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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 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 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 [email protected] 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: [email protected]         Email: [email protected]      Email: [email protected]

 

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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, [email protected]).

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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 [email protected] 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:
[email protected]                          

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: [email protected]      Email: [email protected]

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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: [email protected]

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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: [email protected]

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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: [email protected]

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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: [email protected]

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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: [email protected]

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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: [email protected]


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: [email protected]
Paul Chan
Assistant Vice President
Corporate Communications
OCBC Bank (Malaysia) Berhad
Tel: 03 – 2783 3661
Hp: 012 – 259 6313
Fax: 03-2693 5694
Email: [email protected]
Julius Evanson
Head
Corporate Communications
OCBC Bank (Malaysia) Berhad
Tel: 03 – 2783 3655
Hp: 012 – 243 4348
Fax: 03 – 2693 5694
Email: [email protected]
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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: [email protected]

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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: [email protected]

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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: [email protected]

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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: [email protected]
Standard Chartered Bank
Ahmad Ridzuan Samsudin (Reed)
Head, Business Communications
Corporate Affairs Malaysia
Tel: +603 2117 7821
HP: +6017 252 9606
Email: [email protected]

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 [email protected]

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: [email protected]

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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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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: [email protected]

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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: [email protected]

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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: [email protected]
Ms. Agnes Ong
Assistant Vice President
Group Communications
Alliance Bank Malaysia Berhad
Tel: 03-2604-3378 / 012-672-4245
Email: [email protected]

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Top SMI Supporter Award 2009

CGC recognises Banks

for their contribution to SME Financing



Petaling Jaya, 1 June ñ Four leading commercial banks and one Islamic bank were awarded the Top SMI Supporter Award in recognition of their significant financing of the SME sector in 2009 through Credit Guarantee Corporation Malaysia Berhadís (CGC) credit guarantee schemes. The awards were presented by Bank Negara Malaysiaís Deputy Governor-cum-CGCís Chairman Datoí Zamani Abdul Ghani at the Top SMI Supporter Award presentation ceremony held in conjunction with CGCís 37th Annual General Meeting on 1 June 2010.


The recipients of CGCís Top SMI Supporter Award for 2009 were Maybank, Public Bank, RHB Bank and CIMB Bank under the Commercial Banks category while Bank Islam was recognised under the Islamic Bank category. Maybank also won the coveted Best Financial Partner award that recognises the bank that contributed the most towards CGCís quality assets.


The award recipients, who were selected based on a set of criteria determined by the Corporation which include, amongst others, the number and value of loans guaranteed, loans growth as well as number and value of loans to Bumiputera borrowers, contributed 51% of the total loans guaranteed by CGC during 2009.


ìTheir active participation in CGCís guarantee schemes augurs well for the CGC-banksí partnership in SME development and for the SMEs in terms of their access to financing,î said Datoí Zamani Abdul Ghani.


In 2009, CGC guaranteed a total of RM3.1 billion to more than 14,000 SMEs.


ìConsidering that a large cross section of the SMEs faced difficulties sustaining their business operations due to the economic downturn and weak domestic demand in 2009, CGC focused on improving SMEs access to financing, speedier processing and disbursement of loans as well as reasonable cost of borrowing. This resulted in 35% increase in SME outreach, increasing from 8,500 SMEs in 2008 to more than 14,000 SMEs in 2009,î added Datoí Zamani.


He also added that CGC actively participated in Bank Negara Malaysia-initiated SME Assistance Guarantee Scheme, a RM2 billion fund launched in January 2009 to assist SMEs that faced difficulties in gaining access to financing. As at end December 2009, it had guaranteed a total of 8,955 SMEs valued at RM1.8 billion.


The Corporation had also implemented a revised pricing structure for its guarantee schemes with the support of the participating financial institutions. ìThis is to ensure that borrowers enjoy a more equitable interest/profit rates for financing which are ëcollateralisedí in the form of guarantees from the Corporation,î added Datoí Zamani. ìGreater focus is also being given to developing products that facilitate faster turnaround time and disbursement of loans.î


Datoí Zamani also called for greater participation from the financial institutions in the Green Technology Financing Scheme (GTFS) that was launched by the Government in January 2010 with a fund allocation of RM1.5 billion. CGC is one of the two implementation agencies appointed by the Government to manage the financing scheme that provides funding to users and suppliers of green technology. CGC provides 60% guarantee cover or RM900 million of total GTFS financing.


ìThe active participation of financial institutions is critical for the success of the Green Technology Financing Scheme,î stressed Datoí Zamani.

01-Jun-2010 18:54:40 PM

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CGC step up efforts to promote GTFS

CGC step up efforts to promote Green Technology Financing Scheme

Kuala Lumpur, Wed – Credit Guarantee Corporation Malaysia Berhad (CGC) today announced that it was in partnership with CIMB Bank to promote the Green Technology Financing Scheme (GTFS) to producers and users of this environmental friendly technology.

CGC, one of the two implementation agencies, is spearheading the marketing and promotion of GTFS including forging strategic alliance with CIMB Bank. CIMB Bank, the second biggest lender based on asset, is willing to provide up to RM150 million in financing for the GTFS. Meanwhile, CGC is committed to a three-day turnaround time to process GTFS applications received from CIMB Bank.

ìWe are confident that this three-day turnaround commitment would help to further expedite the approval and disbursement of the funds to borrowers, a special arrangement that we have made with CIMB Bank in view of their participation in supporting the GTFS, the first bank to do so in Malaysia,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad..


ìCIMB Bank’s participation in this scheme demonstrates the bankís confidence in the potential of this relatively new sector,î added Datuk Wan Azhar.


CGC, the leading credit guarantee provider, has been mandated to provide 60% guarantee to borrowers of GTFS, effectively covering RM900 million out of the total RM1.5 billion established by the Government to improve the supply and utilisation of green technology. The remaining 40% financing risk shall be borne by the participating financial institutions (PFIs).


The producers of green technology can avail financing of up to RM50 million whereas users, a maximum of RM10 million. The financing tenure is up to 15 years and 10 years for producers and users respectively.


Borrowers are charged an annual guarantee fee of 0.5% for GTFS, a small percentage compared to fees charged for other CGC schemes that are calculated based on the risk-profile of the borrower. In addition, the cost of borrowing is cushioned by the 2% interest/profit rate subsidy provided by the government.


CGC has been stepping up its promotional efforts to create awareness of the huge potential in this sector through its participation in various exhibitions and seminars organised by trade associations and business chambers nationwide.


ìSoon we will be running an advertising campaign to further increase awareness of the Scheme not only amongst the producers and users but also amongst the general public with the objective of enlightening them on the impact of green technology on the environment and the general well-being of the Malaysian populace,î said Datuk Wan Azhar.


The response to the GTFS is very encouraging with more than 470 companies having registered with the National Green Technology Centre and enquired how to avail the Green Technology Financing Scheme.


ìWe hope the willingness shown by CIMB Bank will encourage other financial institutions to come forward and aggressively participate in the Scheme within the shortest possible time,î added Datuk Wan Azhar.


The Scheme, officially launched by the Prime Minister YAB Datuk Seri Najib Tun Razak on 26 January 2010, is expected to provide benefits to more than 140 companies within the next two to three years. The GTFS was rolled out effective 1 January 2010.

05-Apr-2010 09:29:54 AM

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CGC & SCB Launch Portfolio Guarantee for Women Entrepreneurs

PRESS RELEASE

For immediate release


Credit Guarantee Corporation and Standard Chartered Malaysia LAUNCH New Financing Scheme for Women Entrepreneurs


Target disbursement of RM100 million in the next 18 months



Kuala Lumpur, 22 October 2009 ñ Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Bank Malaysia Berhad (Standard Chartered Malaysia) have collaborated to offer yet another initiative for small and medium enterprises (SMEs) ñ the Portfolio Guarantee Scheme for women entrepreneurs. Through the Scheme, the institutions aim to disburse RM100 million in the next 18 months to enable women entrepreneurs to accelerate participation in the economic development.


First in Malaysia, the Scheme for women entrepreneurs offers swift financial access and the opportunity to boost business competitiveness. Women are emerging as a significant economic force in Malaysia and progressively venturing into SMEs. According to a research, there are close to 83,000 woman-owned enterprises, mainly in services, manufacturing and agriculture sectors, and the numbers are expected to increase.


Commenting on this new initiative, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said, ìWith increasing participation of women in the business sector, not only the demand for financing will see an increase but also quicker disbursement of funds. We hope to address these issues through our strategic alliance with Standard Chartered Malaysia, offering a new source of financing for women entrepreneurs and at a much faster rate as the customers eligible for this Scheme are pre-selected based on certain criteria.î


ìWe have been in support of woman-owned enterprises which make up 16 per cent of the SMEs in the country. To date, we have guaranteed close to RM3.7 billion to more than 9,500 women in SMEs,î added Datuk Wan Azhar.


Tiew Siew Chuen, Country Head of Consumer Banking, Standard Chartered Malaysia said, ì99 per cent of business establishments in Malaysia are SMEs. This sector remains a major engine of the countryís economic recovery and we will continue to facilitate and support the growth of SMEs. With women entrepreneurs increasing in the country, we are pleased to offer a special scheme for them in partnership with CGC.î


The Scheme for women entrepreneurs offers a term financing facility, range between RM100,000 and RM500,000, which provides working capital and financing of SME asset acquisitions. CGC will act as the guarantor, offering partial guarantee cover to the loan. The Scheme is made available to women whose businesses have been operating for a minimum of five years and are seeking to expand.


The Scheme also comes with additional benefits such as one-year free insurance coverage of up to RM100,000 against female-related illnesses for the first 100 successful customers and corporate current accounts which yield high interest rates.


Standard Chartered Malaysia will also sponsor the first three women customers to attend the Global Banking Alliance for Women (GBA) Conference in Singapore from 29 to 30 October 2009. The GBA is a coalition of financial institutions whose network provides in-depth access to knowledge, resources, access to capital and market programmes for women SMEs growth and sustainability. These financial institutions are recognised as the ìbank of choice for womenî in their respective markets.


Encouraged by the response of the first Portfolio Guarantee Scheme introduced in April this year, CGC is looking at partnering with more financial institutions in the near future. CGC believes that the initiative complements the Governmentís efforts to support SMEs as it not only creates a new avenue to gain access to financing but also improves turnaround time in terms of approval and disbursement of loans.

For media enquiries, please contact:

V. Kumaran

Head, Corporate Communications

Credit Guarantee Corporation Malaysia Berhad

Tel: 03-78062300 (ext. 232)

[email protected]

23-Oct-2009 10:07:45 AM

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CGC Appoints Deutsche Bank to Provide Advisory Services

Joint Press Statement by

Credit Guarantee Corporation Malaysia Berhad

And Deutsche Bank


Petaling Jaya, 16 July: Credit Guarantee Corporation Malaysia Berhad (CGC) today announced it has appointed Deutsche Bank AG Singapore Branch to provide advisory and risk management services to CGC. The agreement includes the implementation of a unique credit risk management system that will help CGC more efficiently process loan guarantee applications and manage credit risk.


Known as the Comprehensive Approval System (COMPAS), the web-based system will help CGC better manage the varying levels of risk associated with the guarantees it issues, streamline approval processes and manage balance sheet risk. COMPAS achieves this by using unique criteria to assign loan applications with an internal credit rating, allowing them to be automatically processed or evaluated further by the Management.


With increased processing and better risk management capabilities, customers are expected to enjoy faster turnaround time and disbursement of loans. In addition, the implementation of this robust credit rating system will enable CGC to improve its accuracy in terms of risk profile identification and consequently benefit deserving customers who could potentially enjoy the competitive guarantee fees that come with better credit ratings.


COMPAS also enables CGC to enhance its management of loan quality.


ìWith increasing focus on customer service level, turnaround time and loan quality, it is critical for CGC to review its existing risk rating model and implement a more robust and dynamic one such as the COMPAS system that incorporates new risk parameters. This new initiative combined with the SME Credit Bureauís ratings on SMEs would enable CGC to determine the credit risk of borrowers with greater accuracy and thereby allowing us to effectively structure the guarantee fees based on the credit risk of SMEs and borrowers,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad.


Datuk Wan Azhar further stressed that the review of its risk rating model is part of CGCís overall efforts to improve its loans quality as well as to better serve the SMEs who form 99.2% of total business establishments and contribute 32% of the countryís gross domestic product.


