For the past few years businesses all over have continued to navigate a challenging economic environment marked by geopolitical tensions, supply chain disruptions, rising costs and tighter cash flow.
For small and medium-sized enterprises (SMEs) in Malaysia, these pressures can be particularly acute as higher operating, material, utility and wage costs weigh on margins while longer credit terms and delayed customer payments put pressure on liquidity.
StarBiz spoke to RHB Bank
Bhd (RHB) group corporate and business banking managing director Wendy Ting on how businesses can access financial support as they navigate these challenges.
“Higher material, utility and wage costs continue to weigh on margins, while supply chain disruptions and longer payment cycles can put further pressure on cash flow”, she says.
“For SMEs, having the right banking partner is therefore important not only for accessing financing, but also for managing day-to-day operations and preparing for the next stage of growth.”
Against this backdrop, RHB takes a lifecycle approach to SME banking, categorising businesses into three broad stages – start-up, growth and matured – based on factors including business age, size, maturity and financing or growth needs.
Supporting businesses from the start
For start-ups with less than three years of operating history, access to financing is important but so are solutions that help them establish and manage their daily operations.
“At the start-up stage, businesses are focused on getting the fundamentals right – from managing cash flow and payments to building a stable operating base. Access to the right banking solutions can make it easier for them to manage these day-to-day needs while they focus on growing the business,” says Ting.
These include the RHB Business Current Account, RHB DuitNow QR Soundbox, RHB Multi-Currency Account and RHB Merchant Terminal, which help businesses manage day-to-day payments, collections and transactions more efficiently.
For those requiring financing, RHB PINTAS Plus Start Up Financing is available to businesses that have been operating for more than one year.
SMEs can also access financing digitally through SME Online Financing, while online account opening and RHB Reflex provide greater convenience and visibility in managing transactions and cash flow.
Together, these solutions are aimed at simplifying banking and financing while addressing common challenges such as documentation, payment collection and cash-flow management.
Funding the next phase
As businesses move into the growth stage, their financing needs become more diverse as they expand operations, require more working capital and invest in business assets.
RHB SME Business Loans, through Term Loan and Overdraft facilities, provide government-guaranteed financing to help businesses address temporary funding shortfalls, pay bills and manage cash flow.
RHB SME Property Loans support commercial property purchases and expansion while providing additional working capital, while RHB Trade Financing helps businesses fund their working-capital cycle as trade activities grow.
For businesses looking to improve operational efficiency, RHB Reflex Premium Plus integrates RHB Reflex with HR payroll, accounting and industry-specific cash-management solutions.
“As businesses grow, their financial needs become more complex”, says Ting.
“Beyond working capital, they may need to invest in property, expand their trade activities or improve how they manage their operations. Our role is to provide solutions that can evolve with those needs.”
As businesses mature, their financial requirements can extend beyond conventional lending to include financial risk management, supply chain strengthening and access to broader sources of capital.
RHB provides Foreign Currency Hedging to help businesses manage foreign-exchange exposure, while IPO Advisory Services and Debt Capital Markets capabilities support companies considering their next phase of growth.
RHB Financial Supply Chain also provides end-to-end trade financing solutions integrated with procurement platforms to help businesses improve cash-flow planning and financial management across their supply chains.
Dedicated relationship managers complement these solutions by working with SMEs to develop financing based on their specific requirements.
Moving forward, RHB plans to reach out to at least 1,000 SMEs under the SME Stabilisation Relief Facility (SRF), providing businesses with access to financing support to help manage their short-term funding needs.
”We recognise that some SMEs continue to face cash-flow pressures as they navigate a more challenging operating environment,” says Ting.
“Our focus is on helping businesses access the right support so they can remain resilient and continue moving forward.”
Making financing more accessible
Beyond its range of financing solutions, RHB has continued to simplify and digitalise the SME financing process, making it faster and more convenient for businesses to access funding.
The bank introduced straight-through processing (STP) for online financing earlier this year, enabling successful applications to receive approval within the same day.
RHB has also introduced a simplified credit template for its Enterprise Banking segment.
As at July 31, more than RM120mil had been approved through the simplified template, while process enhancements have generated an estimated 20% productivity uplift.
”We know that speed and simplicity matter to business owners, particularly when they need financing to respond to an immediate opportunity or manage a cash-flow need,” says Ting.
“We have therefore continued to simplify our processes and use digital tools to make financing more accessible.”
Financing a greener future
Sustainability is also becoming an increasingly important consideration for SMEs as businesses face changing supply chain requirements and growing expectations around environmental performance.
For many businesses, investments in areas such as energy efficiency and renewable energy can also help reduce operating costs and strengthen resilience over the longer term.
RHB supports SMEs through customer engagement, capacity building, financial support, certification and resources and tools.
These include connecting businesses with sustainability experts and government agencies, providing sustainable financing solutions and supporting green certification. SMEs can also access tools such as the Low Carbon Operating System (LCOS) and SME ESG Hub to begin their sustainability journey.
RHB’s SME Sustainable Financing Schemes cover areas including renewable energy, green buildings, green capital expenditure and working capital, green technology and green vehicles.
The bank has cumulatively mobilised more than RM5.4bil to support SMEs’ sustainable finance needs, including RM1.65bil last year.
Demand has been strongest for renewable energy and energy-efficiency initiatives, particularly rooftop solar photovoltaic installations, energy-efficient machinery and equipment upgrades and projects supporting low-carbon operations.
Such investments can help SMEs reduce operating costs, improve energy resilience and meet increasingly stringent sustainability requirements across global supply chains.
Since 2025, RHB has approved more than RM600mil in financing under Bank Negara Malaysia’s High Tech and Green Facility and Low Carbon Transition Facility, demonstrating demand for financing that supports decarbonisation and long-term growth.
The bank has also invested RM1.5mil to empower 1,000 MSMEs through capacity building, financial literacy, business and digital skills, business advisory, growth coaching and financing readiness, helping businesses strengthen their capabilities alongside access to financing.
These initiatives form part of RHB’s broader PROGRESS27 strategy, which includes a target to mobilise RM90bil in sustainable finance by 2027.
As SMEs continue to navigate economic uncertainty and evolving business requirements, Ting says sustainability will become an increasingly important part of their growth and long-term business strategies.
“Sustainability is increasingly becoming part of how SMEs compete and grow, particularly as customers and supply chains place greater emphasis on environmental performance.
For SMEs, investments in areas such as energy efficiency and renewable energy can also help reduce operating costs and strengthen resilience over time,” she says.
For more information on RHB Bank Bhd’s support for SMEs, scan the QR code.
