CGC confident of achieving 2017 target despite slower first half performance

KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) is confident of achieving its target of providing 9,500 guarantees valued at RM4.7 billion this year despite recording slightly over 40 per cent below target in the first half of this year.

President and chief executive officer Datuk Mohd Zamree Mohd Ishak said as at June 30 this year, CGC has guaranteed about 3,100 companies valued at RM1.5 billion.

He said even though the country's economy was growing in the first half of this year, small and medium enterprise (SME) entrepreneurs were a bit cautious in making further financial commitments.

However, CGC expects the sentiment to improve based on past trends as there will be more borrowings among SMEs in the second half of this year, he told reporters after the launch of the CGC SME Apprentice Scheme yesterday.

“CGC is confident of achieving the target by leveraging on several ongoing major infrastructure projects like the Pan Borneo Highway, East Coast Rail Link, High-Speed Rail and LRT3, as we believe there are rooms for small contractors and for us to play a part, “Mohd Zamree said.

CGC, whose core business is to assist SMEs obtain credit facilities from financial institutions currently has about 21,000 active customers, with loans worth about RM10 billion, of them 16,000 were on guaranteed facility while the rest on CGC direct financing, he said.

Under the CGC SME Apprentice Scheme, which was launched by Deputy Youth and Sports Minister Datuk Saravanan, 10 Technical and Vocational Education and Training (TVET) graduates were selected from 800 applicants to attend on-the-job training with 10 participating SMEs.

Mohd Zamree said CGC would spend over RM500,000 for the oneyear programme, during which TVET graduates would develop the sought-after skills needed for the job market besides exploring entrepreneurship as a career option.

He said 90 per cent of the cost of the one-year apprentice scheme would be borne by CGC, which included monthly salaries, employment benefits and statutory contributions, while the remaining 10 per cent would be footed by the participating SMEs.

The 10 apprentices are undergoing training at SMEs involved in the agro-based manufacturing, civil/ electrical contracting, construction, green technology, human resource, IT solution, laundry service, and oil and gas sectors, he said.

Mohd Zamree said the CGC's main objective in embarking on this initiative was to provide opportunities for TVET unemployed graduates to build their career during the one-year contract employment or to set out on their own as entrepreneurs later, as well as to help the SMEs hire skilled workers. — Bernama