Tag: SME support

Kuala Lumpur, Malaysia – As the country gears towards new restrictions on their latest movement control order (MCO) 3.0 which started 1 June onwards, Malaysia’s CIMB has announced that it will be expanding its financial assistance to individuals and microenterprises.

Said financial assistance is in line with Malaysia’s ‘Pemerkasa Plus’ aid package announced by the national government. 

Those who are eligible for the financial assistance include customers who experienced loss of employment and those recipients of either of its pre-existing services the Bantuan Sara Hidup (BSH) or Bantuan Prihatin Rakyat (BPR). Part of assistance are also microenterprises with borrowings of up to RM150k, and SMEs whose operations have been halted due to the current MCO.

Currently, there are two options: a moratorium for three months; or a reduction of monthly installments by 50% for six months.

The affected borrowers are only required to select one preferred option with the approval to be automatically provided, but still subject to meeting the criteria mentioned. 

Alongside this, individual customers who have experienced any decline in income are also able to benefit from reduced monthly instalment payments, while all other affected borrowers can also reach out to the bank to consider restructuring and rescheduling financing solutions.

“CIMB would like to reassure our customers that we remain committed to provide support during this challenging period. The expanded financial relief assistance offered to our affected customers is to help them stay resilient given the prolonged challenges. We have ensured a convenient and simple process for our customers to choose a payment relief programme, suited to them,” said Dato’ Abdul Rahman Ahmad, group chief executive officer at CIMB Group.

To date, CIMB has processed around 165,000 financial relief applications for individual and business borrowers in Malaysia, amounting to more than RM22 billion, with an approval rate of virtually 100%.

Singapore – With the initiative to give small and medium businesses (SMBs) across Southeast Asia to boost brand engagement and accessibility, short video platform TikTok has launched its newest initiative ‘Shop Local Saturday’ that gives SMBs opportunities to be featured on their platform.

Currently available for SMBs across Indonesia, Thailand and Vietnam, the ‘Shop Local Initiative’ features a variety of paid advertising packages to showcase the SMB branding through a unique suite of in-app spotlight features on TikTok, which will roll out starting 4 June. With many SMBs still managing the impact of the pandemic, this initiative also seeks to level the playing field by raising awareness about their businesses and amplifying their offerings.

Through the initiative, SMBs will have the unique opportunity to not only participate in TikTok’s campaign but also to leverage the platform’s scale and reach. With special perks such as a dedicated in-app page that is designed to drive traffic to the various SMBs’ sites, exclusive access to creators, produced ads, creative workshops and listings on TikTok’s website and blog, SMBs will receive next-level brand exposure to drive conversions of more users into new customers. 

Beyond the benefits to local SMBs, local TikTok users in Indonesia, Thailand and Vietnam can also look forward to great deals, including providing promotion codes within the app for customers, available on TikTok all across June as they do their part to support their local businesses.

Esme Lean, head of small and medium business in Southeast Asia at TikTok stated that they are thrilled with the launch of said initiative, adding that the initiative aims to empower more SMBs to use TikTok as a platform to find their authentic voice and reach new audiences.

“This is our way of supporting SMBs and enabling them to grow in spite of the pandemic. We hope to show SMBs in Southeast Asia that they can leverage TikTok to launch meaningful campaigns that will ultimately drive sales and real business results,” Lean stated.

TikTok notes in its TikTok SMB Report conducted by TikTok for Business, 1 in every 4 SMBs in Thailand as well as 1 in every 3 Vietnamese and Indonesian SMBs have used TikTok as their preferred ad platform and find TikTok ads to be most effective, highlighting the strength of the platform as a marketing tool to drive their business goals.

In addition to the various benefits brought to SMBs by Shop Local Saturdays, TikTok will also amplify the initiative further on the platform through In-Feed Ads as well as attention-grabbing full-screen displays known as Brand Takeovers, to direct users to the Shop Local Saturday listings throughout June.

Beyond Shop Local Saturday, TikTok is firmly committed to helping SMBs bounce back by providing them with the tools, resources and best practices to connect with their audiences and grow their business during this difficult time:

  • TikTok Ads Manager: SMB can leverage TikTok Ads Manager to create advertising campaigns with easy set up and flexible budgets while helping their business to reach their relevant audiences. 
  • Grow with TikTok – Starter Lab: A monthly training programme kickstarted in February 2021, where over 6,600 SMBs have since benefited from learning directly from established figures in the marketing industry and TikTok experts on getting started on the platform. 
  • Small Business Resource Center: Introduced in March 2021, it houses TikTok’s practices and resources for SMBs to learn to connect with their audience and drive results. 
  • Lead Generation: TikTok’s first-party solution that helps businesses reach prospects in order to convert them into potential customers with ease, is also available to businesses. Lead Generation enables businesses of all sizes to create seamless interactions to reach prospects in order to convert them into potential customers. 
  • Supporting Local Payments on TikTok Ads Manager: TikTok supports local-friendly payments through integration with e-wallets like DANA in Indonesia and Rabbit LINE Pay. 
  • Signed Memorandums of Understanding (MOU) with the governments in Indonesia, Thailand and Vietnam: TikTok has also partnered local governments in key markets with MOUs, reinforcing its commitment to supporting SMBs across the region.

