CGC plans expansion to reach more SMEs
Petaling Jaya, 9th May 2005: Credit Guarantee Corporation Malaysia Berhad (CGC), Malaysiaís sole provider of guarantee for business loans, guaranteed 8,452 loans valued at RM3.01 billion last year under various schemes for the Small and Medium Enterprises (SMEs). The figures represent an increase of 4.5 percent in terms of number and 12 .1 percent in terms of value compared with the total number of 8,090 loans and value of RM2.68 billion respectively approved in 2003.
Chairman Datuk Zamani Abdul Ghani said CGCís operating revenue increased by 9.8 percent to RM148.14 million, against RM134.92 million achieved in 2003 due to higher earnings from both guarantee fees and investment.
ìThe operating environment for the year under review was indeed challenging, but with clear strategies in place, our plans were executed accordingly. As a result, CGC experienced continued demand for its various guarantee schemes enabling greater access to financing for the SMEs, thereby enhancing their capacity to expand and grow,î remarked Datuk Zamani at the 32nd Annual General Meeting of CGC held in Petaling Jaya today.
As the only credit guarantee institution for SMEs, CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment in 1972. There has been a continuing demand for its guarantees, especially the Direct Access Guarantee Scheme (DAGS) which has played an effective role in enhancing the SMEs bankability and access to financing.
ìA positive growth and commendable loan quality for DAGS is a result of adequate branch network and loan monitoring. A total of 2,076 loans valued at RM962.88 million were approved in 2004 compared with 1,904 loans valued at RM932.79 million in 2003. The New Principal Guarantee Scheme (NPGS) saw a slight decrease with 3,340 approved loans valued at RM1,061.68 million in 2004 compared with 3,657 loans valued at RM1,144.45 million in 2003,î noted Datuk Zamani.
Generally, CGCís two main schemes, namely the NPGS and DAGS, contributed significantly towards growth in loan guarantees, representing about 35.3 percent or RM1.06 billion and 32 percent or RM962.88 million respectively of the total value of loans guaranteed in 2004. In terms of sectorial distribution, 73.5 percent or RM2.2 billion of total loans were to the General Business sector.
ìSignificant progress was made last year towards improving the delivery system whereby the Client Service Centre (CSC) was launched in August to provide a ëOne-Stop Communication Centreí to the SMEs and the financial institutions. The official appointment of the Business Advisory Services Entity (BASE) in October saw six consultants being appointed to help the SMEs prepare loan applications for submission to CGC or the financial institutions,î noted Datuk Zamani.
CGCís strategy this year focuses on enhancing the SMEs access to financing. It will continue to elevate its role as a One-Stop-Centre for SMEs to gain access to financing via the Customer Service Centre and its network of 16 branches nationwide. In line with its effort to maximize its reach to more SMEs, CGC will continue with its plan of expanding the existing branches by setting up representative offices in selected locations. Focus shall be given to faster access to financing as well as the post sales service. More tie-up programmes with the financial institutions are in the pipeline to help CGC achieve its strategic goals.
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. To-date CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 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.
07-Sep-2005 11:46:05 AM