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CGC - Glenmarie LRT Station Officially Launched

PETALING JAYA, August 30 –  Following the success of Credit Guarantee Corporation Malaysia Berhad (CGC) in securing the station naming rights in May this year, the Glenmarie LRT station was renamed as the “CGC-Glenmarie LRT Station. 

The CGC-Glenmarie LRT Station is the fourth to be rebranded under the Station Naming Rights Programme by Prasarana Malaysia Berhad (Prasarana), after AirAsia-Bukit Bintang Monorail Station, Bank Rakyat-Bangsar LRT Station, and KL Gateway- Universiti LRT Station.

“The naming rights of CGC-Glenmarie LRT Station would be our maiden effort to utilise LRT station for corporate branding purpose. This is in tandem with our long-term objective and also in line with our ongoing effort to ensure CGC's exposure to the public, in particular LRT passengers,” said CGC Chairman, Dato’ Agil Natt in his welcoming remarks.

The CGC-Glenmarie LRT Station has a massive park and ride facility, an added value to the station. The station is expected to provide the opportunity to reach out to more than five (5) million commuters traveling on Kelana Jaya line on monthly basis.

CGC’s President and CEO Datuk Mohd Zamree Mohd Ishak said: “The renaming of the LRT station to CGC-Glenmarie LRT Station is a key branding exercise for us in line with our Aspiration To Be The Household Name For SMEs by 2020.”

“As CGC marches forward to be the champion of SMEs in the country, we will continue to invest in branding and promotional activities, which in return, grant immense benefit to CGC. By having a LRT station named after CGC, we are encouraged to serve better in a more effective manner to all Malaysian SMEs,” added Zamree.

“Prasarana Malaysia Berhad would like to record our appreciation to CGC for their support to our Station Naming Rights Programme. We firmly believe that this programme provides a win-win formula for CGC and Prasarana as we take the business of advertising and branding to new heights.

“With the increasing ridership for urban rail and public transport as a whole, this programme provides the perfect platform for corporate companies to reach out to their existing and potential clients of their branding and services,” said Prasarana Chief Financial Officer, Encik Megat Khairulazhar Khairodin.  

The CGC-Glenmarie LRT Station is located just 100 meters from CGC headquarters and its main branch in Kelana Jaya, Selangor, with 570 parking bays and feeder bus services to encourage more people to use public transport as an alternative to cars, thus reducing traffic congestion.

CGC has also set up an interactive info kiosk for public to get to know more about its products and services, besides exploring alternative financing options available for SMEs. The kiosk also provides facilities such as free Wi-Fi, videos of successful CGC customers displayed to inspire entrepreneurs.
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RHB ISLAMIC, FIRST BANK IN M’SIA TO PROVIDE WHOLESALE GUARANTEE ISLAMIC TO BUMIPUTERA SMEs

KUALA LUMPUR: RHB Islamic Bank Berhad (“RHB Islamic” or “the bank”) a wholly-owned subsidiary of RHB Bank Berhad, today inked a strategic partnership with Credit Guarantee Corporation (“CGC”) to become the country’s first bank to provide Wholesale Guarantee Islamic (WG-i) Bumi, a scheme for Bumiputera SMEs. The agreement provides additional avenue for the Bank to extend its financing packages to deserving Bumiputera SMEs.

Today’s partnership signifies RHB Islamic as the first Islamic bank to provide WG-i and the first bank to provide WG-i Bumi scheme under the Programme Financing Module (PFM). “We understand the challenges faced by SMEs in expanding and growing their businesses, as such today’s partnership with CGC is testament to RHB’s commitment in creating synergy in the financial services sector to provide our customers with better options and facilities that are sustainable,” said Dato’ Adissadikin Ali, Managing Director of RHB Islamic Bank Berhad.

“As the demand of the business landscape evolves, we are cognisant that we need to continuously improve and innovate our products and services to cater to our customers’ business needs,” added Dato’ Adissadikin.

CGC’s President and CEO, Datuk Mohd Zamree Mohd Ishak said the WG-i Bumi with RHB marks another milestone in the financing of Bumiputera SMEs in the country.

“We are confident that more banks will collaborate with CGC for guarantee services to reduce risk on the books of financial institutions and freeing up capital to allow increased capacity for more SME financing,” said Mohd Zamree.

The collaboration for the WG-i scheme is set to enhance the position of the existing selected portfolio in terms of its asset quality. The WG-i is an avenue for better management of capital charge for the SME portfolio in order to provide competitive financing packages in terms of pricing among others. With WG-i, SMEs can leverage on the guarantee provided by CGC on portfolio basis which in turn will create opportunities for better cash flow management for the SMEs as compared to the traditional product offerings available in the market.

Seventy-two (72) existing Islamic Bumiputera SME customers under the SME portfolio will benefit from this scheme conforming to the predetermined eligibility criteria set by both CGC and RHB Islamic.

 

 
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CGC Appoints Jessica Chew Cheng Lian as Director

PETALING JAYA, August 16 – Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Ms. Jessica Chew Cheng Lian as its non-executive director.

Jessica Chew brings in over 20 years of experience in financial sector regulation and supervision. Currently, she is the Assistant Governor of Bank Negara Malaysia (BNM) and is responsible for development policies in the banking and insurance sectors - focusing on efficiency, innovation, market institutions and structures, development finance and talent development. She is also responsible for payments systems development and regulation, and oversight of money services business. Her experience also includes audits of insurance companies, formulation of prudential and market conduct policies for banks and insurance companies, and macro-financial surveillance.

Jessica Chew is currently an adviser on the Malaysian Accounting Standards Board, Board Member of the Credit Counselling and Debt Management Agency (Malaysia) and Chairman of the Finance Accreditation Agency (Malaysia) representing BNM.

Jessica Chew holds a Bachelor of Commerce Degree with a major in accounting and finance from the University of Melbourne, Australia. She is also an Associate Member of CPA Australia.
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CGC Inks MoU to Support Sub-Contractors of the Pan Borneo Highway Project

KUCHING, August 13 – Credit Guarantee Corporation Malaysia Berhad (CGC) has entered into a Memorandum of Understanding (MoU) involving five parties to provide financial guarantees to eligible domestic sub-contractors through its Bizjamin/-i scheme, for the Pan Borneo Highway Project.

The MoU was inked between CGC, RHB Islamic Bank Berhad, SME Bank Berhad, Syarikat Jaminan Pinjaman Perniagaan (SJPP) and Unit Peneraju Agenda Bumiputera (TERAJU) at Kuching, Sarawak.  The signing ceremony was hosted by TERAJU. Also present at the event was Lebuhraya Borneo Utara Sdn Bhd (LBU), the Project Delivery Partner (PDP) for the development and upgrading of Pan Borneo Highway project.

Speaking after the signing ceremony, CGC’s President and CEO Datuk Mohd Zamree Mohd Ishak said: “We are pleased to partner with TERAJU, LBU, RHB Islamic, SME Bank, and SJPP in this large-scale infrastructure development project. The MoU is in line with our business model to form strategic partnership to assist potentially viable and capable SMEs in obtaining financing from the financial institutions or through direct lending from CGC.”

CGC provide guarantees to Small and Medium Entrepreneurs (SMEs) with potentially viable businesses but lack the collateral and track record to obtain financing. It also provides direct financing for underserved segments. It currently manages 19 guarantee/financing facilities including Government-backed schemes to assist SMEs nationwide and supporting the national SME development agenda.
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CGC unveils ‘CGC SME Apprentice Scheme’

 

KUALA LUMPUR, August 3 – The “CGC SME Apprentice Scheme” or CGC SAS, is a landmark apprentice scheme by Credit Guarantee Corporation Malaysia Berhad (CGC) to provide on-the-job training skills to unemployed Technical and Vocational Education and Training (TVET) graduates.

The CGC SAS is unique as it focuses on TVET graduates, particularly on developing much needed skills for the current job market, besides encourage them to explore entrepreneurship as their career option, moving forward. Under this scheme, CGC assist unemployed TVET graduates in securing a one-year working engagement at selected SMEs who were involved in the interview process. The apprentice scheme kicked-off in May 2017 and will end in May 2018.

The apprenticeship scheme is different from the rest as CGC will pay 90% of the cost, which include the monthly salaries, employment benefits and statutory contributions whilst the remaining 10% will be borne by the participating SMEs. In total, CGC will be spending more than half a million ringgit to undertake this apprentice scheme and this is part of its corporate responsibility activity.

The Deputy Minister of Youth and Sports, YB Datuk M. Saravanan launched the ‘CGC SME Apprentice Scheme’ at Lanai Kijang, Kuala Lumpur, today.

In his opening remarks, YB Datuk M. Saravanan said:” Entrepreneurship is the seed that grows jobs. Starting a business increases competition in the market, creates jobs and promotes sustainable growth in the greater economy – all of which are key to tackling youth unemployment.

“Initiatives such as CGC’s SME Apprentice Scheme are in sync with the current manpower needs of the country. A big shout-out to the participating SMEs and apprentices here. This is a useful platform to promote connectivity between TVET graduates, SMEs and the real job market, besides serving as the starting point for the apprentices to galvanise and continue to contribute in innovation, creativity and inclusion of competitive entrepreneurship. I tend to agree that in order to ensure continuous growth of our economy, all parties must work together as one big team. Valuable talents must be nurtured and not be limited to a specific group.”

CGC’s Chairman Dato’ Agil Natt in his speech said that CGC aspire to continue to contribute to the nation building agenda with particular emphasis on developing human capital for SMEs.

“We think that by providing this training opportunity for TVET graduates, more aspiring students will undertake studies at TVET colleges and eventually become entrepreneurs by starting their own SMEs,” said Agil.

Meanwhile, CGC’s President and Chief Executive Officer Datuk Mohd Zamree Mohd Ishak said: “CGC SAS addresses two most talked about needs, ie TVET graduates’ need for employment and exposure to become successful entrepreneurs and SMEs’ need for skilled workers that matches their respective DNA. We really do go beyond financing to assist the SMEs and the CGC SAS is testimony of our on-going effort.”

10 apprentices have already joined the 10 respective participating SMEs located in Johor, Kelantan, Pahang, Perak, Sabah, Sarawak and Selangor. The 10 SMEs are in businesses such as agro-based manufacturer, civil/electrical contractor, construction, green technology, human resource agency, IT solutions, laundry services and the oil & gas Industry.
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CGC Bags Karlsruhe Award For The Third Consecutive Year

KUALA LUMPUR, July 14- Credit Guarantee Corporation Malaysia Berhad (CGC) received the Karlsruhe Sustainable Finance Certificate of Merit for the third consecutive year today.

The Certificate of Merit, an unprecedented back-to-back recognition for CGC's extraordinary performance in enabling access to financing for Bumiputera contractors involved in the second phase development of the Mass Rapid Transit (MRT) project, under Tabung Projek Usahawan Bumiputera-i (TPUB-i). The TPUB-i has also offered financing access to various other high-impact national infrastructure projects such as the MRT, LRT, Pan Borneo Highway & Pengerang Integrated Petroleum Complex.

CGC President/CEO Datuk Mohd Zamree Mohd Ishak received the certificate from Lord Mayor Dr. Frank Mentrup on behalf of the CGC in the Karlsruhe Sustainable Finance Award Ceremony held in conjunction with the Global Sustainable Finance Conference in Germany, today.

Zamree said: "Winning the Certificate of Merit is a validation of our commitment and leadership in practicing sustainability in all layers of our operations. We are delighted to be presented with this Certificate of Merit. It is a testimonial to the unwavering support that we have enjoyed from our clients over the years, coupled with the hard work we have invested in line with our five-year strategy ‘To be the Household Name for SMEs by 2020’."

The Karlsruhe Sustainable Finance Award honours financial institutions and organisations with significant contribution to the field of sustainable financing. Karlsruhe is a forward thinking, cultured city in Germany. It is a hub of science and technology, Germany's online capital and the home of the Federal Court of Justice.

In June 2015, CGC won the Karlsruhe Sustainable Finance Award for The BizMula-i product, under Best Innovation in Financial Services category.

Last year, CGC was awarded the Certificate of Merit under the best innovation in Sustainable Financial Products and Services category for BizWanita-i at the Karlsruhe Sustainable Finance Awards 2016.

TPUB-i was launched in 2009, to provide easy access to Bumiputera SMEs with up to RM3 million in financial assistance for first time applicants and up to RM5 million for subsequent applications. Since its inception, RM1.06 billion has been approved benefiting over 1440 Bumiputera Contractors.
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CGC extends Raya shopping experience to the needy

KELANA JAYA 16 June - Raya shopping experience was redefined for orphans and single mothers from Asrama Anak-anak Yatim Damai, Kuang or better known as Asrama Damai Kuang, when Credit Guarantee Corporation Malaysia Berhad (CGC) treated them with shopping spree at Mydin Hypermarket in USJ, Subang Jaya, Selangor. They were then treated with Buka Puasa at TH Hotel Kelana Jaya, Selangor.

The ’Majlis Berbuka Puasa’ is an annual event hosted by CGC in the month of Ramadhan to foster closer relationship and strengthen ties among deserving segment of our community and CGC.

“I am glad to be here among our children, not only from the Asrama Damai Kuang, but also the children of our staff to Buka Puasa and together we hope to reap the ‘barakah’ that the holy month of Ramadhan brings. Ramadhan, paves the way for us to look into ourselves and be grateful for the plentiful ‘nikmat’ that has been bestowed upon us, while at the same time, not forgetting those who are in need,” said CGC’s President/CEO Datuk Mohd Zamree Mohd Ishak during CGC’s ‘Majlis Berbuka Puasa’ on Friday.

Championing the spirit of sharing, CGC has also extended RM5,000 in financial support to Asrama Damai Kuang, to ease the daily expenditure incurred in operating the orphanage.

In addition, the orphans and single mothers were presented with ‘duit raya’ and door gifts by CGC Chairman Dato’ Agil Natt, CGC Board of Directors and Zamree.

CGC also provided ‘duit raya’ for children of CGC staff, as a way of spreading its care and appreciation to its employees on this auspicious month of Ramadhan.

“This event is made possible with the involvement of all of us in CGC. It is a memorable event as we are able to contribute to our community especially those who are less fortunate,” added Zamree.
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CGC brought Gawai Harvest Festival cheers to 59 pre-school students Sarawak

KUCHING, 15 June – Credit Guarantee Corporation Malaysia Berhad (CGC) today celebrated the Gawai Harvest Festival with 59 pre-school students of SK ST. John, Bau, Sarawak with a hope to share the festive joy and cheers on this auspicious day.

SK ST. John is currently home to over 300 students, comprised of standard one (1) to six (6), mostly of Bidayuh descent. Currently, the pre-school at SK ST. John lacks basic facilities such as tables and chairs as well as book racks. The insufficient supply of facilities is also hampering the teacher’s efforts to carry out their noble duties efficiently and effectively.

Taking into consideration the financial constraints faced by SK ST. John, CGC has contributed RM10,000 to enable the school to upgrade the facilities at the pre-school and provide a conducive learning environment for the students. CGC’s Chief Business Officer, Leong Weng Choong presented the cash contribution to the headmaster of SK ST. John, Mr. Litercelon Kaon Anak Juin.

“The event today is one of our many corporate responsibility (CR) initiatives that CGC has undertaken to reach out to the various communities and also the under-privileged members of the society in Sarawak. At CGC, we believe that corporate success is meaningless without giving it back to the society, and that is why we are here today,” said Leong.

Leong said CR exists in every aspect of CGC’s business and operations, where its focus is aligned towards developing sustainable community through shared value creation for the small and medium industries and also for the needy people.

“We hope our contribution today will motivate the students and teachers here to continue their day-to-day activities in a more education-friendly and conducive environment,” added Leong.

Meanwhile, Mr. Litercelon Kaon said: “We are thankful for the fact that corporations such as CGC go out of their way to extend their assistance in providing a conducive learning environment to our students. This means a lot to us.”

CGC also organised a colouring contest and interactive game activities with the SK ST. John pre-school students and later treated them with a sumptuous luncheon.

CGC’s Gawai CR programme with SK ST. John saw the participation of CGC staff from their branch office in Kuching and its head office in Petaling Jaya, Selangor.

In the last two (2) years, CGC has contributed more than RM400,000 through its CR programmes as part of its effort in lending a helping hand and reaching out to all cross-section of the society nationwide.

Among CGC’s other efforts to provide assistance to the society include “Back-to-School” programme for the Orang Asli children, blood donation campaigns, Majlis Berbuka Puasa with underprivileged children and festive shopping spree in conjunction with the Chinese New Year and Deepavali celebrations.
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CGC brings Pesta Keamatan cheer to 35 beneficiaries from Sabah Cheshire Home

KOTA KINABALU, 26 May – Credit Guarantee Corporation Malaysia Berhad (CGC) this evening organised a contribution and charity dinner session with 35 residents of Sabah Cheshire Home as part of its Corporate Social Responsibility (CSR) initiative in conjunction with Keamatan Festival.

Sabah Cheshire Home is a private, non-profit and charitable organization, which provides care for individuals with disabilities irrespective of race, religion and culture working with them to help them to live independently, in promoting and implementation of independent living in exercising their rights.

“We are delighted to share the joy of festive mood with the residents of Sabah Cheshire Home this evening. This programme exhibit as one of our many initiatives in contributing and providing financial and moral support to the special members of the society especially during the festive season,” said CGC's President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak.

“We truly understand the significance of the festivals celebrated by the various ethnic groups. This time of year, we are reaching out to the community in Kota Kinabalu and we hope that our humble contribution will not only ease their financial burden but also give them hope, cheer and happiness during this joyous time of the year,” added Zamree.

A cash contribution of RM10,000 was presented by CGC's Senior Vice President of Strategic Planning, Mohd Reza Mohd Hatta and CGC's Kota Kinabalu Assistant Manager to the State Manager of Sabah Cheshire Home, Ms. Jenifer Liew.

“We appreciate CGC’s generosity in organising a charity dinner for the residents of Sabah Cheshire Home. In line with the home’s objective to create an enabling environment for our residents to lead a normal life within their capabilities within the society, every contribution helps to fulfil the residents’ wish of celebrating Pesta Keamatan like anyone else”, said Jenifer.

CGC's Pesta Keamatan CSR programme with Sabah Cheshire Home saw the participation of CGC staff from both its headquarters in Kelana Jaya, Selangor as well as its Kota Kinabalu branch.

According to Zamree, CGC’s CSR programme is an ongoing effort in fulfilling its responsibility as a responsible corporate citizen. By incorporating these values, we hope to engage with the society, be it our customers, stakeholders or society at-large in a meaningful way.

Throughout the year, CGC had extended aid and financial assistance towards various causes. In support of various community segments in the country, CGC had organised various CSR programmes in conjunction with major festivals in Malaysia.

In the last two (2) years, CGC has contributed about RM350,000.00 through the Corporate Social Responsibility programmes as part of its initiatives in giving back to the society.
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CGC Honours Top Banks and Outstanding Customers and also Unveiled its New Logo

KUALA LUMPUR, 22 May - Credit Guarantee Corporation Malaysia Berhad (CGC) honoured leading Financial Institutions (FIs) as well as its outstanding customers for their significant contribution towards SME financing in 2016 and the projection of excellent track records, respectively, at its annual SME Awards ceremony that was held this afternoon.

CGC honoured leading FIs in four (4) different categories namely the ‘Top FI Partner (overall category)’, ‘Best Financial Partner’, ‘Top Bumiputera FI Partner’ and the ‘Top FI Partner (Islamic Banks)’. The winners of the Top FI Partner Award (overall category) were Malayan Banking Berhad (Maybank), Maybank Islamic Berhad, CIMB Bank Berhad and Standard Chartered Bank Berhad. The awards were presented to the respective banks for their significant contributions towards CGC’s overall SME financing, through its guarantee schemes.

Maybank also bagged the ‘Best Financial Partner Award’ whilst Maybank Islamic Berhad; on the other hand, received an addition of two (2) other awards; namely, the ‘Top Bumiputera FI Partner Award’ for having contributed the most financing assistance towards the Bumiputera SMEs; as well as, the ‘Top FI Partner Award (Islamic Banks)’.

The award recipients were selected based on a set of criteria which include amongst others, the number and value of financing guaranteed, the total financing amount that was guaranteed to the Bumiputera customers; net income growth and rate of default.

In terms of contributions to SME financing, the four (4) award recipients contributed about RM2.1 billion, representing 50% of the total financing amount and 4,151 financing, representing 55% from the total number of financing that was approved by CGC in 2016, respectively.

In 2016, CGC has approved a total of 7,568 guarantees and financing valued at RM4.2 billion.

In his welcoming speech, CGC’s Chairman, Dato’ Agil Natt said that CGC's SME Awards is aimed at celebrating our partnership with financial institutions in facilitating the access to financing by SMEs.

CGC’s President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said “We truly value the continued support and confidence of the FIs towards CGC, in achieving our common objectives. The various strategic partnerships that have been forged between CGC and the FIs has resulted in a notable impact on our SME outreach initiatives."

In 2017, CGC targets to approve 9,500 guarantees and financing valued at RM4.7 billion through its array of guarantee and financing products.

"We will explore new avenues and financing options to further enhance our financial and advisory services in Powering Malaysian SMEs,” added Zamree.

 

CGC's Recognition for its Customers

Apart from the Top FI Partner Awards Program, CGC went one step further in recognizing their valued customers who have ‘graduated’ from CGC’s guarantee schemes and demonstrated excellent credit track record. CGC’s customers with good repayment track record on their financing facilities and were offered rebates for their guarantee fees, received the ‘Exemplary Customer Award’ whilst those who were once dependent on CGC’s guarantee to gain access to financing but now no longer require it due to their creditable credit track record and success in business, were awarded the ‘Excellent Customer Award’.

"These recognitions were given to our customers to demonstrate our appreciation and to value their trust and confidence in doing business with CGC," said Zamree.

"It is also our responsibility to nurture good credit culture amongst the SMEs. This practice would illustrate our conscious effort that is being undertaken to improve their credit track record, credit ratings and bankability," added Zamree.

Launch of CGC's New Logo

CGC also launched its new logo as part of its initiatives in enhancing its brand presence amongst the public, particularly the SME community.

"The new logo with its striking simplicity, embodies our progressive corporate spirit. We aim to elevate the level of awareness on CGC among the SME community with the launch of our new logo.” clarified Dato' Agil.

Zamree further added that the concept behind the introduction of the new logo is in line with CGC’s core business, with the emphasise on the letter 'G' - which signifies ‘Guarantee’, to further assist the SMEs in gaining access to financing.

*Note : The details, design and info pack of CGC's new logo is available as per the link - https://app.box.com/v/cgc-new-logo

CGC’s New Logo Launch and 22nd SME Awards ceremony were held in conjunction with CGC's 44th Annual General Meeting. The event was officiated by YB Datuk Seri Johari Abdul Ghani, Minister of Finance II, at Royale Chulan Kuala Lumpur. Also present at the awards ceremony were CGC's Chairman, Dato' Agil Natt, CGC Board Members, CGC's President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak, officials from Bank Negara Malaysia and the various representatives from the financial institutions, agencies, business associations and chambers.
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CGC In Collaboration with EXIM Bank Malaysia Treats Orphans to a Fun-Filled Day at Zoo Negara

KUALA LUMPUR, Wednesday (26 April 2017) – Export-Import Bank of Malaysia Berhad (EXIM Bank) in collaboration with Credit Guarantee Corporation Malaysia Berhad (CGC) today invited a group of 171 orphans from Madrasah Hashimiah (MH) to spend a fun-filled day at Zoo Negara.

Madrasah Hashimiah (MH) located in Selayang is home to more than a hundred Rohingya children whom are refugees aging from 4 years old up to 18 years old. This home derived its source of income solely through donations from corporate companies, non-governmental organizations (NGOs), charitable organizations, zakat and personal donation to sustain their monthly expenses.

The idea to bring these children for a visit to Zoo Negara was a heartfelt intention to give an opportunity for them to experience outdoor activities and at the same time to gain knowledge on the preservation and conservation of animals at Zoo Negara. The children were taken around Zoo Negara for a tour by zoo tour guides, educating them on types of animal species and the importance of these animals to the ecosystem. They were also treated to a show performance by a pair of Macaw Birds which was sponsored by EXIM Bank.

Earlier in the year, EXIM Bank had also donated to Madrasah Hashimiah (MH) to purchase household items and food supplies for the upkeep of the home.

This first ever collaborative effort between the two (2) Financial Institutions was attended by Senior Management members from both organizations. Among them were Datuk Mat Noor, EXIM Bank Chairman, Dato’ Agil Natt, CGC Chairman, Datuk Mohd Zamree, CGC P/CEO and Pn. Norzilah Mohammed, EXIM Bank P/CEO. Apart from cultivating the spirit of sharing and giving, this collaborative initiative also marks another milestone in EXIM Bank’s efforts to improve its standing on various other CSR efforts moving forward.
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CGC and AmBank signs Portfolio Guarantee agreement

KUALA LUMPUR, Wednesday, 22 March 2017: CGC and AmBank (M) Berhad (“AmBank”) signed the SME Portfolio Guarantee (“SPG”) agreement today, in order to further enhance its strategic focus in developing and financing the Small and Medium Enterprise (“SME”) segment in Malaysia via AmBank’s SME Banking.

 

The signing ceremony today is a progression of the ongoing strategic collaboration between AmBank and CGC. Through this partnership, both AmBank and CGC have committed to extend an additional of RM200 million financing for eligible SME businesses.

This marks a continuation of the SME Portfolio Guarantee, which was launched in September 2016; whereby, a sum of RM150 million was allocated and fully subscribed within five months.

Under this scheme, eligible SMEs can apply for financing facilities of up to RM 1 million from AmBank SME for the repayment tenure of up to seven years. Seventy percent of the principal financing amount will be guaranteed by CGC.

The partnership agreement was signed by Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer of AmBank Group, together with Datuk Mohd Zamree Mohd Ishak, President/Chief Executive Officer of CGC. It was witnessed by Tan Sri Azman Hashim, Chairman of AmBank Group and Dato’ Agil Natt, Chairman of CGC.

Dato’ Sulaiman said, “We are pleased to strengthen our partnership with CGC through this SME Portfolio Guarantee agreement, where we have extended a further sum of RM200 million to support the growing demands of the SME industry and our customers.”

“Overall, AmBank SME Banking and CGC’s SME Portfolio Guarantee Scheme have allocated a total of RM350 million to support the SME businesses in providing working capital financing to qualified borrowers who lack collateral.”

“This partnership is in line with the Bank’s aim to expand our SME space in the market. This is also a part of our bigger aspirations for 2020 and part of this growth is to ensure that creditworthy SMEs have access to financing, for working capital and investment to grow their business.” Dato’ Sulaiman further commented.

AmBank SME business solutions provide innovative resolutions that are suited for SMEs that are looking to expand their business reach and the SME Portfolio Guarantee will be available at all AmBank branches nationwide. The products include Business Premise Loan, Bank Guarantee OTC, AmBank@Work, AmSignature Priority Banking and Business Current Account.

"With the success of the first tranche of RM150 million which we inked with AmBank back in September 2016, we are pleased to collaborate once again with AmBank on a second tranche valued at RM200 million" said CGC's President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak.

