SMEs employ over 66% of the total workforce in Malaysia. They help drive our economy forward, and if they suffer, the impact will be severe and far-reaching.
The government recognized the importance of SMEs and announced support for SMEs in Malaysia to assist them during this period.
In addition to the government, there is a clear need for financial institutions and banking services to play their role in supporting these companies.
HSBC, a bank with more than 150 years of history in Malaysia, is also committed in three ways to help SMEs who have problems.
The aim is to be a helping hand and to provide the support that SMEs need from financing to everyday banking.
1. Get a credit / funding delay
Announced by Bank Negara Malaysia on February 27, 2020 and Prime Minister Muhyiddin Yassin in the announcement of the PRIHATIN stimulus package on March 27, 2020, banking institutions in Malaysia will offer a deferral for all loan / financing repayments for 6 months from April 1. 2020.
Note fact: Postponing a loan essentially means that the loan / financing repayment obligation is temporarily suspended and there are no late payment fees.
If HSBC goes one step further, it won't Compound interest / profit during the deferral period because the bank understands that every penny is important to SMEs.
This means that during the deferral period, they will not charge interest in addition to the accrued interest.
According to the HSBC, all eligible SME customers are automatically included in the deferral.
“We feel like we are in everyone who is currently going through a challenging time due to the COVID 19 outbreak here in Malaysia and therefore made the decision for private and SME customers – both the interest on conventional loans and the profit Islamic Funding We hope that this proactive effort will help reduce the financial burden on our retail and SME customers. "
Stuart Milne, CEO of HSBC Bank Malaysia
If you are a larger company and have had stress during this time, you can also contact HSBC to be involved in this shift. They have an extensive FAQ for companies who want to learn more.
2. Apply for some quick financing solutions
Photo credit: HSBC
In its efforts to reduce the financial burden on SMEs due to the COVID 19 outbreak, HSBC has provided the financing solutions offered by Bank Negara Malaysia.
With an allocation of RM 13.1 billion, these are the 5 financing options offered:
1) Special assistance facility
RM5 billion to support short-term cash flow problems. SMEs can receive funding of up to RM 1 million with a grace period of 6 months and a ceiling of 3.5% per year for up to 5.5 years. Available from March 6, 2020 to December 31, 2020.
2) Agrofood plant
RM 1 billion to increase local food production for export purposes. SMEs can receive up to RM 5 million in funding over a period of up to 8 years. A maximum of 3.75% per year. Available from March 6, 2020.
3) Institution for the automation and digitization of SMEs
RM 300 million as an incentive for SMEs to improve efficiency and productivity. SMEs can receive funding of up to RM 3 million for a term of up to 10 years. A maximum of 4% per year. Available from March 6, 2020 to December 31, 2020.
4) Facility for all economic sectors
Improved access to finance for SMEs with an allocation of RM 6.8 billion. Eligible SMEs can receive funding of up to RM5 million with a cap of 7% per year for a term of up to 5 years. Available from March 6, 2020.
5) Micro enterprise facility
RM 300 million to improve access to security-free finance for small businesses. SMEs entitled to this can receive up to 50,000 RM over a period of 5 years. Determine funding rate from HSBC. Available from March 6, 2020.
HSBC recognizes the challenging situation of SMEs in these difficult times.
You recently introduced that Simplified SME finance solutionThis enables SMEs to access capital that is used for day-to-day operations or the creation of new companies more quickly.
These are the 5 main advantages of HSBC's simplified SME finance:
- High funding limit: Get access to up to RM2 million for your business needs
- Accelerated approval: Faster approval process to move forward in these uncertain times
- Attractive prices: Get cash flow with competitive win rates
- Free from physical security: focus on the essentials without physical security *
- Flexible repayment: Get a flexible repayment plan for up to 5 years with no penalty for early repayment
* A Syarikat Jaminan Pembiayaan Perniagaan (SJPP) guarantee is required.
3. Manage your business finance online
Photo credit: HSBC
With the MCO, people must not go on as they could before. Even after picking up the MCO, many may hesitate to exercise too much outdoors.
HSBCnet, the bank's digital banking platform, can help SMEs remotely manage their business finances and keep your business running under all circumstances.
It can be used anytime and anywhere and was developed to simplify banking processes for SMEs.
The platform enables SMEs to handle transactions from payment to staff, and offers real-time access for managing business transactions, bulk payments, and custom payment reports.
For example, if you still rely on bank checks to pay your employees, HSBCnet companies can switch to online payments to employees.
On the platform, customers can also view live exchange rates for international payments and transfers. GetRate, HSBC's foreign currency platform, can also help SMEs with features that lower currency costs and reduce exchange rate risk.
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HSBC has stood shoulder to shoulder with Malaysians through ups and downs. The current situation is no different. HSBC understands that many business owners are in a very challenging situation and are willing to help.
With these solutions, HSBC wants entrepreneurs to know they are here to provide the support they need on this trip.
With the deferment of credit and other financing services, this relieves the business owners who are currently in a very challenging phase and are trying to maintain business survival.
- For more information on HSBC's financing solutions, go to Here.
- Further information on the postponement Here.
1. Bank Negara Malaysia press release of March 27, 2020
Selected image source: HSBC