PRESS STATEMENT BY

DATUK WAN AZHAR WAN AHMAD,

MANAGING DIRECTOR

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD


We are pleased to announce that Credit Guarantee Corporation Malaysia Berhad (CGC) has launched the Enhancer-i, a new credit guarantee scheme that is designed to further enhance SMEs (Small and Medium Enterprises) access to Islamic financing.


The innovative Enhancer-i is introduced to meet the increasing demand for alternate sources of financing from SMEs especially Syariíah-compliant financing facility. It is an enhanced version of CGCís Islamic Banking Guarantee Scheme (IBGS), the first Islamic guarantee scheme introduced in 2003, to enable SMEs to be more bankable by adding more value to their financing applications. It provides access to financing up to RM10 million and a guarantee coverage of up to 90%.


As with the conventional ENHANCER scheme introduced in August 2006, Enhancer-i is a guarantee scheme where the guarantee fee charged is calculated based on the risk profile of the borrower. The risk-adjusted pricing structure offers competitive terms for borrowers with low risk profiles.


Since the introduction of its Islamic credit guarantee schemes in 2003, CGC has cumulatively guaranteed a total of RM492 million under two of its Islamic schemes.


With the introduction of Enhancer-i, the SMEs now have enhanced access and also options to obtain Islamic financing. In addition to that, with wider and improved access especially with the participation of more Islamic and development financial institutions in CGCís guarantee schemes since early 2007, the SMEs can look forward to exploring newer business opportunities, expand their existing businesses or even penetrate non-traditional markets.

To avail Enhancer-i, the SMEs are encouraged to contact any of the participating financial institutions which offer Islamic financing facilities namely Maybank, Affin Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, EONCAP Islamic Bank Berhad, Hong Leong Islamic Bank Berhad and RHB Islamic Bank Berhad as well as the development financial institutions such as Bank Rakyat, Bank Pertanian and the Malaysian Industrial Development Finance (MIDF).

CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs with inadequate collateral or without collateral and has no track record, a niche area in which the Corporation has served for 36 years. To date, it has cumulatively guaranteed about RM40 billion benefiting more than 400,000 SMEs in the country.