"This is our fourth PG strategic partnership with AmBank and to date, we have availed RM950 million worth of financing via our PG scheme. I look forward to many more opportunities to further increase access to financing for SMEs in Malaysia." said Datuk Zamree.

Zamree further explained that it is imperative for CGC to continuously explore new avenues in providing further access to financing for SMEs, by providing impactful guarantee and financing products.

He added that such initiatives will hasten the achievement of CGC's aspiration to be the Household Name for SMEs by 2020.
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CGC Appoints Choong Tuck Oon as Director

KUALA LUMPUR, 31 January - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the recent appointment of Choong Tuck Oon as its non-executive director.

Choong specialises in technology, strategy and transformation in both the banking and insurance industries. He is also an active member of the digital start-up ecosystem in ASEAN, where he is frequently called upon for advise with regards to digital and FinTech based programmes.

Choong was with Accenture for 24 years, where he retired as a Senior Partner of Financial Services in the Asia-Pacific. He has led strategic initiatives with more than 20 large domestic and global banks and insurers in Malaysia, Singapore, Indonesia, Thailand, China, Hong Kong and Taiwan, including national payment projects in Malaysia and Singapore. Choong started his career in Petronas where he held the Executive position for more than seven (7) years in various upstream and downstream functions.

Choong is currently an Independent Non-Executive Director (INED) on the Boards of FIDE Forum Malaysia and NTUC Income Insurance Cooperative Singapore. He was previously the INED for the Boards of RHB Bank, RHB Islamic Bank, RHB Indochina Bank, RHB Indochina Securities and RHB Private Equity.

Choong holds a Bachelor of Science (First Class) in Mathematics from the University of Malaya, Masters of Science in Computer Applications from the Asian Institute of Technology and Executive Diploma in Directorship from the Singapore Management University.
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CGC-BSN Enter into Strategic Partnership to Enhance Micro Financing

KUALA LUMPUR, 27 January - Credit Guarantee Corporation Malaysia Berhad (CGC) and Bank Simpanan Nasional (BSN) have penned a Portfolio Guarantee (PG) agreement today to avail up to RM50 million of financing to micro-enterprises. This is the first-ever PG in Malaysia in support of the micro business segment.

Under the PG scheme, micro enterprises can apply for either Islamic or Conventional financing facilities from BSN, from a minimum of RM5,000 up to a maximum of RM50,000 and at a fixed tenure of five years. CGC will provide guarantee of up to 70% of the approved financing amount by the Bank via its Portfolio Guarantee scheme.

CGC's President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said this agreement marks CGC's first collaboration with BSN to support micro business segment in the country. “We are committed to address the challenges faced by this segment and are confident that our collaboration with BSN will not only create additional financing facilities but also financing avenues through its extensive network nationwide."

Zamree said that through this joint effort, CGC is targeting to reach out to about 2,500 Bumiputera and non-Bumiputera micro businesses throughout the country. ‘We are confident of achieving this target as this PG is tailored to suit their business needs in terms of financing amount besides speed of approval and disbursement,” he said. “Importantly, this partnership provides a convenient way for micro businesses to gain access to financing.”

"We are looking at exciting times ahead through our partnership with BSN as the significant step taken today will open many more gateways and opportunities for both parties to join hands in uplifting micro enterprises to another level,” said Zamree.

As an intermediary dedicated to SME development, CGC remains committed to improving its SME outreach through its various programmes and initiatives undertaken to serve the needs of SMEs through financial and other advisory support services more effectively.

"In 2016, we availed about 7,500 guarantees and financing to SMEs valued at RM4.2 billion of which RM3.1 billion (or 74%) were via our PG / Wholesale Guarantee (WG) schemes,” said Zamree.

“As for the current year, we are targeting to provide RM4.7 billion of financing to about 9,500 SMEs, which translates to an increase of 12% and 26% respectively," he added.

Since its inception in 1972, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.6 billion.

Meanwhile, BSN Chairman, Tan Sri Abu Bakar Abdullah said, “the collaboration with CGC today, demonstrates our unified effort in providing financial assistance to eligible and viable Micro Enterprises and help spur their transformation progress into SMEs”.

“As our vision roars No Malaysian Left Behind, we promise that we will provide a better life for our customers. I truly believe that this collaboration will strengthen the quality of the borrowers at the same time on a bigger agenda would allow BSN to assist more micro borrowers and ultimately help to stimulate the economy of the country. Championing the financial inclusion initiative is part of our mandated role to ensure and provide prudent banking accessibility to the relevant micro finance borrowers”.

The partnership agreement was signed by CGC's President / CEO, Datuk Mohd Zamree Mohd Ishak and BSN's Deputy Chief Executive of Strategy and Communications, Kameel Abdul Halim. It was witnessed by the Deputy Finance Minister I, YB Dato' Wira Othman Aziz, CGC's Chairman, Dato' Agil Natt and BSN's Chairman, Tan Sri Abu Bakar Hj. Abdullah.
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CGC brings festive cheer to 30 urban poor families

Petaling Jaya, 24 January – In conjunction with the upcoming Chinese New Year festival, Credit Guarantee Corporation Malaysia Berhad (CGC), together with Kechara Soup Kitchen collaborated in bringing forth some festive joy and laughter to 30 underprivileged Chinese families by hosting a special Chinese New Year luncheon and charity shopping spree.

“This Chinese New Year do is a part of CGC’s annual Corporate Social Responsibility (CSR) initiative that is aimed at offering a helping hand to these special families in order for them to be able to celebrate Chinese New Year,” said CGC’s President and Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak.

“This CSR initiative is carried out with the hope that it could relieve the challenges faced by these families and at the same time, leave a smile on their faces,” added Zamree.

Each family received TESCO shopping vouchers worth RM300.00 from CGC to shop for the upcoming Chinese New Year festival.

CGC also contributed a sum of RM5,000 to Kechara Soup Kitchen in support of their noteworthy cause that is aimed at lending a helping hand to the urban poor. The contribution to Kechara Soup Kitchen was presented by Datuk Zamree to the President of Kechara Soup Kitchen, Mr. Henry Ooi.

Aside from the shopping spree activity, the event’s agenda also saw the families being treated to a sumptuous luncheon and the unforgettable must-haves during the Chinese New Year – the lion dance performance and the tossing of the traditional dish – Yee Sang, which symbolized prosperity, longevity and good luck. The tossing of the Yee Sang was led by both Presidents and participated by the families as well as the Management and staff from both sides, who simultaneously exchanged Chinese New Year greetings.

CGC’s Chinese New Year luncheon that was held at Hotel Armada, Petaling Jaya saw the participation of 130 guests from 30 special families, Mr. Henry and his team from Kechara Soup Kitchen as well as Datuk Zamree and his team from CGC.
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CGC Organises Workshop on Market Access for SMEs

KUALA LUMPUR, 8 December - Credit Guarantee Corporation Malaysia Berhad (CGC) has organised a half-day Entry to Hypermarket workshop today as one of its initiatives under its Developmental Programme in assisting the SMEs to overcome the challenges faced in gaining access to local and international markets. This workshop was organised in collaboration with Steinbeis Malaysia Foundation, an initiative of Agensi Inovasi Malaysia.

CGC has been facilitating SMEs' access to financing through its guarantee and direct financing facilities as its core functions. Presently, CGC has also expanded its role from a credit guarantee provider and financier to a developmental partner through its Developmental Programme to further enhance its services and add value to the SMEs.

The CGC Developmental Programme, introduced in May 2016, is aimed at assisting SMEs to gain access to both local and international markets. Through this developmental programme, CGC is undertaking several initiatives such as today's workshop which is a mentoring program where our strategic partners with expertise in relevant fields will work hand-in-hand to prepare, guide and link the SMEs to access major local distribution channels and overseas markets.

"We are aware that making in-roads into local and international markets has always been a major challenge for our SMEs. We also know that most of them lack knowledge and the opportunity to market their products. In view of this, we have introduced our Developmental Programme to equip the SMEs with the information and knowledge required as well as to create the opportunity for greater market access and achieve higher level of success in their business,” said CGC's President / CEO, Datuk Mohd Zamree Mohd Ishak.

"What we are hoping to achieve through this programme is to lay the foundation for the SMEs with proper advisory services and guidance. With active participation of the passionate and committed SMEs, we are positive that we are able to achieve our objective in serving and creating value for them," added Zamree.

“To further demonstrate our commitment to this developmental programme, CGC selected three (3) of its successful customers to participate in the 13th China-ASEAN Expo which was held in Nanning, China in September 2016. The Expo served as an important learning experience and platform for the SMEs to gain international exposure in showcasing and marketing their products,” he added. “Subsequent to the Expo, CGC had also organized a workshop on digital marketing on 15th October and provided the opportunity for participants to display and promote their products and services.”

As this is an ongoing initiative, CGC is planning to have more developmental programmes to cater to the various needs of the SMEs in other regions as well to assist them to gain local and international market access.

The workshop which was held at Bangunan CGC in Kelana Jaya saw the participation of more than 30 SMEs from the food and beverage (F&B) sector. As part of the knowledge sharing session with the participants, four (4) speakers were invited whereby two (2) of them were from Malaysia's leading retail hypermarkets.

CGC's Chairman, Dato' Agil Natt and Executive Director of Steinbeis Malaysia Foundation, Dr. Abdul Reezal Abdul Latif were also present to lend support to this initiative.

As an intermediary dedicated to SME development, CGC remains committed to improving its SME outreach through its various programmes and initiatives undertaken to be able to serve the needs of SMEs through financial and other advisory support services more effectively.

To date, CGC has availed over 442,000 guarantees and financing to SMEs valued over RM61.5 billion. In 2016, CGC targets to provide 8,650 guarantees and financing to SMEs amounting to RM4.0 billion.
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CGC contributes 'Back to School' supplies for School-Going Children

SERENDAH, 8 December - Credit Guarantee Corporation Malaysia Berhad (CGC) brought joyful experience to 158 school-going children from Ulu Melaka Orang Asli Settlement with 'Back-to-School' CSR Programme today.

The programme was part of CGC's Corporate Social Responsibility (CSR) initiative to assist Orang Asli families with school-going children with 'back-to-school' supplies. It was organised in collaboration with the Orang Asli Development Department (JAKOA) from the District of Hulu Selangor.

About 160 children who are attending kindergarten, primary and secondary schools were presented with new school uniforms, bags and stationery. They also participated in the fun-filled activities and had scrumptious lunch served especially for the children and their families.

"We are delighted to bring much excitement to the children of Ulu Melaka settlement with our 'Back-to-School' programme today. This is our third consecutive back-to-school programme in three (3) years organised as part of our noble initiatives in reaching out to the Orang Asli community with the main objective to ease their financial constraints especially when preparing their children for the new school session next year," said CGC's President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak.

"We hope our contribution today will serve as a motivation and encouragement to these children to take an interest in education and perform well in their studies to help themselves to a better future," added Zamree.

Prior to the presentation of school items, activities such as colouring contest, musical chairs and soccer match were organised for the children, which was also participated by CGC's management team and volunteers from Kelab Rekreasi CGC (KRCGC).

Throughout the year, CGC had extended aid and financial assistance towards various causes. In support of various community segments in the country, CGC had organised CSR programmes in conjunction with major festivals in Malaysia.

"These initiatives undertaken by CGC would always remain an integral part of our community outreach programme that are aimed at improving the quality of life and well-being of our fellow Malaysians nationwide.. We truly believe that we are able to make a difference to the underprivileged members of the society with our contribution in support of their respective causes," clarified Zamree.
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CGC shares the lights and joy of Deepavali with the underprivileged community in Perak

IPOH, 15 October - Credit Guarantee Corporation Malaysia Berhad (CGC) continue its series of charity programme for this year by organising a Deepavali charity shopping spree for the underprivileged community in Perak and contributed a sum of RM16,000.00 in hopes to bring the light of joy to the underprivileged children, women and their family members.

This Corporate Social Responsibility Programme (CSR) is part of CGC's initiative in reaching out and supporting the less fortunate and underserved members in the community which transcends across all races.

"The idea of having a shopping spree experience today is to give them a memorable and joyful outing to celebrate the upcoming Deepavali," said CGC's Chief Financial Officer, Encik Syed Naufal Shahabudin.

"Engaging with the community throughout the festive season has always been the core principal of CGC's social programmes. This is to ensure that we are able to reach out to all cross-section of the underprivileged community in the country," added Syed Naufal.

Each of the family had received RM350.00 worth of shopping vouchers from CGC to shop for basic necessities in preparation for the upcoming Festival of Lights. The contribution worth RM16,000.00 to the families were presented by Encik Syed Naufal Shahabudin and accompanied by CGC’s Branch Head in Ipoh, Madam Punitha Jeyabalan.

"We sincerely hope that our contribution and shopping experience will bring the children and the family members hope, cheer and happiness during this joyous time of the year, besides easing their financial burden. These are the community who have a special place in our heart as we are responsibly committed in giving back to the underprivileged society throughout our programmes," said Syed Naufal.

“It is indeed a noble initiative taken by CGC to extend its lending hands for the children and their families today. We truly believe the Deepavali celebration this year will be a meaningful one for them, especially the children”, said Mr. Vincent, a representative from Caring & Sharing Friends - an NGO responsible in identifying the underpviledged community.

CGC's Deepavali charity shopping spree at Mydin Mall in Bandar Meru Raya in Ipoh saw the participation of around 25 CGC staff who consisted of the senior management and staff from both the headquarters as well as the Ipoh branch.

"We would also like to express our deepest gratitude to the management of Mydin Mohamed Holdings for sponsoring the venue this morning as part of their support towards this noble initiative," added Syed Naufal.

The children participated in the activities and games organised by CGC and later they were treated with a sumptuous lunch together with the guests.

CGC has also extended aid and offered relief support towards various causes. In the last two (2) years, CGC has contributed more than RM300,000.00 through its CSR programmes as part of its effort in lending a helping hand and reaching out to all cross-section of the society throughout the country.
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Maybank-CGC to provide up to RM1.5 billion of financing for local SMEs

KUALA LUMPUR, 2 Sept - Maybank has entered into a strategic partnership arrangement today with Credit Guarantee Corporation Malaysia Berhad (CGC) to avail up to RM1.5 billion of financing to the small & medium sized enterprises (SMEs) via CGC’s portfolio guarantee scheme- the largest ever amount in Malaysia to support local SMEs in growing their businesses further.

This strategic partnership was formalised by Maybank Head of SME Banking, Mohd Zaini Aris and Leong Weng Choong, Chief Business Officer of CGC. It was witnessed by Maybank Head of Community Financial Services Malaysia, Datuk Hamirullah Boorhan and President/ CEO of CGC, Mohd Zamree Mohd Ishak.

Under the PG scheme, SMEs can apply for either Islamic or Conventional financing facilities from Maybank, from a minimum of RM50,000 up to a maximum of RM1.5 million and at a fixed tenure of up to seven years. While the financing is processed by the Bank, 70% of the principal financing amount will be guaranteed by CGC.

Speaking at the event, Datuk Hamirullah said the RM1.5 billion PG allocation is in addition to the RM1.26 billion approved by Maybank in 2014 and another RM1.1 billion in 2015, driven by the strong demand from the SME industry.

“It’s an exciting time for both Maybank and CGC as we continue to grow and remain responsive to SME needs. Today, our decision to extend Maybank’s collaboration with CGC for up to RM1.5 billion is a reflection of our commitment to support the growth of the SME sector in Malaysia which is an integral contributor to the Malaysian economy.”

“With this partnership arrangement, Maybank remains the leading supporter of CGC’s Portfolio Guarantee scheme in Malaysia, offering clean lending facilities to SMEs with a total disbursement amount of RM2.6 billion to date,” he said.

Hamirullah said Maybank has also further improved the disbursement turnaround time from five (5) working days in the past to two (2) days, in order to give fast and hassle free customer experience to SMEs. “This means that once SMEs accept our offer and all relevant approval have been obtained, they can expect to receive the money within 48 hours. We hope this will further help SMEs stay competitive in their respective industries,” he said.

Maybank’s collaboration with CGC began in September 2013 when it became one of the first local bank to offer SME financing assistance without collateral under the Portfolio Guarantee Scheme. More than 5,000 SMEs have benefited from the PG scheme since then.

Hamirullah further said that Maybank’s support to SMEs was not limited only to financing via CGC’s PG scheme as the Bank had various other financing and deposit products for this sector. It has also offered other non-financing services to ensure SME players remain competitive and continuously appraised of growth opportunities.

“Among our non-financial services include advisory services, training roadshows and capacity building programmes such as the ‘Building Capacity & Capability for SMEs’ programme we introduced this year,” he explained. “This programme is part of our efforts to ensure SMEs are able to leverage opportunities within the rapidly changing business environment through new branding and digital marketing strategies. To date, we have successfully reached out to more than 1,200 participants through this programme.”

"Since our first PG agreement back in 2013, we have availed a total of RM2.6 billion of financing to the SMEs via our PG collaboration with Maybank. Our strategic partnership with Maybank has enabled us to enhance our SME outreach even further as we are looking forward to reach out to 3,000 SMEs with the RM1.5 billion of financing in 2016,”said President/CEO of CGC, Mohd Zamree Mohd Ishak.

“As for the current year, we aim to increase our SME outreach by 15% and 5% in terms of value and number respectively. Despite the challenging times that we face, both at the domestic and on the global front, we remain cautiously optimistic that we will achieve our targets" added Zamree. He further added that CGC is targeting to provide RM4.0 billion of guarantees and financing in 2016.

"We are looking at exciting times ahead through our strong partnership with Maybank as the momentous step taken today will open many more gateways and opportunities for both parties to join hands in uplifting the SMEs to another level,” said Zamree.

“CGC has been serving SMEs for over four (4) decades, not only in terms of financial services, but also providing advisory services. We encourage SMEs to come forward and talk to us, always. Our aspiration is to be the ‘Household name for SMEs by 2020’, and we will continuously lend a helping hand to our SMEs,” he added.
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CGC to sponsor ISRA's Islamic Economics Textbook

KUALA LUMPUR, 18 August – Credit Guarantee Corporation Malaysia Berhad (CGC) today contributed RM200,000.00 to the International Shari'ah Research Academy for Islamic Finance’s (ISRA) Islamic Economics Textbook Project.

The said publication will provide significant benefits to the Islamic finance industry, particularly in strengthening the knowledge base by providing a source of reference for students, academicians and industry practitioners. The textbook shall contain over 20 chapters which will be incorporating inputs from academicians and relevant experts in their respective fields. Besides that, it will also contain a combination of thought-provoking case studies, discussion-based questions and references.

“I was made to understand that although there are several books on Islamic Economics, its breadth and depth are not as comprehensive and this project is expected to fill that void.  CGC would like to extend our highest commendation to ISRA for initiating this project as it would be a prodigious source of information and reference for all stakeholders,” said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“As a Development Financial Institution that also provides Shariah Compliant products, our sponsorship is an extension of our contribution to the Islamic finance industry and in support of Malaysia’s leading position in the industry,” Zamree added.

"Indeed, CGC's financial support is very instrumental for ISRA to kick-start its long awaited project on Islamic economics textbook, which is envisaged to be a comprehensive and main source of reference to the academia, industry practitioners and regulators. We wish to extend our utmost gratitude to the Board and Management of CGC for its support," said ISRA's Executive Director, Prof. Dr. Mohamad Akram Laldin.

ISRA was established to promote applied research in the area of Shariah and Islamic finance. ISRA also acts as a repository of knowledge for Shariah views (fatwas) and undertakes studies on contemporary issues in the Islamic financial industry.

 

About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5 July 1972 and it is 78.65% owned by Bank Negara Malaysia and the remaining 21.35% owned by various commercial banks in Malaysia.

The core business of CGC is to assist SMEs, especially those with inadequate or without collateral and track record, to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has availed over 442,000 guarantees and financing to SMEs valued over RM61.5 billion since its establishment.

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 assist 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. To date, CGC had managed a total of 45 guarantee schemes including 16 government-backed schemes.

Currently, seventeen (17) Commercial Banks, fifteen (15) Islamic Banks, and seven (7) Development Financial Institutions (DFIs) are participating in CGC’s guarantee schemes in providing financing to customers through a wide network of more than 2,600 branches nationwide to avail financing.

SMEs who are interested to obtain more information may call CGC’s Client Service Centre at 03-7880-0088 or email csc@cgc.com.my or visit www.cgc.com.my

 

For Media Enquiries:

Corporate Communications Department,

Credit Guarantee Corporation Malaysia Berhad

 
Anna Rozana Ramli                   Khairul Amri Aznan                        Wan Nur Hidayah Mohammed Akhir

Head, PR & Media Relations      Executive, PR & Media Relations   Executive, PR & Media Relations

HP: 012-237-1742                      HP: 011-123-990-53                      HP: 010-464-1753

Email: anna@cgc.com.my         Email: khairulamri@cgc.com.my      Email: wnhidayah@cgc.com.my

 
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CGC and MRT Corp Sign MoU to assist more Bumiputera sub-contractors with access to financing

KUALA LUMPUR, 12 August – Credit Guarantee Corporation Malaysia Berhad (CGC) and Mass Rapid Transit Corporation Sdn. Bhd. (MRT Corp) signed a Memorandum of Understanding (MoU) today to assist eligible Bumiputera sub-contractors participating in the MRT Sungai Buloh - Serdang - Putrajaya (SSP) Line under the Klang Valley MRT (KVMRT) project with access to financing.

The collaboration between CGC and MRT Corp paves the way for the Bumiputera sub-contractors to secure financing to undertake contract works in this project which involves the construction of a rail-based public transport network which, together with the existing Light Rail Transit (LRT), Monorail, KTM Komuter, KLIA Express and KLIA Transit System will form the backbone of the greater Kuala Lumpur / Klang Valley region’s public transport system.

“Our collaboration with MRT Corp gives CGC a huge opportunity to play its part in the national infrastructure development project such as the MRT Line 2 which is one of the agenda under the National Key Results Areas,” CGC’s President/Chief Executive Officer, Mohd Zamree Mohd Ishak told reporters after the MoU signing ceremony.

“In the earlier collaboration with MRT Corp, CGC was the preferred partner for their G1 to G4 Bumiputera contractors under the MRT Line 1 project. We have enabled about 12 Bumiputera contractors to undertake and successfully complete their projects by providing financing through our Bumiputera Entrepreneur Project Fund (Tabung Projek Usahawan Bumiputera–i (TPUB-i),” added Zamree.

“Our strong financing support to the Bumiputera contractors of MRT Line 1 project through TPUB-i and also our keen interest in extending financing to contractors expected to undertake future contracts were viewed positively by MRT Corp. The signing of MOU today is testimony of their confidence in CGC as a reliable partner in the financing of Bumiputera contractors,” he said. To date, MRT Corp has screened close to a thousand companies but only 700 G1 to G6 companies may be eligible to obtain financing from the contract amount valued at RM900 million which has been allocated for the MRT Line 2 project.

Zamree said that CGC is optimistic of financing at least RM100 million of the total contract worth RM900 million allocated under the Bumiputera package in the MRT Line 2 project within the next three years.

Through TPUB-i financing facility, CGC has been providing financing to Bumiputera contractors who were awarded contracts by the Government and Government-linked companies. To date, CGC has approved a total of RM850 million worth of financing through TPUB-i benefitting about 1,200 Bumiputera SMEs. “In 2016, we are targeting to approve RM220 million of financing through TPUB-i,” added Zamree.

“This is part of the initiative to enhance our Bumiputera SME outreach as some of these Bumiputera companies participating in the MRT Line projects are also eligible contractors. We foresee these Bumiputera companies being awarded with more contracts in the near future and as such, we view them as potential leads for CGC products,” he said adding that this will also help CGC to grow its TPUB-i portfolio.

MRT Corp Chief Executive Officer Dato’ Sri Shahril Mokhtar said CGC’s financing product for Bumiputra contractors was extremely important towards ensuring the success of MRT Corp’s Bumiputera Agenda participation for SME contractors from Grades G1 to Grade G6 category.

“I understand that CGC had provided financing to Bumiputera contractors from Grades G1 to Grade G4 who have participated in the construction of the MRT Sungai Buloh-Kajang Line (SBK Line). I am glad that this will continue for the second MRT line where the financing provided will be from Grades G1 to G6 for the MRT Sungai Buloh-Serdang-Putrajaya Line, with the signing of the MoU,” he said.

He thanked CGC for providing a specific financing product for Bumiputera contractors participating in the MRT Project, with very favourable terms and conditions such the availability of a mobilisation fund as part of the financing package, faster application time, competitive rates and the briefing and coaching sessions to the contractors.

“With such support, I believe the contractors will no longer face too many problems in getting their work started and will be successful in completing their contracts,” he said.

Shahril said MRT Corp remained committed to the Bumiputera Agenda and this could be seen from the fact that the total value of contracts awarded to Bumiputera companies under the SBK Line was 50% of all contracts awarded, which has surpassed the 43% target set by the Government.

“The target set for the SSP Line is now 45%. I am confident that with the support from all quarters such as CGC, MRT Corp will be able to go beyond this target, insyallah,” he said.

The MoU signing ceremony was held at Lanai Kijang, Bank Negara Malaysia. Signing on behalf of MRT Corp was its Chief Executive Officer, Dato’ Sri Shahril Mokhtar whilst President / Chief Executive Officer, Mohd Zamree Mohd Ishak signed for CGC. The signing ceremony was witnessed by the Minister of International Trade and Industry, YB Dato’ Sri Mustapa Mohamed and Chairman of CGC, Dato' Agil Natt.
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AmBank Islamic and CGC signs Portfolio Guarantee

KUALA LUMPUR, Monday, 8 August 2016: AmBank Islamic and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Portfolio Guarantee (PG) agreement today to further enhance Small Medium Enterprise (SME) financing in Malaysia.

Through this partnership, both CGC and AmBank Group, which AmBank Islamic is part of, have committed to extend another RM300 million of accessible working capital financing to qualified SME customers which lack collateral.

This is a continuation of the Portfolio Guarantee Scheme which was launched in January 2015 where a sum of RM300 million was allocated and fully subscribed by September 2015.

“We are pleased to partner CGC in this Portfolio Guarantee collaboration once again in which AmBank Islamic will provide accessible working capital financing to qualified SMEs. We have allocated a further sum of RM300 million to support our existing customers in their expansion phase and reach out to new SME customers throughout the country.

The SME segment is one of our key growth areas and this CGC tie up is timely for AmBank Group to increase our market share and contribute to economic growth in the country,” said Pushpa Rajadurai, Managing Director, Wholesale Banking Coverage, AmBank Group at the PG signing ceremony where Eqhwan Mokhzanee, Chief Executive Officer, AmBank Islamic signed the documents together with Mohd Zamree Mohd Ishak, President and Chief Executive Officer, CGC, witnessed by Tan Sri Azman Hashim, Chairman, AmBank Group, Dato’ Agil Natt, Chairman CGC and Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group.

