Alliance Bank, CGC Partner Up To Provide RM2 Bln Financing Support For SMEs
KUALA LUMPUR, June 10 (Bernama) -- Alliance Bank Malaysia Bhd and Credit Guarantee Corporation Malaysia Bhd (CGC) have entered into a portfolio guarantee agreement to enhance access to financing for Malaysia’s small and medium enterprises (SMEs).
Alliance Bank said that the partnership will see the bank provide up to RM2 billion in a range of financing solutions, with CGC contributing portfolio guarantee support.
“The bank will make available financing facilities for eligible SMEs to be utilised for working capital and business expansion. This initiative underscores Alliance Bank’s commitment to supporting SMEs by expanding financing avenues that can enable businesses to seize critical growth opportunities and build long-term sustainability amid current global uncertainties,” it said.
Its group chief executive officer (CEO), Kellee Kam, said the bank’s initiative alongside CGC reflects its proactive mandate to champion 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.
Alliance Bank added that the portfolio guarantee structure enables the bank to extend financing more efficiently to support SMEs at various stages of their business lifecycle, including those constrained by limited collateral.
Meanwhile, CGC president and CEO Mohamed Nazri Omar said the collaboration reflects CGC’s commitment to strengthening access to financing for SMEs and supporting businesses 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.
Since 2018, Alliance Bank has disbursed nearly RM3 billion under various CGC guarantee schemes, benefiting more than 5,000 SMEs nationwide. The bank said the latest collaboration marks another milestone in its efforts to promote financial inclusion and strengthen SME resilience.
-- BERNAMA