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.



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