Speeches

As’kum warahmatullahi wabarakatuh and a very good afternoon, everyone.

Welcome to the CGC’s 28th FI/DFI & SME Awards 2022.

On behalf of the Board and Management of CGC, I thank:
– The Honourable Minister of Investment, Trade & Industry, Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz,
– Chairmen and CEOs of Financial Institutions and Development Financial Institutions,
– Distinguished guests and members of the Press.
for gracing us with your presence this afternoon.

Ladies and Gentlemen, when the 2-year economic lockdown was lifted in 2021, there was a collective hope that things would quickly get back to normal and the economy would quickly recover – that the green shoots of recovery would soon turn into full economic bloom.

For many businesses it did, recovery was swift and contributed to job opportunities.

But after the stressful period of 2 years of little cashflow, it would be naïve for us to expect that businesses can just turn the crankshaft and the engine, which had been idle for two years, will just start roaring again, For some SMEs, the engine sputtered. It didn’t roar. Some even had to close their businesses – as evidenced by the many premises with the shutters down. That’s the situation facing many SMEs today.

Recently, we had the opportunity to sit down with some of these SME groups to listen to their issues. I think it is important that I share some of the feedback we receive from our SMEs:

• Inability to obtain fresh funding due to past CCRISS records of delinquencies due to the economic lockdown.
• Increasing debt burden with the rising interest rates.
• Using old approach to evaluate the gig economy.
• Lack of empathy from certain government agencies that they had to deal with.

We know that many banks have reviewed their processes and credit policies to deal with the issues arising from the pandemic, but we need to acknowledge that many SMEs are still facing issues, and for those whose businesses are still viable, we need to ask ourselves whether we are doing enough to assist rehabilitation and venturing into new areas, whether there is still room to do more as part of our developmental role to hasten both the rehabilitation and the venturing into the new business opportunities post-pandemic, especially the gig business. Specifically, we need to review whether the way we implement risk management is too oriented towards risk avoidance and needs to be moderated to reflect our developmental role.

If I may suggest, maybe of these issues arise from a single problem i.e. that we, ourselves, the DFIs and the FIs and the various government departments that are part of the SMEs eco-system which they have to deal with, tend to apply pre-covid rules in assessing their changing requirements, and not recognising enough the deep impact of the two-year economic lockdown and the very different post-pandemic operating environment.

We need to look at the whole ecosystem. Clearly, it’s not the responsibility of FIs alone. The eco-system of the SMEs includes the government machinery and its ability to facilitate the businesses, not just as an authoriser and an enforcer, but also to be a catalyst. In terms of providing special funding, we must acknowledge that the Government has been most supportive during those difficult times, and I must thank YB Senator Tengku Datuk Seri Utama Zafrul, who was the Minister of Finance (MOF) then, for making the funds available, channeled through various DFIs and agencies. But it’s not about funding alone. The administrative part of the government must also work at a faster pace to enable the businesses to conduct their businesses better and faster. This cannot be just at the policy level, but equally important at the frontlines that SMEs have to deal with the public counters so that there is no disconnect between policies and administration. Unlike corporates, who have access to the high levels or the HQs of the banks through the relationship managers, SMEs only have access to the branches and the public counters of the government agencies. For businesses, time is money.

All these require a mix of individual organisational initiatives on the part of the FIs and government departments. We don’t have the complete solutions at this stage, but I feel we should share these issues with you today for your respective responses.

So, I leave it to you to ponder on this, and see what you can do, either at the individual institution level, which is faster, or at a collective industry level, which of course is better but may take more time. Either way, it is important that we do respond properly because SMEs are a major segment of our economy, accounting for 97% of total business establishments and 47% of employment. The failure of the SMEs to grow will impact many businesses in the economic supply chain and therefore jobs and jobs creation. We should embrace this as part of ESG, which is not about climate control and the environment alone, but also the “S” and the “G” components of “ESG” i.e., the social and the governance. In the current context, it is about sustainability and financial well-being. In respect of our own efforts at CGC, the President and Chief Executive Officer (PCEO), Datuk Zamree, will elaborate further on this when he meets the Press later.

Ladies and gentlemen, all of us have very important roles in the whole ecosystem that I spoke about earlier. At yesterday’s New Industrial Master Plan 2030 Open Day, YB Minister stressed the need for whole-of-nation approach which is critical to grow and build Malaysia together.

With that, I thank you for your attendance and once again I want to congratulate all the FIs and DFIs present today for their strong role in empowering the SMEs towards economic recovery. Well done to all SMEs who will be receiving your awards today.

I also want to express our heartfelt thanks to the honourable Minister for his ever-strong support of CGC.

