Press Release
For immediate release
Credit Guarantee Corporation and Standard Chartered Bank Malaysia Sign Portfolio Guarantee Agreement
Kuala Lumpur, 7 April – Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Bank Malaysia Berhad (Standard Chartered) has entered into a partnership agreement that would enable SCB to extend financial assistance to SMEs via the Portfolio Guarantee.
The agreement was signed by CGCís Managing Director, Datuk Wan Azhar Wan Ahmad and Standard Charteredís Chief Executive Officer, Mr Julian Wynter at a signing ceremony held today in Kuala Lumpur. The ceremony was witnessed by Datoí Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia, who is also CGCís Chairman.
The Portfolio Guarantee Agreement, the first agreement of its kind to be signed in the financial industry, would enable SMEs not only to enjoy a new avenue to gain access to financing but also improved turnaround time in terms of approval and disbursement of loans.
Speaking to the media at the signing ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said: ìThrough this arrangement, designed for Standard Charteredís SMEs loans, we hope to deliver speedier application processing time as the customers eligible for this portfolio guarantee are pre-selected based on certain criteria.î
He also added that this initiative is in line with the call of the government for greater government-private sector collaboration to drive economic growth.
ìCGC and Standard Chartered Bank Malaysia have an important role in helping to stimulate economic growth, and supporting viable SMEs to sustain their businesses is the way to go at this crucial period,î he said.
Julian Wynter, Managing Director and CEO of Standard Chartered Malaysia, ìSMEs will be the engine of any global economic recovery. Yet, worldwide they are struggling to survive as flight away from risk affects credit flows. It is critical that governments, banks and public agencies, collaborate to avert consistent and wide-scale failure of this sector.
ìAs a bank, we recognise our role in the equation. This Portfolio Guarantee partnership with CGC sees Standard Chartered leading the way in supporting SME potential. By enabling working capital financing to small businesses, we demonstrate our promise to be their right partner through both bull and bear times.î
Through the Portfolio Guarantee, a facility of RM50 million shall be made available to the SMEs in the first tranche and eventually up to RM300 million in subsequent tranches. The Portfolio Guarantee, a term loan facility, offers a loan range of between RM100,000 to RM500,000 and is designed with the primary objective of providing working capital and asset acquisition to SMEs.
With Standard Chartered on board, CGC hopes to see more such opportunities with other financial institutions to further enhance its support to the SME sector in efforts to sustain the growth of this key component of the economy.
For media enquiries, please contact:
V. Kumaran
Head, Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: 03-78062300 (ext. 232)