"With the success of the first tranche of RM300 million which we inked with Ambank Berhad in April 2015, we are pleased with the renewed interest on CGC's innovative financing product-the PG scheme, hence leading to the signing of the PG agreement today to avail another RM300 million of financing to SMEs through AmBank Islamic," said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“The PG scheme has proven to be a success, not only in serving our business partner's needs, but also for their customers with certainty in approval which is almost 100% due to the efficiency of the process flow as well as hassle-free online application submission," added Zamree.

"This is our 2nd collaboration and I look forward to many more opportunities for both parties to further widen our SME outreach in the country through our products and services whilst at the same time enable us to play our part in supporting the government’s plan for SMEs to be a significant contributor to the country’s economic growth," said Zamree.

Zamree further explained that it is imperative for CGC to continuously explore new avenues to drive access to financing for SMEs by providing impactful guarantee and financing products that suits their partners’ business needs.

At the same event, AmBank also launched two financing packages, AmBank BizSolutions Kontrak and the enhancement of the current financing package, AmBank BizSolutions 2Trad3 which offers financing products and solutions tailored for Commercial and SME customers.

AmBank BizSolutions Kontrak offers contract financing facilities which are specifically tailored for a specific project or contract. The finance package varies in accordance to the type of contracts, such as construction, supply and services, among others.

On the other hand, enhanced AmBank BizSolutions 2Trad3 extends necessary financial assistance to fund import and export transactions for Autoparts and Food industries respectively. The Autoparts Imports Industry has an estimated over 500 players in the industry with more than RM1 billion in sales comprising of local and import trade while the local Food Exports Industry is expected to grow as the world needs additional 50% food and energy by year 2030.

“With SMEs being the driving force of the Malaysian economy, this financing solution can be tailored from the simplest asset financing to general working capital, to even financing the most complicated projects. Not just for ordinary everyday transactions, the AmBank BizSolutions will provide solutions for your cash flow management and also for managing your payables and receivables,” added Pushpa.
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CGC Organises 'Klinik Usahawan CGC Sabah' for SMEs

TAWAU, 4 August - Credit Guarantee Corporation Malaysia Berhad (CGC) organised a 'Klinik Usahawan CGC Sabah' as part of its overall efforts in reaching out to a wider cross-section of the SME community in Sabah.

The 'Klinik Usahawan CGC Sabah’ is organised to create greater awareness of the financing products offered by CGC to enable viable SMEs to gain access to financing. It is also to inform SMEs of CGC’s role and participation in the Pan Borneo Highway project. In addition, it was also aimed at creating an avenue for SMEs to seek further information and other advisory services besides fostering cordial business relationship between both parties.

“As a Development Financial Institution dedicated to promoting SME development, we are focused on improving our SME outreach through our collaboration with the respective business associations / chambers in Sabah and be able to serve their members in the SME segment that may require our financial and other advisory support services,” said President/Chief Executive Officer of CGC, Mohd Zamree Mohd Ishak.

“In essence, what we hope to achieve through this Klinik Usahawan is to create further awareness on CGC’s products and services as well as our role in SME development,” added Zamree.

“Through this Klinik Usahawan, we are reaching out to more SMEs in Sabah including those that are vying for the Pan Borneo Highway project. With that, we are targeting to achieve about 20% increase in our overall financing to SMEs in Sabah by the end of this year,” said Zamree.

In 2016, CGC targets to provide about 8,650 worth of guarantees and financing valued at RM4.0 billion. Cumulatively, CGC has availed over 442,000 guarantees and financing to SMEs valued over RM61.5 billion since its inception in 1972.

'Klinik Usahawan CGC Sabah’ which was held at the Promenade Hotel, Tawau from 8.30 am to 10.30 am on 4 August 2016 comprised of two sessions. The first session was a briefing by CGC on its products and services, and its application procedures. This was then followed by a briefing session by Bank Negara Malaysia.

About 300 participants comprised of entrepreneurs and representatives from Dewan Perniagaan Bumiputera Sabah, Dewan Perniagaan Industri Bugis Sabah and Persatuan Usahawan Belia Tawau attended this ‘Klinik Usahawan CGC Sabah’.

'Klinik Usahawan CGC Sabah was officiated by YB Datuk Haji Tawfiq Datuk Seri Panglima Haji Abu Bakar Titingan, Sabah’s Minister of Youth and Sports. Also present were Datuk Haji Osman Haji Jamal, the Director of Sabah Economic Planning Unit, Mr. Joseph Pang, Secretary of Tawau Municipal Council, officials from Bank Negara Malaysia as well as representatives from the business associations / chambers.
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CGC celebrates the month of Ramadan with 40 Children

PETALING JAYA, 20 June - Credit Guarantee Corporation Malaysia Berhad (CGC) shared the blessings of the holy month of Ramadan with 40 children from Rumah Bakti Cahaya Hati (RBCH), Bandar Tasik Puteri, Rawang, during its Majlis Berbuka Puasa ceremony held at Masjid Tengku Kelana Jaya Petra (MTKJP) in Kelana Jaya, Selangor.

The Majlis Berbuka Puasa was hosted by CGC Chairman, Y. Bhg Dato' Agil Natt. Also present at the event was Dato’ Agil’s spouse, Datin Sharifah Fatmah, CGC’s Board of Directors, Y. Bhg Datuk David Chua, Encik Mohamed Rashdi Mohamed Ghazalli and spouse Pn. Rosnah, Y. Bhg Dato’ Hj. Syed Moheeb Syed Kamarulzaman and spouse Datin Sharifah Zahrah, Mr. Ong Eng Bin, Puan Nadzirah Abd. Rashid and CGC President / Chief Executive Officer, En. Mohd Zamree Mohd Ishak and spouse Nik Rosemiza Nik Mohd. About 350 CGC staff and their spouses and children attend the event as well.

The children's arrival was greeted with great delight by CGC staff. The event started off with a 'tazkirah' by Y.Bhg. Imam Imran Nasoha, Imam 1 from Masjid Subang Jaya prior to the breaking-of-fast ceremony.

A total of 40 children, aged four (4) to 17 years old, were treated with a special Ramadhan buffet. They enjoyed their dinner with the company of CGC staff and their family members. All members of the public were also invited to break-fast and have dinner at the event. The breaking-of-fast was followed by Maghrib prayers and the congregation then proceeded with dinner and Terawih prayers soon after and ended with light refreshments or “Moreh”.

CGC’s President / Chief Executive Officer, Mohd Zamree Mohd Ishak said, "It was indeed heart-warming and meaningful to spend time and celebrate the holy month of Ramadan with the children. By hosting this ceremony, we were able to put some festive joy and happiness into their lives as they look forward to celebrating Hari Raya Aidlfitri.”

Zamree also said that this is the time for them to embrace the joy of Eid celebration and it is our responsibility to ensure that the less fortunate members of the society are cared for.

In conjunction with Majlis Berbuka Puasa, CGC contributed RM8,000 to Rumah Bakti Cahaya Hati. The contribution was courtesy of CGC and its staff who had prior to the event organised a donation drive amongst the staff to raise some funds for the orphanage. The cheque was presented by Dato' Agil Natt to the orphanage and witnessed by Zamree. The children, both from the orphanage and of CGC Staff, were given ‘duit raya’ and goody bags by CGC’s Board of Directors and senior management as a special treat.

According to RBCH caretaker Ustaz Hisham Hassan, the orphanage greatly welcomes contributions as this would assist them in continuously providing the basic necessities such as food, shelter and education. RBCH also provides home schooling as well as skills and vocational training to the children to provide an overall learning experience for them. “I thank CGC for the generous contribution they have made to RBCH”, said Hisham.

Majlis Berbuka Puasa is an annual event held by CGC to support the less fortunate and underprivileged children. It is also to promote and foster the spirit of caring and social responsibility among its staff.
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Financial Institutions (FIs) Honoured for Contributions towards SME Growth and Development

PETALING JAYA, 1 June - Credit Guarantee Corporation Malaysia Berhad (CGC) today honoured four (4) leading banks and 10 customers for their notable contribution towards SME financing in 2015 and excellent track record respectively at its SME Awards ceremony.

CGC recognised banks in five (5) different categories namely the Top FI Partners (overall category), Best Financial Partner, Top Bumiputera FI Partner, Top FI Partner for Islamic Banks and Top FI Partner for Development Financial Institutions (DFI). As part of CGC's annual tradition, the awards presentation ceremony was held in conjunction with CGC's 43rd Annual General Meeting.

The winners of the Top FI Partner Awards (overall category) were Maybank, Maybank Islamic, OCBC Al-Amin Bank Berhad and SME Bank. This award was presented to the respective banks for their significant contributions to CGC’s overall SME financing through its guarantee schemes.

Maybank Islamic also bagged the Best Financial Partner and Top Bumiputera FI Partner Awards for having contributed the most toward CGC’s asset quality and financing to Bumiputera SMEs. OCBC Al-Amin also won the Top FI Partner Award for Islamic Banks, while SME Bank bagged the Top FI Partner Award for Development Financial Institutions (DFI).

The award recipients were selected based on a set of criteria determined by CGC which include amongst others, the number and value of financing guaranteed, financing guaranteed to Bumiputera customers, net income growth and rate of default.

In terms of contributions to SME financing, the four (4) award recipients contributed about RM1.9 billion, representing 58% of the total financing and 5,150 financing representing 63% of the total number of financing approved by CGC respectively in 2015.

“The financial institution’s role is to promote an efficient, effective and sound financial sector capable of providing a wide range of customer-driven financial services including financing requirements of the SME sector”, said Datuk Johari Abdul Ghani, Deputy Finance Minister II, at the awards presentation earlier today.

He further stated that, “the financial sector also plays a central role in the growth and development of the economy through mobilisation and deployment of financial resources. I am pleased to acknowledge here that, in Malaysia, financial institutions have shown their commitment to the development of SMEs by going out of their way in establishing dedicated SME departments or units to provide customised financial services and capacity building initiatives for SMEs”.

He then commended CGC’s efforts by stating, “I admire the fact that CGC goes out of their way to appreciate their customers. They have allocated specific awards that are exclusively for their customers”.

In his welcoming speech, CGC’s Chairman, Dato’ Agil Natt said that CGC’s SME Awards is a tribute to the high level of commitment and excellence from the FIs who have stood by SMEs, weathered the odds of the economy and made access to financing readily available through innovative financing products which have become more diverse throughout the years. We, at CGC, hope that this award will continue to motivate the FIs to further assist our SMEs and also encourage more FIs to follow suit in ‘Powering Malaysian SMEs’.

CGC’s President/Chief Executive Officer, Mohd Zamree Mohd Ishak said the FIs played a major role towards the development of SMEs in the country. “We truly value the continued support given by FIs towards CGC in achieving our common objectives. The strategic partnership CGC had forged with the FIs had a great impact on our SME outreach initiatives in reaching out to a wider cross-section of the SME community in the country," explained Zamree.

CGC had approved a total of 8,225 guarantee and financing valued at RM3.4 billion benefiting businesses mostly from the general businesses, manufacturing and agricultural sectors in 2015.

CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak further added that the success of CGC's Portfolio Guarantee (PG) and Wholesale Guarantee (WG) Schemes have proven CGC’s ability to be an innovative partner in the SME ecosystem.

"We will continue to explore new opportunities and develop innovative financing options to further enhance our services to the SMEs. This is in line with our aspiration which is to be ‘the household name for SMEs by 2020',” clarified Zamree.

In 2016, CGC targets to approve 8,650 financing valued at RM4.0 billion through its array of guarantee and financing products.

CGC's Recognition for its Customers

Apart from the Top FI Partner Awards, CGC has also taken the initiative to recognise their valued customers who had ‘graduated’ from CGC’s guarantee schemes and demonstrated excellent credit track record.

CGC’s customers with good repayment track record on their financing facility and were offered rebates on guarantee fees received the Exemplary Customer Award whilst those who were once dependent on CGC’s guarantee but now no longer require the guarantee due to their creditable credit track record and success in business were awarded with ‘Excellent Customer Awards’.

"These recognitions were given to our customers to demonstrate our appreciation and to value their continued trust and support towards CGC," said Zamree.

"It is also to encourage the SMEs to adopt a healthy credit culture by having good credit practices in conducting their accounts. From the SMEs point of view, this practice would illustrate a conscious effort being made to improve on their credit track record, credit rating and bankability," added Zamree.

CGC's SME Awards Ceremony was officiated by the Deputy Minister of Finance, YB Datuk Johari Abdul Ghani at One World Hotel, in Bandar Utama, Petaling Jaya. Also present at the awards ceremony were CGC's Chairman, Dato' Agil Natt, CGC Board Members, CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak, officials of Bank Negara Malaysia, representatives from the financial institutions, agencies, business associations and chambers.
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CIMB-CGC MOU for RM1 billion SME Financing

Kuala Lumpur: CIMB Bank Berhad (“CIMB Bank” or “CIMB”) and Credit Guarantee Corporation Malaysia Berhad (“CGC”) today signed a MOU to offer up to a total of RM1 billion of Enterprise Clean Loan (ECL) as part of their joint initiative to nurture and develop Malaysian SMEs. The ECL is based on a customised Portfolio Guarantee (PG) product offered by CGC to CIMB Bank, to enable the latter to offer unsecured business loans to SMEs.

The MOU was signed by Renzo Viegas, Chief Executive Officer of Group Consumer Banking, CIMB Group and Leong Weng Choong, Chief Business Officer, CGC. It was witnessed by Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive, CIMB Group and Mohd Zamree Mohd Ishak, President and Chief Executive Officer, CGC.

The MOU marks the enhancement of an already successful strategic collaboration between CIMB Bank and CGC since 2015, by making available a further RM750 million for the ECL. CIMB Bank and CGC had earlier successfully launched three tranches of the ECL amounting to RM250 million.

Tengku Dato’ Sri Zafrul Aziz said, “We are pleased to renew our strategic partnership with CGC to promote the growth of Malaysia's SME sector. The ECL offers a financing amount of up to RM1 million per company with loan tenure of up to seven years. It requires no collateral, 48-hour approval and disbursement within 24 hours, giving companies faster and easier access to the funds they need to grow their business. The Malaysian SME sector, expected to contribute

41% to the country’s GDP by 2020, is one of the focus areas under the bank’s T18 Strategy. To this end, CIMB Bank has also developed other solutions like business advisory to empower SMEs through the different stages of their business cycles. With our expertise and well-developed understanding of the ASEAN market, CIMB can also facilitate the regional growth of these SMEs.”

"Our strategic partnership with CIMB Bank today has created another avenue for us not only to provide greater access to financing for SMEs, but also to leverage on CIMB Bank's enterprise business solutions and extensive network of branches to expand our SME outreach nationwide," said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“CGC has played a vital role as a financial intermediary to bridge the financing gap between the financial institutions (FIs) and the SMEs through its array of products and services. The strategic partnership that we are strengthening with CIMB Bank is an on-going initiative pursued to further enhance our collaboration with financial institutions to create alternate financing options for SMEs via our award winning PG scheme. Since PG's inception in 2009, we have availed a total of RM4.6 billion worth of financing via 14 participating financial institutions. Further, over the last 44 years, CGC has issued 437,000 guarantees and financing for SMEs worth about RM59 billion and continued to play its role in advancing Malaysia's SME agenda,” added Zamree.

CIMB Bank’s SME-focused enterprise business solutions, built for simplicity and convenience, consist of three pillars, namely differentiated solution, business enablers and advisory services. The products and solutions offered under these solutions include assistance in financing (for property and unsecured working capital), in cashflow management (current accounts and UNfixed deposits) and in business operations (Clicks/BizChannel, Plug&Pay, C@W).
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CGC shares joy and happiness with 80 special needs children of the Malaysian Red Crescent (MRC) Sunflower Centre in conjunction with Gawai Harvest Festival

Miri, 18 May – In conjunction with the Gawai Harvest Festival, celebration, Credit Guarantee Corporation Malaysia Berhad (CGC) today organised a Corporate Social Responsibility (CSR) programme at Malaysian Red Crescent’s (MRC) Sunflower Centre in Miri, Sarawak to bring festive joy and happiness to children and individuals with special needs.

The MRC Sunflower Centre is under the purview of the Malaysian Red Crescent Miri chapter, with its sole mission to train and develop individuals with special needs especially children through specific programmes and trainings. The programme includes therapy sessions and vocational skills training sessions to help equip these individuals with the right skill sets so that they may be given an equal employment opportunity to eventually be self-sufficient and independent. In order to cater to a large number of these individuals, there are over 21 caretakers employed at the centre who are professionally trained to provide effective therapy with care.

“We are pleased to be given the opportunity to celebrate the Gawai Harvest Festival with these children and individuals today through our CSR initiative as we aim to continuously reach out to all levels of society and assisting in every way we can,” said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“As Malaysians living in a multi-cultural and multi-religious society, we understand the significance of the festivals celebrated by all ethnic groups. We would like to take the opportunity during this festive season to share and spread joy through care, attention and assistance, in conjunction with Gawai Harvest Festival this year. It is in our corporate DNA that we give back to the community through a variety of channels and bodies with an objective to assist the underprivileged and in developing a sustainable future for all those in need so that they too may lead a comfortable life like you and me,” added Zamree.

A cash contribution worth of RM12,000 was presented by Encik Zamree to the Chairman of MRC Sunflower Centre, Madam Liza Chai in support of the home’s continuous therapy programmes and their daily operations.

“We are thankful for the fact that corporations such as CGC go out of their way to extend their assistance to our cause. With such support, we are able to not only continue with our programes but also reach out to more children and individuals with special needs. This means a lot to us”, said Madam Chai.

CGC's Pesta Gawai CSR programme with the MRC Sunflower Centre saw the participation of CGC staff from both their headquarters in Kelana Jaya, Selangor and their Miri branch, which is among one (1) of two (2) branches in Sarawak, the other branch is located in Kuching. Also present to show support to CGC’s CSR event was Piasau Assemblyman Dato’ Sebastian Ting, who won in the recent Sarawak state elections.

CGC has also extended aid and offered relief support towards various causes. In the last two (2) years, CGC has contributed more than RM250,000.00 through its CSR programmes as part of its effort in lending a helping hand and reaching out to all cross-section of the society throughout the country.
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RHB Introduces New Financial Supply Chain Portfolio Guarantee With CGC

Kuala Lumpur, 9 March – RHB Bank Berhad (“RHB”) today, signed an agreement with Credit Guarantee Corporation (CGC) for its newest product, the RHB Financial Supply Chain Portfolio Guarantee (RHB FSCPG) which is aimed at assisting SMEs in growing their businesses at a reasonable cost.

“At RHB, we strive to provide SME customers with seamless experiences. The RHB FSCPG has been designed to make available a cost-efficient distributor financing facility for SMEs. With RHB’s push towards digital technology, this programme will run on RHB’s online FSC platform that will enable SMEs as well as their vendors and suppliers to connect and manage their cash flow and inventory more efficiently,” said Dato’ Khairussaleh Ramli, Group Managing Director for RHB Banking Group.

The RHB FSCPG is a new product proposition which provides working capital financing, specifically for SMEs who lack collateral in supporting their need for funding. The partnership programme is offering financing of up to RM2 million which is partially secured against CGC guarantee.

“In our continuous efforts toward enhancing the viability of SMEs, our partnership with RHB would enable us to better assist SMEs who are in need of financing but are lacking in collateral. Through the RHB FSCPG, CGC will facilitate the access to working capital needs of SMEs,” said En. Mohd Zamree Mohd Ishak, President / Chief Executive Officer for CGC.

The Portfolio Guarantee (PG) is one of the innovative products that CGC had introduced in recent years that was aimed at not only further improving access to financing for the SMEs but also the speed at which loans are processed.

“The guarantee scheme that made the most contribution to CGC loans growth in 2015 was the PG. CGC approved a total of RM1.7 billion with five (5) financial institutions (FIs), which accounted for 50% of loan approvals,” emphasised Zamree.

“CGC is always committed in continuously inventing innovative financing solutions to suit the needs of Financial Institutions (FIs), which would eventually ease access to financing for SMEs. With the signing of this agreement today, we are looking forward to leverage on RHB's wide branch network to further strengthen our mandated role in spurring SME growth and development in the country,” noted Zamree.

A web-based solution, the RHB FSCPG provides a seamless platform for billing and payment processes between members of the supply chain community, which include buyers, sellers, suppliers and distributors. The Distributor Financing Facility (DFF), which is a feature within the RHB FSCPG platform, leverages on the online portal, where Reflex Cash Management allows buyers to submit financing requests and make repayments.

The programme is a convenient online platform with drawdown facilities that enable online payment transactions, without the need to submit physical documentation. The guarantee fees will be borne by RHB, and no monthly fees and security are required.
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CGC to Train Unemployed Graduates Under its Graduate Trainee Programme

Kuala Lumpur, 26 February - Credit Guarantee Corporation Malaysia Berhad (CGC) launched the Graduate Trainee Programme (GTP) to provide opportunities for unemployed graduates to gain working experience and skills as part of its Corporate Social Responsibility initiative.

The GTP was designed to provide continuous learning for the trainees with a broad-spectrum of sales and marketing skills to meet CGC’s future business goals as well as to ease their transition from the academic environment into the financial services industry.

To be eligible to participate in the programme, candidates must be an unemployed graduate at the time of application without prior working experience. The candidates must hold a Bachelor’s Degree in any discipline with a minimum CGPA of 3.0 from recognised institutions of higher learning, and most importantly, must be from a Small and Medium Enterprises (SME) family background. Over 600 graduates applied to the GTP, and only 10 trainees were selected for the programme.

Speaking to the press after the launch ceremony, the Deputy Minister of Finance II, YB Datuk Johari Abdul Ghani applauded CGC’s effort in providing training and hands-on working experience for the unemployed graduates. He said this is a commendable initiative which more corporations should follow suit.

“In line with the 11th Malaysia Plan, there are six (6) strategic thrusts that we are looking to achieve in the next five (5) years. One of the thrusts is to accelerate human capital development to achieve advanced nation status. Thus, we are in need of highly skilled and knowledgeable professionals in the workforce to ensure that Malaysia remains competitive globally,” added Datuk Johari Abdul Ghani.

“The graduate trainee programme is an initiative undertaken by CGC to complement the government’s efforts to provide training and employment opportunities to unemployed graduates," said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“CGC will offer the apprentices an invaluable working experience, especially in the fields of sales and marketing. I urge them to take this precious opportunity to gain as much experience to equip themselves well for their career advancement,” added Zamree.

GTP’s module comprises of two phases. During the first month, the graduates will be guided to build their understanding on CGC’s business nature, market and product knowledge. The trainees will then be attached to an assigned mentor from the branches to support and coach them on sales and marketing activities. Hence, the trainees will also be exposed to soft skills training such as communication and customer service skills.

The launching ceremony was officiated by the Deputy Minister of Finance II, Datuk Johari Abdul Ghani. Also present at the event was the Chairman of CGC, Dato’ Agil Natt, CGC’s Board of Directors, President / Chief Executive Officer of CGC, En. Mohd Zamree Mohd Ishak and officials from Bank Negara Malaysia.
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CGC brings festive cheer to Anning Children's and Old Folks' Home

IPOH, 28 January - Credit Guarantee Corporation Malaysia Berhad (CGC) brought festive cheers to less fortunate children and the old folks at Anning Charity Home in Ipoh, Perak, in conjunction with the upcoming Chinese New Year celebration recently.

The Chinese New year do is part of CGC's Corporate Social Responsibility (CSR) initiative to provide orphans and old folks with contributions in terms of financial support and daily necessities to enable them to celebrate the joyous occasion just like the rest of the Malaysians. This programme is also part of a series of initiatives undertaken by CGC for major festive seasons to reach out and support the less fortunate members of the society which transcends all races.

"Through these CSR programmes, we aim to instill awareness on the need to care for the senior citizens and children with love, moral and financial support. This would give them hope and look forward to a better future with enthusiasm and confidence," said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“This being our main objective, we are confident that our collaboration with Anning Children’s and Old Folks Home, whose long history of serving the needy is well-known in Ipoh, would bring joy and smiles to the children and the senior citizens in celebrating the upcoming Chinese New Year,” added Zamree.

A contribution worth RM15,000 was presented by CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak to the Advisor of the Old Folks' Home, Mr. Ho You Meng in support of the home’s daily operations and necessities. The children, old folks and the workers of the home were also presented with 'ang-pows' and basic daily necessities.

"We sincerely hope our contribution would encourage the Anning Charity home to continue doing what it does best for the unfortunate children and senior citizens," said Zamree.

"Every contribution that we receive helps to fulfill the children's and the old folks' wish of celebrating the Chinese New Year like everyone else," said Ho.

"We truly appreciate CGC's time and effort in organising this Chinese New Year CSR programme for the children and the old folks at our home" added Ho.

The children, aged from four (4) to 18 and the old folks participated in the fun activities organised for them and later they were entertained with a lion dance performance followed by hi-tea together with the guests.

CGC's Chinese New Year CSR programme with the home saw the participation of around 20 CGC staff which consisted of the senior management, and staff from both the headquarters in Kelana Jaya as well as Ipoh branch.

“This initiative is an ongoing effort in fulfilling our responsibility as a caring corporate citizen, and at the same time fostering closer relationships between CGC's staff and the community we serve especially the underprivileged members," said Zamree.

CGC has also extended aid and offered relief support towards various causes. In the last two (2) years, CGC has contributed about RM250,000.00 through the CSR programmes as part of its effort in lending a helping hand and reaching out to all cross- section of the society.
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CGC launches Special Assistance Scheme to Assist Existing Customers affected by natural disasters

KUALA LUMPUR, 30 December - Credit Guarantee Corporation Malaysia Berhad (CGC) launched the Special Assistance Scheme (SAS-i), a direct financing facility aimed at providing financial assistance to their existing customers affected by natural disaster.

The SAS-i was launched as a proactive effort by CGC to assist their customers to recover and resume their business operations soon after the occurrence of any natural disasters such as floods, tsunami, earthquake and epidemics. This SAS-i financing facility will be made available to those who are in towns or districts that have been defined as a disaster area by the National Security Council, Prime Minister’s Department or deemed as a disaster area by CGC.

CGC’s President / Chief Executive Officer, Mohd Zamree Mohd Ishak said that the SAS-i is an initiative undertaken to alleviate the financial challenges likely to be faced by CGC customers in the event of a natural disaster. “This is where CGC will step in and ensure that our customers are able to overcome challenges and carry on with their businesses with our financing support. Given the current monsoon season, we would like our customers to be prepared for any eventualities,” added Zamree.

The financing provided under the SAS-i facility are for the purpose of working capital and/or asset acquisition, which means CGC’s customers can purchase assets for commercial use, replace or repair facilities damaged during a disaster and also for cash flow management to ensure that they are able to operate their business as usual soon after recovering from the natural disaster.

The SAS-i which is based on Commodity Murabahah concept and is Syariah-compliant, provides financing which range from RM20,000 to RM200,000 with a financing tenure of up to five (5) years including moratorium period during the first six (6) months with profit servicing only. All installments are to be fully serviced in the subsequent months. The financing rate charged under the SAS-i is 5.80% per annum.

This direct financing facility shall be made available to all existing customers of CGC who fulfils the terms and conditions specified under the SAS-i. For more information on this scheme, CGC customers may approach any of its branches nearest to them. CGC operates through a network of 16 branches nationwide. They can also call CGC’s Client Service Centre at 03-7880-0088 or email csc@cgc.com.my or visit www.cgc.com.my.