Colombo, Sri Lanka – In line with the institution’s clear focus on the nation’s enterprise development, banking institution Nations Trust Bank (NTB) in Sri Lanka has announced that it has received a US$40m grant from FMO, the Dutch Entrepreneurial Development Bank, to help in the revival and growth of the Bank’s SME portfolio, as well as in order to ensure lives and livelihoods are protected and new employment is created. 

FMO has worked closely with Nations Trust Bank since 2004 and has partnered to provide the bank with access to long-term funding which has become more challenging due to the economic effects of the COVID-19 pandemic. 

NTB stated that it will focus its funding on local manufacturing, pharmaceuticals, value-added agriculture, women-led businesses, and export-oriented business which in turn will generate the much-needed foreign exchange flow into Sri Lanka and aid in building a resilient national economy. 

According to Priyantha Talwatte, CEO and director at Nations Trust Bank, the loan facility will enable them to support the growth of their SME clients and to provide solutions which are relevant at each stage of the customer’s business lifecycle. He added that it will contribute to narrowing the SME-financing gap and boosting financial inclusion, a vision both shared by FMO and NTB.

“These funds will support the bank’s own ‘Diriya’ program which was floated to support the revival of business with the advent of the pandemic. Our strong and long-standing relationship with FMO has made this facility possible and stands testament to Nations Trust Bank’s continuous ability to transact with international lenders to support local business rebuilding activity,” Talwatte said.

Meanwhile, Marnix Monsfort, director of Financial Institutions at FMO, commented, “FMO is very pleased that we can once again engage with Nations Trust Bank to support them in their strategic journey of supporting SMEs. By contributing to further narrowing the SME-financing gap, NTB can and will boost financial inclusion to various underserved segments, one of the goals highly supported by FMO.”

Aside from this endeavor, NTB has also partnered with the Central Bank of Sri Lanka for the ‘Saubhagya’ business support loan scheme, as well as disbursing over Rs. 20b (US$101.5m) towards the internally generated fund under ‘Nations Diriya’ dedicated to extending financial support to a range of industries engaged in direct or indirect export-oriented business and in local manufacturing.

Kuala Lumpur, Malaysia – In observance of the Muslim holiday Hari Raya, Malaysian telco Maxis has partnered with e-commerce platform Shopee in releasing a shoppable holiday-centric campaign, which encourages Malaysians to shop online for their Raya festivity needs in support of local SMEs, whose businesses are greatly affected by the pandemic.

Hari Raya, or also known as Eid al-Fitr, is a Muslim religious holiday that marks the end of month-long dawn-to-sunset fasting of Ramadan. In Malaysia, Hari Raya is a well-known holiday, many Muslims and even non-Muslims return to their family home, known by the term ‘balik kampong’ where they go home to their loved ones a day before the festivities.

Maxis has released the ad ‘Raya Si Sakan’, in collaboration with Shopee, which combines storytelling with technology through shoppable ad features, turning a typical video into a shopping catalogue for entrepreneurs to promote and sell their products.

Maxis is inviting Malaysians to shop for their Raya festive needs in support of a noble cause for online merchants. Malaysians can select from over a wide range of products showcased at Maxis’ dedicated campaign page, from fashion, food, Islamic wares, décor and home items, as well as arts and crafts. In addition, this campaign puts the spotlight on local micro-entrepreneurs to help them unlock their ‘rezeki’ potential through the power of e-commerce. 

The narrative follows the quirky tale of a husband and wife preparing for the Raya festivities. While the wife prepares new things for the festivity, the husband has been spending online to buy merchandise from sellers, from beauty products, Raya-centric foods and dresses.

The general theme of the campaign encapsulates a new thought of celebrating Raya, as the husband says that he is spending online so that the merchants as well can earn and enjoy their Raya as well.

For Tai Kam Leong, head of brand and marketing at Maxis, the Raya season has always been personified by acts of generosity and shopping, and they were inspired to blend the best of both traditions, using our shoppable Raya film to turn shopping into acts of giving.

