Petaling Jaya, Tues – Credit Guarantee Corporation Malaysia Berhad (CGC) and the Dewan Perniagaan Melayu Malaysia (DPMM) signed a Memorandum of Understanding (MoU) today to establish a collaborative framework in an effort to further strengthen their support for the development of the Bumiputera SMEs.
Through this collaboration, CGC, the leading enabler of SME financing in the country and DPMM, an institution to promote the development of Bumiputera entreprenuers, will work closely to bring about higher level of awareness and understanding of DPMM’s members on the guarantee and credit financing facilities offered by CGC and also by the financial institutions in general.
“The collaboration will pave the way for CGC to gain a better understanding of DPMM members’ specific financing requirement and challenges, which we believe will help us in developing customized products and services to suit their business needs,” said CGC’s President /CEO, Datuk Wan Azhar Wan Ahmad.
“The initiative is in line with the national Bumiputera development agenda as we are committed in addressing some of the main concerns affecting the Bumiputera entrepreneur community in particular access to financing,” added Datuk Wan Azhar.
“CGC and DPMM are also looking towards developing a holistic plan in an effort to further improve the productivity and competitiveness of the Bumiputera SMEs to ensure their business growth and success,” said Datuk Wan Azhar.
“As an organization representing and serving the Malay business communities in Malaysia, DPMM believe this collaboration will enhance the opportunity for its members to access financial facilities from financial institutions through the guarantee support by CGC,” said DPMM’s Vice President, Encik Rizal Faris Mohideen.
“In this context, DPMM highly appreciate the effort by CGC in collaborating to assist the eligible SMEs particularly members of DPMM in obtaining credit financing supports and hope this mutual understanding and cooperation will benefit the Bumiputera SMEs and further enhance the growth and development of the SMEs businesses,” added Encik Rizal.
Currently, CGC offers two financing facilities designed exclusively for the Bumiputera entrepreneurs namely the Enhancer Bumi and Bumiputera Entrepreneur Project Fund-i
(TPUB-i). In 2013, CGC has provided close to RM500 million of financing under all schemes benefitting more than 700 Bumiputera SMEs to date.
“Today, with the signing of a the new PG Bumi with Maybank Berhad, yet another new scheme specifically for Bumiputera SMEs is made available to viable Bumiputera- owned and controlled businesses,” said Datuk Wan Azhar.
In 2014, CGC targets to provide RM2.7 billion of SME loans to all segments of SMEs with about 35% targeted for the Bumiputera SMEs.
Signing the MoU documents were CGC’s Senior Vice President of Product and Bumiputera Development, Hj Raja Taufik Azad Ahmad Suhaimi and the Secretary-General of DPMM Tuan Hj. Hanafee Yusoff. The signing ceremony was witnessed by the President/CEO of CGC, Datuk Wan Azhar Wan Ahmad.
Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and commercial banks. The core business focus of CGC is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has cumulatively guaranteed more than 420,000 loans valued at close to RM52 billion since its establishment.
Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM160.8 million in 2012.
CGC, known as the ‘credit firm for the small man’ in its early years, focused on helping small enterprises in the agricultural, commercial and industrial sectors. As the Malaysian economy expanded over the years, the demand for CGC’s guarantee services also grew in tandem. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs. CGC’s support for SMEs is not only confined to the provision of loan guarantees and financing facilities, but also credit information and credit rating services through its subsidiary Credit Bureau Malaysia. Through the Bureau, CGC assists SMEs to build a credit history and track record to enhance their credibility and bankability to secure financing on their own merit and at reasonable cost.
Other funds currently managed by CGC include the Green Technology Financing Scheme (GTFS) and the Bumiputera Entrepreneur Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. CGC had managed a total of 42 guarantee schemes including 16 government-funded schemes.
To date, 15 Islamic banks, 17 commercial banks and seven (7) development financial institutions (DFIs) are participating in CGC’s guarantee schemes, providing customers with a wide network of more than 2,000 branches nationwide to avail financing.
SMEs wishing to obtain more information on CGC may call its Client Service Centre at 03-78800088 or visit www.cgc.com.my.
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