3 days ago
- Business
- New Straits Times
SME Bank unit and Funding Societies team up to expand financing access
KUALA LUMPUR: The Centre for Entrepreneur Development and Research (CEDAR), a unit under SME Bank Malaysia Bhd, has partnered with Funding Societies Malaysia in a strategic collaboration aimed at enhancing financing access for local small and medium-sized enterprises (SMEs).
Under the collaboration, Funding Societies has committed up to RM50 million in funding.
The initiative aims to help address the RM290 billion SME financing gap identified by the Securities Commission Malaysia in 2022, by enabling more inclusive and accessible financing solutions for underserved businesses.
The collaboration will focus on providing accessible, Shariah-compliant financing solutions such as payables financing, receivables financing, and term financing by leveraging digital platforms and alternative credit assessment tools.
Funding Societies country head Chai Kien Poon said this initiaive described as a long-standing advocate of SME development.
"By integrating with CEDAR's digital platforms and reaching entrepreneurs through nationwide outreach, we hope to make financing more inclusive, fast, and tailored to the evolving needs of SMEs in Malaysia," he said in a statement.
Meanwhile, CEDAR chief executive officer Amirul Imran Ahmat noted that over 83,000 entrepreneurs have been trained under its programs.
The partnership will also include roadshows via 19 enterprise centres across SME Bank's network to enhance financial literacy and promote digital adoption among SMEs.
The financing will be made available through CEDAR digital platforms, including ELSA, ScoreXcess, and ODELA.