Previously, CGC had participated in several special schemes initiated by Bank Negara Malaysia to assist Small and Medium Enterprises (SMEs) affected by natural disasters or epidemics. In 2003, CGC managed the Special Relief Guarantee Fund (SRGF) which was launched to assist SMEs affected by the outbreak of Severe Acute Respiratory Syndrome (SARS) and the SRGF-2 in 2007 as well as the Special Relief Facility in 2015 for SMEs affected by floods.

Since inception in 1972, CGC has availed more than 430,000 financing to 315,000 SMEs valued over RM56 billion. For 2015, CGC targets to provide 8,000 financing to SMEs valued at RM3.2 billion.
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CGC Back-to-School CSR Programme with the Orang Asli Community

BATANG KALI, 21 December - Credit Guarantee Corporation Malaysia Berhad (CGC) brought happiness and smiles to 130 school-going children from Hulu Tamu Orang Asli Settlement with 'Back-to-School' CSR Programme recently.

The programme was part of CGC's Corporate Social Responsibility (CSR) initiative to assist Orang Asli families with school-going children with 'back-to-school' supplies. It was organised in collaboration with the Orang Asli Development Department (JAKOA) from the District of Hulu Selangor.

All the 130 children who are attending kindergarten, primary and secondary schools were presented with new school uniforms, bags and stationery, followed by exciting activities and a scrumptious lunch especially for the children and their families.

"We are delighted to bring cheer and warmth to the children of Hulu Tamu settlement with our 'Back-to-School' programme today. This programme is part of our continuous effort in reaching out to a wider cross section of the community through a series of CSR initiatives organised throughout the year", said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

"We hope our contribution today will motivate these children to take an interest in education and perform well in their studies to help themselves to a better future,” he added.

Prior to the presentation of school items, activities such as colouring contest, musical chairs and soccer match were organised for the children, which was also participated by CGC's management team and volunteers from Kelab Rekreasi CGC (KRCGC).

Earlier this year, CGC extended aid and offered relief support towards various causes. In conjunction with Chinese New Year, Hari Raya Aidilfitri and the Malaysia Day, CGC organised CSR programmes to support various communities nationwide. In August 2015, CGC had contributed financial assistance to Ranau Earthquake victims and in October 2015, it organised a blood donation drive campaign in collaboration with the National Blood Centre. In conjunction with the Deepaavali celebration this year, a CSR programme was organised at a Shelter Home for abused women and children in Seremban recently.

CGC has contributed about RM250,000.00 through the Corporate Social Responsibility programmes as part of its initiatives in giving back to the society in the last two (2) years.
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CGC Appoints Nadzirah Abdul Rashid as Director

KUALA LUMPUR, 7 December - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Nadzirah Abdul Rashid as its non-executive director recently.

Nadzirah brings with her 25 years of professional experience in the areas of securities market and banking. She began her career in Bank Negara Malaysia as a bank examiner and subsequently moved on to head the Finance function of a financial institution. Nadzirah joined the Bursa Malaysia Group in 1999, holding various positions in Finance and Administration division of the companies within the Group. She held the position of the Chief Financial Officer of Bursa Malaysia Berhad from 2006 until early 2014.

Currently, Nadzirah serves as an Independent Non-Executive Director of CIMB Investment Bank Bhd. She also serves as a Divisional Councillor of CPA Australia, Malaysian Division. She is a Fellow of CPA Australia and a member of Malaysian Institute of Accountants.

Nadzirah holds a Bachelor’s Degree in Accountancy from the University of South Australia, Australia.
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CGC to Offer Technical Assistance to Business Development Fund (BDF) of Rwanda

KUALA LUMPUR, 3 December - Credit Guarantee Corporation Malaysia Berhad (CGC) and the Business Development Fund (BDF) of Rwanda today signed a Memorandum of Understanding (MOU) to collaborate on the development of credit guarantee framework for Small and Medium Enterprises (SMEs) in Rwanda.

With the signing of this MOU, CGC shall offer assistance and guidance to BDF to develop, design and review the credit guarantee framework to support the development of SMEs in Rwanda. CGC will also be providing technical assistance in the development of the credit guarantee schemes, policy guidelines and other operational matters.

CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak said the collaboration between CGC and BDF will enable CGC to share its 43 years of experience and expertise in SME financing and overall SME development in the country.

According to Zamree, this collaboration would also enable CGC to share and transfer its knowledge and experience to BDF through on-the-job trainings, research, publications and study visits.

CGC regularly host study visits for the development financial institutions from Asia, the Middle East and Africa. In 2015, CGC hosted study visits from the Alliance for Financial Inclusion (AFI) that had 41 delegates from 33 countries and also delegations from Bangladesh, Egypt, Japan and Korea.

“Many developing countries that do not have credit guarantee institutions are observing CGC as a model and success story and want to emulate it in introducing the guarantee mechanism in their respective countries,” said Zamree. “This is not just an acknowledgement of CGC’s expertise but also of Malaysia’s capabilities in SME development.”

CGC has been in the forefront of SME development not only in Malaysia but also at international level assisting countries such as Papua New Guinea, Mongolia, Timor-Leste and other countries in the Middle East and Africa. In 2013, CGC signed MOUs with Papua New Guinea and Mongolia to help establish credit guarantee institutions to further enhance SME financing in their respective countries. In May 2015, CGC had signed MOU with Banco Central de Timor-Leste (BCTL) for a similar objective.

"Rwanda and Malaysia share a long and warm friendship. Today, we are taking another step to further strengthen the relations. The MOU marks a milestone in formalising a partnership not only between BDF and CGC, but also our countries", said Chief Executive Officer of BDF Rwanda, Innocent Bulindi.

“The Government of Rwanda has recently enhanced BDF’s mandate to support SMEs. In this regard, BDF is undergoing a transformation to strengthen its capacities especially in developing the right skill set and expertise to deliver its new mandate,” added Innocent.

"It is indeed an honour for BDF to have the opportunity to learn from CGC's experiences, strategies and successes which have been accumulated over time in such a high calibre institution", said Innocent.

The MOU was signed by CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak and the Chief Executive Officer of BDF of Rwanda, Innocent Bulindi. The signing ceremony which was witnessed by CGC’s Chairman, Dato’ Agil Natt was held at The Saujana Hotel Kuala Lumpur.

The signing ceremony was preceded by a two-day knowledge sharing session on risk, finance, and asset management principles which were highly appreciated by the BDF team.

Since inception in 1972, CGC has availed more than 430,000 financing to SMEs valued over RM56 billion benefitting about 315,000 SMEs.
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CGC shares the spirit of Deepavali with the Shelter for Abused Women and Children

SEREMBAN, 5 November - Credit Guarantee Corporation Malaysia Berhad (CGC) in the spirit of giving back to the community organised a Deepavali charity programme at the Shelter Home for Abused Women and Children Seremban and contributed a sum of RM10,000 in hopes to bring festive joy to the underprivileged children and women at the shelter.

This Corporate Social Responsibility Programme (CSR) is part of CGC's initiative in reaching out and supporting the less fortunate and underserved members in the community which transcends all races.

“As Malaysians living in a multi-cultural and multi-religious society, we understand the significance of the festivals celebrated by the various ethnic groups. Especially during the festive seasons, we would like to reach out and spread festive joy to those who have a special place in our society and we hope that our humble contribution will not only ease their financial burden but also give them hope and bring cheers and happiness during this joyous time of the year. We sincerely hope our contribution would in some way make the lives of the children living here much better." said CGC's President/CEO, Encik Mohd Zamree Mohd Ishak.

The contribution of RM10,000 was presented by En. Zamree to Madam Vasanthi Naidu Velayutham, Chairperson of the Shelter Home and followed by a presentation of Deepavali money packets, school bags and hampers as special gifts to the children.

“We are very pleased that CGC has reached out to us, we are happy that the children are able to enjoy this before the Deepavali celebrations. This means a lot to them”, said Vasanthi.

According to Zamree, CGC’s CSR programme is an ongoing effort in fulfilling its responsibility as a responsible corporate citizen. By incorporating these values, we hope to engage with the society, be it our customers, stakeholders or society at-large in a meaningful way.

CGC's Deepavali CSR programme with the shelter home saw the participation of around 25 CGC staff which consisted of the senior management, and staff from both the headquarters as well as Seremban branch. Also present at the programme was the President of Negeri Sembilan Indian Chamber of Commerce and Industry, Mr. Kumarasamy Sittampalam and their members.

The children, aged between five (5) to 13 participated in the activities and games organised for them and later they were treated with a sumptuous lunch together with the guests.

Earlier this year, CGC extended aid and offered relief support towards various causes. In conjunction with Chinese New Year, Hari Raya and the Malaysia Day, CGC organised CSR programmes in Kuala Lumpur and at Bengkel Seri Sarawak in Kuching as well as at Yayasan Kebajikan Suria Orphanage in Tuaran, Sabah to support various communities. In August 2015, it had contributed financial asssitance to Ranau Earthquake victims. In October 2015, it organised a Blood Donation Drive Campaign in collaboration with the National Blood Centre at its headquarters in Kelana Jaya.
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CGC Launches BizWanita to enhance financing to Women Entrepreneurs

KUALA LUMPUR, 30th October – Credit Guarantee Corporation Malaysia Berhad (CGC) today officially launched the BizWanita direct financing product to enhance access to financing for women entrepreneurs.

The BizWanita is the second direct financing product to be launched by CGC within the last 18 months as part of its initiative to reach out to a wider cross section of the business segments, especially for new businesses that have shown great growth potential. Besides filling the gap on accessibility to financing for women-owned businesses, BizWanita is also aimed at enhancing access to financing for businesses and companies that are managed or operated by women or companies where women form the majority of the workforce.

Speaking to the press after the launch ceremony, the Deputy Minister of Finance II, YB Datuk Johari Abdul Ghani said that the launch of BizWanita by CGC is a step in the right direction as there are pockets of new but potentially viable businesses that are out of the financial institutions’ radar for mere lack of collateral or track record. BizWanita would help to empower and support enterprising women across the nation who are planning to start or take their business to the next level.

"Our objective is to enable women entrepreneurs to avail financing from CGC directly through our 16 branches nationwide and also at competitive terms,” said CGC’s President/Chief Executive Officer, En. Mohd Zamree Mohd Ishak. “We offer financing rate as low as BFR +0.20% even though no collateral is required under the BizWanita direct financing facility.”

The BizWanita is based on the concept of Commodity Murabahah, a Syariah-compliant product that offers financing ranging from RM20,000 to RM300,000 with a repayment tenure of up to seven (7) years.

Women aged between 21 to 60 with a business license registered in Malaysia under a local authority, and an enterprise that comes under the SME definition as stipulated by the National SME Development Council (NSDC) are eligible to apply for financing under BizWanita. Besides, the company must be Malaysian-controlled or Malaysian-owned with at least 51% shareholding.

“CGC has allocated RM30 million for BizWanita which is expected to benefit about 500 SMEs. Within the next three (3) months, we aim to approve RM7 million worth of financing for this product”, added Zamree. “Since the soft launch on 1st October 2015, we have already approved 17 applications valued at RM2.45 million.”

With the launch of BizWanita, CGC has upped its direct-financing amount to about RM95 million. In May 2014, CGC launched BizMula-i direct-financing product for start-ups with a fund size of RM30 million which was subsequently increased to RM65 million.

As at September, CGC has approved about 6,900 loans valued at RM2.6 billion through its array of guarantee and financing products, demonstrating a positive outlook exceeding its 2015 target of RM3.0 billion by RM600 million.

"In line with our vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs, CGC will continue to assist potentially viable SMEs by offering innovative products to improve our SME outreach,” stated Zamree.

The launch ceremony was officiated by the Deputy Minister of Finance II, YB Datuk Johari Abdul Ghani. Also present at the event to witness this launch ceremony was the Chairman of CGC, Dato’ Agil Natt and President / Chief Executive Officer of CGC, En. Mohd Zamree Mohd Ishak, CGC Board members, Bank Negara officials, representatives from various financial institutions, trade chambers and CGC’s customers.
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CGC extends assistance to Yayasan Kebajikan Suria

KOTA KINABALU, 12 Sept - Credit Guarantee Corporation Malaysia Berhad (CGC) contributed RM12,000 to Yayasan Kebajikan Suria (YKS) as part of its’ corporate social responsibility (CSR) program organised in conjunction with the Malaysia Day Celebrations. This effort marks the second CSR programme in Sabah this year after the recent RM100,000 contribution for the Ranau Disaster Relief Fund.

The cheque was presented by CGC’s President and Chief Executive Officer, Encik Mohd Zamree Mohd Ishak to the Headmaster of Sekolah Agama Yayasan Kebajikan Suria, Tuan Haji Awang Raplah Bin Salil. Also present at the event was Encik Mohd Zulfikar Datuk Haji Ahmad, Vice President, Dewan Perniagaan Melayu Malaysia (DPMM) Sabah and their members along with CGC Kota Kinabalu branch team.

“We are delighted to extend our support to the less fortunate especially in supporting the development and well-being of the children at Yayasan Kebajikan Suria,” said Zamree.

The centre receives funds from the Department of General Affairs of Sabah on an annual basis to support their activities and to maintain the day-to-day operations of the centre. YKS is equipped with facilities such as hostel blocks to accommodate the children, a mosque and a mini library for the ease of the 50 children, aged between 7 to 17 years, who reside at the centre.

“We are most grateful that CGC is lending a hand to support our centre. Most of the children who reside at YKS are orphans and children who are from poor families across Sabah. We would like to provide the best that we can for these children so that they will develop to be well - rounded individuals with a bright future ahead. We believe that this is the best thing we can do for the children apart from giving them continuous care and support. We hope more companies will take CGC as an example and lend a hand to those in need,” said Awang Raplah.

The guests were given a tour to view the facilities available at YKS and followed by a talk on “Kebaikan dan Amalan Menabung - Financial Prudence,Benefits of Savings” for the benefit of the students. The talk was presented by CGC’s Kota Kinabalu Deputy Branch Head, Puan Agnes Vivvy Toisin.

CGC's community engagement efforts through the CSR programmes has transcended across the nation and aids a variety of causes and communities. Early this year, CGC extended aid and volunteer support towards flood relief efforts in Kelantan. Apart from that, CGC is also committed in extending support and spreading joy to underprivileged members of the community during festive seasons such as Hari Raya Aidil Fitri, Chinese New Year, and Deepavali. Earlier this week, CGC held its CSR program at Bengkel Seri Sarawak in Kota Samarahan.

"We look forward to doing more of such programmes for a wider cross-section of the Malaysian community across the country," added Zamree.

As a financial institution dedicated to promoting the growth and development of small and medium enterprises, CGC looks forward to strengthening its position as a top-of-mind facilitator for access to financing for the SMEs in the country. Since its incorporation in 1972, CGC has assisted over 430,000 SMEs and has issued guarantees over RM56 billion.
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CGC Lends a Helping Hand to Bengkel Seri Sarawak

KUCHING, 8 SEPTEMBER 2015: Credit Guarantee Corporation Malaysia Berhad (CGC) contributed RM12,000 to Bengkel Seri Sarawak as part of its’ corporate social responsibility (CSR) program organised in conjunction with the Malaysia Day Celebrations. CGC’s contribution marks the first financial support for Bengkel Seri Sarawak from the private sector since its inception in 1991.

The cheque was presented by CGC’s President and Chief Executive Officer, Encik Mohd Zamree Mohd Ishak to the Bengkel Seri Sarawak’s Chairman, Mr. Joseph Heng Kheng Chong. Also present at the event was Mr. Terence Temenggong Jayang, the Executive Secretary of the Dayak Chambers of Commerce and Industry and their members along with CGC Kuching branch team.

“We consider this as our responsibility to reach out and extend a helping hand to the less fortunate members of the community. We sincerely hope our contribution would in some way make the lives of Bengkel Seri Sarawak members much better,” said Zamree.

The Centre which was established under the Sarawak State Welfare Department also receives funds from the department on an annual basis to support their activities and to maintain their centre.

“We are glad that CGC is lending a hand to support our cause. Most of our members who have been here with us since inception are mainly individuals with disabilities. We have managed to aid over 100 physically challenged individuals across Sarawak. We hope more corporations will take CGC as an example and lend a hand to those in need,” said Joseph Heng.

CGC and other invited guests and participants were given a tour around the centre to view the production process of the artificial limbs, cards and other products that are produced by the members.

CGC's community engagement efforts through the CSR programmes has transcended across the nation and aids a variety of causes and communities. Early this year, CGC extended aid and volunteer support towards flood relief efforts in Kelantan. Apart from that, CGC is also committed in extending support and spreading joy to underprivileged members of the community during festive seasons such as Chinese New Year, Hari Raya Aidil Fitri and Deepavali. The most recent CSR initiative carried out by CGC in support of Ranau Community who were adversely affected by the June 2015 earthquake.

"We look forward to further assist less privileged communities through our upcoming CSR programmes," added Zamree.

As a financial institution dedicated to promoting the growth and development of small and medium enterprises, CGC looks forward to strengthening its position as a top-of-mind facilitator for access to financing for the SMEs in the country. Since its incorporation in 1972, CGC has assisted over 430,000 SMEs and has issued guarantees over RM56 billion.
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CGC Contributes RM100,000 to Assist Ranau Community

Kota Kinabalu, 21 August 2015: Credit Guarantee Corporation Malaysia Berhad (CGC) contributed RM100,000 in support of the Ranau District Natural Disaster Committee’s fund raising initiative to help ease the financial burden of the Ranau community affected by the recent earthquake.

CGC’s President and Chief Executive Officer, Mohd Zamree Mohd Ishak presented the cheque to the Minister of Tourism, Culture and Environment, YB Datuk Seri Panglima Masidi Manjun.

“We at CGC are concerned about the effects of the earthquake on the families and individuals. Our prayers and thoughts are with the Ranau community,” said Zamree.

“It is our duty to reach out and extend a helping hand to the Ranau community. We sincerely hope this contribution we have made today will help to relieve, rebuild and bring normalcy to their lives as soon as possible,” added Zamree.

“Besides this contribution to Ranau community, we will also be organising specific CSR programmes in Sabah and Sarawak in conjunction with the Malaysia Day on 16 September,” said Zamree.

CGC has actively engaged in Corporate Social Responsibility (CSR) initiatives to reach out to a wide cross section of the Malaysian society through a variety of programmes. It had organised and sponsored charity programmes in conjunction with major festivals.

CGC, being a major developmental financial institution in the country, has been in the forefront of SME financing since 1972. It has contributed to the country's economic development by being an effective financial intermediary supporting potentially viable SMEs that lack collateral and track record to gain access to financing.

“We offer a range of innovative products to support the SMEs including the new business segments such as the start-ups as part of our efforts to promote SME development in the country,” added Zamree.

“The BizMula-i financing scheme for the start-ups which was launched in May 2014, has benefitted hundreds of SMEs. The start-up businesses with less than three (3) years in operations, no collateral and track record, are now able to obtain financing as high as RM300,000 under this scheme,” said Zamree.

He added that CGC had allocated RM4.96 million under its BizMula-i financing scheme to support the start-ups in Sabah in 2015. As at July 2015, a total of 31 applications from the start-ups in Sabah valued at RM1.6 million has been approved. Overall, CGC has approved 589 applications valued at RM48 million under the BizMula-i scheme.

CGC also offers Tabung Projek Usahawan Bumiputera-i (TPUB-i) which is a contract financing scheme to cater to Bumiputera SMEs that have been awarded contracts by Government-linked companies and agencies.

“We see strong potential in further growing this segment in Sabah and have therefore allocated RM22.85 million for Bumiputera SMEs. This is in line with the growth in Government developmental projects for the state,” added Zamree.

“We are targeting to provide a total of RM61 million of financing for SMEs in Sabah, a 52.5% increase compared to the previous year,” he added.

In 2014, CGC has provided RM40 million of financing to about 140 SMEs in Sabah largely in the wholesale, construction and real estate sectors through its two (2) branches in Kota Kinabalu and Sandakan. CGC is looking forward to do more to contribute towards the growth of SMEs in Sabah.

In 2015, CGC targets to provide RM3.0 billion of financing to 7,855 SMEs and to date, it has approved 3,100 applications valued at RM2.2 billion. “We are optimistic of not only meeting but also exceeding our target by 10 % by year end,” said Zamree.
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Credit Guarantee Corporation Wins International Award For SME Wholesale Guarantee

Kuala Lumpur, 2 July 2015 – Credit Guarantee Corporation Malaysia Berhad (CGC) was recently accorded the Development Award 2015 by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in recognition of its forward-looking Islamic Wholesale Guarantee (WG-i) scheme.

CGC President and Chief Executive Officer Mohd Zamree Mohd Ishak received the Award at the ADFIAP Awards Night during the 38th ADFIAP Annual Meeting in Nha Trang, Vietnam.

“The WG-i scheme launched in April 2014 is the country’s first Islamic SME wholesale guarantee scheme, providing companies with access to unsecured business financing. The innovative financing scheme was developed to ensure that banks continue to have the ability to lend to SMEs with the benefit of a CGC guarantee.

“To date, about RM500 million worth of SME financing in the books of OCBC Al-Amin has been guaranteed by CGC, benefitting more than two thousand SMEs,” Zamree said.

“CGC has been in the forefront of SME development in Malaysia, successfully providing the much needed financing to dynamic SMEs over the past four decades. The ADFIAP award for our WG-i is testimony to our ability and expertise in developing and delivering innovative financing products that can have a great impact on SME growth and outreach,” added Zamree.

The award for WG-i is the second to be accorded to CGC by ADFIAP. In 2012, CGC received ADFIAP’s Development Award for its Portfolio Guarantee (PG) Scheme under the SME Development category.

“The PG was first launched in 2009 and, since then, we have successfully rolled out 45 tranches of PG in collaboration with 13 banks. To date, a total of RM2.5 billion worth of SME financing has been availed through the PG benefitting about 5,800 SMEs,” added Zamree.

The Wholesale Guarantee-i (WG-i), involving OCBC Al-Amin Bank’s existing unsecured SME portfolio sees the ratio of risk involved in the financing of businesses being shared equally between CGC and OCBC Al-Amin Bank for a guarantee period of five years. Previously, the entire risk centred on the Bank.

Congratulating CGC on the Award, OCBC Al-Amin Director and CEO Syed Abdull Aziz Syed Kechik said the WG-i has given rise to a new phase in the development of Malaysia’s unsecured business financing efforts and could not have taken off without the commitment, leadership and foresight shown by CGC.

“By agreeing to share the risk equally for OCBC Al-Amin’s Business Cash Financing-i shortly after we launched it, CGC paved the way for us to confidently move forward to make the product even more accessible to the SMEs,” he said.

The WG-i, which currently centres on OCBC Al-Amin Bank Berhad’s (OCBC Al-Amin) unsecured financing product Business Cash-i (BC-i), was introduced last year. The BC-i was developed in line with the increasing appetite from SMEs for unsecured term financing to fulfil their short to medium term business financing needs

Earlier this year, CGC and OCBC Al-Amin announced that they are upping WG-i,   the country’s first and only Islamic SME wholesale guarantee, to RM1 billion before the end of this year.

The first two tranches totalling RM500 million have effectively guaranteed more than two thousand businesses from industries ranging from retail and wholesale to manufacturing, with the number expected to double before the end of the year with the introduction of the additional tranches.
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CGC to offer assistance to Banco Central de Timor-Leste

KUALA LUMPUR, 29 May - Credit Guarantee Corporation Malaysia Berhad (CGC) and the Banco Central de Timor-Leste (BCTL) today signed a Memorandum of Understanding (MOU) to collaborate on the development of credit guarantee/financing schemes for Small and Medium Enterprises (SMEs) for Timor-Leste.

With the signing of this MOU, CGC shall offer assistance to BCTL to develop and design credit guarantee schemes, procedures and other operational matters. CGC will also assist with the setting up of a credit guarantee institution or unit to manage the guarantee scheme for BCTL.

Through this alliance, CGC and BCTL will participate and collaborate to organise research, seminars, trainings, and study visits to promote the enhancement of knowledge and skills which is deemed vital for the management of credit guarantee scheme in Timor-Leste.

The Deputy Governor of Bank Negara Malaysia, Dato’ Muhammad bin Ibrahim who had officiated the MoU signing ceremony said “CGC has certainly proven its mettle in supporting small businesses over the last few decades and has the necessary experience and expertise to assist Banco Central de Timor-Leste, to develop financing schemes for the SMEs in the agricultural sector.”

“Strategy-wise, the development of SME sector is crucial in ensuring a balanced growth and shared prosperity as the country transitions into a high value-added and high-income economy,” he said adding that CGC was very much part of the Malaysia SME sector development over the last few decades and has done well in providing the much needed support to the ever-progressing and expanded nature of the Malaysian economy.

“Bank Negara Malaysia has established a holistic ecosystem to support SMEs accessing finance and CGC is an essential component in the ecosystem, playing an important role to address the concerns of the SMEs especially those emerging ones which are traditionally considered riskier to finance,” he added.

“The MOU that we are signing today is an important step along our development path. It formally documents an agreement between CGC and BCTL whereby the two parties will work together in a way that we hope will determine the future structure of finance for SMEs in Timor-Leste,” said the Governor of BCTL, Abraao de Vasconselos.

“Bank Negara Malaysia has supported the Central Bank of Timor-Leste from its inception in a wide range of activities. In particular, BNM provided BCTL with valuable support during the development of our Financial Sector Master Plan through review and advice,” he added.

“It has become apparent during various visits to Malaysia that CGC has developed a number of innovative and effective schemes for supporting the development of the Malaysian economy. We in Timor-Leste welcome the opportunity to study these schemes in more detail and learn from Malaysia’s valuable experience with schemes that we would like to mimic,” added Mr. Abraao.

CGC's President and Chief Executive Officer, Mohd Zamree Mohd Ishak said the mutual understanding reached by CGC and BCTL will provide a new course for CGC to share its 43 years of experience and expertise in enhancing SMEs access to financing.

Zamree said, "This cooperative relationship with BCTL is fundamental for a continuous development of its credit guarantee services, and CGC is committed to assist and share our solid foundation to help them to achieve their vision, which is to serve and provide access to financing for the sound growth and development of SMEs in Timor-Leste".

CGC has been in the forefront of SME development not only in Malaysia but also at international front assisting countries such as Papua New Guinea and Mongolia.

In 2013, CGC signed MOUs with Papua New Guinea and Mongolia to establish credit guarantee institutions to further enhance SME financing in their respective countries.

CGC is also a member of the Asian Credit Supplementation Institution Confederation (ACSIC) and the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), playing an active role in sharing its knowledge and expertise with member countries. In 2014, CGC hosted the 27th ACSIC Conference which was attended by 141 delegates from 19 member institutions in 12 countries in Asia.

The MOU was signed by CGC President and Chief Executive Officer Mohd Zamree Mohd Ishak and the Governor of BCTL Mr. Abraao de Vasconcelos, witnessed by the Deputy Governor of Bank Negara Malaysia, Dato' Muhammad Ibrahim and CGC Chairman, Dato' Agil Natt. The signing ceremony was held at Sasana Kijang, Bank Negara Malaysia.