Wolfgang Topp, Head of Risk Management Advisory at Deutsche Bank said: ìCOMPAS provides an excellent means for CGC to streamline its loan processing and potentially lower processing costs, while improving overall risk management and enhancing credit quality. Used in conjunction with Deutsche Bankís risk advisory services, COMPAS is a powerful tool which can enable CGC to maximise risk efficiencies and increase the quality of assets it holds on its balance sheet.î


The platform is an integral part of Deutsche Bankís integrated risk management advisory service, which is designed to support banks and financial institutions price, manage and distribute balance sheet risk and improve lending systems.


With Deutsche Bankís proven credit rating system and their wide experience as a provider of advisory and risk management services, CGC is confident that it will enhance its support to the SME sector in efforts to sustain the growth of this vital segment of the economy.


27-Jul-2009 18:43:57 PM

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CGC Organises Training Sessions for SMEs

1 July 2009

CGC ORGANISES TRAINING SESSIONS FOR SMEs

TO HELP OVERCOME BUSINESS CHALLENGES


Credit Guarantee Corporation Malaysia Berhad (CGC) will be organising a two-part training session that are specially designed to assist SMEs cope with the business challenges they are facing currently as a result of the economic slowdown.


The first training session titled ëGetting The Bank to Say ëYesí to your Loan Restructuringí presents a unique interactive learning experience for SMEs who will be able to learn more about how to deal with the banking institutions especially in presenting their case for restructuring and repayment period of their existing loan facility.


The second session titled ëManaging Your Cash Flow & Collections In Time of Business Uncertaintyí shall provide SMEs the opportunity to learn how to manage their cash flows especially collection of debts on a timely basis, persuading customers to pay on time and how to conduct effective field visitations before deciding on payment arrangement, amongst others.


The training sessions form part of CGCís ongoing efforts to assist SMEs cope with this difficult time and to sustain their businesses besides providing restructuring options and business advisory services.


The training sessions will be conducted in collaboration with SBF-Integrated Business Centre Sdn Bhd, an established company specialising in entrepreneur development and training programs. The training sessions will take place on 9th and 10th July 2009 respectively at Bangunan CGC, Kelana Jaya, Selangor from 9am to 5pm.


Interested participants are encouraged to contact CGCís Marketing & Promotions Department (Puan Norhafiza Othman) at 03-7806 2300 (ext. 480) for more information.


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14th CGC Top SMI Supporter Award - Press Release

Press Release

(For Immediate Publication or Broadcast)

21 May 2009



Financial Institutionsí Contribution

to SME Development Recognised By CGC



Petaling Jaya, 21 May ñ Eight leading financial institutions were honoured today for their support and significant contribution towards SME development in 2008 by Credit Guarantee Corporation Malaysia Berhad (CGC) at its Top SMI Supporter Award Presentation ceremony. The event, held in conjunction with CGCís 36th Annual General Meeting, was officiated by Datoí Zamani Abdul Ghani, CGCís Chairman and Deputy Governor of Bank Negara Malaysia.


The recipients of the Top SMI Supporter Awards for 2008 were Maybank, Public Bank, CIMB and RHB Bank under the Commercial Banks category; EONCAP Islamic Bank under the Islamic Banks category; Agrobank under the Development Financial Institutions (DFI) category; and OCBC Bank under the Foreign-owned Banks category. The eight award recipients contributed a total of RM2.2 billion, representing 74% of the total loans guaranteed to SMEs by CGC in 2008.


Maybank was also accorded the coveted Best Financial Partner Award in recognition of their commendable efforts and contribution towards CGCís quality assets.


CGC Chairman, Datoí Zamani Abdul Ghani said in his speech that the active participation and continued support of the financial partners has enabled the Corporation to stamp its mark in SME development through the provision of easier access and more affordable financing for business growth and expansion.


ìThese awards not only recognise the contributions of the participating financial institutions to loans growth but also to quality asset. These two conditions, i.e. participation and asset quality, are critical for both parties, especially to the Corporation as it gears itself to be more commercially-driven and achieve financial sustainability,î said Datoí Zamani.


The award recipients were selected based on a set of criteria determined by the Corporation which includes number and value of loans guaranteed, loans growth and number and value of loans to Bumiputera borrowers amongst others.


Speaking to reporters at a press conference after the ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said the contribution by the financial institutions to SME financing had been encouraging despite the challenges that emerged in 2008.


ìIn general, the financial institutions have maintained strong commitment and support to SME financing via their participation in our guarantee schemes,î added Datuk Wan Azhar.


He said that CGC will continue to strengthen its alliances with financial partners to further expand its SME outreach and support viable businesses to tide over the difficult times while assisting new ones to grow.


CGC remains actively involved in Bank Negara Malaysia (BNM)-initiated funds such as the SME Assistance Guarantee Scheme, a RM2 billion launched in January 2009 to assist SMEs facing difficulties during the current economic crisis. As at mid-May, it had guaranteed a total of 1,783 accounts valued at RM369.6 million.


In 2008, CGC participated in two other BNM-initiated funds namely the SME Assistance Facility and the SME Modernisation Facility. The RM1.2 billion facilities were established to help SMEs continue business operations with funds for working capital and project financing as well as to modernise operations through the purchase or upgrading of energy-saving machineries and equipment. As at end March 2009, about 4,928 SMEs had benefited from these Facilities, with a total loan value of RM1.08 billion. In 2008, CGC extended credit guarantees to 10,368 accounts valued at RM3.01 billion.



For media enquiries:


V. Kumaran

Head, Corporate Communications

Tel: 03-7806 2300 ext 232

E-mail: [email protected]

09-Jun-2009 12:46:51 PM

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14th CGC Top SMI Supporter Award - Chairman's Speech

Speech by

Y.Bhg. Datoí Zamani Abdul Ghani

Chairman, Credit Guarantee Corporation Malaysia Berhad

at the 14th Top SMI Supporter Award Presentation Ceremony

21 May 2009


Bismillahirrahmanirrahim


Fellow members of the Board of Directors of CGC


Distinguished Guests


Members of the media


Ladies and Gentlemen,


Assalamualaikum w.b.t. and a very good morning.



On behalf of the Board of Directors and Management of Credit Guarantee Corporation Malaysia Berhad (CGC), I would like to extend our warmest welcome to all of you to the Top SMI Supporter Awards Presentation ceremony this morning. The event is organised in conjunction with the Corporationís 36th AGM which was successfully concluded earlier this morning. As you are aware, the Top SMI Supporter Award ceremony is one of the most important events in our corporate calendar. On this day, we officially recognise and express our appreciation to our financial partners in SME development for their active participation in the Corporationís credit guarantee schemes. This is the 14th edition in its series. I am pleased to note that SME outreach is gaining strength each year with the support of participating financial institutions who value the significance of the award in the context of SME development in the country. We are honoured to have accorded these awards to 19 financial institutions since its introduction in 1996.


Ladies and gentlemen,


2. This year, 2009, the Corporation will be turning 37 years old. We believe CGC has achieved significant success as a credit enhancer to SMEs in the country. It has enabled the operation of more than 390,000 SMEs by guaranteeing loans close to RM42 billion to date. This is surely a feat for an institution that started in a small way in 1972, supporting enterprises in the agricultural, commercial and industrial sectors, with individual loans ranging from RM5,000 to RM75,000. We have progressed in tandem with the development of the nation that increasingly became more industrialised and diversified. Our target groups expanded to include medium-sized businesses, and guaranteeing loans from as low as RM10,000 to as high as RM10 million.


3. We acknowledge that we could not have accomplished the above without the active participation and continued support of the financial partners in our guarantee schemes. The confidence and commitment of these financial partners has enabled the Corporation to stamp its mark in SME development, through the provision of easier access and more affordable financing for business growth and expansion. In 2008, for example, the Corporation extended loan guarantees of more than RM3 billion, benefiting close to 10,400 SMEs. About 74% of the loans guaranteed was contributed by the seven award recipients today. In view of their significant contributions and to further encourage them to continue participating actively in our schemes, we shall be according them the Top SMI Supporter and Best Financial Partner awards. These awards not only recognise the contributions of the participating financial institutions to loans growth but also to asset quality. These two contributions, i.e. participation and asset quality, are critical for both parties, especially to the Corporation as it gears itself to be more commercially-driven and achieve financial sustainability.


Ladies and gentlemen,


4. The forecast for the year ahead is that of one that will be full of challenges. It is, therefore, imperative for the government-private sector collaboration to be accelerated in order to address some of the pertinent concerns of the SMEs. This is especially so in the pace of loan approvals, in ensuring a more efficient and speedier credit flows to SMEs without compromising prudential requirements. To resolve this, the Corporation and its financial partners have to iron out whatever stumbling blocks there are in the processing pipeline and explore innovative ways through which funds could be disbursed more effectively and speedily to deserving customers. In this respect, the Corporation has recently established a strategic alliance with one of its financial partners to provide guarantee on a portfolio basis. A general improvement of administrative efficiency is noted with the use of an automated mechanism. Borrowers no longer have to go through the routine administrative procedures to get their applications processed as the guarantee cover provided is automatic upon approval by the financial institution. This model provides the most effective delivery channel and, moving forward, we are optimistic of entering into such partnerships with more financial institutions in the near future.


5. The Corporation has also adopted pragmatic approaches in the implementation of its business strategies, which are all aimed at being more customer-centric and providing greater value to the borrowers. The Corporation has been forthcoming in terms of ensuring credit lines remained open to the SMEs by participating actively in the Bank Negara Malaysia-initiated funds, the most recent is the SME Assistance Guarantee Scheme. As at mid-May, a total of 1,544 accounts valued at RM312 million has been approved. These initiatives come at a critical time when the business community struggles to survive the current economic slowdown.


Ladies and gentlemen,


6. Looking back into 2008, it is certainly noteworthy that the financial institutions have contributed significantly to SME financing, accounting for 42.3% of total business financing as at end 2008. To the Corporation, their contributions were substantial and we are indeed grateful for having received their fullest support and cooperation. As a matter of fact, we have seen increased participation from both commercial banks and development financial institutions in our credit guarantee schemes in recent years. Several foreign-owned banks too have been quite robust in their support of the SMEs.


7. In view of this positive development, we have concluded that there need to be a level playing field for all financial institutions to compete for the Corporationís Top SMI Supporter Award. Thus, we would like to announce that beginning 2009, we will no longer have the Top Foreign-Owned Bank and Development Financial Institutions as separate award categories. We are confident that this move would allow the institutions to compete on level terms and indirectly promote healthy competition amongst them. Most importantly, for us, it is a step forward to ensure the financial institutions are motivated to participate in our guarantee schemes and contribute to SME development.


8. We are pleased to announce that, for this edition of the Top SMI Supporter Awards, a total of seven financial institutions shall be accorded the honour for having fulfilled the criteria set by the Corporation. These criteria include number and value of loans guaranteed, loans growth and the number and value of loans to Bumiputera borrowers. Besides, we also have the Best Financial Partner Award category that recognises the financial institution that has contributed the most towards the asset quality in CGC.


Friends and Colleagues,


9. On behalf of the Corporation, I would like to take this opportunity to congratulate all award recipients. It is our hope that these awards will foster a higher level of competition and inspire other financial institutions to play a bigger role in SME development and be a catalyst for economic growth by participating actively in the Corporationís credit guarantee schemes. Deserving and viable SMEs need our support to sustain their businesses during this critical period. The Government too requires our commitment and cooperation to help it stimulate the economy, all for the benefit of our citizens.


Thank you and have a pleasant day.

09-Jun-2009 12:44:16 PM

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CGC & Standard Chartered Sign Portfolio Guarantee Agreement

Press Release

For immediate release

Credit Guarantee Corporation and Standard Chartered Bank Malaysia Sign Portfolio Guarantee Agreement



Kuala Lumpur, 7 April – Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Bank Malaysia Berhad (Standard Chartered) has entered into a partnership agreement that would enable SCB to extend financial assistance to SMEs via the Portfolio Guarantee.


The agreement was signed by CGCís Managing Director, Datuk Wan Azhar Wan Ahmad and Standard Charteredís Chief Executive Officer, Mr Julian Wynter at a signing ceremony held today in Kuala Lumpur. The ceremony was witnessed by Datoí Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia, who is also CGCís Chairman.


The Portfolio Guarantee Agreement, the first agreement of its kind to be signed in the financial industry, would enable SMEs not only to enjoy a new avenue to gain access to financing but also improved turnaround time in terms of approval and disbursement of loans.


Speaking to the media at the signing ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said: ìThrough this arrangement, designed for Standard Charteredís SMEs loans, we hope to deliver speedier application processing time as the customers eligible for this portfolio guarantee are pre-selected based on certain criteria.î


He also added that this initiative is in line with the call of the government for greater government-private sector collaboration to drive economic growth.