“Bringing sellers and shoppers together in this digital space, we are encouraging people to support local businesses, while giving the latter the exposure they would not ordinarily get otherwise. And as a tribute to their entrepreneurial spirit and contribution to our economy, we want to put the best of technology in their hands to enable them to Always Be Ahead,” Leong stated.

Meanwhile, Kenneth Soh, head of Shopee Mall Malaysia, stated that this partnership with Maxis is another initiative to make e-commerce accessible, inclusive and beneficial for all Malaysians. 

“As we further our goal of using technology to empower the communities that we serve in, this joint effort will help local entrepreneurs, particularly B40 entrepreneurs by giving them the opportunity to gain exposure and sales,” Soh stated.

Soh says further, “Beyond sales, the initiative strives to provide livelihoods for the entrepreneurs and help them survive during these trying times. We are humbled to be part of this collaboration and we look forward to greater things that will benefit the country together with Maxis.”

Maxis has been supporting the SME and micro-SME community for several years now. Recently, it launched its eKelas Usahawan, a structured digital marketing program to empower women entrepreneurs in rural communities to develop a stronger digital presence.

Manila, Philippines – Alibaba Business School, the educational arm of e-commerce giant Alibaba, has announced the kickstart of its first-ever Alibaba Netpreneur Training Program in the Philippines with support from QBO Innovation Hub, a local public-private partnership platform for local startups, and regional venture capital firm Gobi Partners via their Gobi-Core Philippine Fund (‘Core Capital’).

The training program aims to equip entrepreneurs and business leaders with tangible and actionable steps they can take to advance in the digital economy, based on Alibaba’s own entrepreneurship journey. It is part of Alibaba’s wider initiative to promote inclusive development and empower entrepreneurs and businesses both large and small.

The program is designed as a combination of online and offline training modules. The online program will be conducted via a series of virtual seminars from 21 July to 1 September, providing first-hand exposure to e-commerce and digital innovations, access to business leaders across Alibaba and those in China, as well as an opportunity to connect with like-minded, leading entrepreneurs in participants’ own region, through exercises, interactive lectures, and dynamic discussions.

Applications for this program are open from now until 20 June. 

Over the six-week period, the sessions will cover Alibaba’s key learnings from its growth from a fledgling startup into a full digital ecosystem, as well as practical advice to help businesses digitally transform their own operations and confidently embrace global business opportunities. Alibaba Business School will also host optional webinars during the program focusing on industry trends and insights.

“The acceleration of the digital economy as a result of the global pandemic is creating huge opportunities that may not be immediately recognizable. We are keen to demonstrate to SMEs and entrepreneurs how they can make full use of our digital ecosystem learnings and insights to spot and win these opportunities, and to transform their businesses for long-term success in the digital economy,” said Zhang Yu, partner and vice president at Alibaba.

Participants will be graded and quizzed on a weekly basis, culminating in a final capstone assignment at the end of the program. All participants who complete the course will be invited to join the Alibaba Global Initiatives community, where they will be able to receive access to additional content and activities post-program such as webinars and newsletters. 

For Katrina Rausa Chan, executive director of QBO Innovation Hub, the new training program is fitting as the country is witnessing a digital transformation ‘awakening’, which has become even more critical to the country’s economic resilience, recovery, and advancement. 

“Small businesses, and especially innovative startups, play a key role and need our support. We’re thrilled to partner with Alibaba Business School in launching the Alibaba Netpreneur Training Program. This initiative will empower local entrepreneurial talent and build a more dynamic startup scene,” Chan stated.

Ken Ngo, managing partner at Core Capital, meanwhile commented, “Access and exposure to operational best practices is vital for Filipino entrepreneurs to be competitive in a digital future. More importantly, I believe the real value of this program lies in how it highlights the role of leadership and vision in growing companies and communities. Together with our partners, I’d like to invite all Filipino founders and business owners to take this opportunity and apply for this program now.”

The Alibaba Netpreneur Training Program is Alibaba Business School’s latest initiative to drive success in the Philippines digital economy and build talent in digital commerce and business. 

Sydney, Australia – The Australian arm of small business lending company OnDeck has launched a new credit scoring innovation to allow greater access for small and medium enterprises (SMEs) in Australia on their credit services.

Called as ‘KOALA Score™’ formerly as Key Online Australian Lending Algorithm, is developed by OnDeck and uses a sophisticated blend of credit algorithms and statistical techniques in combination with data from credit reporting agencies illion and Equifax, to support more granular credit risk assessment for Australian SME lending.

