The Star
26 July 2023
Financial lifeline for SMEs: MBSB Bank introduces M-Government Guarantee Scheme
IN a bid to support businesses and foster economic recovery post-pandemic, MBSB Bank Bhd has introduced the M-Government Guarantee Scheme (M-GGS) campaign.
The news comes as a glimmer of hope for businesses struggling to navigate the challenging economic landscape in the aftermath of the global health crisis.
With a total guarantee allocation of RM30bil, this campaign aims to provide financial assistance to businesses with an annual revenue of not more than RM500mil.
As a full-fledged Islamic bank, MBSB Bank is devoted to helping all businesses thrive and grow, contributing significantly to the nation's economic prosperity.
How do I sign up for M-GGS?
M-GGS is open to all business owners and to all sectors. Eligible businesses (SMEs to medium-sized companies) from all industries with an annual revenue not exceeding RM500mil can apply for the various financing facilities offered by MBSB Bank.
Extensive benefits
The scheme offers a plethora of enticing features and benefits that have sparked excitement among business owners throughout the country:
- Competitive financing rate: MBSB Bank is offering financing rates as low as 3.75% per annum. This attractive rate not only makes funding more affordable but also ensures that the businesses can access financial support.
- Streamlined application process: In a bid to expedite financial aid, the bank has simplified the application process for the scheme. With swift approvals, businesses can now access funds promptly, allowing them to tackle immediate challenges and seize growth opportunities.
- Collateral-free financing: One of the scheme's most alluring features is the absence of any collateral requirement. This is particularly advantageous for businesses with limited assets, as it alleviates the burden of providing collateral and opens doors to financing that may otherwise be out of reach.
- Extended repayment tenure: Understanding the need for flexibility during uncertain times, the bank offers an extended repayment tenure of up to 10 years. This enables businesses to repay the financing at a comfortable pace and facilitates their long-term planning.
- Inclusivity for all sectors: The scheme is open to businesses from all sectors, reinforcing the bank's commitment to inclusivity and equal opportunities for all. Whether in retail, manufacturing, hospitality, or any other industry, all businesses can now benefit from this initiative.
- Strong guarantee coverage by SJPP: The Syarikat Jaminan Pembiayaan Perniagaan (SJPP), which is a wholly-owned company of the Minister of Finance Incorporated and was formed in 2009 to administer and manage government guarantee schemes under the Second Stimulus Package disclosed in Budget 2009 that enable SMEs to have access to financing facilities from financial institutions, plays a pivotal role in this scheme. It provides an 80% guarantee coverage for the approved financing amount, offering SMEs greater security and confidence in their financial undertakings.
Supporting SMEs amidst challenges
The ongoing pandemic has posed unprecedented challenges for businesses across Malaysia, especially SMEs, which form the backbone of the economy.
Recognising the need for effective financial support, MBSB Bank seeks to address these challenges head-on by offering a range of facilities under the SJPP Guarantee Financing Programme.
The financing options, including Term Financing-i, Cash Line-i, Revolving Credit-i, and Trade Facilities, aim to cater to diverse business needs.
Making a difference in Malaysians' lives
MBSB Bank's commitment to helping businesses recover post-pandemic reflects its dedication to making a positive impact on the lives of Malaysians.
By supporting these businesses, the bank is not only ensuring their survival but also contributing to job retention and creation, economic stability, and overall societal well-being.
Overcoming challenges for a brighter future
The launch of the scheme marks an important milestone for MBSB Bank, as it heralds the first-of-a-kind product offering for customers with annual business turnovers below RM500mil.
While this groundbreaking step presents its own set of challenges, the bank's unwavering dedication to supporting businesses during unprecedented times shines through.
Addressing the needs of SMEs
The past year has been exceptionally trying for businesses of all sizes, but SMEs have borne the brunt of the economic downturn.
Reduced revenues, disrupted supply chains, and limited access to funding have forced many SMEs to operate under immense financial strain.
This scheme addresses these needs head-on, providing much-needed financial relief and fostering an environment of stability and growth. It offers a financing limit up to RM10mil.
A driving force for economic revival
The scheme is poised to play a pivotal role in Malaysia's economic resurgence.
With a total guarantee allocation of RM30bil, the scheme has the potential to empower countless SMEs across the nation.
By offering accessible and affordable financing options, MBSB Bank is not only supporting individual businesses but also propelling the country's economic engine towards recovery and growth.
The scheme is more than just a financial initiative; it represents a beacon of hope for businesses seeking to recover and rebuild post-pandemic. Its comprehensive features and benefits, coupled with the bank's commitment to fostering a resilient and inclusive business landscape, make this an offer too valuable to overlook.