Funding Societies Malaysia, Southeast Asia’s largest unified small and medium-sized enterprise (SME) digital finance platform, has formalized a strategic partnership with the Center for Entrepreneur Development and Research (CEDAR), the training and capacity-building arm of SME Bank Malaysia Berhad.
Funding Societies said in a statement on Friday that the collaboration, which was sealed through a participation agreement with a signing ceremony held recently – outlining a commitment to mobilize up to MYR 50 million ($11.78 million) in financing to support credit access for Malaysian SMEs within CEDAR’s business community.
This strategic partnership aims to bridge the challenges faced by SMEs in Malaysia, particularly in obtaining financing, which was estimated at MYR 290 billion ($68.25 million) in 2022 – according to Securities Commission Malaysia.
The collaboration seeks to deliver accessible and customized financing solutions, which include Shariah-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,” said Chai Kien Poon, Country Head of Funding Societies Malaysia.
“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,” he added.
Amirul Imran Ahmat, Chief Executive Officer of CEDAR, said as the training and capacity-building arm of SME Bank, the firm remains committed to providing beyond-financing support to its homegrown entrepreneurs throughout their lifecycle.
With more than 83,000 entrepreneurs trained to date, he said CEDAR is steadfast in its aspiration to be Malaysia’s center of excellence for entrepreneurial development.
According to him, the 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’re committed to accelerating entrepreneurial development and delivering tailored support for micro, small, and medium enterprises (MSMEs),” he added.
Funding Societies and CEDAR will co-organize roadshows via the 19 enterprise centers within SME Bank’s network nationwide to enhance financial literacy and digital adoption among SMEs in Malaysia.
Companies with the following criteria will be eligible to the financing offered via this collaboration: sole proprietorships, partnerships, limited liability partnerships, private limited companies (non-subsidiary of a listed company), unlisted public companies, or public
listed companies and subsidiaries; minimum 30 percent local shareholding by Malaysians; minimum 1 million ringgit ($240,000) revenue per annum; minimum one year in operation.
These flexible financing offerings will be made available through CEDAR’s digital platforms, including ELSA, ScoreXcess, and ODELA.
Funding Societies | Modalku is licensed in Singapore, Indonesia, Thailand, registered in Malaysia, and operates in Vietnam.
The FinTech company provides $1 billion annually of business financing to SMEs.
The firm is backed by SoftBank Vision Fund 2, Maybank, Khazanah Nasional Berhad, CGC Digital (the digital arm of the Credit Guarantee Corporation Malaysia Berhad), SBVA
(previously SoftBank Ventures Asia), Peak XV Partners (previously Sequoia Capital India), Alpha JWC Ventures, SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EBDI, SGInnovative, Qualgro, and Golden Gate Ventures among others.