ìCGC and Standard Chartered Bank Malaysia have an important role in helping to stimulate economic growth, and supporting viable SMEs to sustain their businesses is the way to go at this crucial period,î he said.


Julian Wynter, Managing Director and CEO of Standard Chartered Malaysia, ìSMEs will be the engine of any global economic recovery. Yet, worldwide they are struggling to survive as flight away from risk affects credit flows. It is critical that governments, banks and public agencies, collaborate to avert consistent and wide-scale failure of this sector.


ìAs a bank, we recognise our role in the equation. This Portfolio Guarantee partnership with CGC sees Standard Chartered leading the way in supporting SME potential. By enabling working capital financing to small businesses, we demonstrate our promise to be their right partner through both bull and bear times.î


Through the Portfolio Guarantee, a facility of RM50 million shall be made available to the SMEs in the first tranche and eventually up to RM300 million in subsequent tranches. The Portfolio Guarantee, a term loan facility, offers a loan range of between RM100,000 to RM500,000 and is designed with the primary objective of providing working capital and asset acquisition to SMEs.


With Standard Chartered on board, CGC hopes to see more such opportunities with other financial institutions to further enhance its support to the SME sector in efforts to sustain the growth of this key component of the economy.


For media enquiries, please contact:

V. Kumaran

Head, Corporate Communications

Credit Guarantee Corporation Malaysia Berhad

Tel: 03-78062300 (ext. 232)

[email protected]


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13th Top SMI Supporter Award Presentation

13th Top SMI Supporter Award Presentation Press Release
Petaling Jaya, 9 June 2008 ñ Credit Guarantee Corporation Malaysia Berhad (CGC) presented the Top SMI Supporter awards to seven financial institutions in recognition of their commitment and valuable contribution towards SME development. The awards were presented by CGCís Chairman, Datoí Zamani Abdul Ghani during the 13th edition of the Top SMI Supporter Award ceremony held at CGCís headquarters in Petaling Jaya.


The ceremony, held in conjunction with the Corporationís 35th Annual General Meeting, witnessed the presentation of Top SMI Supporter Awards under four different categories – Commercial Banks, Islamic Banks and Development Financial Institutions (DFIs) as well as the Best Financial Partner. The Top SMI Supporter Award for commercial banks was introduced in 1996 whereas the Islamic Banks, Development Financial Institutionsí and the Best Financial Partner awards categories were introduced for the first time in 2008.


The Islamic Banks and Development Financial Institutionsí (DFIs) categories were introduced to encourage these new entities to be more competitive in the Corporationís credit guarantee schemes. Both these categories of institutions came on board in 2007, following the signing of memorandum of understanding (MoU) with the Corporation.


The Best Financial Partner Award, on the other hand, recognizes the institution that has not only contributed significantly to the Corporationís loans growth but also contributed substantially towards quality assets.


The Top SMI Supporter Awards were presented to Maybank, OCBC Bank, RHB Bank, CIMB Bank and Public Bank under the commercial bank category while EONCAP Islamic Bank and SME Bank for the Islamic bank and development financial institution categories respectively. The recipient of the Best Financial Partner award was CIMB Bank.


The selection of award recipients is based on the fulfillment of several criteria determined by the Corporation. Among others, the criteria are total value of loans guaranteed, loans growth, rate of default and rate of recovery.


In 2007, the seven recipients of these coveted awards contributed a total of RM3.9 billion, representing 85% of the total loans guaranteed by CGC for the year. In the said year, the Corporation recorded a strong surge in its loans growth, financing more than 13,000 SMEs valued at RM4.6 billion through its main schemes, programmed lending schemes and securitisation of SME loans. The Corporation also registered a 13% increase in revenue, posting RM275.2 million in 2007 compared with RM243.6 million in 2006.


CGCís Chairman, Y.Bhg. Datoí Zamani Abdul Ghani said the remarkable loans growth and amount guaranteed by the Corporation was the result of the strong support of participating financial institutions. ìIt is the unwavering support of these institutions that the Corporation is able to further expand its outreach to SMEs that are in need of financing and register robust loans growth,î added Datoí Zamani.


ìThe strong surge in loans growth of 53% to RM4.6 billion is unprecedented in the history of the Corporation, reflecting a strong demand for the Corporationís credit guarantees and its participation in SME development,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad. ìAnother significant milestone achieved is the participation of the Corporation in the first-ever synthetic securitization of SME loans in the country, worth RM600 million ,î added Datuk Wan Azhar.






ìThe support and commitment towards SME development displayed by the award recipients have been encouraging. We believe that this is due to the strategic initiatives undertaken by CGC and the closer cooperation forged over the years between CGC and the banks,î said Datuk Wan Azhar.



For media enquiries:


V. Kumaran

Manager

Corporate Communications Department

Tel: 03-7806 2300 ext 232/016-638-1747

E-mail: [email protected]


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Enhancer-i Press Statement

PRESS STATEMENT BY

DATUK WAN AZHAR WAN AHMAD,

MANAGING DIRECTOR

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD


We are pleased to announce that Credit Guarantee Corporation Malaysia Berhad (CGC) has launched the Enhancer-i, a new credit guarantee scheme that is designed to further enhance SMEs (Small and Medium Enterprises) access to Islamic financing.


The innovative Enhancer-i is introduced to meet the increasing demand for alternate sources of financing from SMEs especially Syariíah-compliant financing facility. It is an enhanced version of CGCís Islamic Banking Guarantee Scheme (IBGS), the first Islamic guarantee scheme introduced in 2003, to enable SMEs to be more bankable by adding more value to their financing applications. It provides access to financing up to RM10 million and a guarantee coverage of up to 90%.


As with the conventional ENHANCER scheme introduced in August 2006, Enhancer-i is a guarantee scheme where the guarantee fee charged is calculated based on the risk profile of the borrower. The risk-adjusted pricing structure offers competitive terms for borrowers with low risk profiles.


Since the introduction of its Islamic credit guarantee schemes in 2003, CGC has cumulatively guaranteed a total of RM492 million under two of its Islamic schemes.


With the introduction of Enhancer-i, the SMEs now have enhanced access and also options to obtain Islamic financing. In addition to that, with wider and improved access especially with the participation of more Islamic and development financial institutions in CGCís guarantee schemes since early 2007, the SMEs can look forward to exploring newer business opportunities, expand their existing businesses or even penetrate non-traditional markets.

To avail Enhancer-i, the SMEs are encouraged to contact any of the participating financial institutions which offer Islamic financing facilities namely Maybank, Affin Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, EONCAP Islamic Bank Berhad, Hong Leong Islamic Bank Berhad and RHB Islamic Bank Berhad as well as the development financial institutions such as Bank Rakyat, Bank Pertanian and the Malaysian Industrial Development Finance (MIDF).

CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs with inadequate collateral or without collateral and has no track record, a niche area in which the Corporation has served for 36 years. To date, it has cumulatively guaranteed about RM40 billion benefiting more than 400,000 SMEs in the country.


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MOU CGC & OCBC - MD's Speech

Speech by

Datuk Wan Azhar Wan Ahmad, Managing Director

of Credit Guarantee Corporation Malaysia Berhad (CGC)

at the MoU Signing Ceremony Between CGC and OCBC Bank

15 January 2008.


Yang Berbahagia Datoí Albert Yeoh, Director and Chief Executive Officer of OCBC Bank Malaysia Berhad

Distinguished guests, members of the media

Ladies and Gentlemen


Assalammualaikum and a very good morning to you.

Foremost, on behalf of Credit Guarantee Corporation, I would like to take this opportunity to thank OCBC Bank Malaysia Berhad in particular Datoí Albert Teoh for laying the groundwork for this milestone collaboration between our two organizations, which I believe will be mutually beneficial and enriching. I would also like to thank the officers involved in this initiative for their relentless efforts, leading to the signing of the Memorandum of Understanding today.

Ladies and gentlemen,

We are pleased to be associated with OCBC Bank, one of the top five foreign banks in Malaysia and Asia’s leading financial services group. With a strong presence in Malaysia especially in the small and medium-sized enterprises market, OCBC Bank offers valuable opportunities for CGC to further expand its SME outreach especially those business entities that were traditionally banking with OCBC. In fact, through this collaboration both the organizations could leverage on their combined network of 45 branches located nationwide to connect with a wider cross section of the SMEs.

OCBC Bank has been participating in CGCís guarantee schemes and in 2006, it was recognized as CGCís Top SMI Supporter under the foreign-owned bank category. Their commendable performance continued in 2007 where it emerged as the Top 3 financial institutions in terms of its contribution to SME financing through CGCís guarantee schemes. By making our Direct Access Guarantee Scheme (DAGS) and Direct Access Guarantee Scheme-Islamic accessible to OCBC customers, we are confident that OCBC would increase its participation in our schemes even further and contribute significantly to overall loans guaranteed to the SMEs. DAGS and DAGS-i have contributed more than RM1.5 billion in 2007 and it is projected to expand further in 2008. Our collaboration with OCBC is projected to contribute RM200 million or 10% of the total projection. We hope that the active participation of OCBC Bank will encourage other foreign banks to seize the opportunity and increase their contribution to SME sector development not only through direct financing but also via our guarantee schemes. With greater involvement of foreign banks comes wider options and access to financing for the SMEs.

Ladies and gentlemen,

As I have said earlier, our collaboration with OCBC is part of the SME outreach program that we have embarked since 2006. In the last two years, we further expanded our outreach by forging strategic alliance with more than 10 Islamic Financial Institutions and Development Financial Institutions. In addition, we have also taken the initiative to broaden our range of products and services. More credit enhancement products and services such as securitization, portfolio guarantee and credit information services have been gradually introduced and established. As you may recall, we have been party to the first SME loan securitization exercise undertaken in Malaysia together with Maybank. CGC has also entered into a strategic partnership with Aureos Capital to offer equity financing.


In the last six months, we have also introduced two new guarantee schemes, the latest being the ENHANCER-Islamic launched early this year. The ENHANCER-Islamic is not only aimed at enabling SMEs to access to alternate sources of financing but also to tap into the growing Islamic financing for SME sector that registered RM6 billion in growth in 2006[1]. We are also in the midst of establishing the SME Credit Bureau, a first in the country to offer SME credit ratings and credit-related information services. We are partnering with Dun and Bradstreet Malaysia Sdn Bhd and all work towards the setting up of the Bureau is progressing as planned. This initiative is of strategic importance to the national agenda of promoting a sound credit culture and greater transparency amongst the SMEs.

Ladies and gentlemen,

These are initiatives that we could not do without as the SMEs are quite dynamic and always in demand of a diverse range of financing facilities. Together, we can do more and I am confident that we would be able to play a bigger role in SME development by providing innovative financial solutions whilst establishing a mutually beneficial customer-banker relationship. Our collaboration holds promise as we could leverage on our distinctive and complementary strength.

In closing, I would like to once again thank OCBC Bank for making this collaboration possible. Today’s signing of MoU for the participation of OCBC Bank in CGCís DAGS and DAGS-i schemes is a first step towards a win-win partnership. As we share a common vision vis-‡-vis SME development, we look forward to working together to build an enduring partnership that will create greater financing access to SMEs and add value to both CGC and OCBC Bank.

Thank you.


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MOU CGC & OCBC Press Release

OCBC IS FIRST FOREIGN BANK TO PARTICIPATE IN CGCís

DIRECT ACCESS GUARANTEE SCHEME (DAGS)


Kuala Lumpur, 15 January 2008 ñ OCBC Bank (Malaysia) Berhad today took a major step toward entrenching its position as one of the top supporters of SMEs in the country by becoming the first foreign bank to participate in the Credit Guarantee Corporationís (CGC) Direct Access Guarantee Scheme (DAGS).


DAGS provides SMEs with ìdirect accessî to guarantees from CGC and the required financing from participating banks. Apart from OCBC Bank, other participating banks are Maybank, CIMB, EON Bank, AmBank, RHB Bank and Affin Bank.


According to CGCís Managing Director and CEO, Datuk Wan Azhar Wan Ahmad, OCBC Bank is the first foreign bank to be offered the opportunity to participate in the scheme in view of its active involvement with SMEs and in CGCís other guarantee schemes.


ìCGCís collaboration with OCBC is part of our SME outreach initiative to enhance financial access and support to SMEs across all sectors of the business community,î said Datuk Wan Azhar.


ìWith this initiative, we hope to reach out to all the business entities that have been banking with OCBC and help them to access our credit guarantee facilities,î Datuk Wan Azhar added.


In 2007, OCBC Bank was awarded the Top SMI Supporter Award (Foreign-Owned Bank Category) by CGC, the first for a foreign bank, for its outstanding contribution to SME development in Malaysia. With this, OCBC underlined its commitment to be at the forefront of providing financial services support to SMEs in the country and its quest to be recognised as one of the top financial partners to the SMEs.


