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.


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