PETALING JAYA: Funding Societies Malaysia, Southeast Asia’s largest unified SME digital finance platform, has formalised a strategic partnership with the Centre for Entrepreneur Development and Research (Cedar), the training and capacity-building arm of SME Bank Malaysia Bhd.
The collaboration was sealed through a participation agreement with a signing ceremony held recently, outlining a commitment to mobilise up to RM50 million in financing to support credit access for Malaysian SMEs within Cedar’s business community.
The strategic partnership aims to bridge the challenges faced by SMEs in Malaysia, particularly in obtaining financing, which was estimated at RM290 billion in 2022, according to the Securities Commission Malaysia.
The collaboration seeks to deliver accessible and customised financing solutions, which include syariah-compliant payables financing, receivables financing, and term financing, by harnessing digital platforms and alternative credit
assessment methodologies.
Funding Societies will provide these offerings to eligible entrepreneurs with a targeted focus on vendors supporting government entities, government-linked companies, and multinational corporations.
“We are honoured to partner with Cedar, a long-standing advocate of SME development. This agreement reflects our shared commitment to improve financial access for local businesses.
“By integrating with Cedar’s digital platforms and reaching entrepreneurs through nationwide outreach, we hope to make financing more inclusive, fast, and tailored to the evolving needs of SMEs in Malaysia,” Funding Societies Malaysia country head Chai Kien Poon said.
Cedar CEO Amirul Imran Ahmat stated that, as the training and capacity-building arm of SME Bank, the agency remains committed to providing support beyond financing to homegrown entrepreneurs throughout their lifecycle.
“With more than 83,000 entrepreneurs trained to date, Cedar is steadfast in its aspiration to be Malaysia’s centre of excellence for entrepreneurial development. Our partnership with Funding Societies combines access to capital with SME Bank’s digital tools and expertise to support SME growth in a dynamic economy.
“Funding Societies’ customers can also leverage our robust digital platforms, particularly ScoreXcess – our financing portal for small and micro enterprises, powered by Cedar. Together, we are committed to accelerating entrepreneurial development and delivering tailored support for MSMEs,” he said.
The signing ceremony was officiated by Funding Societies group COO Kah Meng Wong and SME Bank group chief digital and technology officer Hairil Izwar Abd Rahman.
Funding Societies and Cedar will co-organise roadshows at the 19 enterprise centres within SME Bank’s nationwide network to enhance financial literacy and digital adoption among SMEs in Malaysia.
Companies are eligible for financing under this collaboration if they are sole proprietorships, partnerships, limited liability partnerships, private limited companies (not subsidiaries of listed companies), unlisted public companies, or public listed companies and their subsidiaries.
Additionally, eligible companies must have at least 30% local shareholding by Malaysians, generate a minimum annual revenue of RM1 million, and have been in operation for at least one year.
These flexible financing offerings will be made available through Cedar’s digital platforms.
