Easier financing access of up to RM50,000 for Asean-based businesses

27 November 2015
The Rakyat Post

Accessible financial options are usually — if not always — one of the main issues faced by micro, small and medium enterprises (MSME).

Though some 96% of these companies form the backbone of the Asean region — most of the businesses are not able to experience maximum growth due to the lack of funding options specifically directed to MSME.

However, MSMEs in Asean will finally be able to get access to funds by 2016 – following the launch of Growth Accelerator eXchange (GAX) — a digital financial service platform to provide Asean MSMEs with financing, payment and logistics solutions.

Asean Business Advisory Council (Asean-BAC) chairman, Tan Sri Dr. Mohd Munir Majid said GAX will create a more effective ecosystem that is poised to disrupt the way MSMEs do business — providing new opportunities for growth in Asean.

He said MSMEs operating in Asean — which forms 50% to 85% of domestic employment in the region — will have the opportunity for growth in the region with the support of GAX financing.

“Asean-BAC’s mission is to make real Asean’s vision to accelerate economic growth and social progress that will drive the community to greater heights.”

“I encourage MSMEs to be open to change and to embrace technology to achieve their business’ full potential of growth beyond borders,” Mohd Munir said in a speech at the official launch of GAX today.

GAX — currently funded by Singapore’s Silverlake Axis Ltd — offers easy access to financing with five minutes of application process.

MSMEs could take up loan of RM20, 000 to RM50, 000 for a tenure of three months to three years at an interest rates of 10 to 16%.

As a process of credit assessment on borrowers — GAX will tap on data from comprehensive sources such as financial institutions, online data as well as data from communities of businesses connected through digital platforms.

Silverlake Axis’ senior executive vice president Fabian Lum said the company expects to receive financial application from 10, 000 to 20, 000 MSMEs in Malaysia in the first two-to-three years after GAX’ operational launch in the first quarter of 2016.

Moving forward, he said GAX will be launched in other Asean countries in by next year.

Silverlake is a Malaysian-based provider of digital economy solutions and services for organisations in various industries.

- The Rakyat Post