CGC AIMS TO GUARANTEE RM4.6B LOANS

Target is higher than RM3.7b guarantees to about 9,000 companies last year

CREDIT Guarantee Corp Malaysia Bhd (CGC) targets to guarantee RM4.6 billion financing for 9,800 small and medium enterprises (SMEs) and start-up companies this year.

The figure is higher than the RM3.7 billion guarantees to about 9,000 SMEs across all sectors and industries last year.

CGC yesterday inked a portfolio guarantee agreement with Standard Chartered Saadiq Malaysia to provide a financing scheme which will be delivered in two tranches totalling RM85 million.

Standard Chartered Malaysia is committing RM75 million to the development of local SMEs and Standard Chartered Saadiq RM10 million specifically to provide working capital financing to women entrepreneurs under a scheme known as WOWnita.

Standard Chartered Malaysia managing director and chief executive officer Abrar A. Anwar said: “This is a big year for Standard Chartered and CGC as it is our 10th anniversary of collaboration to support SME growth in the country.

“Standard Chartered was the first-ever bank to sign a portfolio guarantee agreement with CGC back in 2009 and we are excited to commemorate our anniversary with the launch of WOWnita.”

CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said, CGC had launched 102 tranches under a portfolio guarantee (PG) scheme totalling RM12.2 billion benefiting about 25,000 SMEs

It also has launched six tranches under a wholesale guarantee (WG) scheme worth RM1.5 billion which will benefit 7,700 SMEs.

In total, CGC has availed over RM13.7 billion worth of financing through its PG/WG schemes in collaboration with 20 financial institutions (FIs) and three development financial institutions (DFIs), outreaching over 32,600 SMEs.

“As a DFI dedicated towards promoting the growth and development of competitive and dynamic SMEs, CGC has been at the forefront of SME financing since our inception in 1972.

“Over the last 47 years, we have availed 460,000 guarantees and financing valued over RM70 billion benefiting 330,000 SMEs, or about a third of all Malaysian SMEs.

“That averages to 10,000 guarantees and financing valued at RM1.5 billion per annum,” he said.

According to the Global Entrepreneurship Monitor 2017/2018 survey, Malaysia ranks second in the world in terms of having the highest levels of earlystage entrepreneurial activity among women.

WOWnita financing is available for SMEs in which at least 51 per cent of the company is owned by women.

It is also a value-based intermediation-aligned financing scheme designed to encourage women to manage and grow their business.