KUALA LUMPUR, 6 July 2020 — Cisco has launched a new financing programme to help small and medium enterprises (SMEs) in Malaysia purchase its products at 0% interest, with no upfront costs, and at a fixed 3-year monthly payment term. The offer extends to all Cisco’s products portfolio including software, hardware, and services.
The launch of the programme comes as Malaysia eases its COVID-19 measures and reopens the economy which will see various economic sectors resuming their operations under the Recovery Movement Control Order (RMCO). However, the prolonged disruption to supply chains and decreased business activities in the country have seen many SMEs – which makes up for 98.5% of total registered businesses and around 65% of the country’s employment – struggle to maintain their operation in the aftermath of the pandemic.
“The pandemic has had a huge impact on businesses across the country. However, it has also brought about a rapid shift in mindset as they are now more receptive to the idea of integrating technology in various aspects of their business and accelerate their digital transformation journey, to survive in the current environment and for driving future growth. Therefore, this digital shift will also be critical to Malaysia’s overall economy, not least because the sector accounts for nearly two-thirds of all jobs in Malaysia,” said Albert Chai, Managing Director for Cisco Malaysia.
As a significant growth engine for Malaysia, SMEs contributed 38.3% to Malaysia’s overall GDP in 2019. To help businesses mitigate the pandemic impact, the Malaysian government has in the past four months announced various stimulus under the Prihatin Rakyat Economic Stimulus Package (PRIHATIN) and the National Economic Recovery Plan (PENJANA). This includes offering SMEs moratorium on loans, special relief funds and wage subsidy to all employers.
At the same time, SMEs are now more than ever looking to technology to digitize their business and resume operations in compliance with the set guidelines, open new growth opportunities and contribute to the overall economic recovery. The new programme from Cisco is aimed at providing financial support to SMEs that seek to equip themselves with the necessary tools and solutions to accelerate their business in the new digital era.
“The financing programme will make it easier for local SMEs to start that journey. The world is going through an uncertain economic period and at Cisco, we are committed to doing our part to help lighten the burden for Malaysian SMEs. As businesses strive to adapt to the new normal, we believe that the SME sector will continue to protect and even create jobs that will bolster Malaysia’s economic recovery post COVID-19.” he added.
The 0% financing programme will provide SMEs access to necessary technological enablers from Cisco without breaking their budget. SMEs will enjoy a 3-year, full payout lease plan where they pay equal 36-month payments on their Cisco purchases that costs between USD20,000 to USD300,000 (RM85,600 to RM1.28 million) and will fully own the equipment at the end of contract period.
“SMEs are the backbone of ASEAN economies and technology can help solve some of their key challenges to revitalize their operations post-COVID19. It is more important than ever for partners like Cisco to provide the much-needed assistance, not just through our solutions and expertise but also through programmes that can help alleviate financial concerns. Cisco’s financing program offers built-in capabilities to ensure businesses can run their regular operation, predictable payments and at 0% interest rate. They can also eliminate upfront costs, preserving their financial resources for other business priorities,” said Raz Mohamad, Director Small Business and Commercial for ASEAN at Cisco.
The new financing option is now available through Cisco Capital, the vendor financing business within Cisco that delivers customer-centric, partner-enabled payment options for Cisco-led solutions. For more information on the offer, visit www.cisco.com/c/en_my/buy/payment-solutions/solutions/small-business or connect with your local Cisco team.