KUALA LUMPUR: Alliance Bank Malaysia Bhd
and Credit Guarantee Corporation Malaysia Bhd (CGC) have entered into a portfolio guarantee agreement aimed at improving access to financing for small and medium enterprises (SMEs).
In a statement, Alliance Bank said the collaboration will enable it to provide up to RM2bil in financing facilities to SMEs, backed by CGC's portfolio guarantee support.
Under the arrangement, Alliance Bank will remain the financing provider, while CGC will provide the guarantee coverage.
The bank will provide financing facilities for eligible SMEs to support working capital and expansion plans, reinforcing its commitment to improving access to funding and helping businesses navigate global uncertainties.
"Alliance Bank’s RM2bil commitment alongside CGC reflects our 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. As The Bank For Life, we stand ready to empower their sustained growth,” Alliance Bank Group CEO Kellee Kam said.
Alliance Bank said it has streamlined its application process to improve turnaround times. The portfolio guarantee structure allows the bank to extend financing more efficiently to SMEs, including those with limited collateral.
Meanwhile, CGC president and chief executive officer Mohamed Nazri Omar said the partnership reflects CGC's commitment to improving access to financing for SMEs at various stages of growth.
"The RM2bil 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 RM3bil under various CGC guarantee schemes, benefiting more than 5,000 SMEs nationwide.
The latest collaboration marks another step in the bank's efforts to expand financial inclusion and support SME growth and resilience.
