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]