PETALING JAYA: Sunway Malls is assisting its retailers to manage cash flow issues by facilitating up to RM200mil in working capital through financing facilities provided by RHB Banking Group and Credit Guarantee Corp Malaysia Bhd (CGC).
The Sunway Malls SME Retailers Relief Financing Programme will be made available to the retailers across seven malls under the group.
In a statement yesterday, Sunway Malls said qualified retailers can apply for RHB financing facilities of up to RM500,000 with a loan tenure of seven years, where up to 80% of the principal financing amount is guaranteed by CGC.
The programme will also incorporate an option for an overdraft facility of up to 30% of the financing limit, with what Sunway Malls claims to have one of the lowest interest rates in the market.
“Pre-pandemic, Sunway Malls’ retailers were trading at historical highs in 2019 with a healthy cashflow level where 80% of retailers recorded a healthy single-digit ageing days.
“The pandemic has created a cash-flow crunch with only 20% of retailers being able to keep to this single-digit ageing days,” according to the group.
Meanwhile, Sunway Malls and Theme Park chief executive officer HC Chan said most retailers would have exhausted their reserves and savings, hence fresh and timely capital injection is important and urgent.
Despite the rent relief assistance given to the retailers, he said there are other business costs that are still payable, which only fresh working capital injection can address.
“Apart from availability, speed is also critical. Subject to fulfilment of pre-requisite criteria, applications will be fast-tracked with approvals being granted within five to seven working days.
We are indeed appreciative that RHB and CGC have stepped up during these challenging times to support this forward-thinking initiative with Sunway in delivering much needed assistance to our retailers,” added Chan.
RHB group community banking managing director Jeffrey Ng said that through the financing scheme, Sunway Malls is able to draw upon specially designed financing packages offered by RHB to channel new financing facilities with preferential terms to their retailers.
CGC president and CEO Datuk Mohd Zamree Mohd Ishak pointed out that CGS has launched several guarantee and direct financing schemes, totalling RM10bil to assist micro, small and medium enterprises, since March 2020.
“Today, in partnership with RHB Bank and Sunway Malls, CGC is pleased to launch another guarantee scheme, specifically aimed at assisting retailers operating in the seven malls owned by Sunway to revive and recover their businesses.
“This forward-thinking initiative will certainly provide a positive impact to the retailers and enable them to bounce back,” he said.
Source: The Star
