Thursday, 14 November 2019,   16 Rabiulawal 1441H

 

CGC-BSN Enter into Strategic Partnership to Enhance Micro Financing

Malaysia’s first-ever Portfolio Guarantee (PG) agreement sealed to avail RM50million of financing for micro-enterprises


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

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

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

"For CGC, this is a positive development in terms of achieving our Bumiputera outreach agenda as it will complement our on-going efforts and initiatives to play a bigger role in this fast growing segment," added Zamree.  

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

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

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

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

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

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

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

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

To date, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.6 billion. 

 

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Press Release