ìWe are confident that OCBC Bank will continue to pay special attention to SMEs by providing innovative, financial solutions to them whilst establishing a mutually beneficial customer-banker relationship,î Datuk Wan Azhar added.


Unlike other CGC schemes, all loan applications under DAGS are processed, evaluated and approved by CGC before the applications are channeled to participating banks for documentation and disbursement. Since the introduction of DAGS in year 2000, CGC has approved a total of RM6.2 billion to 11,364 borrowers and loans outstanding as at financial year ending 31 December 2007 is RM3.9 billion.


Facilities offered under the scheme are term loans, overdrafts and trade lines, with each loan quantum capped at lower and upper limits of RM50,000 and RM3 million respectively. The guarantee tenure ranges from 5 years for working capital lines to 15 years for asset acquisition loans.


According to OCBC Bankís Director & CEO, Datoí Albert Yeoh, the Bank has set up a dedicated CGC Support Unit to ensure that OCBC provides prompt turn-around for loan approval and disbursement of CGC guaranteed loans.

ìWe also look forward to leveraging on CGCís distribution network and benefiting from their market-driven and customer-centric approach and practices,î he said.


While the Bank expects initial revenue growth in proportion to overall expansion to be modest, it remains confident that, over time, the partnership with CGC would be mutually beneficial.


ìBut beyond this, we believe the SME market out there stands to benefit most through a widening of the access to financial institutions and financing options,î he said.

___________________________________________________________________


About CGC

CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs with inadequate collateral or without collateral and have no track record, a niche area in which the Corporation has served for 36 years. To date, it has cumulatively guaranteed about RM40 billion benefiting more than 400,000 SMEs in the country.

 
About OCBC Bank
Singapore’s longest established local bank, OCBC Bank, currently has assets of S$170 billion and a network of over 420 branches and representative offices in 15 countries and territories including Singapore, Malaysia, Indonesia, Thailand, Vietnam, China, Hong Kong SAR, Taiwan, Brunei, Myanmar, Japan, Korea, Australia, UK and USA. This network includes more than 330 branches and offices in Indonesia operated by OCBC Bankís subsidiary, PT Bank NISP. OCBC Bank and its banking subsidiaries offer a wide range of specialist financial services, from consumer, corporate, investment, private and transaction banking to global treasury and stockbroking services to meet the needs of its customers across communities.


OCBC Bankís insurance subsidiary, Great Eastern Holdings, is the largest insurance group in Singapore and Malaysia, in terms of assets and market share, and its asset management subsidiary, Lion Capital Management, is one of the largest asset management companies in Southeast Asia. Additional information may be found at www.ocbc.com.


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MOU CGC and Bank Rakyat

CGC Aims to Enhance Its SME Outreach via Bank Rakyat


KUALA LUMPUR, July 24 – Credit Guarantee Corporation Malaysia Berhad(CGC), Malaysiaís leading credit enhancer to the small and medium enterprises (SME), announced today that it has signed a Memorandum of Understanding with Bank Rakyat to further expand its outreach to the SMEs and promote the growth and development of this sector in Malaysia.


CGCís Chief Executive Officer, Datuk Wan Azhar Wan Ahmad said that the strategic collaboration with Bank Rakyat is expected to pave the way for CGC to bridge the gap further in terms of SMEs access to financing.


He further added that the presence of institutions such as CGC and development financial institutions(DFIs) like Bank Rakyat complement the banking institutions in meeting the financing requirements of the economy, particularly in supporting the economic and social development of the nation.


ìFor CGC, this strategic collaboration would enable it to widen its outreach to a completely new clientele base, reachable through Bank Rakyatís more than 100 branches nationwide while the SMEs will enjoy the availability of another new avenue to secure financing for their business,î he added.


In going forward, CGC will continue to explore strategic partnership with other DFIs to further expand its outreach to the SME community and provide support to as many sectors as possible especially the least supported ones that are significant to the nationís economic growth.


Early this year, CGC forged strategic alliances with eight Islamic financial institutions to further enhance its outreach to the SME community, in particular those that require Islamic financing. To date, this alliance has benefited SMEs with credit guarantees valued close to RM8 million. It has also forged strategic alliances with two DFIs namely MIDF and Bank Pertanian Malaysia and thus far approved close to RM16 million loans, benefiting about 250 SMEs in the first six months of 2007.


ìCGCís expansion of credit enhancement to the Islamic financial institutions and the DFIs is a timely response to the increasing demand for financing by SMEs, which is fuelled by the expanding economy projected to grow at about 6%,î he said.


CGC has also forged strategic alliances with several benchmarked foreign institutions such as global fund manager Aureos Capital and Dun & Bradstreet Malaysia Sdn Bhd, a worldwide operator and provider of credit bureau and risk management solutions, to tap into their expertise especially in equity financing and SME credit bureau services respectively.


In addition to that, CGC had participated in the first ever SME loan securitisation in Malaysia launched in May 2007. This would enable CGC to secure funding for the SMEs from the capital market through the issuance of bonds, asset securitization and collaterised loan obligation.


ìWith these strategic partners on board, CGC is adequately positioned to innovate and introduce new products, reflecting its commitment to expanding avenues for SMEs to enhance their access to credit facilities,î he added.


Since its establishment in 1972, CGC, a subsidiary of Bank Negara Malaysia, has remained focused in its mandated role to assist SMEs accessibility to credit facilities. To date, CGC has been instrumental in the establishment of more than 365,000 SMEs, having cumulatively guaranteed about RM36 billion.

24-Jul-2007 15:24:04 PM

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CGC and D&B to establish SME Credit Bureau

PRESS RELEASE

3 July 2007


CGC and D&B to establish SME Credit Bureau


KUALA LUMPUR, July 3 ñ The Credit Guarantee Corporation Malaysia Berhad (CGC) and Dun & Bradstreet (D&B) Malaysia Sdn Bhd announced today they have entered into a strategic alliance to establish a SME Credit Bureau.


The SME Credit Bureau is a central databank of credit information on Small and Medium Enterprises (SMEs) and will act as a key source of information on registration details, credit track records, debt level and obligations, financial statements and trade partners of SMEs.


ìMore importantly, the Bureau would enrich the databank with credit scoring or ratings of SMEs, the availability of which would facilitate better risk management and credit decision-making for users,î said CGCís Managing Director, Datuk Wan Azhar Wan Ahmad.


He added that the credit ratings can be used to guide the pricing of loans and determination of credit limits. SMEs with strong credit ratings would be able to reap the benefits of lower funding costs and greater access to financing while the weak ones are expected to leverage on the informational value of their credit ratings to improve their credit standing.


ìIn addition, the financial institutions will have access to a more comprehensive and reliable credit information on SMEs while SMEs will enjoy the benefit of assessing their own bankability,î he said.




Banks and other financial institutions will be able to avail themselves to a comprehensive range of information on the SMEs in the country from the central database of the Bureau. Convenient, timely and efficient access to SME information and credit ratings is expected to assist the lending institutions to make more objective and speedier evaluation of loan applications from SMEs.


Both CGC and D&B are confident that the establishment of the Bureau will further promote the development of a sound credit culture among financial institutions and SMEs.


ìBy setting up this bureau, it is our hope that the overall transparency in SME financing will be enhanced and the workings of the credit industry strengthened in a more holistic manner thus contributing to a more stable and efficient financial system in the country,î he added.


The Bureau would also encourage non-financial entities, including the SMEs themselves to share information through the Bureau. In this regard, the members of the business community could use the Bureau to decide with confidence when evaluating existing and prospective trade credit or other business deals.


To increase membership, both CGC and D&B will work closely with financial institutions and SME-related trade associations to ensure that SMEs are convinced of the bureauís role in helping them to improve their access to finance. In addition, SMEs will also be made aware of the benefits of joining the Bureau and encouraged to be transparent in reporting their financials.


The Bureau is poised to be an integral component of the developing credit information infrastructure in Malaysia. Its establishment is expected to contribute significantly towards assisting or enabling SMEs to gain access to the financial markets.


CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs in Malaysia, a niche area in which the corporation has served for 35 years. D & B Malaysia Sdn Bhd, a subsidiary of New York-based Dun & Bradstreet Corporation, is a global operator and provider of credit bureau and risk management solutions besides others like market intelligence and receivables management.


The signing of strategic alliance therefore, represents a meeting of the common objective of both parties to bridge the gaps in the availability and access to SME credit information in the country.





For further information, please contact:

Siti Badarny Hassan

Manager, Corporate Communications

Tel: 7806-2300 ext 231

03-Jul-2007 17:37:00 PM

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MARC Assign CGC AAA Issuer Credit Rating

PRESS STATEMENT

MARC Assign CGC ‘AAA’ Issuer Credit Rating

Credit Guarantee Corporation Malaysia Berhad (CGC), a leading credit guarantee institution serving the small and medium enterprises (SMEs) in the country, has attained a ‘AAA’ issuer credit rating from Malaysian Rating Corporation Berhad (MARC).

The rating reflects CGC’s healthy financial fundamentals, its sound credit culture, adequate risk governance procedures, loan guarantee schemes portfolio effectively managed and mitigated, the intrinsic liquidity of its assets, strong shareholder support especially Bank Negara Malaysia (BNM) and the strength of its management team.

ìWe are delighted to obtain ‘AAA’ issuer credit rating as it is a key to the expansion of our core business, that is, the provision of credit guarantees to SMEs. With this rating and its expanded role under the transformation plan, CGC will provide a mechanism to link SME borrowers and lenders with investors in private capital markets,î said CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad.

The ‘AAA’ rating, a pre-requisite to be recognised in the capital market, is expected to strengthen the development of CGC’s credit enhancement role, especially in the area of securitisation of SME loans where CGC’s role as credit enhancer is vital.

ìEssentially, CGC would be instrumental in creating an avenue for the SMEs to tap the capital market while at the same time encouraging the capital market investors to be indirectly involved in the development of our SMEs,î Datuk Wan Azhar added.

He further added that the capital market is an alternative source of funds that SMEs can tap into and enjoy not only competitive but more importantly, attractive rates than those offered by the financial institutions. îWith its backing as a credit enhancer of ‘AAA’ issuer credit rating, CGC makes it possible for SMEs to access the capital market for funds and enjoy better rates,î he said.

ìThe credit rating enhances CGC’s potential to raise funds through the issuance of private debt securities to fund its various programmes designed specially to meet the needs of SMEs, which is commonly done in the developed countries such as Germany, Japan and South Korea,î he further added.

Entry into the capital market is part of CGC’s 3-year transformation plan, which will see it transforming itself from a traditional credit guarantee provider to a financially sustainable institution that offers a wide range of products and services to SMEs.

CGC, formed in 1972 to assist in SME development, has been instrumental in the establishment of more than 360,000 SMEs, guaranteeing a total of RM35 billion in value. It posted 21.2% increase in revenue from RM200.9 million in 2005 to RM243.6 million in 2006. Its investment income also saw an increase, registering 15.2% growth from RM127.5 million to RM146.9 million in 2006 with net profits reaching RM119.2 million.

With the increase in the Corporation’s reserves by 2.8% in 2006, the shareholder’s fund rose to RM2.69 billion from RM2.62 billion as at 31 December 2006.


For further information, please contact:

Siti Badarny Hassan

Manager, PR & Special Programmes

Tel: 03-7806-2300 ext 231

27-Jun-2007 15:26:13 PM

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CGC Recognizes Financial Institutions

Press Release

For Publication or Broadcast
21st May 2007



CGC Recognizes Financial Institutionsí

Contribution Towards SME Development



Petaling Jaya, 21 May – Five leading financial institutions were formally recognized for their significant contribution towards SME development in 2006 by Credit Guarantee Corporation Malaysia Berhad (CGC) today. The financial institutions were Maybank, CIMB, EON Bank, OCBC and RHB Bank who received the Top SMI Supporter Award from CGCís Chairman Datoí Zamani Abdul Ghani at the awards presentation ceremony held at its head office in Petaling Jaya.


Maybank and CIMB Bank once again emerged as the Top SMI Supporters, making it their 12th award since the Award was inaugurated by CGC in 1996. For RHB Bank and EON Bank, this is their 7th and 2nd award respectively. The five award recipients contributed RM2.5 billion, representing 83% of the total loans guaranteed by CGC in 2006.


Held in conjunction with the Corporationís 34th Annual General Meeting, the 12th edition also witnessed the recognition of OCBC, a foreign-owned bank under CGCís Top SMI Supporter-Foreign-owned Bank category, introduced for the first time in 2006. CGC introduced this new category basically to demonstrate its appreciation to the foreign-owned banks for their support towards the development of local SMEs and also to further encourage their continued participation in its credit guarantee schemes.


