Kuala Lumpur, 8 August 2019 – Bank Simpanan Nasional (BSN) and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Portfolio Guarantee (PG) agreement today to provide RM 50 million worth of financing to micro enterprises.
The strategic partnership was signed by Encik Mujibburrahman Abd Rashid, BSN Chief Business Officer and Mr. Leong Weng Choong, CGC Chief Business Officer witnessed by Yang Berbahagia Datuk Yunos Abd Ghani, BSN Chief Executive and Yang Berbahagia Datuk Mohd Zamree Mohd Ishak, CGC President/ Chief Executive Officer. This is the second agreement established between BSN and CGC in support of micro enterprises, the first PG being in May 2017.
This arrangement will see BSN delivering the financing scheme in two tranches totaling RM50 million, RM25 million each for the Conventional and Islamic PG schemes. This financing scheme is aimed to assist micro entrepreneurs with their working capital and for asset acquisition.
This PG which is intended to provide additional financing for micro businesses will be made available by BSN through its 390 of branches nationwide.
In addition, this PG scheme will allow eligible micro enterprises to apply for either the Islamic or Conventional financing facilities from BSN from a minimum of RM5,000 and up to a maximum of RM 50,000 for tenure of up to five (5) years. CGC will be providing a guarantee of up to 70% of the approved financing amount for the micro enterprises.
Yang Berbahagia Datuk Yunos Abd Ghani, BSN Chief Executive said, “The collaboration with CGC today demonstrates and indicates our unified effort in providing financial assistance to eligible and viable micro enterprises to help spur their transformation progress into SMEs.”
He further added, “As our vision goes No Malaysian Left Behind, we promise to provide a better life for our customers. I truly believe that this collaboration will assist micro entrepreneurs to address their financing needs. The growth of micro businesses will help spur Malaysia’s economy. BSN is committed to the financial inclusion initiative and to ensure financing accessibility is provided to micro enterprises. Since we launched the product in 2007, BSN Micro/i Financing Scheme has successfully funded over 64,000 customers by June 2019 with a total disbursement of RM1.7 billion as compared to 320 customers with a total disbursement of RM5 million in the first year introduced,” he added.
Commenting on the new tranche, CGC President and CEO, Yang Berbahagia Datuk Mohd Zamree Mohd Ishak said, “Today’s partnership is another milestone and notable contribution to the development of Micro, Small and Medium Enterprises (MSMEs). Our Portfolio and Wholesale Guarantee Schemes are both cost effective and efficient. With this collaboration, we are well geared to provide greater access to financing to Malaysian MSMEs.”
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