KOALA gives OnDeck the ability to analyze the personal credit scores of business owners, which is a unique feature of the new credit model. This is a plus for newer enterprises, sole traders, and partnerships, which typically do not have the substantial volume of commercial data required by traditional lenders.

“Previously our credit scoring was very commercial credit score driven, but KOALA uses a mix of commercial and consumer credit history plus cash flow, to build a more holistic risk profile,” said Cameron Poolman, CEO at OnDeck Australia.

KOALA was first piloted on a consumer test last March 2021, where it recorded 5% of customers who received loan offers that extended the option of spreading the repayments over longer terms if desired. Furthermore, OnDeck also recorded an 11% increase in approvals for business loans up to $250,000, with the enhanced credit risk assessment provided by KOALA increasing confidence in loan amounts and duration.

“Moreover, the KOALA risk assessment model has been tailored to the Australian small business customer, and this granular insight potentially gives SMEs more access to funding they need, coupled with an uptick in lending limits,” Poolman added.

OnDeck also provides a ‘Know Your Score’ service to SMEs, allowing small businesses to check their Equifax business credit score online at no cost. Since launching the service in 2016, almost 20,000 small business owners have discovered their business credit score.

“We have now backed this up with KOALA, using the quieter environment of 2020 to drive innovation in our business. The development of KOALA – and its tailoring to the Australian small business landscape, highlights our commitment to the SME sector. KOALA is significantly more granular because it uses a greater range of data sources and ultimately enables us to offer loans to more Australian businesses, at a time when they really need it,” Poolman concluded.

Manila, Philippines – CIBI, a local credit bureau agency, has announced a partnership with AI and data company ADVANCE.AI to use innovative AI and computer vision technology to expand business intelligence support and services for local businesses in the Philippines.

CIBI, which was first established in 1982, provides data, credit reporting, and information management services and analytics for consumers and business entities. Meanwhile, ADVANCE.AI aims to solve digital transformation, fraud prevention, and process automation for enterprise clients.

Marlo R. Cruz, president and CEO of CIBI said, “As a forward-looking and digital-first organization, CIBI always looks to be one step ahead. This partnership with ADVANCE.AI facilitates our mission to give Filipino businesses easier access to a range of business intelligence services, including credit and data reporting through a more efficient internal system. This marks the beginning of more opportunities for CIBI, as our partners enrich our capabilities and innovations.”

ADVANCE.AI’s holistic suite of products covers three key areas: digital identity verification and eKYC customer onboarding, risk management and digital lending solutions. It is now expanding into markets such as Mexico, UK, Europe, and the US.

Meanwhile, Dong Shou, CEO of ADVANCE.AI, commented: “Our market-leading AI and computer vision technology will allow CIBI to expand its range of critical business data and intelligence reporting solutions, with the ultimate aim of better supporting underbanked and underserved businesses in the Philippines.” 

He added, “This is more important than ever in the current COVID landscape, as we help accelerate the digitalization of the economy, and in doing so, help millions of Filipinos and businesses gain access to new financial products and services.”

Kuala Lumpur, Malaysia – Credit Guarantee Corporation (CGC) Malaysia, a subsidiary of Bank Negara Malaysia, and banking institution Standard Chartered Malaysia have announced the availability of RM70M in capital to aid small and medium enterprises (SMEs) in Malaysia.

Under a Portfolio Guarantee (PG) agreement, the financing facility is expected to help ease the burdens of SMEs and sustain their business as they recover from the effects of the pandemic. The agreement brings the total amount of tranches jointly launched by both parties to RM1.71B.

The launch of this tranche is timely as it will provide SMEs with the opportunity to revitalize their businesses. Furthermore, The Portfolio Guarantee comes on the back of several financing initiatives announced by the government tailored specifically for SMEs.

“I am pleased to share that this Standard Chartered-CGC RM70 million PG aims to provide working capital for SMEs with viable business but lack collaterals to obtain the required credit facility, more now during this phase of revitalizing and reforming Malaysia’s economy,” said Datuk Mohd Zamree Mohd Ishak, president, and CEO at CGC.

Meanwhile, Abrar A. Anwar, managing director and CEO at Standard Chartered Malaysia, commented that SMEs have shown great resilience despite being one of the hardest-hit sectors during the pandemic, and that their agility is key to their resilience, allowing them to quickly transform their businesses to adapt to new ways of doing business.

He also stated that as more and more businesses leverage on technology, the financing facility will be timely in financing their digital transformation and penetration of new markets, accelerated during the course of the pandemic, and is used not just as a means to thrive in the new normal but also to keep up with evolving customer demands.

