Maybank joins forces with CGCC to undergird SMEs
Maybank joins forces with CGCC to undergird SMEs
MAYBANK (Cambodia) Plc on November 26 announced a strategic collaboration with the government-initiated Credit Guarantee Corporation of Cambodia (CGCC) to support local small- and medium-sized enterprises (SME).
The partnership aims to build long-term competitive advantages for smaller enterprises through the Building Capacity and Capability (BCC) programme for SMEs, and will be complemented by the two parties’ strategic collaboration on the Business Recovery Guarantee Scheme (BRGS), as part of broader efforts to prop up SMEs in the Kingdom.
In a statement, Maybank Cambodia Mohd Hanif Suadi said the collaboration is part of the bank’s continuous efforts to ensure SMEs are able to leverage on opportunities within the rapidly changing business environment, equipping them with the right tools that will help them prosper in the “new normal”.
“Getting a business to run is even more challenging during these critical times. We understand the difficulties faced by SMEs and it is crucial that we support them during this time by offering financial solutions, such as much-needed stimuli, in order for them to sustain their businesses and contribute to strengthening the economy”, he said.
The CGCC’s BRGS aims to improve access to finance for local SMEs by providing third-party credit risk cover to lenders.
CGCC CEO Wong Keet Loong said the BRGS “will help SMEs to enhance their access to formal loans for both working capital and investment or business expansion to support the survival and economic recovery during the Covid-19 pandemic”.
In addition, Maybank and CGCC aim to develop the SME market through capacity building efforts and community outreach initiatives under the BCC programme for SMEs.
Maybank deputy CEO and Community Financial Services head Rath Sophoan said the programme is designed to provide business support instruments and relevant technical advisory services based on international best practices.
This aims to support SME growth, productivity and innovation; enhance competitiveness and productivity; and raise awareness of the BRGS, he said.
“In line with our mission of humanising financial services, our support to SMEs is not only limited to financing, we also offer other financial services to ensure that SME players remain competitive and make the most of growth opportunities,” Sophoan added.
The CGCC is the Kingdom’s first credit guarantee corporation, established by sub-decree No 140 ANKr BK on September 1, 2020 as a state-owned enterprise under the Ministry of Economy and Finance’s technical and financial direction.
According to the ministry, the CGCC’s primary mission is to provide credit guarantees to participating financial institutions (PFI) to support and assist financially-viable businesses that lack collateral to secure loans.
CGCC’s guarantee will act as collateral or security for 70-80 per cent of the loan amount borrowed from PFIs and hence reduce the physical collateral required from borrowers, it has said.
