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RM1 Billion in Green Financing for SMEs by UOB Malaysia and SJPP Collaboration

September 19, 2022
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(From left to right) · Mr Chen Yin Heng, the Principal Officer of SJPP, · Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia · Mr Muhundhan Kamarapullai, Chief Innovation Officer of MRANTI

UOB Malaysia has allocated RM1 billion for U-Greem Financing programme, by partnering Syarikat Jaminan Pembiayaan Perniagaan Malaysia (SJPP). This programme supports small- and medium-sized enterprises (SMEs) in embracing sustainability.

Whilst SJPP will be guaranteeing up to 80 per cent of the loans through its PEMULIH Government Guarantee Scheme (PGGS).

It is noteworthy that 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.

It is 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. Through the workshops, SMEs will benefit from a syllabus that is co-developed by MRANTI and its approved training providers.

“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,” Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia said.

“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,” she remarked.

The Singapore-based bank 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.

Mr 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.

“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,” Mr Chen added.

The workshop series established with MRANTI will combine classroom teaching, workshops with real-life case studies, and practical coaching to offer participants insights into ESG best practices. It covers topics such as Introduction to Sustainability for Businesses, ESG Materiality Identification, Green Technology Management, Waste Management, and Social Impact Strategy.

Upon completion, participants will receive a certificate by MRANTI including endorsements by its approved training partners. This will enable the participants to apply their knowledge to advance their learning in other formal ESG courses.

“As MRANTI aims to be a one-stop centre for technology and innovation acceleration, we work with many ecosystem partners regardless of their stage of innovation or solution, and across the innovation readiness lifecycle. The ESG workshop series developed with UOB Malaysia will help businesses, especially SMEs, gain the necessary market knowledge and
insights, receive advice, connect with technology players, and obtain U-Green Financing to support their transition to sustainability,” Ms Dzuleira Abu Bakar, Chief Executive Officer of MRANTI said.

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