KUALA LUMPUR: MBSB Bank is strengthening its support for Malaysian small and medium enterprises (SMEs) through targeted financing, business advisory services and development programmes aimed at helping them grow, digitalise and compete in new markets.
MBSB Berhad group chief commercial banking officer, Noor Mohamed Amin Mohamed, said the bank's approach combines commercial banking solutions from MBSB Bank with the development financing expertise of Malaysian Industrial Development Finance Bhd (MIDF), giving businesses access to a broader range of support within one group.
The partnership was highlighted during the SME Association's 30th anniversary celebrations, which MBSB Bank sponsored this year.
"It gives us a direct platform to engage SMEs and show them something unique that MBSB Group offers," he said.
"Through MBSB Bank and MIDF, SMEs can access both commercial banking and development financing solutions within the same ecosystem. Instead of dealing with multiple institutions, they can get support across different stages of growth from one group."
Noor Mohamed said this integrated approach was particularly useful for businesses seeking to expand into strategic sectors or enter new markets.
For example, an SME looking to grow its halal business could use MIDF's Halal Accreditation & Technology Improvement (HATI) programme to finance halal certification, technology upgrades and operational improvements. It could then turn to MBSB Bank for trade financing, working capital and export-related banking solutions as it expands.
"We believe SMEs should spend more time growing their business and less time navigating different institutions," he said.
Financing strategic growth
SMEs remain central to Malaysia's economic development, particularly as the country seeks to strengthen its competitiveness through higher-value industries, technological adoption and sustainable business practices.
To support this, MBSB Bank has allocated dedicated financing initiatives of up to RM1 billion across several sectors, including solar and renewable energy, Perodua vendors and suppliers, agro and environmental, social and governance (ESG)-related businesses, as well as electrical and electronics (E&E) and advanced manufacturing.
Noor Mohamed said the initiatives were intended to help Malaysian SMEs access the capital needed to participate in sectors aligned with the government's development priorities.
"What differentiates us is our ability to combine MBSB Bank's commercial banking capabilities with MIDF's development finance expertise," he said.
This includes MIDF's Future Ready Financing (FRF) programme, which supports Industry 4.0 adoption, and HATI, which helps halal businesses finance certification and technology improvements.
The group also offers sustainability-focused financing to help businesses adopt greener operations and improve their long-term competitiveness.
Noor Mohamed said these efforts supported the aspirations of the 13th Malaysia Plan (RMK-13), the New Industrial Master Plan 2030 (NIMP 2030) and the wider national economic agenda.
He added that the objective was to provide SMEs with the financing, support and growth pathways needed to scale up, innovate and reach new markets.
Addressing cash flow pressures
Beyond long-term expansion, MBSB Bank is also addressing the immediate financial challenges faced by business owners.
Noor Mohamed said cash flow management remained one of the biggest concerns for SMEs, as rising operating costs, delayed payments and market uncertainty could put pressure on otherwise viable businesses.
The bank's SME Stabilisation Relief Facility is designed to help businesses manage temporary financial pressures, preserve liquidity and maintain operations.
"Even good businesses can face temporary pressures due to rising costs, delayed payments or market uncertainty," he said.
"The SME Stabilisation Relief Facility helps businesses preserve liquidity and continue operating with confidence."
The bank has also introduced deposit solutions aimed at helping SMEs earn returns on their operating funds.
Its SME Current Account-i offers a profit rate of up to 3 per cent per annum for balances above RM50,001.
"On the deposit side, we saw that many SMEs were not getting meaningful returns on their operating funds," Noor said.
"In simple terms, we want SMEs to have access to support when cash flow is tight and earn better returns when cash flow is strong."
Beyond conventional banking
Noor Mohamed said financing alone was no longer sufficient to help SMEs remain competitive, as businesses faced growing expectations from customers, multinational supply chains and export markets.
Meeting these requirements often involves investing in technology, improving operational efficiency and obtaining relevant certifications.
Through MIDF's HATI programme, halal businesses can obtain financing for certification, machinery purchases, facility upgrades and technology adoption.
Meanwhile, Sustainable Green Biz Financing supports businesses investing in energy-efficient equipment and green technologies, which can help reduce operating costs over time.
"If we can help SMEs become more competitive, financing naturally becomes more effective and sustainable," he said.
He added that support must also reflect the different needs of businesses at various stages of development.
A small home-based business may require basic banking services and working capital, while a growing SME may need machinery financing, trade facilities or funding for automation. Larger manufacturers may require export financing, treasury solutions or sustainability-related funding.
MBSB Bank's relationship managers work with customers to understand their business needs and recommend suitable solutions across the group.
"Our goal is simple: to provide the right solution at the right stage of the SME's growth journey," Noor said.
Building resilience for the future
Looking ahead, Noor Mohamed said MBSB Bank would focus on simplifying access to financing, strengthening business advisory services and developing solutions tailored to SMEs throughout their growth journey.
The bank also intends to expand advisory support in digitalisation, productivity improvement, ESG readiness and export growth.
He said businesses that were financially resilient, digitally enabled and strategically prepared would be better positioned to navigate economic uncertainty.
"As Malaysia works towards increasing SME contributions to GDP and exports by 2030, MBSB Bank intends to remain a trusted partner supporting that journey," he said.
Reflecting on the SME Association's anniversary, Noor said Malaysian businesses had consistently demonstrated resilience and adaptability amid economic cycles, technological changes and shifting market conditions.
He encouraged business owners to seek advice, make use of available support programmes, embrace innovation and continue investing in their future competitiveness.
"As MBSB Bank celebrates this important milestone alongside the SME Association, we reaffirm our commitment to stand with Malaysian SMEs at every stage of their journey, from right start to long-term success," he said.
"We believe that when SMEs thrive, communities prosper, industries strengthen and the national economy moves forward. That is why supporting SMEs will remain a key priority for us for many years to come."
© New Straits Times Press (M) Bhd