AmBank and CGC Commit Additional RM400 Million to Support SME Growth

AmBank and CGC Commit Additional RM400 Million to Support SME Growth

by May 8, 2024

AmBank, in partnership with Credit Guarantee Corporation Malaysia (CGC), has announced an additional RM400 million allocation to their SME Portfolio Guarantee Scheme.

Since its inception in January 2015, the programme has facilitated nearly RM5 billion in funding, aiding over 6,000 small and medium-sized enterprises (SMEs).

This new tranche will allow AmBank to continue offering up to RM1 million as working capital to SMEs.

The latest funding round also includes the introduction of the Pay-As-You-Grow Term Loan (PayG), which offers loans ranging from RM20,000 to RM500,000.

PayG, a unique product in the market, determines loan amounts based on a merchant’s sales performance and allows repayments to be made via deductions from daily sales.

AmBank has committed a substantial amount to this initiative, totaling RM4.995 billion across 32 tranches.

The most recent, known as the PG Revival Tranche, was launched in March 2024. It targets not only traditional SMEs but also e-commerce and merchant customers, offering clean loans with a 70% guarantee from CGC.

Jamie Ling

Jamie Ling

Jamie Ling, Group Chief Executive Officer, AmBank Group said,

“We are committed to support the SME ecosystem, leveraging on the opportunity to tap into the segment’s market potential while contributing to the nation’s economic development.

 

We are delighted to continue serving SME where close to RM5 billion worth of the financing is in collaboration with CGC, supporting over 6,000 SMEs. This is reflective of our efforts to providing accessible financing by addressing collateral challenges faced by SMEs.”

Datuk Mohd Zamree Mohd Ishak

Datuk Mohd Zamree Mohd Ishak

Datuk Mohd Zamree Mohd Ishak, President & Chief Executive Officer, CGC said,

“The PG Revival under this strategic partnership between CGC and AmBank fulfils our mandate to assist the unserved and underserved MSMEs leveraging e-commerce platforms.

 

According to MDEC, which serves as the National E-Commerce Strategic Roadmap 2.0 (NESR 2.0) Project Management Office, the cumulative number of MSMEs adopting e-commerce from 2016 to 2022 has reached over 1.12 million, surpassing the initial 2025 target of 875,000.”