KUALA LUMPUR (Sept 21): Public Bank Bhd is extending RM1 billion in financing to small and medium enterprises (SMEs) via a strategic collaboration with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP). 

In a statement on Thursday, the bank said that the financing will cover all existing and future financing schemes guaranteed by SJPP including the Working Capital Guarantee Scheme (WCGS) and the Pemulih Government Guarantee Scheme (PGGS).

SJPP is a credit guarantee agency under the Ministry of Finance, according to a statement on Thursday.

Public Bank managing director and chief executive officer Tan Sri Datuk Seri Dr Tay Ah Lek said the collaboration with SJPP will enhance SMEs’ access to financing. 

“With a substantial domestic exposure of RM67 billion for SME-based commercial lending as at end of 2022, equivalent to an 18.6% industry market share, Public Bank remains committed to serve the SME segment and help them to prosper, expand and further contribute to the country's economic growth”, said Tay.

Meanwhile, Public Bank announced its participation in the Government Guarantee Scheme Madani (GGSM).

GGSM is the latest financing scheme guarantee which is aimed at rejuvenating the business of eligible Malaysian SMEs and mid-sized companies, with a special focus on companies involved in four economic sectors involving high technology, agriculture, manufacturing and tourism, read its statement.

“Qualified business establishments from these four focus sectors will be able to benefit from the higher SJPP guarantee coverage of up to 90% and guarantee fee of as low as 0.50%.”

Public Bank and SJPP are also collaborating to develop ESG-focused financing schemes to encourage SMEs to participate in  sustainability best practices.

“The new collaboration with SJPP aims to support the business community’s growing demand for ESG-related products and solutions which is also fully aligned with Public Bank’s proactive approach in embracing growth opportunities presented by the nation’s aspirations to grow and transform towards a digitally and sustainably driven economy,” noted Tay.

At the time of writing, Public Bank's shares rose three sen or 0.72% to RM4.22, valuing the bank at RM81.9 billion.