Presentation Of Top SMI Supporter Award
The 31st Annual General Meeting of Credit Guarantee Corporation Malaysia Berhad (CGC), held at Bangunan CGC today, witnessed the presentation of Top SMI Supporter Awards for year 2003. The Corporationís Chairman, YBhg. Datoí Mohd Salleh Hj. Harun, presented the awards to four financial institutions; namely 3 commercial banks and 1 finance company.
The first CGC Top Supporter Award was introduced in 1996 to recognize banks and finance companies for their significant contribution in the overall achievement of the Corporationís objectives. The Top SMI Supporter Awards, the ninth in the series is traditionally presented to acknowledge the 4 most active financial institutions for their significant contribution towards the financing of SMEs and their overall participation in CGCís guarantee schemes in 2003. The top 3 commercial banks had contributed 68% and 81% in terms of number and value respectively for the Commercial Bank category while the top finance company contributed 94% in terms of both number and value for the Finance Company category in 2003.
The Corporation is pleased to announce the recipients of the 2003 Awards being as follows:
COMMERCIAL BANKS
FINANCE COMPANY
Malayan Banking Berhad
RHB Bank Berhad
Bumiputra-Commerce Bank Berhad
Mayban Finance Berhad
PERFORMANCE IN 2003
The Corporation is adamant of playing an effective role in providing greater financial accessibility to the Small and Medium Enterprises (SMEs) to enhance their capacity to expand their business ventures. As such, the demand for the CGC guarantee schemes continued to remain strong amongst the SMEs in 2003.
Despite the dynamic global economy in 2003, the Corporation remained committed in assisting the SMEs. Following that, the Special Relief Guarantee Fund (SRGF) was introduced to alleviate temporary cash-flow problems faced by those involved in industries which were affected by the Severe Acute Respiratory Syndrome (SARS). Since its implementation, SRGF has benefited 73 borrowers, involving loans valued at RM36.89 million.
The Corporationís expansion program witnessed the opening of two more branches namely in Batu Pahat, Johor and Wangsa Maju in Kuala Lumpur, bringing the total number to 14 branches altogether. In line with the Corporationís business plan, the branches continued to play a vital role in promoting the Direct Access Guarantee Scheme (DAGS.
During the period, a total of 1,904 loans valued at RM932.8 million was approved under DAGS compared to 1,052 loans valued at RM436.3 million in year 2002. Similarly, the New Principal Guarantee Scheme (NPGS) also showed an increase with 3,657 approved loans valued at RM1,144.5 million in year 2003 as compared to 3,424 loans valued at RM1,113.3 million approved in year 2002.
Overall, the total loans guaranteed for the year amounted to RM2.7 billion, surpassing the Corporationís target of RM2.4 billion. The two main schemes, namely New Principal Guarantee Scheme (NPGS) and DAGS had contributed significantly to the growth, representing about 42.6% and 34.8% respectively, of the total value of loans guaranteed in year 2003. In terms of direction of lending, 83% of total loans went to the General Business sector. The Corporation has cumulatively guaranteed 336,115 loans valued at RM25.8 billion.
The Islamic Banking Guarantee Scheme (IBGS), introduced in 1997 was revised in June 2003. The revised IBGS enabled viable businesses to obtain maximum financing of up to RM10 million at a reasonable profit rate. Under the scheme, the Corporation has approved 87 loans valued at RM46.5 million in 2003.
In 2003, a significant milestone was recorded in the strategic management with the introduction and implementation of the Balance Scorecard. It was introduced as a management tool to measure performance of the company from 2004 onwards.
The pilot implementation of Business Advisory Services Entity (BASE) had assisted SMEs towards securing loans and credit facilities via assisted preparation of business proposals. The year also saw BASE having a strong rapport with CGC branches, hence facilitating the loan application process.
In line with the Corporationís effort to provide better quality services to the SMEs, the BCB Fast Track was launched sometime in October 2003. It was a joint effort between the Corporation and the Bumiputra – Commerce Bank Berhad (BCBB) to avail credit facilities faster. Under this arrangement, applications for credit guarantee under SEGS, availing loans not exceeding RM50,000 were processed within 3 working days while those under NPGS with loan amount above RM50,000 took no longer than 7 working days. As at December 2003, the Corporation had cumulatively approved 369 loans amounting to RM20.7 million under the scheme.
OUTLOOK
Todayís occasion is very significant as CGC introduces its newly enhanced iGuarantee website. Leveraging on Information Technology, iGuarantee, is an innovative channel which acts as a virtual market place for online business loans applications. The iGuarantee has been improved with features that are more informative, interactive and user-friendly. It has also been given a new look and feel to accommodate comprehensive information on CGCís schemes, business-related articles as well as promoting a community-type environment for SMEs to interact.
The essence iGuarantee enhancement incorporates the ë3Csí, namely Content, Commerce and Community.
The new features of the enhanced iGuarantee are :
i) Content
ÿ iGuarantee Ideas ñ articles closely related to SMIs which are produced by professional independent copywriters. The section is divided into 2, namely for those who are new in business and existing entrepreneurs.
ÿ The Right Scheme For You ñ it is a Scheme Wizard designed to assist SMIs to select the most suitable guarantee scheme based on 3 simple questions.
ÿ Identifying the Right Scheme ñ provides a quick summary and comparison of the various schemes offered by CGC.
ÿ Newsfeed ñ Latest business news provided by Bernama
ii) Commerce
ÿ Business Opportunity ñ entrepreneurs are able to share their business proposition, seek new business partners, provide special promotions, etc. under this column.
iii) Community
ÿ Share Your Ideas ñ a forum for visitors to exchange their views and ideas.
ÿ Newsletter ñ for registered members providing them with the latest updates on CGC and interesting, relevant articles.[CGC1]
The Corporationís Business Plan for Financial Year 2004 focused on evolving CGCís role from Credit Supplementation to that of a Credit Enhancer ñ in order to assist SMEs to become more bankable and thus able to sustain their business.
Several strategies have been designed to fulfil this new role. The Corporation is targeted to launch its Client Service Centre (CSC) before the third quarter of 2004. The objective of having the CSC is to improve its service level to the SMEs and FIs, ie. by having a more personalized and dedicated service and a 2-way communication channel for transparency.
In 2004, Business Advisory Services Entity (BASE) shall be expanded: to increase the number of panel consultants, integrate to the Client Service Centre for service-related matters and other follow-up / monitoring process for the SMEsí benefit.
With the recent opening of four branches in Batu Pahat and Kuala Lumpur in November 2003 and Sandakan and Miri early this year, the Corporation has a total of 16 branches operational nationwide. Generally, this is vital towards promoting the Direct Access Guarantee Scheme (DAGS).
As the premier guarantee provider and a key engine for SME growth, CGC is well poised to meet challenges which lies ahead and it shall pursue to develop its key resources and competencies, whilst keeping abreast with the technological advancement to promote efficiency.
ìCGC ñ HELPING YOUR BUSINESS GROWî
CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD
APRIL 5, 2004.
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