KUCHING: SMEs facing tighter conditions can tap RM2 billion in Alliance Bank financing backed by Credit Guarantee Corporation (CGC) support.
Alliance Bank Malaysia Berhad and CGC Malaysia Berhad have sealed a portfolio guarantee agreement to improve financing access for small and medium enterprises (SMEs) across the country.
Under the agreement, Alliance Bank will provide up to RM2 billion in a range of financing solutions, while CGC will provide portfolio guarantee support.
Alliance Bank remains the financing provider under the arrangement.
“The facilities will be made available to eligible SMEs for working capital and business expansion,” the bank said.
The bank said timely and adequate financing could help SMEs bridge funding gaps as they navigate an increasingly difficult operating environment.
“The facilities could help businesses sustain operational efficiency, adopt greater digitalisation and strengthen their market presence.”
The portfolio guarantee structure allows the bank to extend financing more efficiently to SMEs at various stages of their business lifecycle, including those constrained by limited collateral.
Alliance Bank has also streamlined its application process to improve turnaround times and support a wide range of financing requirements, while maintaining prudent risk management practices.
Commenting on the agreement, Alliance Bank Group Chief Executive Officer Kellee Kam said the RM2 billion commitment with CGC reflected the bank’s mandate to support Malaysian SMEs.
“We recognise that collateral requirements can stifle viable businesses.
“Through this portfolio guarantee, we are dismantling those barriers to ensure entrepreneurs have the liquidity they need to innovate, scale and navigate economic headwinds with confidence,” he said.
Meanwhile, CGC President and Chief Executive Officer Mohamed Nazri Omar said the collaboration reflected CGC’s continued commitment to strengthening access to financing for SMEs at different stages of growth.
“The RM2 billion portfolio guarantee will enable more businesses to obtain the funding they need for working capital and expansion, while enhancing their resilience amid an evolving economic landscape,” he said.
The agreement was signed by Kam and Mohamed Nazri and witnessed by Alliance Bank Group Chief Business and Transaction Banking Officer Raymond Chui and CGC Chief Business Officer Sean Tan.
Since 2018, Alliance Bank has disbursed close to RM3 billion under various CGC guarantee schemes to more than 5,000 SMEs nationwide.