“We understand that our clients have unique needs and we want to ensure they have access to the assistance they need ranging from payment deferrals to interest-only repayments and debt restructuring which will not be reflected in their record. Our focus is on ensuring they are informed of the options available to them and that we are operationally prepared to provide much needed financing,” Anwar added.

New Delhi, India – Amazon Web Services, the IT service management unit of e-commerce giant Amazon, has announced a new digital suite called Amazon Digital Suite, targeted to improve digital transformation strategies among small and medium businesses (SMBs) in India.

The Amazon Digital Suite comprises payment and credit solutions from Razorpay; customer support and customer relationship management (CRM) solutions from Freshworks; human resources and payroll management solutions from greytHR; tax compliance and invoicing solutions from ClearTax; accounting and productivity solutions from Zoho; e-commerce and retail order management solutions from Vinculum; and digital ledger and online cataloging solutions from OkCredit.

Prices of the products that are part of the Amazon Digital Suite available on Amazon.in begin at INR 20, and all Amazon Digital Suite software can be purchased individually with discounts of up to 75% off the suggested retail prices. The offering is designed to be easy to use, with customers being able to implement it in a few simple steps.

The launch of the Amazon Digital Suite is part of the company’s goal to digitize 10 million Indian SMBs by 2025, announced in January 2020.

“We want to ensure the power of the cloud is within the reach of SMBs, and we have built a solution that is simple to understand and deploy, and accessible to new customers. With the Amazon Digital Suite, SMBs can overcome the challenges of technology adoption, digitize their operations, innovate in their business, accelerate their growth, and help India prosper,” said Puneet Chandok, president of commercial sales of Amazon Internet Services Private Limited (AISPL) at AWS India and South Asia.

Meanwhile, Vedanarayanan Vedantham, head of SME business at Razorpay commented, “Digital payments in India are at an interesting and exciting inflection point. Small businesses, now more than ever, are waking up to the possibilities offered by digital, and need help assembling this puzzle. 

He added, “Today, we are excited to take this mission of serving the underserved SMBs further through this collaboration with AWS. The launch of the Amazon Digital Suite will be a game changer; it will empower millions of SMBs of any size, and make it possible for them to reach new customers around the world.”

The Amazon Digital Suite is available for purchase on Amazon.in and Amazon.in/business for both business-to-consumer (B2C) and business-to-business (B2B) customers respectively. B2B customers purchasing products from the suite using their Amazon Business Account will receive exclusive offers and a goods and services tax (GST) invoice for input tax credit. Customers purchasing the Amazon Digital Suite during Amazon Smbhav 2021, a virtual summit catered at leveraging digital strategies and innovations to Indian customers, entrepreneurs, and small businesses, from April 15-23 will be eligible for discounts of up to 30% in the Amazon Digital Suite store.

Singapore – Global financial services company Visa has officially announced the five start-ups it has selected in the Asia Pacific region to be part of its first-ever s accelerator program in the region. They are Brankas, Curlec, DigitSecure, ModusBox and Open. 

It should be recalled that Visa had announced last December 2020 the start of the application process for the Visa Accelerator Program, which is designed for start-ups that have built a consumer base in their home country, and are ready to enter new geographical and consumer regions. 

Speaking about the announcement back then, Dan Wolbert, Visa country manager for the Philippines & Guam stated, “What’s most important to Visa is how we can support those solutions getting elevated to a stage where in a few months’ time, they could be pitched as a commercial deal to a leading bank, retailer or technology company in the region. A big differentiator for the Visa Accelerator Program is our concentration on a small number of startups that are truly ready to unlock that next level.”

Brankas is a fintech company that provides financial software and solutions, will leverage the open banking and open data environment to create new payment and data-led experiences. Meanwhile, Curlec, a subscription management platform and ModusBox, an open source platform for real-time payments, will develop new ways to pay and be paid digitally to help drive financial inclusion for more consumers and businesses

Open, a neo-banking platform for small businesses, and DigitSecure, an omnichannel payments acceptance platform, will find new ways to support small businesses in managing and streamlining their operations digitally as they adapt to changing technology demands.

“Hundreds of startups came forward with outstanding ideas for new and enhanced commerce experiences, but the five participants we’ve selected truly stood out. We’re excited to work with each of the startups in our first cohort to bring their concepts to life and expand their businesses into new markets across the region,” said Chris Clark, regional president for Asia Pacific at Visa.

Over the next four to six months, the startups will focus on creating defined commercial opportunities to collaborate on new payment solutions with Visa and its extensive network of bank and merchant partners. A key goal for the accelerator program is to support startups that have launched successful solutions in their home markets as they plan their next stage of growth.