CGC has cumulatively guaranteed close to 430,000 loans SME loans valued at RM56.1 billion since its establishment in 1972. For 2015, CGC targets to provide RM3 billion of financing which is expected to benefit about 7,850 SMEs.
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CGC Honours Banks for SME Financing

Four Leading Banks awarded the Top SME Supporter Awards for 2014 

PETALING JAYA, 25th May - Credit Guarantee Corporation Malaysia Berhad (CGC) today honoured four (4) leading banks with Top SME Supporter Awards for their significant contribution towards SME financing in 2014 at its 20th Annual SME Supporter Awards presentation ceremony.

The awards ceremony held in conjunction with CGC's 42nd Annual General Meeting recognised banks in four (4) different categories namely the Top SME Supporter (overall category), Top SME Supporter for Islamic Banks, Top Bumiputera SME Supporter and the Best Financial Partner.

The winners of the Top SME Supporter Awards were Maybank, Maybank Islamic, OCBC Al-Amin Bank Berhad and Standard Chartered Saadiq Berhad. This award was presented to the respective banks for their significant contributions to CGC’s overall SME financing through its guarantee schemes.

Maybank Islamic also bagged the Top SME Supporter award under the Islamic banks category and the Top Bumiputera SME Supporter award for having provided the most financing to Bumiputera SMEs.

For three years running, Maybank has bagged the Best Financial Partner Award for its contribution to CGC's asset quality. For OCBC Al-Amin Bank Berhad and Standard Chartered Saadiq Berhad, this is their first ever award from CGC.

The award recipients were selected based on a set of criteria determined by CGC which include amongst others, the number and value of loans guaranteed, loans guaranteed to Bumiputera borrowers, net income growth and rate of default.

In terms of contributions to SME financing, the four awards recipients contributed RM1.7 billion, representing 53% of the total financing and 4,350 loans representing 64% of the total number of loans approved by CGC respectively in 2014.

CGC’s President and Chief Executive Officer, Mohd Zamree Mohd Ishak said that CGC's SME outreach has improved significantly by 189% in terms of the number of loans and 105% in terms of value approved with the active participation of the financial institutions in its guarantee schemes.

CGC had approved a total of 6839 loans valued at RM3.2 billion benefiting businesses mostly from the general businesses, manufacturing and agricultural sectors in 2014.

"Financial institutions play a vital role in paving the way for CGC to reach out to a wider cross-section of the SMEs in view of their extensive distribution network,'' said Zamree adding that the strategic partnership CGC had forged with leading FIs through its Portfolio and Wholesale Guarantee Schemes had a great impact in its overall SME outreach.

In 2014, CGC approved about 5,000 loans valued at RM2.1 billion via the Portfolio and Wholesale Guarantee Schemes.

He further added that the success of the Portfolio Guarantee and Wholesale Guarantee Schemes defines CGC’s ability to be an innovative partner in SME financing.

“We are also pleased to inform that CGC’s Wholesale Guarantee Scheme was recently awarded with the ‘Development Award 2015’ under the SME Development Category by ADFIAP, the Association of Development Financing Institutions of Asia and the Pacific during ADFIAP's 38th Annual Meeting in Nha Trang, Vietnam. This international recognition is testimony to CGC’s ability to develop and deliver innovative financing solutions that have a great impact on SME development."

"In line with our vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs, CGC will continue to enhance SME growth and development by exploring new partnerships and offering innovative financing solutions to improve SME outreach,” he added.

In 2015, CGC targets to approve 7850 loans with a value of RM3.0 billion through its array of guarantee and financing products.

The Top SME Supporter awards were presented by CGC Chairman, Dato' Agil Natt and witnessed by CGC President and Chief Executive Officer, Mohd Zamree Mohd Ishak at CGC's headquarters in Kelana Jaya today. Maybank was represented by its Group President/CEO, Datuk Abdul Farid Alias, Maybank Islamic Bank by Deputy CEO, En. Nor Shahrizan Sulaiman, OCBC Al-Amin Bank by its Managing Director/CEO Tuan Syed Abdull Aziz Jailani Syed Kechik and Standard Chartered Saadiq by its Senior Manager, Islamic Banking En. Mohd Suhaimi Abdul Hamid.

 

About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5 July 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 about 430,000 loans valued at close to RM56.1 billion since its establishment.

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 guarantee schemes including 16 government-funded schemes.        


To date, 17 commercial banks, 15 Islamic banks, and seven (7) development financial institutions (DFIs) are participating in CGC’s guarantee schemes, providing customers with a wide network of more than 2000 branches nationwide to avail financing. 

SMEs wishing to obtain more information on CGC may call its Client Service Centre at 03-7880-0088 or visit www.cgc.com.my.

 

For Media Enquiries:

Corporate Communications Department,
Credit Guarantee Corporation Malaysia Berhad 

  1. Kumaran


Assistant Vice President, Corporate Communications              

HP: 016-638-1747
Email:
kumaran@cgc.com.my                          

Khairul Amri Aznan                              Wan Nur Hidayah Mohammed Akhir


Executive, PR & Media Relations           Executive, PR & Media Relations

HP: 011-123-990-53                               HP: 010-464-1753

Email: khairulamri@cgc.com.my      Email: wnhidayah@cgc.com.my
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大马信贷担保机构向银行在中小企业融资作出的贡献致敬

四家获颁2014年中小型企业顶尖支持者大

PETALING JAYA, 25th May -大马信贷担保机构於今日举办之第廿届中小型企业顶尖支持者颁奖典礼中, 把奖项颁发给四家银行,以表彰它们对大马中小型企业发展所作出的杰出贡献。

此颁奖典礼也同时与大马信贷担保机构之第42届年度会议共同进行。所颁发的奖项共分为四大类,分别为中小型企业顶尖支持者大奖,中小型企业顶尖支持者 - 回教银行大奖,中小型土著企业顶尖支持者大奖以及最佳金融伙伴大奖。

马来亚银行,马来亚回教银行,华侨AL-AMIN回教银行以及渣打Saadiq回教银行个别获得中小型企业顶尖支持者大奖。此奖项主要是为了表扬银行在与大马信贷担保机构联合推动中小企业贷款配套所作出的卓越贡献。

马来亚回教银行也同时获得中小型企业顶尖支持者 - 回教银行大奖以及中小型土著企业顶尖支持者大奖。中小型土著企业顶尖支持者大奖主要是表扬该银行在推动中小型土著企业融资所作出的贡献。

与此同时,马来亚银行也连续三年获得大马信贷担保机构颁发的最佳金融伙伴大奖。此奖项主要是肯定马银行在维持信贷资产质量方面所作出的贡献。而华侨AL-AMIN回教银行以及渣打Saadiq回教银行则是首次获得大马信贷担保机构所颁发的奖项。

各奖项的获胜者都必须经过一系列由大马信贷担保机构所择定的遴选标准,这包括信贷担保交易宗数,信贷数额,土著企业融资数额,净收入增长以及呆账率。

至于对该机构整体中小企业融资所作出的贡献,四家获奖银行总计贡献贷款额为马币十七亿及交易宗数为四千三百五十宗,这相等于大马信贷担保机构于2014年全年批准贷款数额的五十三巴仙及批准贷款宗数的六十四巴仙。

大马信贷担保机构总裁兼总执行长莫哈末占利表示, 在各金融机构全力的配合及积极参与的情况下,该机构全年整体贷款批准宗数及额度个别呈现出一百八十九巴仙及一百零五巴仙的惊人增长幅度。

大马信贷担保机构在2014年共批准六千八百三十九宗贷款申请,相等于马币三十二亿零吉。受惠的三大领域分别为一般行业,制造业以及农业。

莫哈末占利表示,借助于金融机构在营销网络方面的优势,大马信贷担保机构得以更全面的接触各层面的中小企业。他也说,该机构与各金融机构策略性配合推出的各种信贷担保方案,更是整体贷款增长的关键所在。

在2014年,透过与各金融机构策略性配合推出的各种信贷担保方案,大马信贷担保机构共批准近五千份总值马币廿一亿零吉的贷款申请。

他也强调,各种信贷担保方案的成功代表着该机构在中小企业融资方面扮演着先行者的角色及有能力成为各中小企业融资的好伙伴。

“我也同时很高兴的宣布大马信贷担保机构推出的Wholesale Guarantee Scheme,在ADFIAP (the Association of Development Financing Institutions of Asia and the Pacific) 于越南Nha Trang举办的第三十八届年度会议中获得颁发中小企业发展类别的‘2015年年度发展大奖’。这项受国际认可的荣誉象征着大马信贷担保机构推陈出新的融资配套实实在在的在推动中小企业发展方面作出了巨大又积极的影响。”

为了响应大马信贷担保机构一向贯彻的宗旨:要成为一家致力於提升,推动及发展中小企业以确保它们拥有足够的竞争力及灵活性的机构,我们会继续加强跟各金融机构的合作及推出具开创性的融资配套以协助更多中小企业获得融资。

在2015年,大马信贷担保机构放眼于批准七千八百五十份总值马币三十亿零吉的贷款。

中小型企业顶尖支持者大奖颁奖典礼今日在大马信贷担保机构位于Kelana Jaya的总部举行。颁奖嘉宾为大马信贷担保机构主席Dato' Agil Natt,并由该机构总裁兼总执行长Mohd Zamree Mohd Ishak见证。出席嘉宾包括马来亚银行集团总裁兼总执行长, Datuk Abdul Farid Alias, 马来亚回教银行副总执行长, En. Nor Shahrizan Sulaiman, 华侨AL-AMIN回教银行执行董事兼总执行长 Tuan Syed Abdull Aziz Jailani Syed Kechik 以及 渣打Saadiq回教银行高级经理, En. Mohd Suhaimi Abdul Hamid.
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AmBank and CGC Charting New Frontiers in Business Financing

KUALA LUMPUR, Apr 24, 2015: AmBank (M) Berhad and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Portfolio Guarantee (PG) agreement today to further enhance Small Medium Enterprise (SME) financing in Malaysia.

Through this partnership, both CGC and AmBank have committed to extend RM300 million of financing to five main sectors namely Wholesale and Retail Trade; Manufacturing; Education, Health Care; Construction and Resources.

These sectors have been identified under the SME Masterplan 2012-2020 with growth potential where Malaysia has both comparative and competitive advantages with high multiplier effect.

The SMEs in these five sectors can look forward to securing higher financing amount up to RM3,000,000 and with a loan tenure of up to five years.

“We are pleased to partner CGC in this Portfolio Guarantee collaboration which AmBank will provide accessible working capital financing to qualified SMEs. We have allocated an initial sum of RM300 million to further support our existing customers in their expansion phase and reach out to new SME customers throughout the country.

The SME segment is one of our key growth areas for this year, accordingly this CGC tie up is timely for AmBank Group to increase our market share and contribute to economic growth in the country,” said Pushpa Rajadurai, Managing Director, Wholesale Banking, AmBank Group at the PG signing ceremony where she signed the documents together with Encik Mohd Zamree Mohd Ishak, President and Chief Executive Officer, CGC, witnessed by Tan Sri Azman Hashim, Chairman, AmBank Group and Dato’ Agil Natt, Chairman CGC.

“CGC is always committed towards offering innovative financial solutions that can ease access to financing for SMEs and address the key concerns of discernible SMEs, which is the speed at which loans are approved and disbursed. As such, our collaboration with AmBank is primarily focused on ensuring that SMEs secure the amount of financing they require in the shortest time possible, which is proven to be possible through the PG,” said Zamree.

“CGC is able to provide approvals within three days upon receipt of the applications from AmBank as the pre-determined and simplified set of criteria for loan eligibility have been agreed upfront,” he added.

“With AmBank on board, we are looking forward to leverage on their SME experience and wide branch network to further enhance our SME outreach,” said Zamree.

Other distinct feature of this PG is the certainty in approval which is almost 100% due to the efficiency of the process flow and previous experience as well as no guarantee fees and hassle-free applications.

Zamree also added that future collaboration efforts with AmBank will include Wholesale Guarantee financing which is aimed to provide unsecured business financing, a new frontier for the banking industry by reducing risk on books of the FIs and freeing up capital for SME financing.

At the same event, AmBank also launched AmBank BizSolutions offering different financing and non-financing products and solutions which are tailored for Commercial and SME companies.

Among the range of products and solutions under AmBank BizSolutions are the BizSolutions Credit Guarantee Corporation Malaysia Berhad (CGC) Portfolio Guarantee (PG)–Term Loan (TL) or BizSolutions CGC PG-TL and BizSolutions Fortune$, with more customer-centric products in the pipeline to innovate their business.  

“With SMEs being the driving force of the Malaysian economy, this financing solution can be tailored from the simplest asset financing to general working capital, to even financing specific projects. Not just for ordinary everyday transactions, the AmBank BizSolutions will provide solutions for your cash flow management and also for managing your payables and receivables,” said Pushpa.
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CGC's Organises 'Klinik Usahawan' for SMEs

Kota Kinabalu, 27 March - Credit Guarantee Corporation Malaysia Berhad (CGC) will be organising 'Klinik Usahawan' for the SMEs in Sabah on 31st March 2015.

The 'Klinik Usahawan'  is organised as part of CGC's overall efforts to create greater awareness of the financing facilities offered by CGC to enable viable SMEs in Sabah to gain access to financing from financial institutions. It is also aimed at creating a avenue for SMEs to meet CGC’s officers to seek further information and other advisory services besides fostering cordial business relationship between both parties.

President and Chief Executive Officer of CGC, Mohd Zamree Mohd Ishak said this initiative is in line with its vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic small and medium enterprises in Malaysia.

“As an intermediary dedicated to SME development, we are focussed on improving our SME outreach through our collaboration with the respective business chambers in Sabah and be able to serve SME segments that needs our financial and other advisory support services,” added Zamree.

CGC's 'Klinik Usahawan' comprised of two sessions. In the morning, there will be a briefing on CGC's products and loan evaluation procedures for the members of Dewan Perniagaan Melayu Malaysia (DPMM) Sabah. The afternoon session titled ‘Seminar on Business Financing’ is organised for the members of Dewan Perniagaan Bumiputera Sabah (DPBS), Kadazandusun Chamber of Commerce and Industry (KCCI) and The Sabah United Chinese Chambers of Commerce (SUCCC).

Both 'Klinik Usahawan' sessions will be held at Bank Negara Malaysia hall at Jalan Lapan Belas, in Kota Kinabalu.

Interested participants are encouraged to contact En. Rozlezam Akop, Head of CGC Kota Kinabalu Branch and Ms. Agnes Vivvy Toisin Deputy Head of CGC Kota Kinabalu Branch at 088-486850 or visit http://www.cgc.com.my/event-calendar/ for more information and registration.

In 2014, CGC has provided RM40 million of financing to about 140 SMEs in Sabah largely in the wholesale, construction and real estate sectors through its two (2) branches in Kota Kinabalu and Sandakan.

As Sabah is a potential growth area for CGC, it is targeting to provide about RM61 million of SME financing in 2015, a 52.5% increase compared to the previous year.

To date, CGC has approved more than 427,800 loans, guaranteeing about RM56 billion. In 2015, CGC targets to provide RM3 billion of financing which is expected to benefit about 7,800 SMEs nationwide.
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CGC and SEED to Facilitate Indian SMEs Access to Financing

KUALA LUMPUR, 7th March - Credit Guarantee Corporation Malaysia Berhad (CGC) today signed a Memorandum of Understanding (MOU) with The Secretariat for Empowerment of Indian Entrepreneurs (SEED), a unit under the Prime Minister's Department.

The main objective of this MOU is to pave the way for both parties to have a mutual understanding on the cooperative relationship to further facilitate the growth and development of Indian SMEs and entrepreneurs in Malaysia.

CGC's Senior Vice President of Corporate Services, Komathi Lalitha Veeriah said the signing of this memorandum will enable CGC and SEED to better serve the needs of the Indian businesses in terms of access to financing from the financial institutions.

Lalitha added that this MOU is in line with CGC's vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic small and medium enterprises in the country.

Through this collaboration, SEED will act as a 'lead generator' by introducing newly registered or existing viable Indian SMEs and entrepreneurs to CGC for its consideration to facilitate their access to financing via its various guarantee and financing products.

To further assist the Indian SMEs, both parties have agreed to share information at their respective websites for ease of access to information on products and services offered by CGC.

The collaboration is also intended to facilitate CGC's participation at selected SEED’s training programmes, seminars and roadshows to establish closer rapport with Indian SMEs and businesses and create greater awareness of CGC's role in SME financing.

"Our participation at SEED's programme will provide an opportunity for CGC to have a better understanding on the specific needs of the Indian SMEs and provide them the necessary financial assistance required", said Lalitha.

To date, CGC had participated in several SEED's events such as the Halal and Franchise Conference,  and also in their promotional activities through the mass media.

In 2015, CGC targets to provide RM3 billion of financing which is expected to benefit about 7,800 SMEs.
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CGC & OCBC AL-AMIN Upping Wholesale Guarantee for SMEs to RM1 Billion

Kuala Lumpur, 3 March 2015 – Credit Guarantee Corporation Malaysia Berhad (CGC) and OCBC Al-Amin Bank Berhad (OCBC Al-Amin) today announced they will be increasing the country’s first and only SME wholesale guarantee to RM1 billion before the end of this year.

The fresh RM500 million will be made available in two tranches of RM250 million each in May and December, following the two successful earlier tranches of the same amount in April and November last year.

According to OCBC Al-Amin Director & CEO Syed Abdull Aziz Syed Kechik, in effect, the wholesale guarantee has given rise to a new phase in the development of Malaysia’s unsecured business financing efforts.

“Just like in the earlier agreements, the new tranches of the Wholesale Guarantee-i (WG-i) will see the ratio of risk involved in the financing of businesses shared equally between CGC and OCBC Al-Amin for a guarantee period of 5 years.

“The first two tranches totalling RM500 million have effectively guaranteed more than two thousand businesses from industries ranging from retail and wholesale to manufacturing. With the overwhelming response from these initial tranches, it has taken only a year for the commencement of the next phase of tranches which is expected to bring the total number of SMEs served up to over 5,000 before the end of the year,” he said.

Commenting on the scheme’s doubling by the end of the year, CGC President and Chief Executive Officer, Mohd Zamree Mohd Ishak said CGC was pleased with the success of OCBC Al-Amin’s first two tranches and the quick and seamless progression to the third tranche in May and the fourth in December 2015.

“The strategic partnership with OCBC Al-Amin is in fact the third collaborative effort between CGC and OCBC Bank in the last few years.  I am confident our continued partnership will bring much benefit to both institutions and, most importantly, to viable SMEs that are eligible for access to financing.

“CGC continues to encourage more businesses to embrace unsecured financing as both provider and recipient.  With the availability of CGC’s role in sharing the risk in this guarantee, more banks can now have the confidence to come forward to provide innovative financing options to meet the growing trends and needs of SMEs that are projected to contribute 41% to the country’s gross domestic product by 2020.

“CGC has been at the forefront of SME development and continues to play a prominent role in SME financing especially for the marginal but potentially viable SMEs. With increasing demand for financing from this segment, CGC continues to step up its efforts to expand SME outreach by forging strategic alliances with various financial institutions,” he said.

The WG-i centres on OCBC Al-Amin’s unsecured financing product, Business Cash-i (BC-i), introduced in 2012.

According to Syed Abdull Aziz BC-i was developed in line with the increasing appetite from SMEs for unsecured term financing to fulfil their short to medium term business financing needs. It signals a marked innovation in Islamic banking as there is currently no conventional banking equivalent.
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CGC Chinese New Year Charity Shopping Programme

KUALA LUMPUR, Feb 12th, 2015 - Credit Guarantee Corporation Malaysia Berhad (CGC) brought festive cheer to 35 families in conjunction with the upcoming Chinese New Year celebrations today.

The charity event was part of CGC's Corporate Social Responsibility (CSR) initiative to provide underprivileged families with financial contributions to enable them to celebrate the joyous occasion just like the rest of the Malaysians. 

This noble effort was organised in collaboration with Kechara Soup Kitchen Society, whereby the families were brought for a joyful shopping experience and day of fun with the people who cares for their well-being.

CGC President and Chief Executive Officer, Mohd Zamree Mohd Ishak said CGC is pleased to collaborate with Kechara Soup Kitchen Society to provide financial contribution to the homeless and urban poor to ease their financial constraints especially during an auspicious occasion such as the Chinese New Year.

This marks the second collaboration between CGC and Kechara Soup Kitchen Society. In October 2014, CGC and Kechara Soup Kitchen organised a similar Charity Shopping programme for Deepavali.  

The programme saw the participation of CGC's President and Chief Executive Officer Mohd Zamree Mohd Ishak, Senior Management and staff as well as the President of Kechara Soup Kitchen, Datuk Ruby Khong and their representatives.

President of Kechara Soup Kitchen Society Dato' Ruby Khong said it was such an excitement to have collaborated with CGC once again in carrying out this gracious initiative for the underprivileged.

Jenny Tai, 62, from Taman Desa, said she was tremendously glad to able to buy the groceries as it would last for two to three weeks, towards the new year which is just a week away.

Khor Poh Lay, 41 from Setapak said she was so delighted to have received the cash vouchers from CGC. She said this would certainly assist in her preparation for the upcoming new year.

She added that this is a noble thing for CGC to care for the underprivileged, especially during festive season.

Apart from this festive charity programme, CGC has also provided humanitarian aid to its staff and the people affected by the floods in Kelantan recently.  About 50 CGC volunteers carried out flood relief activities in Kota Bharu, Pasir Mas, Kuala Krai and Pasir Tumboh in Kelantan. CGC contributed food and basic necessities such sugar, rice, blankets and towels to the flood victims.

On a greater scale, CGC has been in the forefront of assisting SMEs with viable business with access to financing. Through its guarantee system, it has financed more than 427,800 SMEs since 1972.
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CGC Chairman and President/CEO's East Malaysia Visit

Kota Kinabalu, 2 February - The Chief Minister of Sabah, Yang Amat Berhormat Datuk Seri Panglima Musa Haji Aman today received a courtesy call from the Chairman of Credit Guarantee Corporation Malaysia Berhad (CGC), Dato' Agil Natt and its President/CEO, Mohd Zamree Mohd Ishak.

During the hour long meeting, the Chief Minister shared his aspiration and vision for small and medium entreprise (SME) development in Sabah. He also acknowledged that CGC is an instrumental financial institution and has contributed significantly towards the growth of SMEs in Malaysia.

Dato’ Agil Natt said “It was an honour to meet the Chief Minister and brief him about CGC and its role in promoting the growth and development of competitive and dynamic SMEs the last 42 years.” Zamree added “Given its vast experience, CGC can play a big part in the development of SMEs in Sabah especially those that have high potential for growth.”

In 2014, CGC has provided RM40 million of financing to about 140 SMEs in Sabah largely in the wholesale, construction and real estate sectors through its two (2) branches in Kota Kinabalu and Sandakan.

As Sabah is a potential growth area for CGC, it is targeting to provide about RM61 million of SME financing in 2015, a 52.5% increase compared to the previous year.

CGC, a subsidiary of Bank Negara Malaysia (BNM) established in 1972, facilitates marginal but potentially viable SMEs, particularly enterprises without collateral or with inadequate collateral and track record, to obtain financing from the financial institutions. The shareholders of CGC are BNM and commercial banks operating through a network of more than 2,600 branches nationwide.
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CGC 'Back to School' Programme

RAWANG, Dec 22nd, 2014 - Credit Guarantee Corporation Malaysia Berhad (CGC) brought cheer to 82 school-going children from Bukit Manchong Orang Asli Settlement with 'Back to School' Programme recently.

The programme was part of CGC's Corporate Social Responsibility (CSR) initiative to assist Orang Asli families with school-going children with 'back to school' supplies.

This noble effort was facilitated in collaboration with Orang Asli Development Department (JAKOA) from the District of Hulu Selangor, whereby the children were provided with brand new school uniforms, bags and stationery worth about RM10,000 before the school session reopens next year.

CGC Executive Vice President Nazleena Nordin said with the contributions given, CGC hope to ease their financial burden for the upcoming school session of year 2015.

This contribution will bring the children something to cheer and also served as an inspiration to the Orang Asli school-going children in order to motivate them to study better, she added.

Secondary school girl, Johaniesa said the new school supplies came as perfect gift for her. I have been wanting to buy a new bag for secondary school, and the timing could not have been more perfect as it also served as a motivation to be a doctor one day, she added.

Each child received a pair of school uniform and shoes, with new school bags and stationery. The 82 school-going children compromised kindergarten, primary and secondary school levels.

Primary school girl, Suhala said with the new bag, she could pack more things into it as she used to carry a small bag before.

Nazleena said the main objective of the programme was to give back to the society and help the Orang Asli communities to uplift their standard of living through education.

She also said this was a total new experience altogether and meaningful as it was more than just handing over the contributions. This programme was to build the spirit of brotherhood amongst the staff of CGC and the Orang Asli community.

Prior the 'back to school' contributions programme, activities such as colouring contest, musical chairs and soccer match were also held with the school-going children, with participation of volunteers of CGC staff.

In 2014, CGC has contributed about RM 35,000 through the Corporate Social Responsibility programmes as part of its initiatives in giving back to the society.

On a greater scale, CGC has been in the forefront of assisting SMEs with viable business with access to financing. Through its guarantee system, it has financed more than 420,000 SMEs to date and this effort had uplifted the standard of living of thousands of Malaysians indirectly as the SMEs are one of the biggest employers in the country.

About CGC

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 RM52.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013.

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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, CGC had managed a total of 43 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 2000 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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CGC appoints Mohd Zamree Mohd Ishak as Chief Executive Officer

PETALING JAYA, 16 Dec - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Mohd Zamree Mohd Ishak as its new President and Chief Executive Officer effective 1st January, 2015.

Zamree takes on the position following the retirement of Datuk Wan Azhar Wan Ahmad who helmed CGC for 17 years.

Zamree brings with him vast experience in the areas of corporate and consumer banking as well as Islamic finance education. He began his career with Malayan Banking Berhad (Maybank) back in 1989 until 2009.

He has held two senior positions at Maybank, namely Vice President, Consumer Banking (Jan 2005 – Jan 2008) and Executive Vice President, Corporate Banking (Jan 2008 – July 2009).

Zamree also served as the Chief Operations Officer of INCEIF – The Global University of Islamic Finance since July 2009 up to his latest appointment with CGC. Apart from his role in INCEIF, Zamree is also a member of The Association of Chartered Islamic Finance Professionals (ACIFP).

He holds a Master’s Degree in Business Administration – MBA (Finance) from the University of Hull, United Kingdom and a Bachelor of Science in Business Administration (BSBA) from the Saint Louis University, St. Louis, Missouri, United States of America.
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Innovation is the Game Changer for SME Development

Kuala Lumpur, 17th Nov - The 27th Asian Credit Supplementation Institution Confederation (ACSIC) Conference 2014 was held today, with a focus on innovation as a catalyst to successfully elevate SME development in the Asian region.


