CGC aims RM4.6 billion financing and guarantees approval this year

KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) aims to approve RM4.6 billion in financing and guarantees to benef it 9,80 0 small and medium enterprises (SMEs) including women entrepreneurs and Bumiputera contractors this year.

President and chief executive officer Datuk Mohd Zamree Mohd Ishak said this would be a significant increase from last year’s RM3.7 billion financing and guarantees to 9,000 SMEs.

“We have a special scheme for Bumiputera contractors that have been awarded projects by federal and state governments as well as government-linked companies,” he told reporters at the 10th anniversary of CGC-Standard Chartered Malaysia collaboration to finance SMEs.

To-date, he said CGC has availed over 460,000 guarantees and financing to SMEs valued over RM70 billion.

He said this included 102 tranches of portfolio guarantee scheme (PG) totalling RM12.2 billion benefitting about 25,000 SMEs and six tranches of the wholesale guarantee scheme (WG) worth RM1.5 billion with an outreach of 7,700 SMEs.

“In total, CGC has availed over RM13.7 billion worth of financing through our PG/WG schemes in collaboration with 20 financial institutions and three development financial institutions, outreaching over 32,600 SMEs,” he said.

In conjunction with the celebration, Standard Chartered Malaysia and its Islamic banking arm, Standard Chartered Saadiq Malaysia signed a portfolio guarantee agreement with Credit Guarantee Corporation (CGC) worth RM85 million.

The agreement was signed by CGC chief business officer Leong Weng Choong, Standard Chartered Malaysia head of retail banking Lai Pei Si and Standard Chartered Saadiq chief operating officer and head of retail Mohd Suhaimi Abdul Hamid.

The ceremony was witnessed by the Deputy Finance Minister Datuk Amiruddin Hamzah, Standard Chartered Malaysia managing director and chief executive officer Abrar A Anwar and Mohd Zamree.

Abrar said the financing scheme would be delivered in two tranches.

“Standard Chartered Malaysia is committing to RM75 million for the development of local SMEs while Standard Chartered Saadiq commits to RM10 million specifically to provide working capital financing to women entrepreneurs under the scheme known as WOWnita,” he said.

He said the WOWnita financing is available to SMEs with at least 51 per cent share owned by Malaysian women.

He added that the WOWnita is shariah compliant, collateral free and offered flexible loan amount of between RM100,000 to RM1,500,000 and repayment periods between 12 to 84 months to suit business needs. — Bernama