Speaking to reporters at a press conference after the award presentation ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said that foreign-owned banks have shown increasing interest in supporting the local SMEs, which has great potential for growth in the coming years.


ìWe have seen their increasing interest not only in supporting the local SMEs directly but also through their participation in our credit guarantee schemes. It is an encouraging trend that CGC will continue to promote,î added Datuk Wan Azhar.


He further emphasized that with the foreign-owned banks showing more interest in financing the SMEs, local banks are expected to step up their efforts to face off the increasing competition in this market.


ìThe healthy competition among the banks would greatly benefit the SMEs in terms of access to financing as they will not only have greater options but also enjoy the convenience of the extensive network of the banksí branches nationwide,î stressed Datuk Wan Azhar.


ìWith the signing of the Memorandum of Understanding with eight Islamic financial institutions in February this year, we are also considering another new award category to recognize the contribution of these Islamic institutions,î said Datuk Wan Azhar.


The award recipients were selected based on the fulfillment of the various criteria set by the Corporation, amongst others, are the total value of loans guaranteed, loans growth, rate of default and rate of recovery.


In the financial year ended 31st December 2006, the Corporation sustained its loans growth at a respectable level of over 7,500 SME accounts valued at slightly over RM3 billion, benefiting largely the general business, manufacturing and agricultural sectors. CGC registered 21.2% increase in revenue, posting RM243.6 million in 2006 as opposed to RM200.9 million in the corresponding year.



ìWith the increasing participation of the conventional banks and the Islamic financial institutions in CGCís credit guarantee schemes coupled with the introduction of new and revised products, we are optimistic of achieving our target of RM4.5 billion in 2007,î said Datuk Wan Azhar.


On its 3-year Business Transformation Plan that it embarked on in 2006, Datuk Wan Azhar said it is on track with several of the strategic initiatives outlined under the plan having been implemented and have progressed substantially. These include the expansion of the scope of its guarantee beneficiaries to Islamic and development financial institutions, the establishment of a joint venture company with an international partner to provide equity funding to SMEs, securitization of SME loans and the introduction of risk-adjusted pricing structure in its guarantee schemes as well as strengthening of its institutional capacity in the areas of human capital management, IT infrastructure and corporate governance.


CGC has cumulatively guaranteed more than 360,000 SME establishments with a loans value of RM35.14 billion since its establishment in 1972.


Brief on 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.



CGC has also expanded its role by providing business advisory services, i.e. assisting SMEs who are unfamiliar with the procedures involved in preparing the required documents for financing through its panel of Business Advisory Service Entity (BASE).


For Media Enquiries:

Siti Badarny Hassan

Public Relations and Special Programme

Tel: 03-78062300 ext 231

E-mail: [email protected]

12-Jun-2007 17:21:26 PM

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MARC Assign CGC 'AAA' Issuer Credit Rating

PRESS STATEMENT

For Immediate Release 31st May 2007

MARC Assign CGC ‘AAA’ Issuer Credit Rating
Credit Guarantee Corporation Malaysia Berhad (CGC), a leading credit guarantee institution serving the small and medium enterprises (SMEs) in the country, has attained a ‘AAA’ issuer credit rating from Malaysian Rating Corporation Berhad (MARC).

The rating reflects CGC’s healthy financial fundamentals, its sound credit culture, adequate risk governance procedures, loan guarantee schemes portfolio effectively managed and mitigated, the intrinsic liquidity of its assets, strong shareholder support especially Bank Negara Malaysia (BNM) and the strength of its management team.

ìWe are delighted to obtain ‘AAA’ issuer credit rating as it is a key to the expansion of our core business, that is, the provision of credit guarantees to SMEs. With this rating and its expanded role under the transformation plan, CGC will provide a mechanism to link SME borrowers and lenders with investors in private capital markets,î said CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad.

The ‘AAA’ rating, a pre-requisite to be recognised in the capital market, is expected to strengthen the development of CGC’s credit enhancement role, especially in the area of securitisation of SME loans where CGC’s role as credit enhancer is vital.

ìEssentially, CGC would be instrumental in creating an avenue for the SMEs to tap the capital market while at the same time encouraging the capital market investors to be indirectly involved in the development of our SMEs,î Datuk Wan Azhar added.

He further added that the capital market is an alternative source of funds that SMEs can tap into and enjoy not only competitive but more importantly, attractive rates than those offered by the financial institutions. îWith its backing as a credit enhancer of ‘AAA’ issuer credit rating , CGC makes it possible for SMEs to access the capital market for funds and enjoy better rates,î he said.

ìThe credit rating enhances CGC’s potential to raise funds through the issuance of private debt securities to fund its various programmes designed specially to meet the needs of SMEs, which is commonly done in the developed countries such as Germany, Japan and South Korea,î he further added.

Entry into the capital market is part of CGC’s 3-year transformation plan, which will see it transforming itself from a traditional credit guarantee provider to a financially sustainable institution that offers a wide range of products and services to SMEs.

CGC, formed in 1972 to assist in SME development, has been instrumental in the establishment of more than 360,00 SMEs, guaranteeing a total of RM35 billion in value. It posted 21.2% increase in revenue from RM200.9 million in 2005 to RM243.6 million in 2006. Its investment income also saw an increase, registering 15.2% growth from RM127.5 million to RM146.9 million in 2006 with net profits reaching RM119.2 million.

With the increase in the Corporation’s reserves by 2.8% in 2006, the shareholder’s fund rose to RM2.69 billion from RM2.62 billion as at 31 December 2006.


For further information, please contact:

Siti Badarny Hassan

Manager, PR & Special Programmes

Tel: 03-7806-2300 ext 231

Triple A Rating_statement_310507_1820hrs


27-Jun-2007 15:25:40 PM

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Launching of Strategic Partnership

Press Release 6 February 2007

CGC and Islamic Financial Institutions forge Strategic Partnership to accelerate SME growth and drive new opportunities

Kuala Lumpur, Tues 6 Feb – The development of the small and medium-sized enterprises (SME) took a significant step forward today as Credit Guarantee Corporation Malaysia Berhad (CGC) and eight Islamic Financial Institutions announced their strategic partnership that has the potential to increase SMEs access to financing as well as open up new growth opportunities for the institutions.

This decisive step, a customer-centric approach taken by CGC and the Islamic financial institutions, will provide a wider avenue for the SMEs to avail themselves of the varied financing facilities to be made available through the institutionsí network of branches nationwide.

The eight participating Islamic financial Institutions are Affin Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, EONCAP Islamic Bank Berhad, Hong Leong Islamic Bank Berhad and RHB Islamic Bank Berhad.

Speaking to reporters at the launch of this strategic partnership, CGC Chairman Datuk Zamani Abdul Ghani said that the initiative is indeed an extension of the Corporationís on-going efforts to be in the forefront of SME development in the country. ìThis strategic move is in line with the Corporationís transformation exercise embarked a year ago to assist SMEs through new channels,î added Datuk Zamani.

The collaboration with Islamic financial institutions, Datuk Zamani said, is a testimony of CGCís conscientious efforts to find new ways of assisting the SME community that requires financial and developmental support. ìCGC has anticipated an increasing demand for alternate sources of financing from SMEs, especially Syariíah-compliant financing schemes in the light of the fast developing Islamic financial system in parallel with the conventional structure in Malaysia. The initiation of guarantee schemes in Islamic finance complements our overall efforts in the development of Islamic finance as an effective driver of economic growth,î explained Datuk Zamani.

ìIt will not only enable CGC to assist SMEs requiring Islamic guarantees but also help expand its financing base to more customers requiring Islamic facilities. The collaboration also paves the way for CGC to make further inroad into Shariíah-based Islamic financing,î he added.

With this collaboration, it is anticipated that CGC and the Islamic financial institutions will step up their efforts even further to assume a greater role in SME development as envisioned by the National SME Development Council. The concerted efforts by both parties will bring mutual benefits as the Islamic financial institutions are able to extend more financing to its customers with CGC guarantees while on the other hand CGC is able to reach out to new SME customers.

In terms of volume of business, Datuk Zamani revealed that this collaboration is expected to generate RM300 million in 2007.

Year 2007 marks the 2nd phase of CGCís transformation plan where expansion of products and services will be given greater prominence. In addition to extending the guarantee facilities to Islamic financial institutions and development financial institutions, CGC will expedite its efforts in the provision of equity financing as well as securitisation of SME loans. ìThese initiatives are expected to facilitate the Corporationís entry into capital market activities intended for the development of SMEs,î said Datuk Zamani.

He explained further that the new CGC will take a more holistic approach to address SMEs ëaccess to financingí by offering not only conventional and Islamic guarantee products but also non-financial ancillary services i.e. advisory services on financial and business management, marketing and other business aspects to strengthen the capacity and capabilities of SMEs.

CCG, a leading credit enhancer in the country for more than three decades, has to-date been instrumental in the establishment of about 360,000 businesses, guaranteeing over RM35 billion worth of loans.

With the launch of this strategic partnership with the Islamic financial institutions, CGC hopes to see more opportunities and avenues to support the SME sector which remains the key driver of nationís economic growth.


For more information please contact:

Siti Badarny Hassan or V. Kumaran

at 03-7806-2300 ext 231/232

27-Jun-2007 15:23:28 PM

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CGC introduces ENHANCER

CGC introduces ENHANCER to facilitate SME financing

Kuala Lumpur, 28 Aug – Building on the success of its various schemes, Credit Guarantee Corporation Malaysia Berhad (CGC), today launched the ENHANCER, a new credit guarantee scheme aimed at making it relatively easier for the small and medium enterprise (SME) community to obtain financing by enhancing the credibility of their loan applications.

Speaking to reporters after the launching ceremony, CGCís Chief Executive Officer Datuk Wan Azhar Wan Ahmad said, ìThis is one of the most customer-centric products that we have introduced to date as we are committed to see a continuous and dynamic development of the SME sector in the country.î

ìEssentially, the ENHANCER helps SMEs to strengthen their credit standing and business viability by adding more value to their loan applications,î stressed Datuk Wan.

The ENHANCER is a credit guarantee scheme where the guarantee fee that is normally charged to the borrower would be calculated according to the risk profile of the borrower. Under the ENHANCER, a borrower with a low risk profile would pay a low guarantee fee as opposed to a high-risk borrower.

ìThe risk-adjusted guarantee fee pricing structure under ENHANCER is an initiative by CGC to enable a broader segment of the SME community to have greater access to financing their businessî, added Datuk Wan.

The ENHANCER makes SMEs more ëbankableí as the question of risk is now being reflected with a flexible fee structure that is based on the profile of the borrowers.

ìThe new fee structure which is risk-adjusted will be based on the rating of the borrower determined using a scoring methodology,î added Datuk Wan. ìThis may also serve as an incentive for SMEs to enhance their risk profile in order to avail themselves of a lower fee.î

He also explained that under the ENHANCER scheme, the financial institutions that provide loans, are no longer required to comply with stringent requirements such as notification of the Non-Performing Loan (NPL) and any claims arising can be submitted immediately upon NPL.

Datuk Wan also added that the ENHANCER will be initially targeted at small and medium-sized businesses, a segment that has traditionally been finding it difficult to have excess to business loans. Subsequently ENHANCER will also be made available to the bigger enterprises.

ìAs a premier credit guarantee institution, CGC will continue to not only support the growth of SMEs but also to facilitate and sustain their development by paving the way for greater access to the much-needed financial assistance,î explained Datuk Wan.


CGC experienced encouraging demands for the credit guarantee schemes introduced over the years. As at end of July 2006, CGC has cumulatively guaranteed over 363,055 loans valued at RM33.25 billion. In 2005, it guaranteed a total of 8,600 loans valued at RM3.3 billion, benefiting three broad economic sectors namely, general business, manufacturing and agriculture.


ìFor 2006, we aim to maintain the momentum on loan approvals and ENHANCER will be contributing to that effort,î he added.


For the first time ever through its own branch network, CGCís DIRECT ACCESS GUARANTEE SCHEME (DAGS) surpassed the billion-dollar mark in 2005, registering close to 2,400 loans, valued at RM1.4 billion. DAGS and NPGS, the two main schemes, contributed significantly towards the Corporationís growth in loan guarantees, representing about 42% (RM1.4 billion) and 32% (RM1.0 billion) of the total value of loans guaranteed in 2005, respectively. As at end of July 2006, DAGS has seen an increase in total loans guaranteed, registering 16.5% growth compared with the corresponding year.


