WITH today’s rising costs in doing business, Malaysian small and medium enterprises (SMEs) face shrinking revenues amid higher input, labour, logistics and compliance costs.
Following an article in StarBiz on July 30, many SMEs say that they are experiencing margin compression as costs continue to rise.
This was made clearer in the article’s interview with Bank Negara Malaysia (BNM)’s assistant governor Suhaimi Ali, who explained that BNM’s SME Stabilisation Relief Facility (SME SRF) had shed some light on the challenges affecting SMEs today.
He said while many applicants reported rising costs, tighter margins and higher working-capital needs, these pressures vary from firm to firm.
He said manufacturers and construction-related SMEs pointed to higher material, fuel and logistics costs, while wholesalers and retailers mentioned higher procurement and freight costs, softer demand and weaker orders.
“Supply-chain delays, additional inventory requirements and slower customer payments have also increased working-capital needs for many businesses,” he added.
As one of the participating financial institutions of BNM’s SME SRF financing programme, RHB Bank Bhd is able to grant eligible SMEs up to RM750,000 in working capital financing at a competitive rate of 3.75% per annum (inclusive of guarantee fees).
This comes with government-backed guarantees from Credit Guarantee Corporation Malaysia (CGC) or Syarikat Jaminan Pembiayaan Perniagaan (SJPP).
By bridging the collateral gap, these guarantees improve access to financing and provide businesses with essential day-to-day working capital.
The bank has launched a streamlined financing process alongside a "Fast Track Lane" for pre-selected customers, ensuring fast-track financial support for SMEs.
Supported by dedicated relationship managers, the initiative aims to simplify application processes for both new and existing clients.
RHB group managing director and group chief executive officer Datuk Mohd Rashid Mohamad said to assume the role as a bank meant standing by its customers and responding with agility during periods of global economic disruption.
“We have re-engineered our credit evaluation process to prioritise speed and flexibility, ensuring that geopolitical challenges do not stall the growth of businesses,” he said.
“Our focus is on ensuring timely support while continuing to partner SMEs as they stabilise, adapt and grow.”
Beyond providing access to financing, RHB also recognises that some businesses may require greater flexibility in managing their existing financial commitments.
The bank’s Targeted Relief Assistance programme complements the SRF as part of its two-pronged strategy, providing support to existing SME customers experiencing repayment difficulties. Through this programme, businesses can work with the bank to adjust their loan repayment arrangements based on their financial circumstances.
Businesses may be offered an extension of their loan tenure of up to three years, or up to five years for selected customers, to reduce monthly repayments.
Those facing more significant cash flow challenges may also qualify for a six-month principal moratorium on term loans or convert short-term financing, such as overdrafts, into five-year term loans.
Additionally, RHB has also partnered with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to unlock up to RM1bil in financing. The partnership targets SMEs and mid-tier companies that struggle to secure conventional loans.
To drive adoption, joint nationwide roadshows will take place across the Klang Valley, Johor Baru, and Penang to connect business owners with relevant funding options.
For more details on the SME Stabilisation Relief Facility, visit RHB Bank's website
