KUALA LUMPUR (Aug 21): United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has signed an agreement with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to provide government guaranteed financing to small and medium enterprises (SMEs).
SJPP is an Administrator and Manager of Credit Guarantee Programs under the Malaysian Ministry of Finance.
Under the agreement, SMEs can obtain unsecured loans of up to Ringgit 1 million through the SJPP-UOB BizMoney financial solution, UOB and SJPP said in a joint statement. The sum is double what would be available to customers under the existing UOB BizMoney package.
The SJPP-UOB BizMoney financial solution offers flexible repayment terms of 18, 24, 36, 48 or 60 months, with interest rates starting at 0.54% per month.
“SJPP will guarantee up to 70% of the loan through its working capital guarantee program and its service sector guarantee program,” the statement said.
The partnership with SJPP will help SMEs access additional financing to capitalize on more business opportunities and to meet their working capital needs, said Wong Kim Choong, CEO of UOB.
“According to our research, more than half of Malaysian SMEs plan to increase their income in 2018. While the majority aim to expand overseas, many of them also plan to invest in technological infrastructure. to help them improve their business performance.
“To help businesses take advantage of these opportunities and help them grow, UOB Malaysia is working with SJPP to provide SMEs with the ability to get additional working capital without the need for more collateral,” Wong said. .
Wong said the bank also helps SMEs increase their productivity for business growth. “By providing scalable digital solutions, such as UOB SmartBusiness, we are helping them streamline and automate their back office systems and processes,” said Wong.
SJPP Senior Director Dr Nungsari Ahmad Radhi said the government is committed to providing continued support to SMEs through various initiatives, products and services.
“We are delighted to be working with financial institutions such as UOB Malaysia to help and reach as many SMEs as possible. Our low guarantee fee between 0.5% [and] 1%, coupled with the underlying sovereign guarantee, offers SMEs financing at competitive rates, ”Nungsari said.
“We believe in the development of vibrant and healthy SMEs which are an integral part of Malaysia’s economic transformation process,” he added.