ìWith attractive features that are beneficial to both the borrowers as well as the financial institutions, we look forward towards greater participation by the financial institutions in the ENHANCER scheme,î said Datuk Wan. îWe also anticipate an increased participation by the locally incorporated foreign banks. Currently participation from the foreign banks only accounts for two percent of the loan base.


As part of its product strategy, CGC is also in the midst of expanding its strategic partnership with Islamic financial institutions to have greater reach to the SME community through the provision of credit enhancements for Islamic financial products.


The ENHANCER was officially launched by the Deputy Governor of Bank Negara Malaysia Datuk Zamani Abdul Ghani at Nikko Hotel, Kuala Lumpur.


CGC was established with the main aim of assisting the SMEs gain accessibility to credit facilities from financial institutions. It is one of the leading institutions in Malaysia, which provides guarantee on loans to SMEs which have no or inadequate collateral or track record.


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Maybank and BCB Top SMI Supporters for 11 Consecutive Years

Press Release

For Publication or Broadcast
26th May 2006


Maybank and BCB Top SMI Supporters for 11 Consecutive Years

Petaling Jaya, 26 May ñ Maybank and Bumiputra-Commerce Bank have once again emerged as the Top SMI Supporters, making it the 11th award both the institutions have won since it was first introduced by Credit Guarantee Corporation (CGC) in 1996. Also recognised were Public Bank Berhad and EON Bank as among the top four SMI Supporters for 2005.


The Top SMI Supporter Award that recognises financial institutions for their significant contribution towards the financing of Small and Medium scale Industries (SMI) and their overall participation in CGCís guarantee schemes annually, was presented by CGC Chairman Datuk Zamani Abdul Ghani at its 33rd Annual General Assembly held in Petaling Jaya.


ìThe financial institutions have been very supportive of CGCís guarantee schemes. With their support CGC has been able to play a significant role in the overall growth of the SMI sector. It is in view of their unwavering support that we recognise them annually,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad.


ìThis recognition has to a certain extent increased competition among the financial institutions as we could see that they are more aggressive in terms of their contribution towards our guarantee schemes,î added Datuk Wan Azhar.


The Corporation registered yet another commendable performance for the year under review. It guaranteed 8,567 loans valued at RM3.3 billion for all its schemes compared with 8,452 loans valued at RM3.0 billion in the previous year. With this healthy growth, the Corporationís guarantee fees income increased by 11.7% to RM73.4 million, from RM65.7 million recorded in the previous year.


In October 2005, the Corporation announced that it would undertake a transformation exercise with a commitment to further enhance its role in supporting the growth and development of competitive SMEs. CGC will be transformed from a traditional guarantee provider into an effective and financially sustainable institution that offers a wider range of products and services that better serve the current and evolving needs of SMEs.


ìIn a nutshell, the transformation exercise would reposition CGC as a commercially-driven financial institution that offers financial as well as other products and services that are complementary to those provided by the banking institutions,î said Datuk Wan Azhar.


ìWe are on track with the transformation. The first of the few initiatives that we have already completed includes the broadening of the board of directors where we have included new members with diverse and relevant expertise that are very much needed by CGC. In addition, we have forged strategic partnership with a foreign SME institution to provide the much-needed expertise to help CGC in its pursuit of establishing itself as an SME institution of choice in Malaysia,î said Datuk Wan Azhar.


The corporation experienced continued demand for its various guarantee schemes in 2005. Two new products were made available for the SMEs. The Fast Track Pro-Finance, a co-branding activity with Bumiputra Commerce Bank (BCB) that catered for the needs of professional firms, was launched last July. This was followed by the debut of the Direct Access Guarantee Scheme-Islamic (DAGS-i), which was introduced in December and which signifies its entry into the Islamic financial infrastructure in the country.


As at end of April 2006, cumulatively CGCís Islamic Banking Guarantee Scheme (IBGS) and Direct Access Guarantee Scheme-Islamic have contributed a total of 525 guaranteed loans approved with a value of RM364 million.


ìWith the presence of a guarantee system in the Islamic banking community, the Corporation is now able to meet the needs of our customers seeking an alternative to conventional methods, and thereby delivering Syariah compliant products,î Datuk Wan Azhar said.


CGCís Direct Access Guarantee Scheme (DAGS), which has played an effective role in enhancing the SMEís bankability and access to financing, has for the first time surpassed the billion ringgit mark in 2005, registering 2,349 loans valued at RM1.4 billion compared with 2,076 loans valued at RM962.9 million in 2004. This commendable growth for DAGS is a result of aggressive marketing strategies, good branch networking and loan monitoring. Demand for DAGS has seen an increase this year with guaranteed loans, as at end of April 2006, reaching 703 valued at RM423.5 million.


CGC will continue to focus more on products and services that are complementary to those provided by banking institutions and that are to be provided at competitive terms to enable the Corporation to achieve long term financial sustainability. It will also intensify further its reach to the SME fraternity via more co-branding and collaborative efforts with the financial institutions. This will enable more SMEs to benefit from the guarantee facilities offered by CGC.


In moving forward CGC will be participating in the first SME loans securitisation in the country. In addition to enhancing the capacity of financial institutions to further lend to SMEs, the securitisation would enable SMEs to indirectly tap their funding requirements from the capital market.


CGC was established with the main aim of assisting the SMEs gain accessibility to credit facilities from financial institutions. It is one of the leading institutions in Malaysia, which provides guarantee on loans to SMEs. To date, it has cumulatively guaranteed more than 380,000 loans valued at RM33.86 billion.


End.

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CGC Extends Guarantee Scheme to Professional Firms

PRESS RELEASE

CGC Extends Guarantee Scheme

To Professional Firms


Kuala Lumpur, 26th July 2005: Credit Guarantee Corporation Malaysia Berhad (CGC), Malaysiaís sole provider of guarantee for business loans, is confident of attracting more professional service providers to participate in its guarantee schemes. The availability of the Fast Track PRO-Finance, which is a joint collaboration with Bumiputra Commerce Bank (BCB), is expected to provide the impetus as it is specially designed to assist Professional Firms to get financing for their working capital and business expansion.


CGCís Managing Director Datuk Wan Azhar Wan Ahmad said the new financing package, jointly undertaken with BCB, is offered via fastrack mode and is made available for private medical and dental clinics, accounting, audit and tax consultants as well as veterinary clinics, engineering and architect firms with a maximum loan of RM100,000. This joint promotion will utilize the existing New Principal Guarantee Scheme and Small Entrepreneur Guarantee Scheme.


ìIn its continuous effort to improve services to the Small Medium Enterprises (SMEs), CGC embarked on joint programmes with local banks, one of which is this BCB Fast Track PRO-Finance. Following the overwhelming response from the BCB Fast Track Financing, a joint product tie-up launched in August 2003, todayís Memorandum Of Understanding (MoU) is an extension of that arrangement for a similar collaboration effort with BCBî, noted Datuk Wan Azhar.


The MoU signed today between BCB and the participating firms namely the Malaysian Institute of Accountants, Malaysian Dental Association, Malaysian Pharmaceutical Society, Malaysian Institute of Architects, The Institution of Engineers, The Institution of Surveyors, Malaysian Medical Association and the Small Animal Practitioners Association of Malaysia, paves the way for CGC to extend its services as the intermediary in providing access to credit for the SMEs.


According to Datuk Wan Azhar, the signing ceremony today marks yet another milestone in the annals of CGC as it stamps CGCís role as a ëCredit Enhancerí, thus evolving itself from its primary role as a credit supplementation institution to a more market driven role in assisting SMEs in the competitive economy. BCB, which was recently awarded as Top SMI Supporter for the past ten years, has committed a great deal of resources and services in financing the SMEs.




ìWe are confident that with todayís MOU, the product will create better awareness among professional firms to get financing, for both working capital and business expansion. There is a commitment now from both CGC and BCB to aggressively promote this product which has seen us approving 66 applications to the value of close to RM5 million up to July 15 this yearî, said Datuk Wan Azhar.


From January to July 15th, this year, CGC has approved a total of 4,396 applications valued at RM1.726 billion for all its five main guarantee schemes. CGC anticipates loans to be guaranteed this year to reach RM4 billion, given the rapid growth of SMEs. Of this amount, half or more will be through its own branches. As at 15 July, CGC has approved 1,722 applications for New Principal Guarantee Scheme (NPGS) amounting to RM556 million whilst for Direct Access Guarantee Scheme (DAGS) was 1,189 applications valued at RM693.7 million. CGC also has approved 614 applications amounting to RM22.1 million for Small Entrepreneur Guarantee Scheme (SEGS). CGC usually witnesses a rapid pick-up in borrowings from customers in the third and fourth quarters of the year.


About CGC
CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. As at July 15th 2005, CGC has cumulatively guaranteed 375,140 loans valued at RM31.4 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my or call our Client Service Centre at telephone number 03-788-000-88


Ends.


************************************************************************************

For Media Enquiries:


Puan Siti Badarny Hassan

Public Relations and Special Programmes Department

Tel ñ 03 : 78062300 Ext 231.

e-mail ñ [email protected]


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CGC plans expansion to reach more SMEs

CGC plans expansion to reach more SMEs

Petaling Jaya, 9th May 2005: Credit Guarantee Corporation Malaysia Berhad (CGC), Malaysiaís sole provider of guarantee for business loans, guaranteed 8,452 loans valued at RM3.01 billion last year under various schemes for the Small and Medium Enterprises (SMEs). The figures represent an increase of 4.5 percent in terms of number and 12 .1 percent in terms of value compared with the total number of 8,090 loans and value of RM2.68 billion respectively approved in 2003.


Chairman Datuk Zamani Abdul Ghani said CGCís operating revenue increased by 9.8 percent to RM148.14 million, against RM134.92 million achieved in 2003 due to higher earnings from both guarantee fees and investment.


ìThe operating environment for the year under review was indeed challenging, but with clear strategies in place, our plans were executed accordingly. As a result, CGC experienced continued demand for its various guarantee schemes enabling greater access to financing for the SMEs, thereby enhancing their capacity to expand and grow,î remarked Datuk Zamani at the 32nd Annual General Meeting of CGC held in Petaling Jaya today.


As the only credit guarantee institution for SMEs, CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment in 1972. There has been a continuing demand for its guarantees, especially the Direct Access Guarantee Scheme (DAGS) which has played an effective role in enhancing the SMEs bankability and access to financing.


ìA positive growth and commendable loan quality for DAGS is a result of adequate branch network and loan monitoring. A total of 2,076 loans valued at RM962.88 million were approved in 2004 compared with 1,904 loans valued at RM932.79 million in 2003. The New Principal Guarantee Scheme (NPGS) saw a slight decrease with 3,340 approved loans valued at RM1,061.68 million in 2004 compared with 3,657 loans valued at RM1,144.45 million in 2003,î noted Datuk Zamani.


Generally, CGCís two main schemes, namely the NPGS and DAGS, contributed significantly towards growth in loan guarantees, representing about 35.3 percent or RM1.06 billion and 32 percent or RM962.88 million respectively of the total value of loans guaranteed in 2004. In terms of sectorial distribution, 73.5 percent or RM2.2 billion of total loans were to the General Business sector.


ìSignificant progress was made last year towards improving the delivery system whereby the Client Service Centre (CSC) was launched in August to provide a ëOne-Stop Communication Centreí to the SMEs and the financial institutions. The official appointment of the Business Advisory Services Entity (BASE) in October saw six consultants being appointed to help the SMEs prepare loan applications for submission to CGC or the financial institutions,î noted Datuk Zamani.


CGCís strategy this year focuses on enhancing the SMEs access to financing. It will continue to elevate its role as a One-Stop-Centre for SMEs to gain access to financing via the Customer Service Centre and its network of 16 branches nationwide. In line with its effort to maximize its reach to more SMEs, CGC will continue with its plan of expanding the existing branches by setting up representative offices in selected locations. Focus shall be given to faster access to financing as well as the post sales service. More tie-up programmes with the financial institutions are in the pipeline to help CGC achieve its strategic goals.



About CGC
CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. To-date CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my.


07-Sep-2005 11:46:05 AM

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Maybank, BCB, RHB and Hong Leong Bag CGC's Top SMI Supporter

Maybank, BCB, RHB and Hong Leong Bag CGC’s Top SMI Supporter Award 2004
Petaling Jaya, 9th May 2005: Credit Guarantee Corporation (CGC), Malaysiaís sole provider of guarantee for business loans, today awarded four local commercial banks the CGC Top SMI Supporter Award 2004. The award, the tenth in the series, is to acknowledge the financial institutions for their significant contribution towards the financing of Small Medium Enterprises (SMEs) and their overall participation in CGCís guarantee schemes annually.


