs in driving the nation’s economic growth and has always been a strong supporter of the SME sector.”

Meanwhile, the PG Clean package offers unsecured working capital. Both packages provide CGC guarantee of up to 70% of the facility amount intended for working capital.

Public Bank has always been an active financial institution participating in the offering of financing schemes initiated by the Government, Bank Negara Malaysia and CGC.

This includes special schemes to assist SMEs during the COVID-19 pandemic, where Public Bank has approved RM3.9 billion in total, benefiting over 19,800 SME businesses nationwide.