KUALA LUMPUR (August 2): Sunway Malls announced today that it will facilitate up to RM 200 million in working capital to support its retailers through financing facilities provided by RHB Banking Group and Credit Guarantee Corporation Malaysia Bhd (CGC).
The financing facilities – the Sunway Malls SME Retailers Relief Financing Program – will be made available to retailers in the shopping center group in seven shopping centers, it added in a statement.
As part of this program, Sunway Malls said that qualified retailers under Sunway Malls can apply for RHB financing facilities up to RMB 500,000 with a loan term of seven years, where up to 80% of the Principal funding amount is guaranteed by CGC.
The program will also include an option for an overdraft facility of up to 30% of the funding limit with one of the lowest interest rates in the market, he added.
âWith these financing facilities provided by RHB and guaranteed by CGC, retailers will receive the crucial working capital needed to support their business survival during the various MCO (Movement Control Order) states imposed due to the pandemic. extended period of Covid-19, âSunway Malls said.
Sunway Malls noted that its retailers were trading at all-time highs before the pandemic in 2019 with a healthy cash level where 80% of retailers saw single-digit healthy aging days.
Now the pandemic has created a cash flow crunch with just 20% of retailers able to meet single-digit aging days, he added.
Sunway Malls & Theme Park General Manager (CEO) HC Chan said, âAfter 16 months of the pandemic, most retailers have reportedly depleted their reserves and savings, which is why fresh and timely capital injections are needed. important and urgent. Although the landlord continues to provide rent relief assistance, there are other business costs that remain to be paid and which only further injections of working capital can cover.
âIn addition to uptime, speed is also critical. Subject to meeting the pre-requisites, requests will be processed promptly and approvals will be granted within five to seven business days, âChan added.
Jeffrey Ng, Managing Director of RHB Banking Group, Jeffrey Ng, said: âMany SMEs (small and medium enterprises) are currently facing cash flow difficulties resulting from the protracted Covid-19 pandemic. Therefore, this initiative is part of RHB’s continued efforts to provide fast and easily accessible financial assistance to its clients. Through this program, Sunway Malls is able to leverage specially designed financing packages offered by RHB to quickly deliver new financing facilities on preferential terms to their retailers, who additionally benefit from guarantees provided by CGC.
CGC President and CEO Datuk Mohd Zamree Mohd Ishak said: âSince the Covid-19 pandemic hit our country in March 2020, CGC has launched several guarantee and direct funding programs. , totaling 10 billion ringgit to help MSMEs (microenterprises and SMEs) to sustain their activity. Today, in partnership with RHB Bank and Sunway Malls, CGC is pleased to launch yet another guarantee program, specifically aimed at helping retailers operating in the seven Sunway-owned shopping centers to relaunch and resume operations. This forward-thinking initiative will certainly have a positive impact on traders and allow them to bounce back.