The awards recipients were Maybank, Bumiputra-Commerce Bank, RHB Bank and Hong Leong Bank. CGCís Chairman, Datuk Zamani Abdul Ghani, who is also Bank Negara Malaysiaís (BNM) Deputy Governor, presented the awards after CGCís 32nd Annual General Meeting held in Petaling Jaya.


For Maybank and BCB, the awards this year are of special significance as it is the tenth consecutive year that they have won this award from CGC. As for Hong Leong Bank, it is their first award this year, an acknowledgement for their active participation in spurring the growth of the SMEs in the country. RHB, meanwhile, has won this award for six times.


Datuk Zamani Abdul Ghani said the CGC Top SMI Supporter Award, introduced in 1996, has grown from strength to strength as can be seen from the growing awareness among financial institutions to participate in CGCís guarantee schemes.


ìI would like to congratulate Maybank and BCB for winning this award ten years in a row which undoubtedly places them as the leading providers of financial support for SMEs. Similarly, I would also like to congratulate RHB for their achievement, winning this award for the sixth time, and welcome Hong Leong Bank into the top four ranks of this award. This inaugural achievement by Hong Leong will definitely place the bank on the same playing field with the other financial institutions,î said Datuk Zamani at the prize presentation ceremony held after the 32nd Annual General Meeting of CGC.





Meanwhile, all winners of the award have expressed their full commitment to ensure the continued growth of SMIs in the country and to work closely with CGC.


ìThe SMEs continue to be the impetus for growth and we congratulate CGC in their efforts to enhance this sector through their various loan and guarantee schemes. We have great pleasure in working with CGC in support of the SMEs and congratulate them for their various programmes in uplifting the SME sector. We are honoured by the recognition as Top Performer for 10 consecutive years and we will continue to enhance the close rapport with CGC to enable the SMEs to access the various CGC schemes,î said Datuk Amirsham A Aziz, President and Chief Executive Officer of Maybank Berhad.


Bumiputra-Commerce Bank says it is honoured with the recognition of this award by CGC as a Top SMI Supporter. As one of the largest domestic bank with a deep understanding of the needs of local enterprises, BCB notes that it has always been committed to assist SMIs advance.


ìWe aspire to be the choice bank to all businesses by providing a speedy, efficient and hassle-free process whereby businesses can seek financial assistance. As such, we commit a great deal of resources and dedicate a large team of experienced bank officers located at about 50 business centres throughout the country dedicated to financing SMIs. Our success in this mission over the last 10 years as Top SMI Supporter is due in a large part to the strong commitment and unwavering support of CGC, which has always been a most supportive and forward looking partner in our quest to help Malaysian SMIs advance. We would like to express our appreciation to CGC and restate our commitment to work closely with CGC,î said Encik Abu Bakar Buyong, Executive Vice President, Business Banking.


RHB Bank says the SMEs have been recognized as a priority business. The bank notes that they have 42 easily accessible business centres and a network of 191 branches nationwide to cater for SMEs financing needs. RHB Bank is the first commercial bank to develop and launch a program lending loan package specially tailored for the SMEs under its ëBizPowerí Brand.


ìWe are fully committed towards the development of the SMEs and have set up dedicated departments which provides advisory and product development namely the Special Funds & Schemes Department, the Bumiputera Business Development Department and the Program Lending Department. In addition, our Accounts Relationship Managers and the Commercial Sales Team will provide their professional services and also look into the SMEs financing needs. With CGC as our business partner, we will be able to provide better financial assistance to a wider SMEs market.


This is reflected in our achievement and recognition accorded by CGC as its Top SMI Supporter Award for six consecutive time,î said Mr Michael J. Barrett, Chief Executive Officer, RHB Bank Berhad.


Meanwhile, Hong Leong Bank says the bankís bedrock has always been the SMIs. According to Mr Lee Chaing Huat, Chief Operating Officer, Business Banking, they are delighted and honoured to be recognised and to receive this prestigious award from CGC.


ìWe attribute this achievement to our loyal SMI customers who have given us the opportunity and privilege to be their business partners. This award will certainly spur us to bring more value added financial services to our customers and the SMI community and to help them face the extremely challenging and competitive business environment both locally and globally,î noted Mr Lee.


The winners were selected based on various criteria set by CGC. They include the number and value of loans guaranteed, loan growth, contribution towards Bumiputera SMEs, contribution towards the manufacturing sector, rehabilitation and restructuring as well as recovery.


All winners received a special woodcarving, ëPohon Bodhií which represents the primordial tree that has stood from the beginning of time and whose branches and roots reach out into infinity. The award symbolises commitment and strong foundation.


About CGC
CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. To-date CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my.

07-Sep-2005 11:44:34 AM

Terms and Conditions apply, Copyright 2003 Credit Guarantee Corporation Malaysia. IMPORTANT LEGAL NOTICE

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Presentation Of Top SMI Supporter Award

Presentation Of Top SMI Supporter Award
The 31st Annual General Meeting of Credit Guarantee Corporation Malaysia Berhad (CGC), held at Bangunan CGC today, witnessed the presentation of Top SMI Supporter Awards for year 2003. The Corporationís Chairman, YBhg. Datoí Mohd Salleh Hj. Harun, presented the awards to four financial institutions; namely 3 commercial banks and 1 finance company.


The first CGC Top Supporter Award was introduced in 1996 to recognize banks and finance companies for their significant contribution in the overall achievement of the Corporationís objectives. The Top SMI Supporter Awards, the ninth in the series is traditionally presented to acknowledge the 4 most active financial institutions for their significant contribution towards the financing of SMEs and their overall participation in CGCís guarantee schemes in 2003. The top 3 commercial banks had contributed 68% and 81% in terms of number and value respectively for the Commercial Bank category while the top finance company contributed 94% in terms of both number and value for the Finance Company category in 2003.



The Corporation is pleased to announce the recipients of the 2003 Awards being as follows:


COMMERCIAL BANKS
FINANCE COMPANY
Malayan Banking Berhad

RHB Bank Berhad

Bumiputra-Commerce Bank Berhad
Mayban Finance Berhad



PERFORMANCE IN 2003

The Corporation is adamant of playing an effective role in providing greater financial accessibility to the Small and Medium Enterprises (SMEs) to enhance their capacity to expand their business ventures. As such, the demand for the CGC guarantee schemes continued to remain strong amongst the SMEs in 2003.


Despite the dynamic global economy in 2003, the Corporation remained committed in assisting the SMEs. Following that, the Special Relief Guarantee Fund (SRGF) was introduced to alleviate temporary cash-flow problems faced by those involved in industries which were affected by the Severe Acute Respiratory Syndrome (SARS). Since its implementation, SRGF has benefited 73 borrowers, involving loans valued at RM36.89 million.


The Corporationís expansion program witnessed the opening of two more branches namely in Batu Pahat, Johor and Wangsa Maju in Kuala Lumpur, bringing the total number to 14 branches altogether. In line with the Corporationís business plan, the branches continued to play a vital role in promoting the Direct Access Guarantee Scheme (DAGS.


During the period, a total of 1,904 loans valued at RM932.8 million was approved under DAGS compared to 1,052 loans valued at RM436.3 million in year 2002. Similarly, the New Principal Guarantee Scheme (NPGS) also showed an increase with 3,657 approved loans valued at RM1,144.5 million in year 2003 as compared to 3,424 loans valued at RM1,113.3 million approved in year 2002.


Overall, the total loans guaranteed for the year amounted to RM2.7 billion, surpassing the Corporationís target of RM2.4 billion. The two main schemes, namely New Principal Guarantee Scheme (NPGS) and DAGS had contributed significantly to the growth, representing about 42.6% and 34.8% respectively, of the total value of loans guaranteed in year 2003. In terms of direction of lending, 83% of total loans went to the General Business sector. The Corporation has cumulatively guaranteed 336,115 loans valued at RM25.8 billion.


The Islamic Banking Guarantee Scheme (IBGS), introduced in 1997 was revised in June 2003. The revised IBGS enabled viable businesses to obtain maximum financing of up to RM10 million at a reasonable profit rate. Under the scheme, the Corporation has approved 87 loans valued at RM46.5 million in 2003.


In 2003, a significant milestone was recorded in the strategic management with the introduction and implementation of the Balance Scorecard. It was introduced as a management tool to measure performance of the company from 2004 onwards.


The pilot implementation of Business Advisory Services Entity (BASE) had assisted SMEs towards securing loans and credit facilities via assisted preparation of business proposals. The year also saw BASE having a strong rapport with CGC branches, hence facilitating the loan application process.


In line with the Corporationís effort to provide better quality services to the SMEs, the BCB Fast Track was launched sometime in October 2003. It was a joint effort between the Corporation and the Bumiputra – Commerce Bank Berhad (BCBB) to avail credit facilities faster. Under this arrangement, applications for credit guarantee under SEGS, availing loans not exceeding RM50,000 were processed within 3 working days while those under NPGS with loan amount above RM50,000 took no longer than 7 working days. As at December 2003, the Corporation had cumulatively approved 369 loans amounting to RM20.7 million under the scheme.
OUTLOOK
Todayís occasion is very significant as CGC introduces its newly enhanced iGuarantee website. Leveraging on Information Technology, iGuarantee, is an innovative channel which acts as a virtual market place for online business loans applications. The iGuarantee has been improved with features that are more informative, interactive and user-friendly. It has also been given a new look and feel to accommodate comprehensive information on CGCís schemes, business-related articles as well as promoting a community-type environment for SMEs to interact.

The essence iGuarantee enhancement incorporates the ë3Csí, namely Content, Commerce and Community.


The new features of the enhanced iGuarantee are :

i) Content

ÿ iGuarantee Ideas ñ articles closely related to SMIs which are produced by professional independent copywriters. The section is divided into 2, namely for those who are new in business and existing entrepreneurs.

ÿ The Right Scheme For You ñ it is a Scheme Wizard designed to assist SMIs to select the most suitable guarantee scheme based on 3 simple questions.

ÿ Identifying the Right Scheme ñ provides a quick summary and comparison of the various schemes offered by CGC.

ÿ Newsfeed ñ Latest business news provided by Bernama


ii) Commerce

ÿ Business Opportunity ñ entrepreneurs are able to share their business proposition, seek new business partners, provide special promotions, etc. under this column.


iii) Community

ÿ Share Your Ideas ñ a forum for visitors to exchange their views and ideas.

ÿ Newsletter ñ for registered members providing them with the latest updates on CGC and interesting, relevant articles.[CGC1]

The Corporationís Business Plan for Financial Year 2004 focused on evolving CGCís role from Credit Supplementation to that of a Credit Enhancer ñ in order to assist SMEs to become more bankable and thus able to sustain their business.


Several strategies have been designed to fulfil this new role. The Corporation is targeted to launch its Client Service Centre (CSC) before the third quarter of 2004. The objective of having the CSC is to improve its service level to the SMEs and FIs, ie. by having a more personalized and dedicated service and a 2-way communication channel for transparency.


In 2004, Business Advisory Services Entity (BASE) shall be expanded: to increase the number of panel consultants, integrate to the Client Service Centre for service-related matters and other follow-up / monitoring process for the SMEsí benefit.


With the recent opening of four branches in Batu Pahat and Kuala Lumpur in November 2003 and Sandakan and Miri early this year, the Corporation has a total of 16 branches operational nationwide. Generally, this is vital towards promoting the Direct Access Guarantee Scheme (DAGS).


As the premier guarantee provider and a key engine for SME growth, CGC is well poised to meet challenges which lies ahead and it shall pursue to develop its key resources and competencies, whilst keeping abreast with the technological advancement to promote efficiency.


ìCGC ñ HELPING YOUR BUSINESS GROWî



CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

APRIL 5, 2004.

 
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LAUNCHING OF THE FINANCIAL SECTOR MASTER PLAN (FSMP)

LAUNCHING OF THE FINANCIAL SECTOR MASTER PLAN (FSMP)
STATEMENT BY WAN AZHAR WAN AHMAD CHIEF EXECUTIVE OFFICER, CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD (CGC)

As mentioned in the FSMP, one of the primary objective of the FSMP is meeting the socioeconomic objectives of Malaysia, particularly with regards to access of funding by priority sectors in the economy such as the SMIs and Bumiputera entrepreneurs.

Priority sectors such as the SMIs are essential sub-sectors of the economy that require financing. SMIs contribute significantly to the economic growth of the country. Over time, SMIs will be increasingly more significant such that it will become a vital foundation of the economy. It is therefore important to ensure adequate financing to these sectors and such provision of financing should be continuous.