Attended by over 140 delegates from 19 Credit Guarantee institutions from 12 Asian countries, the Conference was hosted by Credit Guarantee Corporation Malaysia Berhad between November 16th and 19th, 2014.

The theme for the Conference was on 'Credit Guarantee System - Fostering Innovation Culture to Enhance Sustainable Development, and its aim was to foster closer ties amongst its members, as well as serve as a platform for networking and the exchange of ideas to fulfil the dynamic needs of SMEs in the respective countries.

Minister of International Trade and Industry Dato’ Sri Mustapa Mohamed said Malaysian SMEs were becoming increasingly significant in the nation’s agenda as they contributed considerably to the economy.

"SMEs form a major component of the economy constituting of about 97.3% of business establishments and 52.7% of total employment whilst contributing 28.5% to the nation's gross output.

"Currently, SMEs contribute 33% to the Gross Domestic Product (GDP) and the share is targeted to increase to 41% by 2020,'' he said when officiating the Conference at the Grand Hyatt Hotel today.

Dato' Sri Mustapha said given the importance of the SME involvement in the Malaysian economy, the Government had under the Budget 2015, given greater focus on entrepreneurship and SME development.

"A total of 18 specific programmes with a financial allocation of RM14.3 billion have been planned for SME development next year. This amount encompasses the services sector, Bumiputera entrepreneurs, youth, graduates, microenterprises, petty traders, women, smallholders, cooperatives and associations,'' he said.

Speaking on the theme of the Conference, Dato' Sri Mustapa said it was indeed a critical component to ensure the success of SME progress generally.

"SMEs should always stay abreast with the latest developments and look into producing unique and innovative products and services. They should not remain complacent or else they risk the danger of just losing out their market share to their competitors.

"SMEs should constantly review their processes, products, marketing strategies and other critical areas which will require some form of financing. SMEs therefore, need to always plan ahead in terms of financing requirement,'' he noted.

The ACSIC Confederation, with some of the institutions having more than 70 years of experience, brings a wealth of knowledge and expertise and shared those with its fellow members.

CGC Chairman Dato' Agil said as this was the 27th ACSIC Conference, which was hosted on a rotational basis, over the years, ACSIC had grown into an important Confederation for its members.

"It is essential to continue to advance such objectives. Therefore, ACSIC conferences are held annually and these serve as an ideal platform for the networking and the exchanging of information for the future growth of SMEs,'' he said, adding that the Conference was hosted by CGC in Malaysia for the fourth time, with the first held in 1990 and that this was an insightful and rewarding Conference.

Dato' Agil said innovation was a powerful driving force or ‘game changer’ for many economies as it enhances business opportunities and economic growth, globally.

"Therefore, it is important for ACSIC members and the SMEs to remain at the cutting-edge of innovation to maintain continued sustainability and superior management of their businesses.

"The theme was chosen as we felt it was an apt subject matter to be deliberated at a time when innovation is revolutionizing the way we do everything, daily. In view of this, we have brought together thought-leaders and experts from Malaysia and the ACSIC Confederation to share their views and ideas to address the big question of what is next for SMEs,'' he said.

Dato' Agil also said supporting SME development was a type of public engagement that was crucial to the future of Asian's enterprising communities.

"SMEs are crucial to the economic growth process as they play an important role in the country’s overall production network. As such, developing a group of diverse and competitive SMEs is fundamental towards achieving robust and continued economic growth for any economies.

"Taking into consideration of these factors, we at CGC, constantly look into ways on how we could further innovate to ensure our products suits SME financing requirements.

"By identifying the needs of the SMEs and offering innovative products and solutions, we have been able to a large extend fulfill the SMEs financing requirements. Our more than 420,000 SME customers had enjoyed the benefit of gaining greater access to financing, and achieved success in their business ventures. We have availed about USD15 billion of financing through our 43 credit guarantee schemes since inception in 1972,'' he said.

Dato' Agil said CGC will continue to fulfil its developmental role mandate in the best possible way to ensure marginal but potentially viable SMEs can enjoy the financial lifeline not only to get into the business but be able to sustain and succeed.

The ACSIC, established in 1987, is the largest cooperative body for SMEs.

The 27th ACSIC Conference 2014 was represented by 142 delegates from 19 Credit Guarantee institutions from 12 countries namely Indonesia, India, Japan, South Korea, Malaysia, Mongolia, Nepal, Philippines, Papua New Guinea, Sri Lanka, Taiwan and Thailand.

The largest delegations were from Indonesia, Japan and the Republic of Korea. These included 16 Chief delegates from ACSIC member countries and institutions and seven non-ACSIC member countries and institutions with observer status.

Some of the top minds in the industry both regionally and internationally, presented at the Conference.

They included the Deputy Governor of Bank Negara Malaysia Dato’ Muhammad bin Ibrahim, the Senior Director of Economic Planning Division from SME Corp K. Karunajothi, CEO of Malaysian Innovation Agency Mark Rozario, the Executive Director of Japan Finance Corporation Motohide Hashimoto, Senior Manager of International Business Office of Korea Technology Finance Corporation Kyung Jin Hyung and CGC Non-Executive Director Datuk David Chua Kok Tee.

To advocate the tourism characteristics of Malaysia, CGC had also organised social and industrial visits to the Tanah Aina Eco Resort in Bentong, Pahang, the Islamic Arts Museum, the Malaysian Palm Oil Board and the Kuala Lumpur Tower.

About CGC

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 RM53 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013. 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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, CGC had managed a total of 43 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 2000 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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Innovation is the Game Changer for SME Development

Kuala Lumpur, 17th Nov - The 27th Asian Credit Supplementation Institution Confederation (ACSIC) Conference 2014 was held today, with a focus on innovation as a catalyst to successfully elevate SME development in the Asian region.


Attended by over 140 delegates from 19 Credit Guarantee institutions from 12 Asian countries, the Conference was hosted by Credit Guarantee Corporation Malaysia Berhad between November 16th and 19th, 2014.

The theme for the Conference was on 'Credit Guarantee System - Fostering Innovation Culture to Enhance Sustainable Development', and its aim was to foster closer ties amongst its members, as well as serve as a platform for networking and the exchange of ideas to fulfil the dynamic needs of SMEs in the respective countries.

Minister of International Trade and Industry Dato’ Sri Mustapa Mohamed said Malaysian SMEs were becoming increasingly significant in the nation’s agenda as they contributed considerably to the economy.

"SMEs form a major component of the economy constituting of about 97.3% of business establishments and 52.7% of total employment whilst contributing 28.5% to the nation's gross output.

"Currently, SMEs contribute 33% to the Gross Domestic Product (GDP) and the share is targeted to increase to 41% by 2020,'' he said when officiating the Conference at the Grand Hyatt Kuala Lumpur Hotel today.

Dato' Sri Mustapa said given the importance of the SME involvement in the Malaysian economy, the Government had under the Budget 2015, given greater focus on entrepreneurship and SME development.

"A total of 18 specific programmes with a financial allocation of RM14.3 billion have been planned for SME development next year. This amount encompasses the services sector, Bumiputera entrepreneurs, youth, graduates, microenterprises, petty traders, women, smallholders, cooperatives and associations,'' he said.

Speaking on the theme of the Conference, Dato' Sri Mustapa said it was indeed a critical component to ensure the success of SME progress generally.

"SMEs should always stay abreast with the latest developments and look into producing unique and innovative products and services. They should not remain complacent or else they risk the danger of just losing out their market share to their competitors.

"SMEs should constantly review their processes, products, marketing strategies and other critical areas which will require some form of financing. SMEs therefore, need to always plan ahead in terms of financing requirement,'' he noted.

The ACSIC Confederation, with some of the institutions having more than 70 years of experience, brings a wealth of knowledge and expertise and shared those with its fellow members.

CGC Chairman Dato' Agil said as this was the 27th ACSIC Conference, which was hosted on a rotational basis, over the years, ACSIC had grown into an important Confederation for its members.

"It is essential to continue to advance such objectives. Therefore, ACSIC conferences are held annually and these serve as an ideal platform for networking and exchanging of information for the future growth of SMEs,'' he said, adding that the Conference was hosted by CGC in Malaysia for the fourth time, with the first held in 1990 and that this was an insightful and rewarding Conference.

Dato' Agil said innovation was a powerful driving force or ‘game changer’ for many economies as it enhances business opportunities and economic growth, globally.

"Therefore, it is important for ACSIC members and the SMEs to remain at the cutting-edge of innovation to maintain continued sustainability and superior management of their businesses.

"The theme was chosen as we felt it was an apt subject matter to be deliberated at a time when innovation is revolutionizing the way we do everything, daily. In view of this, we have brought together thought-leaders and experts from Malaysia and the ACSIC Confederation to share their views and ideas to address the big question of what is next for SMEs,'' he said.

Dato' Agil also said supporting SME development was a type of public engagement that was crucial to the future of Asian's enterprising communities.

"SMEs are crucial to the economic growth process as they play an important role in the country’s overall production network. As such, developing a group of diverse and competitive SMEs is fundamental towards achieving robust and continued economic growth for any economies.

"Taking into consideration of these factors, we at CGC, constantly look into ways on how we could further innovate to ensure our products suits SME financing requirements.

"By identifying the needs of the SMEs and offering innovative products and solutions, we have been able to a large extend fulfil the SMEs financing requirements. Our more than 420,000 SME customers had enjoyed the benefit of gaining greater access to financing, and achieved success in their business ventures. We have availed about USD15 billion of financing through our 43 credit guarantee schemes since inception in 1972,'' he said.

Dato' Agil said CGC will continue to fulfil its developmental role mandate in the best possible way to ensure marginal but potentially viable SMEs can enjoy the financial lifeline not only to get into the business but be able to sustain and succeed.

The ACSIC, established in 1987, is the largest cooperative body for SMEs.

The 27th ACSIC Conference 2014 was represented by 142 delegates from 19 Credit Guarantee institutions from 12 countries namely Indonesia, India, Japan, South Korea, Malaysia, Mongolia, Nepal, Philippines, Papua New Guinea, Sri Lanka, Taiwan and Thailand.

The largest delegations were from Indonesia, Japan and the Republic of Korea. These included 16 Chief delegates from ACSIC member countries and institutions and seven non-ACSIC member countries and institutions with observer status.

Some of the top minds in the industry both regionally and internationally, presented at the Conference.

They included the Deputy Governor of Bank Negara Malaysia Dato’ Muhammad bin Ibrahim, the Senior Director of Economic Planning Division from SME Corp K. Karunajothi, CEO of Malaysian Innovation Agency Mark Rozario, the Executive Director of Japan Finance Corporation Motohide Hashimoto, Senior Manager of International Business Office of Korea Technology Finance Corporation Kyung Jin Hyung and CGC Non-Executive Director Datuk David Chua Kok Tee.

To advocate the tourism characteristics of Malaysia, CGC had also organised social and industrial visits to the Tanah Aina Eco Resort in Bentong, Pahang, the Islamic Arts Museum, the Malaysian Palm Oil Board and the Kuala Lumpur Tower.

About CGC

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 RM53 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013. 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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 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 2000 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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CGC Forms Strategic Alliance with Affin Bank Berhad to Offer RM50 Million in Portfolio Guarantee Financing

PETALING JAYA, Nov 11, 2014: To fast track financing accessibility to small and medium enterprises (SMEs), Credit Guarantee Corporation Malaysia Berhad (CGC) and Affin Bank Berhad (AFFINBANK) have collaborated to offer portfolio guarantee (PG) financing worth RM50 million.

This is CGC's first PG with a distinctive risk-sharing mechanism feature. Under this agreement, AFFINBANK will absorb any eventual impaired loans in the first year of financing.

AFFINBANK, with its established credit prudency, is confident of the quality of its loans and has opted not to subscribe to guarantee cover for the first year of the loan bookings.

In doing so, it is able to offer a lower and competitive fee rate to its customers. This will enhance the development and bankability of SMEs in the country through CGC's guarantee mechanism.

“We are proud to be working with CGC to offer this portfolio guarantee financing to SMEs and even more pleased that customers will enjoy competitive rates. At AFFINBANK, we are constantly looking out and developing new and innovative financial solutions and packages for our customers.

"This PG financing added to our suite of products will certainly help many SMEs to grow their businesses further and indirectly support the development of the SME industry in general,'' said AFFINBANK Managing Director and Chief Executive Officer, Dato’ Zulkiflee Abbas Abdul Hamid at the signing ceremony today.

CGC President and Chief Executive Officer, Datuk Wan Azhar Wan Ahmad said that the PG financing will be advantageous to SMEs that desire to fulfil their working capital requirement, asset acquisition and capital expenditure, and it is expected to benefit about 170 SMEs for this first tranche.

"We are happy to note that our PG partnership will enable SMEs to gain quicker access to financing with speedier turnaround time in terms of approval and disbursement of loans as the applications are evaluated based on a pre-determined and simplified sets of criteria for loan eligibility,'' added Datuk Wan Azhar.

The availability of CGC’s guarantee is up to maximum loan tenure of seven years from the date of CGC's approval and the financing amount ranges between RM100,000 and RM500,000.

The financing rate is dependent on the borrower’s credit rating and will be determined by AFFINBANK’s credit evaluation standards as well as its targeted market segment.

"Additionally, this unique PG is expected to be largely taken up by SMEs in the construction and wholesale sectors, which may encounter difficulty in terms of access to financing which is critical for continuous growth,'' Datuk Wan Azhar said.

Other distinct features of this PG for SMEs are the certainty in approval which is almost 100% based on past experience, low guarantee fees and hassle-free applications.

Datuk Wan Azhar said for this year, CGC had achieved its PG loan target of RM900 million and this amount had benefited 1,800 SMEs on the whole.

"In total from 2009, we have guaranteed over RM2 billion worth of PG loans through collaborations with various FIs,'' he said, adding that CGC's PG partnerships had benefited 5,900 SMEs.

He added that future collaborative ventures with AFFINBANK will include Wholesale Guarantee financing which will be aimed at aiding existing customers.  In the near future, CGC is looking to explore new growth areas such as Bumiputera, Halal Traders, and Intellectual Property among others.

SME loan has been a business segment that AFFINBANK has been growing steadily each year, and currently contributes almost 20% of the bank’s total gross loans.

“We are targeting to grow this portfolio further as we see great potential in the SME segment. In addition to this new PG agreement with CGC, the bank is working towards providing more financing packages to add to our suite of products.

“However, it is not just about the number (of products) that we offer. At AFFINBANK, we believe in delivering more than a product.  We deliver a trust in our service so that our customers and partners will continue to bank with us,'' added Dato’ Zulkiflee.                                                                                                                               

About CGC

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 RM52.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013. 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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 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 2000 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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CGC Appoints Ong Eng Bin as Non-Executive Director

Petaling Jaya, 30th Oct - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Ong Eng Bin as its non-executive director.

Ong brings with him vast experience in the area of corporate banking. His career in corporate banking that spans 26 years started at OCBC Bank in 1988.

In 2004, he was appointed as Head of Corporate Banking, and later promoted to Head of Business Banking in 2012, with responsibilities covering corporate and commercial, emerging business and transaction banking.

In August 2014, Ong was appointed as the Chief Executive Officer of OCBC Bank Malaysia Berhad.

Apart from his role in OCBC Bank, Ong is also a council member of The Association of Banks in Malaysia.

Currently, Ong serves as a Director at e2 Power Sdn Bhd, Ban Hong Leong and Company Sdn Bhd, Malaysia Nominees (Asing) Sendirian Berhad, Malaysia Nominees (Tempatan) Sendirian Berhad and OCBC Nominees (Malaysia) Sdn Bhd.

Ong holds a Bachelor's Degree in Accounting & Finance from the University of Manchester, United Kingdom.

CGC has nine (9) board of directors with Dato' Agil Natt as its Chairman.

 

About CGC

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 RM52.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013. 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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 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 2000 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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Deepavali Charity Shopping Programme

KUALA LUMPUR, October 13th, 2014 - Credit Guarantee Corporation Malaysia Berhad (CGC) brought festive cheer to 50 people in conjunction with the upcoming Festival of Lights celebrations today.

The charity event was part of CGC's Corporate Social Responsibility (CSR) initiative to provide poor families - some who were physically disabled, hearing impaired and those with special needs - with financial contribution to support them with their preparation for the festival.

This effort embodies the start of the Corporation's CSR series with a theme to lend a helping hand to society during festivals, in advance.

This noble effort was facilitated in collaboration with Kechara Soup Kitchen Society, whereby the families will be provided with an enjoyable shopping experience and be eased of their financial burdens during the joyous occasion.

CGC President and Chief Executive Officer, Datuk Wan Azhar Wan Ahmad said Kechara Soup Kitchen Society was selected to be a partner with CGC because of the former's immeasurable experience of working with the homeless and the urban poor in the Klang Valley.

As part of the project, 25 families who came with their loved ones received receive RM250.00 in cash vouchers from CGC to shop for groceries. Aside from this, some of the family members also won additional prizes from a contest that was organised when the shopping spree ended. In total, CGC has allocated RM10,500 for this CSR.

Datuk Wan Azhar said the main objective of the project was to give back to the society and help the less fortunate improve their livelihoods, as well as uplift their standard of living, during festive periods.

CGC Executive Vice President of Corporate Support Nazleena Nordin said this was a total new experience altogether and meaningful as it was more than just handing over a cheque to the beneficiaries but letting them experience the excitement of shopping in person.

T. Shamala, 40, from Sentul said she was very happy and thankful to be receiving the financial aid as it would help her family of four and she has not shopped this way for a long time.

"My husband is disabled and my two children are aged 14 and 17 and still school-going. The groceries we bought today with the cash vouchers can last us for two weeks,'' she said, adding that this was the first time she was getting financial assistance and via the recommendation of Kechara Soup Kitchen.

Self-employed contractor M. Siva, 36, from Setapak Jaya, said he was tremendously glad to be receiving the grocery supplies as it will help his family tide over during the festive season.

"This is the first time we are given this opportunity to shop this way and I am very in high spirits that such caring organisations are providing for poor families,'' he said, adding that he had come for this shopping programme with his wife P. Savithri, 35, and his sister S. Moogana, 33-years old.

President of Kechara Soup Kitchen Society Dato' Ruby Khong said this was the first such exciting partnership between CGC, Kechara and the SOGO Shopping Centre, to provide for the underprivileged during festivals.

"We have a food bank and in that list we have a database of all the families. These families were selected in conjunction with the Deepavali festival which is a week away. Usually when we deliver items to families, we will always give them what we think they need. However, this initiative by CGC is fun because the beneficiaries themselves can pick what they require most,'' she said, adding that this was more efficient.

Datuk Ruby said she looked forward to working further on similar initiatives with CGC in the near future, especially during all festivals.

The programme saw the participation of CGC Executive Vice President of Corporate Support Nazleena Nordin, Financial Controller Gayah Haji Mohd Nordin, Senior Vice President of Corporate Services Komathi Lalitha Veeriah, CGC staff, the President and representatives from Kechara Soup Kitchen, and volunteers from Kelab Rekreasi CGC (KRCGC).

On a greater scale, CGC has been in the forefront of assisting SMEs with viable business with access to financing. Through its guarantee system, it has financed more than 420,000 SMEs to date and this effort had uplifted the standard of living of thousands of Malaysians indirectly as the SMEs are one of the biggest employers in the country.

About CGC

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 RM52.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013.

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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 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 2000 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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CGC AND SME BANK TO OFFER RM30 MILLION FOR SME FINANCING

SME 30 MILLION

From left, CGC President and CEO, Datuk Wan Azhar Wan Ahmad and SME Bank Group Managing Director, Datuk Mohd Radzif Mohd Yunus, congratulating each other after finalising the PG collaboration, recently.


 

Kuala Lumpur, 15 Sept - SME Bank today signed a Portfolio Guarantee (PG) agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to offer RM30 million of financing to viable small and medium enterprises (SMEs).

This is the first ever PG between CGC and a development financing institution in the country designed to ease the burden on viable SMEs as they are expected to benefit from the lower cost of financing and a faster turnaround time in terms of approvals and disbursement offered under this agreement.

The initial portfolio of RM30 million will benefit approximately 200 SMEs within the next one year through financing between RM100,000 to RM500,000. The purpose of this financing facility is to provide the SMEs with the working capital required to manage their business cash flow and for business expansion at a fixed rate of between just 5% - 7% per annum.

CGC President and CEO Datuk Wan Azhar Wan Ahmad said the award-winning PG, launched in 2009, has proven to be effective in addressing the financing needs of the SMEs and improve on its SME outreach.

“Under the PG approval for financing, the eligibility criteria is upfront, making it easier to better manage the asset quality of the portfolio. Such pre-determined arrangement will also enable lower costs of financing to the borrowers as PG has lower transaction cost.”

“With the PG in place, the SMEs are now able to benefit from the speed at which financing applications are processed and approved as it allows them to gain quicker access to the much-needed financing. Currently, CGC’s PG system provides approvals within three (3) calendar days to speed up the approval and disbursement process of the banks. We are looking at the probability of reducing this process further to just one day,'' he said adding that at present, the approval rate for applications under PG is almost 100%.

SME Bank Group Managing Director, Datuk Mohd Radzif Mohd Yunus said the collaboration will facilitate access to credit by helping SMEs to develop their creditworthiness and good track record and assist new customers to obtain the much needed funding for their business expansion plans.

“The collaboration with CGC will also allow SME Bank to enhance its credit risk management via risk-sharing and have a holistic view of a prospective customer’s readiness in servicing the financing,'' he said.

This PG agreement had reinforced both parties' commitment and support towards SME development in the country not just in terms of enhancing access but also in terms of costs of financing.

To date, CGC has availed close to RM1.5 billion of financing that had benefited over 4,000 SMEs. It is targeting to avail new guarantee of at least RM700 million under various PG arrangements in 2014.

SME Bank is the eighth financial institution on board after Maybank, Standard Chartered Bank, OCBC, RHB, Public Bank Berhad, Alliance Bank and SC Saadiq.

About CGC

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 RM53.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013.

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 since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.           

CGC’s support for SME’s 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 SME’s 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. To date, CGC had managed a total of 43 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 2000 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

About SME Bank

Designed to function ultimately as a one-stop financing and business development centre, Malaysia’s SME Bank is dedicated to the accelerated growth of Malaysian SMEs.  Through better segmentation of SME financial and non-financial needs by industry, stage of growth and product and market potential, the Bank will strive to hasten the financing processing of eligible SMEs to meet their financing needs as well as support their business growth requirements through the provision of timely advisory services.  The principal activities of the Bank are to provide financing as well as financial and business advisory services to Malaysian SMEs residing within predefined categories which have been framed within the SME classification guidelines of the National SME Development Council.  For more information, please visit: www.smebank.com.my

 
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CGC appoints Teoh Kok Lin and Suresh Menon as Non-Executive Directors

Petaling Jaya, July 30, 2014 - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Mr. Teoh Kok Lin and Mr. Suresh Menon as its non-executive directors recently.

Mr. Teoh Kok Lin is the Founder and Chief Investment Officer of Singular Asset Management Sdn Bhd, a fund management company licensed by the Securities Commission. He has more than 25 years of banking, credit and investment experience with financial institutions, having started his career with Citibank Malaysia in 1987. He subsequently joined Barings Malaysia, HSBC Research Malaysia and UOB Kay Hian Singapore.

He is a pioneer Chartered Financial Analyst (CFA) in Malaysia and is the past President of the CFA Society Malaysia. Teoh is also the Founder and Chief Investment Officer of Singular Asset Management (Singapore) Ltd, which was established in 2010 and is a registered fund manager with the Monetary Authority of Singapore.

Since 2002, he has managed the funds for institutions' with a portfolio of high-net worth clients and has travelled extensively across Asia and North Asia for research and work visits. As a council member of the Chinese Chamber of Commerce & Industry of Kuala Lumpur and Selangor, he presently holds the Chairman of its Fiscal & Economic Research Committee post.

Mr.Teoh holds two first-class (honours) Bachelor's degrees in Electrical Engineering and Finance. He graduated first in class for his Master of Science in Industrial Administration (MBA equivalent) qualification from the Purdue University, USA.

Mr. Suresh Menon has close to 35 years of experience in various dynamic sectors such as manufacturing and the international financial and debt markets. His expertise encompasses credit analysis and rating methodology, industry guide and best practices of rating processes, credit report writing, strategic planning and development, corporate and financial analysis, personnel and skills development, operations and production management, and project management and commissioning.

Suresh has played an instrumental role in the setting up of RAM Holdings Berhad (formerly known as Rating Agency Malaysia Berhad). For 18 years, he facilitated numerous services and was on the forefront to ensure the agency reached its pinnacle. He was a Board member at RAM and a member of its Rating Committee, His last position with RAM was as an Executive Director.

He has also participated in developmental projects with international bodies namely the Asian Development Bank (ADB), APEC Business Advisory Council and the Association of Credit Rating Agencies in Asia (ACRAA). He was the Chairman of the ACRAA Training Committee. He was also a member of the Main Committee of the Malaysian Corporate Governance Index 2009, 2010 and 2011 for the Minority Shareholder Watchdog Group (MSWG).

Since 2010, he has been an Independent Capital Market Consultant providing consultancy and training to financial agencies and regulatory authorities in many countries. He is currently a member of the Board of Directors of Pacific Trustees Berhad.

Suresh graduated from the University of Madras with a Bachelor of Technology, majoring in Chemical Engineering in 1979. He obtained his Masters in Business Management from the Asian Institute of Management in Philippines in 1985.

The current CGC Board consist of nine (9) members with Dato' Agil Natt as its Chairman.

About CGC

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 RM53.9 billion since its establishment.

Today, CGC is well on track to achieve its financial sustainability agenda as envisaged under its business transformation plan. In the last four (4) years, CGC has registered an increase in its net profits ranging from RM15.6 million in 2010 to RM121.1 million in 2013.

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 and since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, 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 2000 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.
For Media Enquiries:


V. Kumaran
Assistant Vice President
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232
HP: 016-638-1747
Email: kumaran@cgc.com.my



 
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CGC Celebrates Ramadan with 50 Underprivileged Children from Rumah Penyayang Hembusan Kasturi, Klang

Petaling Jaya, July 18, 2014: Beaming with excitement, 50 delightful children dressed in royal purple were the special guests at the Iftar (breaking of fast) organised by Credit Guarantee Corporation Malaysia Berhad, recently.

The children aged between three and 12 were from Rumah Penyayang Hembusan Kasturi (RPHK), located in Klang.

The children arrived filled with chatter, and were greeted warmly by staff of CGC. They later joined the congregation in the tazkirah led by Ustaz Mohamad Rozie Mohd Rejab.

After the breaking of fast, they performed maghrib prayers and joined the host for a sumptious dinner, which comprised a delicious array of local cuisine.

Joining in the breaking of fast and dinner with these children were CGC's Chairman Dato' Agil Natt and his wife Datin Sharifah Fatmah, Chief Executive Officer and President Datuk Wan Azhar Wan Ahmad and his wife Datin Rose Edzlin, the Board of Directors, their respective spouses, CGC management and with about 200 of their staff and their family members.

Datuk Wan Azhar Wan Ahmad said it was a yearly tradition of CGC to spread the Ramadan spirit of sharing and giving for the less-privileged members of the society.

