UOB Malaysia Partners with SJPP to Launch Green Financing Programme for SMEs

​UOB Malaysia is partnering Syarikat Jaminan Pembiayaan Perniagaan Malaysia (SJPP) to launch the U-Green Financing programme, which will support small and medium-sized enterprises (SMEs) in embracing sustainability.

The bank has allocated RM1 billion for this programme, and SJPP will be guaranteeing up to 80 percent of the loans through its PEMULIH Government Guarantee Scheme (PGGS).

UOB Malaysia is the first bank to tie up with SJPP on a green financing programme.

U-Green Financing is available to eligible SMEs and mid-sized companies from all industries looking to contribute to smart sustainable cities.

Companies will also be eligible if they want to develop or construct green buildings, facilitate green trade, or contribute to a circular economy.

Open to both existing UOB Malaysia customers as well as those new to the bank, the facilities are available in the form of term loans, overdraft facilities and trade financing.

In addition to providing financing, UOB Malaysia will also be collaborating with the Malaysian Research Accelerator for Technology and Innovation (MRANTI) to establish an ESG workshop series to equip SMEs with knowledge and practical insights to embark on their ESG journeys.

Ng Wei Wei, Chief Executive Officer of UOB Malaysia said: "UOB Malaysia is proud to enter into this synergistic partnership with SJPP and MRANTI, which is highly complementary and crucial in supporting SMEs to adopt ESG practices. While the MRANTI workshop will assist SMEs in acquiring the necessary knowledge to embrace ESG, our partnership with SJPP will provide the financing support to help them kick-start their sustainability journey.

"We are honoured to be the first bank to partner SJPP to launch a green financing programme for SMEs. By making green financing more accessible, we hope to encourage SMEs to adopt sustainable business practices. This will boost their ESG profile, especially if they are keen to participate and compete in the global value chain."

Apart from U-Green Financing, UOB Malaysia is also a participating financial institution for Bank Negara Malaysia's Low Carbon Transition Facility, as well as the High Technology and Green Facility.

Chen Yin Heng, Principal Officer of SJPP, said that the proposed collaboration is in line with the national goal to achieve net-zero emissions by 2050.

Chen said: "SJPP, via its guarantee schemes, is committed to supporting the government's effort to boost economic growth, especially within the SME sector. Many strategic initiatives and policies have been put in place with the aim to spur and develop business opportunities for this sector.

"We hope that U-Green Financing will encourage more SMEs and the mid-sized corporates to start adopting ESG practices and reduce their carbon footprints. Additionally, we are also pleased that financial institutions like UOB Malaysia and organisations like MRANTI are taking the step forward and drawing on their synergistic strengths to further support this noble aspiration."

Source: Fintech News