Nearly RM5bil in total financing has been allocated to benefit Malaysian SMEs
IN Malaysia, small and medium enterprises (SMEs) are the lifeblood of the economy, making up a staggering 97.2% of all businesses.
However, many SME owners face a common hurdle: cash flow challenges. These financial struggles can disrupt daily operations and even prevent long-term growth.
In a bid to address this issue, AMMB Holdings Bhd (AmBank) – one of the largest banking groups in Malaysia, launched the SME Amplify programme in 2023.
This groundbreaking initiative was designed to empower local SMEs to overcome cash flow challenges by offering easy access to financing solutions beyond traditional banking options.
The programme also raises public awareness of financial difficulties and supports SMEs in managing their finances effectively, helping them thrive in a competitive market.
Innovative solutions
AmBank SME Amplify offers a suite of holistic solutions tailored for SMEs across diverse industries, ranging from food and beverage to retail, e-commerce, logistics and more.
One of the scheme’s most appealing features is its Pay As You Grow (PayG) solution – Malaysia’s first term loan linked to point of sale (POS) transactions and deposit accounts. This product enables SMEs to access loans quickly for their evolving business needs.
AmBank SME Amplify not only provides interest-earning current accounts for businesses but also delivers seamless online management through the AmAccess Biz platform.
This platform offers a range of cash management solutions, from effortless payments to tailored services like forward exchange contracts and payroll management.
The added advantage? SME owners can customise solutions to precisely fit their business needs.
Moreover, AmBank SME Amplify pioneers other innovative financial solutions, enabling SMEs to flourish without hefty upfront expenses.
This includes starting services with no advance deposit and linking savings accounts with investment accounts for quick and efficient financial management.
The programme has also incorporated Mandarin into its language options to cater to the diverse linguistic preferences of its users, making the AmOnline website and mobile versions more accessible and user-friendly for a broader segment of the SME community.
Upping the ante
In May this year, Malaysian SME’s received an additional boost when Ambank announced an extra RM400mil in financing through the SME Portfolio Guarantee Scheme.
This latest Portfolio Guarantee (PG) Revival Tranche targeting on SMEs as well as its applicable to e-commerce & merchant segment customers, offering clean loans up to RM1mil with 70% guaranteed by Credit Guarantee Corporation Malaysia Bhd (CGC)
This additional support increased the total allocated amount to nearly RM5bil, supporting over 6,000 SMEs.
AmBank’s SME Portfolio Guarantee Scheme, one of several PG segments introduced over the years, provides flexible working capital loans to help SMEs manage their daily financial needs.
With this, SMEs get up to RM1mil in funding at competitive rates, with a tenure of up to seven years and no lock-in period.
Additionally, no collateral is required, granting businesses the freedom and flexibility they need to grow and thrive.
AmBank’s group chief executive officer Jamie Ling says, the bank is delighted to continue serving SMEs with this nearly RM5bil worth of financing.
“This is reflective of our efforts to provide accessible financing by addressing collateral challenges faced by SMEs,” he says.
Maximising potential
To ensure SMEs across all economic sectors can maximise their potential, AmBank SME Amplify has formed collaborations with key strategic partners including Bank Negara, CGC and the Ministry of Finance’s (MoF) credit guarantee agency, Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP).
Other notable collaborations include Bank Simpanan Nasional (BSN), which supports micro SMEs by providing financing and business knowledge to enhance their entrepreneurial skills.
These partnerships create a robust support network that helps SMEs stay financially stable and grow their businesses.
AmBank’s initiatives, including SME Amplify, and the recent collaboration with CGC, stand as a testament to AmBank’s unwavering commitment to empower Malaysian SMEs.
These efforts not only address collateral challenges but also fuel economic growth within the SME ecosystem, significantly contributing to the nation’s prosperity.
Bolster your business today, and sign up with AmBank Amplify here