"The annual ‘Majlis Berbuka Puasa’ embodies an occasion to spend meaningful moments with the underprivileged. It promotes a sense of consciousness in our obligation to help the less fortunate. We hope that our contribution will help to ease their burden,'' he said after handing out duit raya to the enthusiastic children, together with Dato' Agil Natt.

The 'Majlis Berbuka Puasa’ is a yearly event held to demonstrate care and support for underprivileged children, promote togetherness and inculcate the corporate social responsibility spirit of CGC.

In addition to hosting the splendid dinner and supper, CGC made a total cash contribution of RM8, 000 to the Rumah Penyayang Hembusan Kasturi (RPHK) and their 50 underprivileged children, courtesy of CGC and its employees. The cheque was presented by Dato' Agil Natt to the Home's co-founder Haji Zubir Haji Omar, witnessed by Datuk Wan Azhar.

Datuk Wan Azhar said the contribution symbolised CGC's endeavour to support deserving charities in need of aid.

"We hope to make their forthcoming Hari Raya more meaningful,” added Datuk Wan Azhar.


About CGC

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 2000 branches nationwide to avail financing.


For media enquiries, please contact:


V. Kumaran
Assistant Vice President/Head
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232; HP: 016-638-1747
Email: kumaran@cgc.com.my



 
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Recognition for three Financial Institutions For SME Financing

PETALING JAYA, June 25, 2014: Credit Guarantee Corporation Malaysia Berhad today awarded three leading financial institutions (FIs) for their noteworthy and substantial contributions towards SME financing and development in 2013.

The winners for CGC's 19th Top SME Supporter Award were Maybank, Standard Chartered Bank and Public Bank Berhad.

Once again, Maybank emerged the winner for the Best Financial Partner Award 2013 and the Top Bumiputera SME Supporter Award 2013. Maybank had won both the awards for its contribution to the SME financing in 2012 as well.

All the three award recipients contributed a total of 1,076 loans, representing 45% of the loans approved by CGC in 2013.

The award recognition first introduced in 1996, is a proactive move to encourage FIs to increase their participation in SME sector development as well as complement the efforts of the Government in encouraging FIs to avail financing to SMEs.

The awards were presented by CGC Chairman Dato' Agil Natt, witnessed by CGC President and Chief Executive Officer Datuk Wan Azhar Wan Ahmad at CGC's headquarters in Petaling Jaya, after its 41st Annual General Meeting earlier.

Datuk Wan Azhar said for 2013, CGC's SME outreach improved by 45% with a total of 2,368 SMEs mostly in the general businesses, manufacturing and agricultural sectors benefiting from RM1.5 billion worth of loans approved.

He added that financing was availed to the SMEs largely through CGC's main schemes such as the Enhancer and Direct Access Financing Scheme (DAGS), Portfolio Guarantee and the Bumiputera Entrepreneur Project Fund (TPUB-i).

Datuk Wan Azhar said on the financial sustainability agenda, CGC had again posted a healthy profit of RM121.0 million and this development augured well for CGC’s continued SME outreach agenda in particular its developmental role serving the underserved SME segment.

"CGC’s operating cost in 2013 declined to RM160.7 million from RM228.4 million in 2012 mainly due to lower provision for claims and lower allowance for impairment attributed to rigorous credit monitoring activities,” said Datuk Wan Azhar.

He said provision for claims on loans guaranteed by CGC reduced to RM61.8 million compared with RM81.3 million in 2012 primarily due to the improvement in credit and risk awareness culture that placed greater emphasis on maintaining good asset quality. The provision for claims reduced by 24% and impairment, by 65%.

“Overall, we have a healthy financial position and we were able to repay the RM700 million loan provided by Bank Negara Malaysia promptly in November 2013.”

Datuk Wan Azhar said the strategic direction of CGC in 2014 is continue to deliver the best for the SMEs and the financial institutions. “This year, we are focused on three main areas: firstly, to avail greater financial access to the under-served segment especially the Start-ups. In this direction, we have rolled out the Syariah-compliant direct financing scheme, the BizMula-i in May 2014.”

“In addition to that, we will step up our efforts to support the national Bumiputera development agenda by offering higher guarantee cover and lower cost of borrowing. We have introduced the Bumiputera Portfolio Guarantee scheme and banks are already participating in the scheme. More of such initiatives will be undertaken this year to further avail greater financial access to the Bumiputera SMEs.”

“We will also continue to ensure more of our customers benefit from the rebate mechanism that we have implemented early this year to assist the SMEs to cope with the escalating cost of doing business,” added Datuk wan Azhar.

“These are three of the seven initiatives that we will place greater focus in 2014. Other focus areas include performing developmental role in a financially sustainable manner, managing government-funded schemes, enhancing operational efficiency and relationship with our bank partners,” said Datuk Wan Azhar.

In 2014, CGC targets to guarantee 5,600 of SMEs loans valued at RM2.7 billion. Since its inception in 1972, CGC has guaranteed 422,585 SME loans worth RM52.9 billion.


For media enquiries, please contact:


V. Kumaran
Assistant Vice President/Head
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232; HP: 016-638-1747
Email: kumaran@cgc.com.my



 
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CGC Paves the Way for SMEs to Adopt Good Credit Culture

KUALA LUMPUR, June 23, 2014: Credit Guarantee Corporation Malaysia Berhad's rebate mechanism introduced as part of its initiatives to assist its customers with cost of borrowing and to create awareness on the importance of credit history amongst SMEs has received favourable response from their customers.

Introduced in January 2014 to assist SMEs lower their financing cost, the rebate mechanism has seen a total of 250 customers benefiting from the incentive, some as high as 38% of their guarantee fees payable. CGC’s President and Chief Executive Officer Datuk Wan Azhar Wan Ahmad said it was encouraging to note that to date all eligible customers who had a good repayment track record on their accounts with CGC have benefited from the rebates offered on their guarantee fees.

The CGC rebate is a mechanism whereby a reduction of a certain percentage on guarantee fee is offered to its customers. To fulfil this purpose, CGC has allocated RM1.7 million that is expected to benefit about 1,800 of its valued customers this year.

"It is encouraging to see SMEs adopting a healthy credit culture. By doing this, we hope to inculcate among them, the awareness and good practice of paying up promptly. On the part of the SMEs, it indicates that they are disciplined and there is a conscious effort being made to improve on their credit track record and bankability.”

"We are happy to announce that to date, we have received favourable response from our customers and other stakeholders, and we will continue to provide this incentive to all of our customers who are eligible for the rebates,'' he said at CGC's inaugural Customer Appreciation Luncheon for Preferred Customers held at Lanai Kijang, Bank Negara Malaysia.

Datuk Wan Azhar said the rebate mechanism was applicable under its four main schemes namely Direct Access Guarantee Scheme (DAGS)/DAGS-i, Enhancer/Enhancer-i, Enhancer Bumi / Enhancer Bumi-i and Enhancer Direct/Enhancer Excel.

This was a proactive measure undertaken under CGC’s 2014 business agenda, in light of the recent overall escalation in the cost of doing business for the SMEs.

"For the year 2014, the Corporation’s business plan has been formulated to achieve a few strategic objectives, namely to perform a developmental role in a financially sustainable manner and to enhance the access to financing for start-ups. We have also undertaken the responsibility to continue managing Government-funded schemes, support the national Bumiputera development agenda and to offer financing at a reasonable cost. Aside from this, we will enhance our operational efficiency and our relationship with FIs,'' he said.

He said with the steady economic growth and encouraging development in the SME sector, CGC will seize opportunities to further expand its SME outreach agenda, and fostering its affiliation with FIs was essential to ensure the SME sector's constraints and concerns were attended to, accordingly.

"We have to continue to enhance the SME outreach to enable viable SMEs in all segments gain access to financing from the FIs,'' he said, adding the move was to strengthen its position as a strategic partner in SME financing.

Datuk Wan Azhar said in recent years, it had successfully forged strategic partnerships with a number of banks on the Portfolio Guarantee (PG) and Wholesale Guarantee (WG) schemes to facilitate greater financing options and quicker access to the required funds for the SMEs. More of such partnerships will be explored with other participating financial institutions going forward.

In total, CGC targets to provide RM2.7 billion of financing to about 5,600 SMEs in 2014.

Datuk Wan Azhar added that CGC was also actively working with its subsidiary, the Credit Bureau Malaysia, to help SMEs build a creditable credit history and track record to further enhance their credibility and bankability, to enable them to negotiate with credit grantors on their own merit and secure the required amount of financing and at reasonable cost.

"In pursuing these priorities, CGC will continue to establish successful collaborations with domestic authorities and government agencies to further facilitate its outreach agenda'' he said.

The Customer Appreciation Luncheon was attended by the Deputy Governor of Bank Negara Malaysia, Dato’ Muhammad bin Ibrahim, CGC’s Chairman Dato’ Agil Natt, the board of directors of CGC, key representatives from the local and foreign financial institutions, the various Trade Chambers of Commerce representatives and their members.

The selected customers and SMEs had earlier attended an entrepreneur's clinic, organised by CGC. The session saw an exchange of ideas and dialogue on financing that are applicable for the development of the SME sector in the country.


About CGC

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. Since 1972, CGC has guaranteed loans worth RM52 billion, empowering thousands of SMEs to accomplish their vision of owning and managing their business.

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 2000 branches nationwide to avail financing.

For media enquiries, please contact:


V. Kumaran
Assistant Vice President/Head
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232; HP: 016-638-1747
Email: kumaran@cgc.com.my



 
[print-me title="Print" target="#news62"]

CGC Extends Financing to New Businesses

KUALA LUMPUR, June 2, 2014: On the forefront to stimulate the growth of start-ups, Credit Guarantee Corporation Malaysia Berhad (CGC) peaks amongst financial institutions as it moves to tackle the new businesses segment - generally viewed as high-risk within the financial sector, through its BizMula-i scheme.

BizMula-i direct financing scheme will provide uplift to the development of new businesses devoid of track records or collaterals, as start-ups play an important role in the country's economic growth.

The underlying principle of the scheme is to encourage and nurture budding businessmen, who are equipped with viable business plans, strong market as well as business insight and a high entrepreneurship drive to succeed.

CGC President and Chief Executive Officer Datuk Wan Azhar Wan Ahmad said the Syariah-compliant scheme is unique because businesses will be directly financed by CGC, with financing ranging from RM50,000 to RM300,000 and repayment tenure of up to seven years.

He said it was crucial for new businesses to have the ease of access to hassle-free financing facilities as relying solely on the use of their own funds will be insufficient to sustain and strengthen their businesses.

"It is usually a challenge for new businesses with a lack of financial track records or collaterals to obtain financing for their new business. Therefore, the BizMula-i has been designed to address a current gap for this segment, which is perceived as high-risk borrower.

"The proposed initial portfolio encompasses the first tranche of RM30 million from CGC which may potentially benefit up to 600 new business,” he said when launching BizMula-i today.

He said BizMula-i is the first scheme in CGC's series of initiatives to ensure that the operations of new businesses become successful and there are many more programmes being formulated, adding that over the years CGC has been instrumental in providing an assortment of financing options for SMEs.

"It is imperative that new businesses stay competitive in order to be able to focus on business growth right from the beginning. As such, the BizMula-i will be reasonably priced to assist in the management of cash flows of the SMEs during this vital period of growth.

“At the end of the financing tenure of seven years, some of these businesses might still be deficient of collaterals. Strategically, we will consider financing them under our existing guarantee schemes,’’ he said, adding that via direct financing, CGC will remain on the forefront of addressing the underserved and unleashing the full potential of such businesses in the country.

There are presently about 137,000 active businesses and companies that are in operation for less than three years, thus the need for financing convenience to be availed to them. Most of these businesses are run by those above 35 years old, accounting for 60% of the total SME business composition.

BizMula-i direct financing scheme from CGC is applicable to those aged 21 to 58, with a business license registered in Malaysia under a local authority, and an enterprise that comes under the definition of an SME as stipulated by the National SME Development Council (NCSC). They must be Malaysian-controlled or Malaysian-owned with at least 51% shareholding, and licensed or must have been in operations for less than three years. BizMula-i is directly available for application now at all of CGC’s 16 branches nationwide.

For more information on BizMula-i, please call the Client Service Centre at 03-78800088 or visit www.cgc.com.my.


About CGC

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 2000 branches nationwide to avail financing.

For media enquiries, please contact:


V. Kumaran
Assistant Vice President/Head
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232; HP: 016-638-1747
Email: kumaran@cgc.com.my



 
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CGC AND OCBC AL-AMIN INK COUNTRY’S FIRST SME WHOLESALE GUARANTEE

Kuala Lumpur, 10 April 2014 – Credit Guarantee Corporation Malaysia Berhad (CGC) and OCBC Al-Amin Bank Berhad (OCBC Al-Amin) today inked the country’s first SME wholesale guarantee, marking a milestone in the development of Malaysia’s unsecured business financing efforts.

The Wholesale Guarantee-i (WG-i), involving an initial tranche of RM250 million of OCBC Al-Amin’s existing unsecured SME portfolio, sees the ratio of risk involved in the financing of businesses being shared equally between CGC and OCBC Al-Amin for a guarantee period of 5 years. Previously, the entire risk centred on the Bank.

Commenting on the scheme, CGC’s President and CEO, Datuk Wan Azhar Wan Ahmad said CGC is confident the first-of-its-kind wholesale guarantee would augur well for the development of the unsecured SME financing business in Malaysia.

“CGC recognises the pertinent need to develop more innovative products to drive continual access to financing in line with its mandate to support SME development and creating outreach in a sustainable manner. We are confident that more banks will venture into unsecured financing as it provides a new edge for the banking industry by reducing risk on the books of financial institutions and freeing up capital to allow increased capacity for more SME financing.

“Unlike the existing guarantee schemes offered by CGC whereby the financial institutions decide on the need for the guarantee upfront, here the financial institution would have already underwritten loans based on its own criteria and programme under the WG. The fee charged on WG is relatively low compared to the other schemes offered by CGC and may be easily absorbed by the financial institution,” he said.

He stressed that to enhance the ability to continually provide access to financing, the financial institution can choose to subsequently place such loans into a WG, leveraging on the BASEL benefit accorded to any loans guaranteed by CGC whereby the risk weightage is only 20%.

“This would enable the financial institution to ’free up’ capital whilst at the same time mitigate any unexpected risk. By balancing between the risks and the potential rewards to the provider, we are looking to help this positive trend in the industry to thrive,” Datuk Wan Azhar added.

He said more banks should consider providing innovative financing options as it ensures the ability of the banks to continually lend to SMEs with the benefit of a CGC guarantee.

OCBC Al-Amin became a prime mover of the initiative to make unsecured financing available two years ago when it introduced OCBC Al-Amin Business Cash-i (BC-i) in response to the alarming results of a Department of Statistics study where 55% of respondent SMEs cited lack of collateral as the biggest constraint to obtaining financing.

BC-i, which was introduced in 2012 and has since served over 5,000 customers, is the corporate equivalent of unsecured personal financing and is targeted at SME customers. It allows small and medium size businesses to take up unsecured term financing from as low as RM50,000 to a maximum of RM400,000 and is available at tenures of three to five years with rates as low as 5% per annum.

According to OCBC Al-Amin Director & CEO Syed Abdull Aziz Syed Kechik, BC-i, and thus WG-i, was developed in line with the increasing appetite from SMEs for unsecured term financing to fulfil their short to medium term business financing needs. BC-i signals a marked innovation in Islamic banking as there is currently no conventional banking equivalent.

“Unsecured term financing was pretty much unthinkable in the past. Today we are recognising unsecured financing as a necessity and are pleased to accord this facility to businesses with established track records that can leverage on their sound financial statements. The facility is best suited for capital improvements, capital investments such as machinery and raw materials, and to support business growth where additional working capital is required.

“In general, term financing requires some form of collateral and a relatively rigorous approval process. BC-i is designed to remove these requirements so that worthy businesses have better access to short to medium term financing,” he said.

Elaborating on the merits of BC-i, Syed Abdull Aziz said SME owners, especially, often find themselves in need of additional funding to support continued business growth.

“Now they are able to fulfil this need through a facility that is collateral-free, simple to apply for, fast in terms of turnaround time and convenient,” he said.

Those applying for BC-i can expect approval within a week. Processing fees, CGC guarantees, financial statements, bank statements or statutory documents are not required when applying. In addition, there are no prepayment penalties or lock-in terms.

“We would like to play our part in the government’s plan for SMEs as a significant contributor to the country’s economic growth. The shared risk with CGC certainly aids in our quest to continue to be a long-term player in this space,” Syed Abdull Aziz added.

Those interested to find out more about or BC-i may call 1300 88 7000 or 1300 88 0255.


About CGC

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 2000 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.


For media enquiries:


V. Kumaran
Assistant Vice President/Head
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-7806-2300 ext 232
HP: 016-638-1747
Email: kumaran@cgc.com.my



 




About OCBC Bank

OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. It was ranked by Bloomberg Markets as the world's strongest bank in 2011 and 2012.

OCBC Bank and its subsidiaries offer a broad array of specialist financial and wealth management services, ranging from consumer, corporate, investment, private and transaction banking to treasury, insurance, asset management and stockbroking services.

OCBC Bank’s key markets are Singapore, Malaysia, Indonesia and Greater China. It has a network of over 450 branches and representative offices in 17 countries and territories, including more than 330 branches and offices in Indonesia that are operated by its subsidiary, Bank OCBC NISP.

OCBC Bank's insurance subsidiary, Great Eastern Holdings, is the largest insurance group in Singapore and Malaysia by assets. Its asset management subsidiary, Lion Global Investors, is one of the largest private sector asset management companies in Southeast Asia. Private banking services are provided by subsidiary Bank of Singapore, which continued to gain industry recognition in 2011 including being voted “Outstanding Private Bank in Asia Pacific” in 2013 by Private Banker International.

OCBC Bank offers Islamic banking products and services in Malaysia through its wholly-owned subsidiary, OCBC Al-Amin Bank Berhad.

For more information, please visit www.ocbc.com.my


For media queries, please contact:


Eleanor Danker
Assistant Vice President
Corporate Communications
OCBC Bank (Malaysia) Berhad
Tel: 03 - 2783 3642
Hp: 012 - 259 7349
Fax: 03 - 2693 5694
Email: EleanorD@ocbc.com

Paul Chan
Assistant Vice President
Corporate Communications
OCBC Bank (Malaysia) Berhad
Tel: 03 - 2783 3661
Hp: 012 - 259 6313
Fax: 03-2693 5694
Email: CKChanPaul@ocbc.com

Julius Evanson
Head
Corporate Communications
OCBC Bank (Malaysia) Berhad
Tel: 03 - 2783 3655
Hp: 012 - 243 4348
Fax: 03 - 2693 5694
Email: juliusevanson@ocbc.com


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CGC and DPMM to facilitate Bumiputera SMEs' access to financing

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.

About CGC

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.


For media enquiries:
V. Kumaran
Assistant Vice President (AVP), Corporate Communications
Tel: 03-7806 2300 ext 232
HP: 016-638 1747
Email: kumaran@cgc.com.my
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CGC appoints Dato' Hj. Syed Moheeb Syed Kamarulzaman as Independent Non - Executive Director

Petaling Jaya, 30 Jan - Credit Guarantee Corporation Malaysia Berhad (CGC) is pleased to announce the appointment of Dato’ Hj Syed Moheeb Syed Kamarulzaman as its independent non-executive director recently.

Dato’ Hj Syed Moheeb brings with him vast experience in the area of conventional insurance and takaful as well as Islamic financing. Dato’ Hj Syed Moheeb is a chartered insurance practitioner, an associate of the Malaysian Insurance Institute as well as a Practising Member of the Association of Chartered Islamic Finance Professionals (ACIFP).

His career in the conventional insurance, reinsurance and takaful industry spans 38 years where he has helmed several local and multinational direct insurance and reinsurance companies.

Currently, Dato’ Hj Syed Moheeb is a board member of the Asian Institute of Finance (AIF), the umbrella body of Malaysia’s finance industry’s training institute, and the Malaysian Insurance Institute (MII). He also sits on MII’s Executive Committee.

He is also a member of the Professional Development Panel (PDP) of the International Centre of Education in Islamic Finance (INCEIF), a global university for Islamic Finance, as well as the Academic Quality Assurance Committee (AQAC) of INCEIF and Accreditation Committee of Asian Institute of Finance.

About CGC

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. In the last three (3) years, 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 and since its establishment in 1972. The range of products and services were also expanded to cater to larger credit facilities required by medium-sized SMEs.

CGC’s support for SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, 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 2000 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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1,800 SMEs to be offered fee incentives by CGC

Petaling Jaya, 3 January - Credit Guarantee Corporation Malaysia Berhad (CGC), the leading SME-support institution in the country, will be offering rebates on its guarantee fee to their customers as a reward for timely repayment and good conduct of their loan account.

With the implementation of the rebate incentives, more than 1,800 of CGC borrowers are expected to benefit between 2% to 15% of discount on their annual guarantee fee in 2014. Currently, CGC’s guarantee fee ranges from 0.5% to 5.75% with the average fee of about 3.9% for the unsecured loans.

Borrowers eligible for rebates are those that do not have any adverse record on the existing loan facility with CGC and the loan guarantee should be active for a minimum of one and a half years. The rebate will be made available to eligible customers upon annual review of their account and is applicable to all CGC’s guarantee schemes.

With CGC’s guarantee cover, the SMEs are able to secure financing from RM50,000 to RM10 million from the financial institutions.

“The rebate offered is one of the proactive measures undertaken by CGC to ease the cost of borrowing for the SMEs, in light of the recent overall escalation in the cost of doing business. We have allocated about RM1.7 million worth of rebates for this purpose,” said CGC’s President and Chief Executive Officer, Datuk Wan Azhar Wan Ahmad.

“By rewarding the right customers, we are sending the message that it pays to conduct the loan facility properly and thereby promoting a sound credit culture amongst the SMEs,” added Datuk Wan Azhar.

Datuk Wan Azhar also reiterated that CGC, being in the forefront of SME development, had taken several initiatives in the recent years to address critical issues faced by the SMEs especially with access to financing, cost of borrowing and more importantly, the turnaround time.

“Amongst others, we have forged strategic partnerships with eight (8) leading banks to create not only alternate but also quicker access to financing via the portfolio guarantee scheme,” added Datuk Wan Azhar.  “And to help SMEs cope with the escalating cost of borrowing, we had introduced the ‘blended rate’ formula and ‘risk-adjusted pricing’ mechanisms, which place a capping on the interest rate that the financial institutions (FIs) may levy on loans guaranteed by CGC and to rate a borrower according to their individual risk profile, respectively.”

In 2014, CGC is targeting to provide RM 2.7 billion of financing benefitting about 5,600 SMEs by focusing on four main segments namely the Start Ups, Bumiputera entreprenuers, new growth sectors and Syariah-based financing.

About CGC

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. In the last three (3) years, 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 SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, 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 2000 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.

 

For media enquiries:
V. Kumaran
Head, Corporate Communications
Tel: 03-7806 2300 ext 232
HP: 016-638 1747
Email: kumaran@cgc.com.my"
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CGC repays RM700 million loan to Bank Negara Malaysia

Petaling Jaya, Tues - Credit Guarantee Corporation Malaysia Berhad (CGC), the leading credit guarantee institution for small and medium enterprises (SMEs), had been successful in administrating several government-funded schemes including the SME Assistance Facility (SAF) and SME Modernisation Facility.

The SAF and SMF were aimed at assisting SMEs that were facing financial difficulties to manage temporary cash flow problems due to rising cost as well as to modernise their operations for better efficiency and increased productivity during the economic slowdown in 2008-2009. A total of RM850 million loan was extended by Bank Negara Malaysia to CGC to implement SAF and SMF. These schemes were successful in meeting its intended objectives with a total of 4,928 SMEs benefitting from the scheme through financing totaling RM1.08 billion.

Recently, CGC had successfully paid RM700 million, being the first tranche of the loan repayment to Bank Negara Malaysia.

"The repayment of the loan reflects CGC’s growing financial strength and its strong ability to meet its SME loan targets and operation. The payment of RM700 million has been planned for as per the agreed terms of the loan," said CGC’s Managing Director Datuk Wan Azhar Wan Ahmad.

He also added that the repayment will not impact CGC’s reserves and its’ capability to continue with its primary role of providing credit guarantees to the SMEs in the future. “CGC will continue to expand its developmental role while staying focused on achieving its financial sustainability agenda,” added Datuk Wan Azhar.

In 2014, CGC has targeted to provide RM2.75 billion of financing to about 5,600 SMEs.

About CGC

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. In the last three (3) years, 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 SME’s 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 SME’s 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 Entreprenuer Project Fund (TPUB-i) with a total allocation of RM3.5 billion and RM300 million respectively. To date, 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 2000 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.

For media enquiries:

V. Kumaran
Head, Corporate Communications
Tel: 03-7806 2300 ext 232
HP: 016-638 1747
Email: kumaran@cgc.com.my
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Standard Chartered Saadiq & CGC roll out first Islamic Portfolio Guarantee scheme for SMEs

KUALA LUMPUR, 21 November 2013 - Standard Chartered Saadiq Berhad (Saadiq) today sealed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide financing to small and medium enterprises (SMEs) with the launch of the country’s first Islamic Portfolio Guarantee (PG) scheme.

Saadiq, a wholly-owned Islamic banking subsidiary of Standard Chartered Bank Malaysia is the first Islamic bank to enter into such agreement with CGC, as it aims to provide a comprehensive range of Syariah compliant solutions and help businesses grow.

The Islamic PG scheme is a term financing facility that offers financing from RM100,000 up to RM800,000 with flexible financing tenure of between 36 and 84 months. With RM200 million to be offered under the new agreement, about 400 SMEs are expected to benefit from the scheme within the next one year.

“We believe that the Islamic-based PG will provide various benefits to the industry as it provides a viable alternative to those SMEs that prefer Syariah-compliant banking to obtain greater access to financing. It will certainly contribute to further growth and development of Islamic financing in Malaysia,” said CGC’s Managing Director Datuk Wan Azhar Wan Ahmad.

“We remain committed in addressing the unique banking needs of SMEs especially those that are marginal but potentially viable by providing innovative financial solutions and alternate avenues to gain access to financing of their choice,” added Datuk Wan Azhar.

“SME is one of the fastest growing segments in Islamic finance. For Saadiq, as we focus on offering a comprehensive product suite, the roll out of this Islamic PG scheme for SMEs which is the country’s first demonstrates our commitment to this vital and growing segment which is the backbone of many economies worldwide,” said Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank.

The agreement was signed by CGC’s Head of Business Development Ms. Kristine Ng Wei Miem and Mr. Wasim Saifi, CEO, Standard Chartered Saadiq & Global Head, Islamic Consumer Banking, Standard Chartered Bank and witnessed by CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad at a signing ceremony today.

Under the agreement, CGC guarantees 70 per cent of the approved total principal amount undertaken by SMEs and assists to verify the credibility of applicants in consultation with Saadiq.

The scheme enables SMEs to gain quicker access to financing with speedier turnaround time in terms of approval and disbursement as applications are evaluated for eligibility based on a pre-determined and simplified set of criteria.