As outlined under the FSMP, the lending to SMIs will be facilitated through a more efficient and expanded credit guarantee system. The CGC will play a larger role in guaranteeing the priority sectors, especially the SMIs. Besides introducing more attractive financing schemes, CGC has taken a number of steps recently to improve its operations, including the scheduled opening of new branches all over the country as well as strengthening its funding structure. At present, CGC has four branches operating in Kedah, Perak, Selangor and Johor. CGC will ultimately be operating in all states by end of this year. This infrastructure will prepare CGC for the enhanced role in the expanded guarantee scheme.

In the new framework announced under the masterplan, CGC is expected to expedite application and the approval process by the setting up of a portal whereby SMIs can apply for loans with CGC guarantee directly. Under such arrangement, the CGC would then solicit from banking institutions their proposed lending rates and guarantee requirements for the loan. Among the prospective lenders, CGC would then select the best offer, which is the one with the lowest price as well as lowest guarantee requirement. This scheme, targeted to be fully operational by this year would require full participation from the banking institutions.

Under the FSMP, CGC is expected to play a larger role in guaranteeing the SMIs. Through the guarantee mechanism the banking institutions will develop the ability to support these priority sectors, which will then assure Bank Negara Malaysia that these sectors will continue to have access to financing.
20-Feb-2004 14:07:19 PM

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CGC LAUNCHES REVISED ISLAMIC BANKING GUARANTEE SCHEME

CGC LAUNCHES REVISED ISLAMIC BANKING GUARANTEE SCHEME
FOR PUBLICATION OR BROADCAST

ON JUNE 2nd 2003

Credit Guarantee Corporation Malaysia Berhad (CGC) today officially announced the revision to its Islamic Banking Guarantee Scheme (IBGS). Datuk Wan Azhar Wan Ahmad, the Managing Director and Chief Executive of CGC says that the revision follows the enhancement to its New Principal Guarantee Scheme (NPGS) which caters for conventional business loans. It is hoped that with the revised IBGS, participating financial institutions will be further encouraged to provide the necessary Islamic Banking financing to Small and Medium scale Enterprises (SMEs) thereby further expanding the overall scope and portfolio of such facilities that are available in the country.

The IBGS, which was first introduced in 1997, is aimed at assisting SMEs that have viable projects but lack the collateral to obtain the required financing from participating financial institutions. The revised IBGS now enables viable businesses to obtain maximum financing of up to RM10 million at a reasonable profit rate imposed by the financier. Eligible businesses are those with an annual sales turnover not exceeding RM25 million or with not more than 150 full time workers.


The IBGS seeks to address the needs of both SMEs and financial institutions with the following features:

A maximum guarantee cover of up to RM2.5 million for the unsecured portion of the financing, applicable to ALL sectors (previously the maximum of RM2.5 million was applicable to the manufacturing sector only). There is no capping imposed on the secured portion.
The guarantee cover is now liberalized and ranges up to 80% for the unsecured portion and 90% for the secured portion and is now applicable to ALL sectors, compared to a fixed guarantee cover structure depending on the sector previously.
The guarantee fee chargeable is only 1.00% (secured portion) and 1.25% (unsecured portion), and is to be paid annually in advance.


The revised IBGS is designed to cater the current needs of SMEs. It is available at all commercial banks and finance companies that have Islamic Banking products. Since its implementation and up to May 24, 2003, the IBGS has benefited 247 borrowers involving loans valued at RM RM153.5 million.

The Corporation is also pleased to announce the achievements of the other guarantee schemes currently in implementation (Cumulative Approved Loans as at May 24, 2003) as follows: -.
CURRENT SCHEMES LOANS APPROVED

NO AMOUNT
(RM million)
New Principal Guarantee Scheme(NGPS) 54,394 16,354.7
Islamic Banking Guarantee Scheme(IBGS) 247 153.5
Direct Access Guarantee Scheme(DAGS) 2,021 844.4
Small Entrepreneur Guarantee Scheme(SEDS) 5,834 205.7
Franchise Financing Scheme(FFS) 102 26.2
Flexi Guarantee Scheme(FGS) 3,770 1,236.4
Other Schemes 271,046 5,079.4.7
TOTAL 337,414 23,900.1

The Corporation in its the role as a “Credit Enhancer” for SMEs is confident that with the revised IBGS, SMEs that prefer Islamic Banking will now be able avail themselves of the necessary financing even though they may have inadequate collateral or track record. CGC will continuously monitor and review its existing products to ensure that Malaysian SMEs continue to have access to the financial support required to further grow and develop their businesses and contribute towards the overall economy.



For any inquiries please contact the Public Relations and Special Programmes Department at 03-7806 2300 ext. 130 or 131.

10-Sep-2009 17:25:56 PM

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29th ANNUAL GENERAL MEETING 2001

29th ANNUAL GENERAL MEETING 2001

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD
For Publication or Broadcast
After 1600 hours
June 06, 2002

PRESENTATION OF CGC TOP SUPPORTER AWARDS
The 29th Annual General Meeting of Credit Guarantee Corporation Malaysia Berhad (CGC) held at Bangunan CGC today, witnessed the presentation of CGC Top Supporters Awards for year 2001. Tan Sri Dato’ Dr. Zeti Akhtar Aziz, the Corporation’s Chairman, presented the Award to four financial institutions; namely 3 commercial banks and 1 finance company.

The CGC Top Supporter Awards, seventh in the series is traditionally presented to acknowledge the 4 most active financial institutions for their significant contribution towards the financing of SMEs and their overall participation in CGC’s guarantee schemes in 2001. These 3 commercial banks contributed 79.1% of a total 6,352 loans, valued at RM1,133.9 million while the finance company contributed 59.2% of a total 485 loans amounting RM27.4 million in the year 2001.

The Corporation is pleased to announce that the recipients of the 2001 awards are:

COMMERCIAL BANKS
FINANCE COMPANY

Malayan Banking Berhad
Mayban Finance Berhad

RHB Bank Berhad

Bumiputra-Commerce Bank Berhad



PERFORMANCE IN 2001

The year under review saw the Corporation moving ahead with its expansion programme even in a period of global economic slowdown. The Corporation was able to continue implementing its programme towards realising its mission of becoming the One-Stop Financial Centre for Small and Medium Enterprises (SMEs) in the country. Six more branches were set up in Melaka, Kuantan, Kota Bharu, Prai, Seremban and Kuala Terengganu by end 2001. With additional two branches opened in Kota Kinabalu and Kuching in January 2002, the number of branches in operation now total 12 altogether.

Consistent with the Corporation’s enhanced role, the CGC branches will be responsible to promote the Direct Access Guarantee Scheme (DAGS), as well as to maintain close working relationships with the local business community and financial institutions. During the year 2001, CGC through its branches approved a total of 436 loans valued at RM160.4 million. This is an encouraging development as DAGS, which was introduced in July 2000, managed to record only 22 loans valued at RM 8.6 million in the initial year.

During the same period; the Corporation, with continuous support from all participating financial institutions, approved a total of 7,486 new loans valued at RM 1.9 billion. Of the total amount, 6,329 loans valued at RM 1,451.9 million were approved under the Main Schemes, which comprised the New Principal Guarantee Scheme (NPGS), Small Entrepreneur Guarantee Scheme (SEGS), Islamic Banking Guarantee Scheme (IBGS) and Direct Access Guarantee Scheme (DAGS). Apart from the Main Schemes, the Programmed Lending Schemes contributed a number of 508 loans worth RM 135.6 million. In addition, the Fund for Small and Medium Industries 2 (FSMI2) and the New Entrepreneur Fund 2 (NEF2), currently managed by the Corporation, recorded 369 loans valued at RM197.9 million and 280 loans worth RM154.5 million respectively. The decrease in terms of the number of loans guaranteed is mainly due to the termination of the micro credit scheme, the Tabung Usahawan Kecil (TUK). At the same time the global economic slowdown contributed the overall decline in loan approvals by the banking sector. In terms of the performance of guarantee schemes in year 2001, the NPGS continued to be the Corporation’s main contributor in terms of overall number and value of loans guaranteed with 51.7% and 74.0% respectively.

CGC’s ongoing efforts to further integrate its services continued to leverage on the benefits offered by Information Technology (IT). On July 9, 2001, CGC launched iGuarantee, a web service portal that enables on-line loan applications via Internet at the SMEs’ convenience. The portal creates a conducive “market place” to bring together potential SMEs borrowers and financiers while allowing CGC to provide the much-needed guarantee at the same time. To date, CGC has received a total of 406 applications via iGuarantee since its introduction.

Realising that one of the primary objective of the Financial Sector Master Plan (FSMP) is to develop Bumiputera entrepreneurs in Malaysia, CGC has also been channeling the NEF 2 through several versions of DAGS-NEF 2, DAGS-Franchise-NEF 2 and DAGS-PROSPER-NEF 2, both under conventional and Islamic banking facilities. The implementation of these new schemes is expected to benefit more Bumiputera SMEs and effectively contribute towards the economic growth of the country.


OUTLOOK

In line with the 2002 National Budget strategy, CGC will ensure adequate financing to SMIs as it continues to play a larger role in guaranteeing loans granted to the sector. It is expected that in the year 2002, the global economic recovery will continue to strengthen and contribute to the growth and development of Malaysian SMEs. The Corporation will ensure that access to credit for SMIs would continue to be made available. The Corporation’s projection for loan growth remains positive with a target of RM2.0 billion loan guarantees for year 2002.

“The Smart Partnership” concept together with the new set up Marketing and Business Development department in the Corporation is hoped to foster the Corporation’s image as well as to create a better rapport with financial institutions and other agencies. It is the Corporation’s objective to also create greater market awareness as well as to offer better service to SMEs’ financing needs. CGC will ensure that the capacity for loan guarantees for SMEs would continue to grow whilst continuously maintaining asset quality and ensuring that non-performing loans (NPLs) is maintained at prudent levels.

Following the success of administering the Fund for Small and Medium Industries 2 (FSMI 2) and the New Entrepreneur Fund 2 (NEF 2) from Bank Negara Malaysia, CGC is also being considered by the Ministry of Finance to be appointed as the administrator of various other funds for SMIs. It is hoped that CGC will continue to play an effective and prominent role in assisting the development of SMIs, hence contributing positively towards the economic growth in the country.

20-Feb-2004 13:53:44 PM

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THE IMPLEMENTATION OF NEW ENTREPRENEURS FUND 2 (NEF 2)

THE IMPLEMENTATION OF NEW ENTREPRENEURS FUND 2 (NEF 2)
PRESS RELEASE BY
WAN AZHAR WAN AHMAD
CHIEF EXECUTIVE / MANAGING DIRECTOR

ON THE IMPLEMENTATION OF
NEW ENTREPRENEURS FUND 2 (NEF 2)
(16th July 2001)

1. We are pleased to announce that effective from July 16, 2001, Bank Negara Malaysia has appointed Credit Guarantee Corporation Malaysia Berhad (CGC) as administrator of the New Entrepreneurs Fund (NEF 2) with an allocation of RM250 million.

2. The NEF 2 will be channeled to eligible Small and Medium Entreprises (SMEs) through the following participating financial institutions :-

a) All commercial banks

b) All finance companies

c) 3 development financial institutions;

Bank Industri & Teknologi Malaysia Berhad
Bank Pembangunan & Infrastruktur Malaysia Berhad
Malaysia Industrial Development Finance Berhad

Bumiputera entrepreneurs eligible for NEF 2 must have the following criteria: –

a) Companies with shareholders? fund of not exceeding RM10.0 million.
b) Must be wholly-owned Bumiputera enterprises/companies/ institutions registered under the Companies Act 1965, the Co-operative Societies Act 1996 or Bumiputera citizens residing in Malaysia and Bumiputera entrepreneurs registered under Registrar of Business or any other authoritive body;
or
Bumiputera SMEs under the vendor development programmes of the Ministry of Entrepreneur Development or Ministry of Finance with at least 70% Bumiputera equity and management control.
3. The maximum loan limit per borrower will be RM5 million and the purpose of the loan will be for expansion in productive capacity, working capital or both. The fund covers all types of credit facilities with maximum lending rate of 5.5% per annum, whilst the maximum loan tenure will be for 8 years.
4. The appointment of CGC as the administrator of NEF 2 is consistent with the objective of making CGC a ?one stop center? for SMI funds. At present, CGC is already managing the Fund For Small and Medium Industry 2 (FSMI 2) totaling RM200 million.

 
5. To date, CGC has guaranteed 760 loans valued at RM300 million under NEF and has availed to SMIs, 353 loans valued at RM177.1 million under FSMI 2.

Credit Guarantee Corporation Malaysia Berhad
July 16, 2001

 
20-Feb-2004 14:02:59 PM