Standard Chartered Malaysia and Credit Guarantee Corporation (CGC) agreed to provide RM100 million in financing to help small and medium enterprises (SMEs) struggling with liquidity challenges in the aftermath of Covid-19 get back on their feet.
This agreement makes Standard Chartered Malaysia the highest contributor of financial assistance amongst all foreign banks in Malaysia.
In a statement, Mohd Zamree Mohd Ishak, President and Chief Executive Officer of CGC, said the initiative aims to provide working capital for SMEs to ease their burden, helping them to sustain their businesses in this challenging health and economic crises.
“The timing is perfect as it also supports the National Economic Recovery Plan or PENJANA to help Malaysia build its economy together as announced by our Prime Minister,” said Mohd Zamree.
Abrar A. Anwar, Managing Director and Chief Executive Officer of Standard Chartered Malaysia, said, “We are delighted to be collaborating with CGC again, especially during this time where financial assistance becomes a lifeline for many businesses.”
With this signing, Standard Chartered and CGC have launched a grand total of 15 tranches worth RM1.61 billion. Many SMEs in Malaysia have benefited from loans guaranteed by CGC from Standard Chartered and we expect to be receiving more applications.
Abrar also commented on repayment assistance provided by the Bank. “We have structured an assistance package for SMEs whereby we waive structuring and digital platform fees, provide higher interest rates for current accounts, give preferential rates plus complimentary insurance coverage for Covid-19-related incidences.
“For trade SME clients, we are also waiving a bundle of trade facilities fees for letters of credit and export handling charges on top of giving preferential FX rates to help them manage liquidity challenges,” he added.
Standard Chartered Malaysia has also developed a loan repayment assistance programme to support individuals who have lost their jobs this year or those facing salary reductions.
The Bank is offering a threemonth extension of the loan moratorium starting 1 October 2020 to clients who have been made redundant, while clients who received pay cuts are advised to contact the Bank to explore possible repayment options.
Abrar adds, “In a time as difficult as this, we are doing what we can to help soften the impact of Covid-19 by providing targeted financing support to our clients. While we pride ourselves on our digital banking capability, our approach remains one of personal touch as we believe that behind every business are human beings trying their best to deal with the fallouts from the pandemic.
We encourage clients to reach out directly to us, so that we can tailor our assistance to their varying needs and circumstances.”