SMEs have the advantage of transacting the trading process with aqad or contract process via Short Messaging Service (SMS) upon acceptance with speedy full financing disbursement within three days. The Bank also benefits from certainty of a pre-determined guarantee cover percentage for the amount that is agreed upon giving it higher level of confidence in granting financing to the SMEs.

Prior to the launch of the Islamic PG scheme, RM500 million of financing has been made available via the conventional PG scheme in partnership with CGC benefiting about 2000 SMEs.

The Islamic PG Scheme is available at all Saadiq and Standard Chartered Bank branches nationwide.

 

###


For media enquiries, please contact:


CGC Malaysia Berhad
V. Kumaran
Head, Corporate Communications,
Tel: +603 7806 2300 ext 232
HP: +6016-638 1747
Email: kumaran@cgc.com.my

Standard Chartered Bank
Ahmad Ridzuan Samsudin (Reed)
Head, Business Communications
Corporate Affairs Malaysia
Tel: +603 2117 7821
HP: +6017 252 9606
Email: ridzuan.samsudin@sc.com



 

Note to Editors

About CGC

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 RM51 billion since its establishment.

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns around 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.

With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities to over 88,000 staff. It is committed to building a sustainable business over the long term and upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered’s heritage and values are expressed in its brand promise, ‘Here for good’.

For further information please visit standardchartered.com. Follow Standard Chartered on facebook.com/standardchartered and on Twitter@StanChart.

Standard Chartered in Malaysia

Standard Chartered Bank, a member of the Standard Chartered Group was established in Malaysia in 1875 and incorporated as Standard Chartered Bank Malaysia Berhad on 29 February 1984. As Malaysia’s first bank, Standard Chartered leads the way through product innovation, consistent and strong growth performance and sustainability initiatives. The Bank’s two businesses - Wholesale and Consumer Banking – provides a comprehensive range of financial products and services to corporates, institutions, small and medium-sized enterprises and individuals through its network of 42 branches across Malaysia.

In 2001, Standard Chartered UK established its third global technology & operations centre, Scope International, in Malaysia – the first international bank to do so in the country. Scope International provides software development, banking operations, IT support services and customer service capabilities to the Bank in up to 70 countries. It now houses the biggest software development company in the country, International Software Centre Malaysia (ISCM) and has a total workforce of more than 3,200 people.

Price Solutions Sdn Bhd, a wholly owned subsidiary of Standard Chartered Bank UK is also located in Malaysia. The company promotes and markets Standard Chartered’s financial products in Malaysia through a network of direct sales agents.

Standard Chartered Saadiq Berhad, Standard Chartered Bank Malaysia’s Islamic Banking subsidiary was established in November 2008. It offers a full suite of Syariah-compliant products and services to individuals and corporates through its Saadiq branches.

Standard Chartered employs close to 7,000 employees in all its Malaysian operations.
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Book on CGC's contribution to SME growth launched

Kuala Lumpur, 21 June - In conjunction with its 40th anniversary, the Credit Guarantee Corporation Malaysia Berhad (CGC) launched its book entitled 'Catalysing SME Growth.' The book was officially launched by Y.Bhg Dato' Muhammad bin Ibrahim, the Deputy Governor of Bank Negara Malaysia.

The book 'Catalysing SME Growth' is aimed at creating a better understanding of its role amongst its stakeholders in particular the SMEs. It documents CGC's role in promoting the growth and development of small and medium enterprises (SMEs) through its guarantee schemes over the last 40 years.

CGC initiated the documentation of its 40 years journey to share with all its stakeholders the compelling story of the first fully dedicated SME-support institution in the country that had shaped the SME sector landscape of Malaysia to a significant extent.

"CGC was established against the backdrop of Malaysian economy that was heavily reliant on volatile primary commodities such as rubber and tin. It was during a period of great disparities in income distribution amongst the populace notwithstanding the problems of poverty and unemployment," said CGC's Chairman Dato' Md Agil Bin Mohd Natt.

"A new development strategy was unveiled under the Second Malaysia Plan (1971-1975) aimed at alleviating the problems of poverty, unemployment and economic disparities. It was within this economic environment with the country poised for economic restructuring that CGC was established," added Dato' Md Agil.

Incorporated on 5th July 1972 with an authorised capital of RM20 million and paid-up capital of RM2.5 million, CGC's mandated role was clearly defined to assist marginal but potentially viable SMEs in obtaining credit facilities from the financial institutions.

In its formative years, CGC as a developmental financial institution played a socio-economic role in supporting the country's economic development agenda. It complemented the banks in financing the SMEs in the agricultural, commercial and industrial sectors with small loans ranging from RM5,000 to RM75,000. It approved close to RM12 million of loans in its first year of operation as opposed to an average of RM3.0 billion currently.

"CGC, a Bank Negara Malaysia initiative, was inspired by similar bodies that were set up by the World Bank and central banks around the world which had been successful in helping to improve the accessibility to financing by businesses," said Dato' Md Agil.

In the introductory message of the book, the Governor of Bank Negara Malaysia, Tan Sri Dr. Zeti said that the Credit Guarantee Corporation is a key institutional arrangement in facilitating greater access to financing by the SMEs. By providing guarantee to loans obtained by SMEs, CGC addresses one of the main constraints of SMEs, that is, the lack of collateral.

Tan Sri Dr. Zeti also noted that CGC has functioned as a key enabler in supporting the growth of SME financing. By being the link between financial institutions and SMEs, CGC has developed a deep and broad knowledge on the business challenges and the needs of SMEs and is well-positioned to leverage on its existing linkages with the SME community.""

"BNM, as the largest shareholder of CGC, is committed to ensuring that CGC continues to play an effective role in assisting viable SMEs with inadequate collateral and track record through enhancing SMEs' access to financing," said Tan Sri Dr. Zeti.

CGC had managed 42 guarantee schemes tailored to suit the specific needs of the SMEs in every sector of the economy and consistently been looking out for innovative ways to improve SMEs outreach especially in the financing of smaller businesses. To date, CGC has guaranteed a total of RM51.4 billion of loans benefitting more than 420,000 SMEs.

"CGC is more commercially oriented these days which BNM believes is crucial for CGC to maintain its financial sustainability while performing its developmental role effectively," said CGC's Managing Director, Datuk Wan Azhar Wan Ahmad.

The book launch which was held at Sasana Kijang, Bank Negara Malaysia was attended by about 400 guests who consist of BNM officials, CEOs of financial institutions, CGC's past and present Board of Directors and senior management, representatives of the Associations of banks in Malaysia, financial institutions, Government agencies, the business and trade chambers.

 

About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and all commercial banks. CGC has 16 branches nationwide which were established since year 2000. 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. To date, CGC has been instrumental in the establishment of more than 420,000 SMEs, guaranteeing close to RM51.4 billion.

For media enquiries:

V. Kumaran
Head, Corporate Communications
Tel: 03-7806 2300 ext 232
E-mail: kumaran@cgc.com.my
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ADFIAP to Advance Sustainable Businesses

Ulaanbaatar, 23 May - The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) is hosting its 36th Annual Meeting in Ulaanbatar, Mongolia from 22-24 May 2013. The 3-days meeting themed "DFI's and Chamber of Commerce and Industry: Advancing Sustainable Businesses" is hosted by the Mongolian National Chamber of Commerce and Industry (MNCCI).

The annual meeting officiated by the Prime Minister of Mongolia, His Excellency Norovyn Altankhuyag is chaired by ADFIAP's chairman Datuk Wan Azhar Wan Ahmad who is also the Managing Director of Credit Guarantee Corporation Malaysia Berhad(CGC).

In his opening remarks, Datuk Wan Azhar said that the synergistic public-private sector partnership between the development finance institutions (DFIs) and business organizations should be strengthened further as both play a critical role in achieving a sustainable future.

"When we talk about sustainable future, we really need to understand what sustainable development is all about. It embraces the triple line of sustainability, that is the economic, environmental and social as well as anticipates and addresses major trends such as climate change, natural resource depletion, food scarcity and urban expansion," said Datuk Wan Azhar.

"Sustainability is about enhancing the quality of growth to help especially developing countries to move and remain on a development path that reduces poverty and meets the needs of people today without reducing the ability of future generations to meet their goals," added Datuk Wan Azhar.

Datuk Wan Azhar said that in the present day, public-private partnership are increasingly seen by governments, aid organizations and the international community as the most excellent way to leverage resources to meet critical infrastructure and security needs. This will also allow governments to benefit from private sector initiatives, entrepreneurship and financing to increase capacity and efficiency.

He also reiterated that the DFIs, with its mandate of providing access to financial and support services for the underserved, priority and strategic sectors of the economy, and the Chambers of Commerce and Industry with its role as the focal point and voice of private sector, can jointly undertake economic, social and environmental development initiatives to help expand and sustain national growth and prosperity.

"It is in this context that we have chosen 'DFIs & Chambers of Commerce & Industry: Advancing Sustainable Businesses' as the theme for this edition of our annual meeting,î said Datuk Wan Azhar. 'This theme is in recognition of the synergistic public-private partnership of business organizations and the development finance institutions under ADFIAP."

He further added that this is the first time that the DFIs and the Chambers of Commerce and Industry in the ADFIAP community are joining together to enhance cooperation and explore new opportunities for the advancement of business sustainability.

Institutions like ADFIAP that are advocates of sustainable development, believe that meeting the needs of the future depends on how well they balance the social, economic and environmental objectives or needs when making decisions.

'ADFIAP member institutions use development finance as an instrument in pursuing their sustainable development mandates by taking the dimensions or aspects of sustainability plus good governance as the four pillars of ADFIAP's sustainable mission,î added Datuk Wan Azhar. The three days meeting features sessions, debates and discussions on sustainable businesses, best practices on SME promotion and development, microfinance and financial inclusion, innovative and sustainable business practices, green investments in infrastructure and energy, governance and CSR, and the role of chamber of commerce and industries in economic and business development as well as global economic trend and challenges.

Other programmes include the 77th Board of Directors Meeting, the 20th Ordinary Meeting of the General Assembly, the ADFIAP Awards 2013, the Conference Proper, the Delegates-meet-Delegates session as well as Shared Interest Group Seminars.

At the welcome reception and awards night held last evening, Datuk Wan Azhar was bestowed the coveted 'Silk Road Award' in recognition of his contribution towards the banking community for SME development. The award was presented on behalf of the Mongolian National Chamber of Commerce and Industry (MNCCI) by Mr. S. Demberel, the chairman and CEO of MNCCI and a member of Parliament of Mongolia.

About 100 ADFIAP's delegates comprising of chief executives and senior management of DFIs, officials of supervisory authorities and government agencies, central banks, Ministries of Finance, commercial banks and multinational corporations from all over Asia and the Pacific nation and from the Chambers of Commerce and Industry are attending the 36th Annual Meeting.

Besides CGC, other Malaysian DFIs participating in this meeting are Agro Bank, BSN, Perbadanan Nasional Bhd (PNS), SME Bank and TEKUN Nasional.

 

About ADFIAP

The ADFIAP (Associations of Development Financing Institutions in Asia and the Pacific) was established in 1976 by the development financing institutions (DFIs) in the Asian and Pacific region under the auspices of the Asian Development Bank (ADB). ADFIAP currently has 131 member-institutions in 45 countries and territories. Malaysia has 10 institutions who are members of ADFIAP.

ADFIAP is also a founding member and secretariat of the 320-member, 106-country, World Federation of Development Financing Institutions (WFDFI) composed of similar regional associations in Africa, Latin America and the Middle East. ADFIAP is an NGO in consultative status with the United Nation's Economic and Social council (UN ECOSOC) with its headquarters in Manila, Philippines.
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Signing Ceremony CGC & Alliance Bank

SIGNING CEREMONY CGC & ALLIANCE BANK
JOINT PRESS RELEASE

13 MARCH 2013

ALLIANCE BANK AND CGC PARTNERS

TO ENHANCE ACCESS TO FINANCING FOR SMALLER SMEs

Kuala Lumpur, 13 March - Alliance Bank Malaysia Berhad (Alliance Bank) today signed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide easier access to financing for small and medium enterprises (SMEs) on a portfolio guarantee basis.

Starting with an initial tranche size of RM50 million, the portfolio guarantee aims to assist the small businesses by providing loans for working capital as well as asset acquisition. CGC, a leading credit guarantee provider in the country, will be providing 70% guarantee cover of the approved total principal amount undertaken by SMEs and will assist to verify the credibility of the applicants in consultation with Alliance Bank.

The minimum loan quantum under this portfolio guarantee is RM100,000 and the maximum RM300,000 per SME customer at a fixed loan tenor of five years. Applications may be made at any Alliance Bank branch nationwide.

"Based on our interaction with the SME community, we understand that in a competitive business environment, timing is vital to any SME. Businesses have to continuously evolve and adapt to the ever changing business demands and can no longer delay the implementation of their business plans. The launch of this portfolio guarantee scheme is to help the smaller businesses gain Quick, Easy and Convenient financial assistance to grow their businesses, explained Steve Miller, Head of Business Banking, Alliance Bank.

"Having witnessed the success of our first portfolio guarantee with CGC via our Small Biz Express Scheme, we felt it is timely to enhance the programme and explore its potential to serve the SME community better, said Miller.

"The SME segment remains a core focus for Alliance Bank and we take great initiatives in providing SMEs with the necessary support needed to growth their businesses. In line with our vision to be "The Best SME Bank in Malaysia, the Bank has further enhanced our relationship management model and has recently introduced innovative financial products for the SME segment such as the MyBusiness Platinum Card and the BizSmart Onling Banking. In addition to the Bankís complete suite of product offerings for businesses of all sizes, exclusive business seminars have been scheduled for Alliance Bank SME customers to continuously assist them in growing their businesses to greater heights. Miller further elaborated.

"CGC has always been committed towards innovation not only in enhancing access to financing but also in addressing the main issues faced by these SMEs who generally lack collaterals and credit track record, said CGCís Managing Director Datuk Wan Azhar Wan Ahmad. The portfolio guarantee scheme essentially provides these SMEs an avenue to strengthen their credit worthiness and also build a credible track record which in the longer term would enable them to negotiate for larger facilities on a favorable term.

"With pre-determined eligibility criteria, CGC has been able to provide approvals within three days upon receipt of the application from the participating financial institutions. The current approval rate is almost 90%, which is relatively higher compared with our other schemes due to the efficiency of the process flow, said Datuk Wan Azhar .

"With Alliance Bank on board, we are looking forward to leveraging on their SME experience and wider network to further enhance and speed up SMEís access to financing, added Datuk Wan Azhar.

He further explained that about 2,700 SMEs have benefitted from CGCís strategic partnership on portfolio guarantee with five financial institutions since 2009.

"With five financial institutions already on board, we are optimistic that there will be keen interest now from other financial institutions on our portfolio guarantee resulting in greater access to financing for the viable and deserving SMEs, added Datuk Wan Azhar.

SMEs wishing to gain more information on the portfolio guarantee may call CGCís Client Service Centre at 03-78800088 or Alliance Bankís Customer Service Centre at 03-5516 9988, or visit the nearest Alliance Bankís branch.

-- END -
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18th Top SME Supporter Awards Ceremony

18th Top SME Supporter Awards ceremony
Press Release

7 May 2013

CGC Honours three Leading Banks for SME Financing

Petaling Jaya, 7 May - Credit Guarantee Corporation Malaysia Berhad (CGC) today honoured three leading financial institutions for their significant contributions towards SME financing in 2012. The awards were presented by CGC's Chairman, Dato' Sri Abdul Hamidy Abdul Hafiz at its 18th Top SME Supporter Awards ceremony held at CGC's headquarters in Petaling Jaya.

The winners of CGC's Top SME Supporter Award under the commercial banks category were Maybank, Public Bank and Standard Chartered Bank. The Top Bumiputera SME Supporter Award, which recognises financial institutions that had contributed the most financing to Bumiputera entrepreneurs was won by Maybank. CGC had also bestowed the coveted Best Financial Partner Award to Maybank in recognition of the commendable efforts and contribution towards its asset quality.

Overall, Maybank has won three awards namely the Top SME Supporter, Top Bumiputera SME Supporter and the Best Financial Partner. In terms of contribution to loans growth, Maybank contributed 11.3% of the RM1.1 billion loans guaranteed by CGC in 2012 with all award recipients accounting for 25%.

The award recipients were selected based on a set of criteria determined by CGC which include amongst others, the number and value of loans guaranteed, loans growth as well as net income growth and rate of default. To date, 23 commercial and Islamic banks as well as development financial institutions have received CGC's Top SME Supporter awards since it was first introduced in 1996.

"The contribution of our banking partners has had a great impact on our SME outreach as we were able to leverage on their extensive branch network to serve many of the marginal but potentially bankable SMEs with viable business across all sectors," said CGC's Managing Director Datuk Wan Azhar Wan Ahmad.

Datuk Wan Azhar added further that CGC had forged new alliances with banking partners to offer innovative financing options and delivery channels to enhance SMEs access to financing. "We have forged strategic alliances with five banks to offer our innovative portfolio guarantee scheme that has proven to be a cost-effective and efficient delivery system as the turnaround time is faster with approval rate of nearly 90%."

Currently, five banks namely Standard Chartered, Public Bank, OCBC Bank, RHB Bank and Alliance Bank are active participants in CGC's portfolio guarantee scheme. To date, CGC has offered about RM700 million of financing to more than 2,700 SMEs since inception of this scheme in 2009.

"Besides improving our products and delivery system, we are also assisting the SMEs to establish a credit history and track record to improve on their bankability for greater financial access." added Datuk Wan Azhar. "With credit ratings, SMEs are able to obtain funds based on their own merit, an ultimate strategic outcome for CGC as it could focus more on marginal and potentially viable SMEs. As at 2012, about 36% (110,000) of our borrowers have ëgraduated' successfully from the guarantee schemes."

In 2012, about 63% of the loans guaranteed by CGC were availed through two of its main schemes namely the Credit Enhancer Scheme (ENHANCER) and Direct Access Guarantee Scheme (DAGS) and through the .Green Technology Financing Scheme (GTFS), a government funded scheme which has a fund allocation of RM3.5 billion. As at April 2013, CGC had approved 71 applications under GTFS valued close to RM900 million.

Datuk Wan Azhar also stressed that there has been a significant increase in the quality of loans based on its provision for claims on loans guaranteed in 2012. "This is primarily due to improved management of our loan quality which included several proactive and preemptive measures we have undertaken to address potentially delinquent loans, as well as the assistance on loan restructuring and rescheduling of repayments extended to distressed borrowers."

About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and all commercial banks. CGC has 16 branches nationwide which were established since year 2000. 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. To date, CGC has been instrumental in the establishment of more than 420,000 SMEs, guaranteeing close to RM51.4 billion.

For media enquiries:

V. Kumaran

Head, Corporate Communications

Tel: 03-7806 2300 ext 232

HP: 016-638-1747

E-mail: kumaran@cgc.com.my
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CGC Honours three leading banks for SME financing

Petaling Jaya, 7 May – Credit Guarantee Corporation Malaysia Berhad (CGC) today honoured three leading financial institutions for their significant contributions towards SME financing in 2012. The awards were presented by CGC's Chairman, Dato' Sri Abdul Hamidy Abdul Hafiz at its 18th Top SME Supporter Awards ceremony held at CGC's headquarters in Petaling Jaya.

The winners of CGC's Top SME Supporter Award under the commercial banks category were Maybank, Public Bank and Standard Chartered Bank. The Top Bumiputera SME Supporter Award, which recognises financial institutions that had contributed the most financing to Bumiputera entrepreneurs was won by Maybank. CGC had also bestowed the coveted Best Financial Partner Award to Maybank in recognition of the commendable efforts and contribution towards its asset quality.

Overall, Maybank has won three awards namely the Top SME Supporter, Top Bumiputera SME Supporter and the Best Financial Partner. In terms of contribution to loans growth, Maybank contributed 11.3% of the RM1.1 billion loans guaranteed by CGC in 2012 with all award recipients accounting for 25%. The award recipients were selected based on a set of criteria determined by CGC which include amongst others, the number and value of loans guaranteed, loans growth as well as net income growth and rate of default. To date, 23 commercial and Islamic banks as well as development financial institutions have received CGC's Top SME Supporter awards since it was first introduced in 1996.

"The contribution of our banking partners has had a great impact on our SME outreach as we were able to leverage on their extensive branch network to serve many of the marginal but potentially bankable SMEs with viable business across all sectors," said CGC's Managing Director Datuk Wan Azhar Wan Ahmad.

Datuk Wan Azhar added further that CGC had forged new alliances with banking partners to offer innovative financing options and delivery channels to enhance SMEs access to financing. ""We have forged strategic alliances with five banks to offer our innovative portfolio guarantee scheme that has proven to be a cost-effective and efficient delivery system as the turnaround time is faster with approval rate of nearly 90%."

Currently, five banks namely Standard Chartered, Public Bank, OCBC Bank, RHB Bank and Alliance Bank are active participants in CGC's portfolio guarantee scheme. To date, CGC has offered about RM700 million of financing to more than 2,700 SMEs since inception of this scheme in 2009.

"Besides improving our products and delivery system, we are also assisting the SMEs to establish a credit history and track record to improve on their bankability for greater financial access." added Datuk Wan Azhar. "With credit ratings, SMEs are able to obtain funds based on their own merit, an ultimate strategic outcome for CGC as it could focus more on marginal and potentially viable SMEs. As at 2012, about 36% (110,000) of our borrowers have ‘graduated' successfully from the guarantee schemes."

In 2012, about 63% of the loans guaranteed by CGC were availed through two of its main schemes namely the Credit Enhancer Scheme (ENHANCER) and Direct Access Guarantee Scheme (DAGS) and through the .Green Technology Financing Scheme (GTFS), a government funded scheme which has a fund allocation of RM3.5 billion. As at April 2013, CGC had approved 71 applications under GTFS valued close to RM900 million.

Datuk Wan Azhar also stressed that there has been a significant increase in the quality of loans based on its provision for claims on loans guaranteed in 2012. "This is primarily due to improved management of our loan quality which included several proactive and preemptive measures we have undertaken to address potentially delinquent loans, as well as the assistance on loan restructuring and rescheduling of repayments extended to distressed borrowers."

 

About CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and all commercial banks. CGC has 16 branches nationwide which were established since year 2000. 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. To date, CGC has been instrumental in the establishment of more than 420,000 SMEs, guaranteeing close to RM51.4 billion.

 

For media enquiries:

V. Kumaran
Head, Corporate Communications
Tel: 03-7806 2300 ext 232
HP: 016-638-1747
E-mail: kumaran@cgc.com.my
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Alliance Bank and CGC partners to enhance access to financing for smaller SMEs

Kuala Lumpur, 13 March - Alliance Bank Malaysia Berhad (Alliance Bank) today signed an agreement with Credit Guarantee Corporation Malaysia Berhad (CGC) to provide easier access to financing for small and medium enterprises (SMEs) on a portfolio guarantee basis.

Starting with an initial tranche size of RM50 million, the portfolio guarantee aims to assist the small businesses by providing loans for working capital as well as asset acquisition. CGC, a leading credit guarantee provider in the country, will be providing 70% guarantee cover of the approved total principal amount undertaken by SMEs and will assist to verify the credibility of the applicants in consultation with Alliance Bank.

The minimum loan quantum under this portfolio guarantee is RM100,000 and the maximum RM300,000 per SME customer at a fixed loan tenor of five years. Applications may be made at any Alliance Bank branch nationwide.

"Based on our interaction with the SME community, we understand that in a competitive business environment, timing is vital to any SME. Businesses have to continuously evolve and adapt to the ever changing business demands and can no longer delay the implementation of their business plans. The launch of this portfolio guarantee scheme is to help the smaller businesses gain Quick, Easy and Convenient financial assistance to grow their businesses,"" explained Steve Miller, Head of Business Banking, Alliance Bank.

"Having witnessed the success of our first portfolio guarantee with CGC via our Small Biz Express Scheme, we felt it is timely to enhance the programme and explore its potential to serve the SME community better," said Miller.

"The SME segment remains a core focus for Alliance Bank and we take great initiatives in providing SMEs with the necessary support needed to growth their businesses. In line with our vision to be ""The Best SME Bank in Malaysia", the Bank has further enhanced our relationship management model and has recently introduced innovative financial products for the SME segment such as the MyBusiness Platinum Card and the BizSmart Onling Banking. In addition to the Bank's complete suite of product offerings for businesses of all sizes, exclusive business seminars have been scheduled for Alliance Bank SME customers to continuously assist them in growing their businesses to greater heights." Miller further elaborated.

"CGC has always been committed towards innovation not only in enhancing access to financing but also in addressing the main issues faced by these SMEs who generally lack collaterals and credit track record, ""said CGC's Managing Director Datuk Wan Azhar Wan Ahmad. "The portfolio guarantee scheme essentially provides these SMEs an avenue to strengthen their credit worthiness and also build a credible track record which in the longer term would enable them to negotiate for larger facilities on a favorable term."

"With pre-determined eligibility criteria, CGC has been able to provide approvals within three days upon receipt of the application from the participating financial institutions. The current approval rate is almost 90%, which is relatively higher compared with our other schemes due to the efficiency of the process flow,"" said Datuk Wan Azhar .

"With Alliance Bank on board, we are looking forward to leveraging on their SME experience and wider network to further enhance and speed up SME's access to financing,"" added Datuk Wan Azhar.

He further explained that about 2,700 SMEs have benefitted from CGC's strategic partnership on portfolio guarantee with five financial institutions since 2009.

"With five financial institutions already on board, we are optimistic that there will be keen interest now from other financial institutions on our portfolio guarantee resulting in greater access to financing for the viable and deserving SMEs," added Datuk Wan Azhar.

SMEs wishing to gain more information on the portfolio guarantee may call CGC's Client Service Centre at 03-78800088 or Alliance Bank's Customer Service Centre at 03-5516 9988, or visit the nearest Alliance Bank's branch.




About Alliance Bank Malaysia Berhad

Alliance Bank Malaysia Berhad is a dynamic, integrated banking group offering end-to-end banking and financial solutions through its consumer banking, business banking, Islamic banking, investment banking and stock broking businesses as well as unit trust and asset management, having served the financial community over the past five decades.

The banking group is involved in the provision of financial services through its principal subsidiaries, Alliance Bank Malaysia Berhad, Alliance Investment Bank Berhad, Alliance Investment Management Berhad and Alliance Islamic Bank Berhad. It provides easy access to its broad base of customers throughout the country via multi-pronged delivery channels which include retail branches, Privilege Banking Centres, Islamic Banking Centres, Business Centres, Investment Bank branches, direct marketing offices and unit trust agent offices located nationwide, as well as mobile and Internet banking.

About CGC

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 RM51 billion since its establishment.

For media enquiries:







V. Kumaran
Head, Corporate Communications , CGC
Tel: 03-7806 2300 ext 232
HP: 016-638-1747
Email: kumaran@cgc.com.my
Ms. Agnes Ong
Assistant Vice President
Group Communications
Alliance Bank Malaysia Berhad
Tel: 03-2604-3378 / 012-672-4245
Email: agnesong@alliancefg.com
"