PETALING JAYA: Alliance Bank Malaysia Bhd, Malaysia’s smallest bank in terms of asset size, expects its collaboration with Celcom Axiata Bhd to generate RM200 mil in financing for SMEs.
Alliance group CEO Joel Kornreich said the partnership with the country’s largest private mobile network operator will offer an affordable all-in-one connectivity and hassle-free financing.
“We have surpassed the RM9 bil mark in SME lending and we expect about RM200 mil will come from this partnership,” he told reporters after signing the memorandum of understanding here today. Celcom was represented by its CEO Idham Nawawi.
It was witnessed by Celcom chief enterprise business officer Azlan Zainal Abidin and Alliance group chief strategy and marketing officer Dr Aaron Sum Wei Wern.
Kornreich said the financing was aimed at helping SMEs manage their businesses better in line with the government’s goal to increase the sector’s contribution to the economy to 50% by 2030 from 37% currently.
“We believe that this will increase to 40% in 2020 or 2021 but the 50% target will only be possible if the SMEs are provided with a level playing field by equipping them better to manage their businesses and expand quickly,” he added.
He points out that following the partnership, the recently-launched Celcom Business Suite for Retail is now equipped with the Alliance SME Express Financing package that caters to the needs of retailers, while providing mobile and data connectivity, payment acceptance and an customer engagement platform.
Businesses can now obtain financing from the bank faster, easier and without the need for collateral, he added.
He said customers taking up the package would also enjoy better pricing value on their telco plan and preferential rates from the bank.
For the first six months of the financial year ending March 31, 2020, Alliance Bank’s SME loans grew 10% year-on-year.
Meanwhile, Idham said Celcom aimed to inculcate a digital business culture environment among SMEs across various industries.
He said Celcom’s Business Suite for Retail, paired with Alliance Bank’s financing solution, would narrow the digital business gaps with innovative digital solutions and ease of financing in one package.
“We hope to see our enterprise segment contributing 15%-20% to group revenue in the next 2-3 years from 10% currently,” he added. – Jan 15, 2020 Bernama
