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.
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V. Kumaran
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