-END-

Terima Kasih Saudari Pengerusi Majlis

Counsellor YBhg Dato’ Sim Kiang Chiok

Vice President/Chairman, Sarawak Housing Developers Association (SHEDA)

YDH Tuan Haji Abdillah Majid

Timbalan Yang-Dipertua, Persatuan Kontraktor Melayu Malaysia (PKMM), Cawangan Sarawak

YDH Encik Terence Temenggong Jayang

Executive Secretary, Dayak Chamber of Commerce & Industry

YBhg. Dato’ Mohammed Hussein

Chairman, Credit Guarantee Corporation Malaysia Berhad (CGC)

Our Esteemed Customers

Distinguished Guests

My fellow CGC Colleagues

Ladies and Gentlemen,

Assalamualaikum warahmatullahi wabarakatuh and good afternoon to everyone.

Selamat datang ke Cawangan Baharu CGC Kuching!

It gives my colleagues and I great pleasure to welcome and personally meet all of you here for this opening ceremony.

For those who are new to CGC, I would like to share a bit about the history of CGC. We started our journey 50 years ago and our vision is to be an effective financial institution that is dedicated to promoting the growth and development of competitive and dynamic MSMEs. When CGC was set up, our then Finance Minister said I quote “We should aim to reach a situation in which poverty or lack of capital is no bar to success in business or industry.” Unquote.

Since then, Malaysia has made a lot of progress in promoting the growth and development of MSMEs and the results are …… MSMEs now account for 97.4% of businesses registered at SSM, contribute 37.4% of Malaysia’s GDP and provide 47.8% of employment to Malaysians. Still, there is a lot more to be done to further support MSMEs and that statement by then Finance Minister is still very relevant today and for many more years to come.

Ladies and Gentlemen,

In total, CGC has 16 branches nationwide located in all state capitals except for Kangar which is served by our Alor Setar branch. We have 4 branches in Sarawak & Sabah located in Kuching, Miri, Kota Kinabalu and Sandakan. Our first branch in Kuching which was located at Al-Idrus Commercial Centre was opened on 1 February 2003. To better serve the growing number of customers in Kuching, we decided to choose this location which has more strategic and provides better access to our customers in Kuching and its surrounding areas.

We will be able to better serve our customers in this new location, anchored by our 5-Year Strategic Plan (2021-2025) to be the Partner for MSME Growth across Life Stages, offering end-to-end holistic support, both financial and non-financial assistance.

Ladies and Gentlemen,

I would like to now talk about digitalisation & ESG. During the Covid-19 pandemic, many MSMEs can survive when they leverage digitalisation. As such, I would like to encourage Sarawak MSMEs to further embrace digitalisation as well as sustainability principles. At CGC, we have an important role to play in facilitating the transition of MSMEs to low-carbon and sustainable practices, and where necessary, to guide MSMEs in achieving their ESG targets. I think we all can agree that ESG is a critical factor that contributes to business sustainability and together, we must continue to raise awareness of the importance of ESG considerations in business operations.

Sarawak is well known for its natural beauty where we can still see greener here than in other parts of Malaysia. I do not have the latest data on Sarawak’s carbon emissions, but I think it is lower than compared to the rest of Malaysia. To keep this or to lower the carbon emissions, I would like to encourage or rather challenge my colleagues in Kuching to promote Bank Negara’s Low Carbon Transition Facility (or LCTF) so that Sarawak MSMEs can transform into low-carbon and sustainable practices. To Sarawak MSMEs, I would like to share that the funding rate for LCTF is very attractive at 5% per annum and the maximum financing amount is RM10 million which you can use to finance your energy efficiency initiatives as well as obtain certification for sustainability which in turn will open more markets for your products and services.

Ladies and Gentlemen,

CGC celebrated its 50th Anniversary on the 5th of July 2022 and I am pleased to share that since 1972, CGC has been assisting MSMEs with inadequate or without collateral and track records to obtain credit facilities from banks by providing guarantee cover on such facilities. As of June 2022, CGC has assisted 360,000 MSMEs and availed 516,000 guarantees and financing valued at over RM90.0 billion, an average of RM1.8 billion annually. 

In response to the Covid-19 pandemic, from April 2020 until June 2022, CGC issued guarantees amounting to RM13.1 billion to banks that provided financing to MSMEs affected by the pandemic. This RM13.1 billion amount is 4 times what we have done on average annually, and it demonstrates our commitment to assisting competitive and dynamic MSMEs during those very challenging times.

As a Development Financial Institution, CGC plays both a growth-oriented role and a counter-cyclical role to assist the MSMEs, especially during difficult times. Our core business is a guarantee, which is mainly driven by our Head Office, while our direct financing business is mainly driven by our branches such as here in Kuching. For our beyond guarantee initiatives such as imSME, financial and non-financial advisory services and MyKNP, these services are driven by both our branches and HQ.

Moving forward, I would like all our branches to put in more effort in promoting our core business which is a guarantee as well as all our beyond guarantee initiatives.

We all agree that 2020 and 2021 have certainly been challenging for the MSMEs as well as for us. In this endemic phase, many MSMEs struggles to either restart, rebuild or revitalize their businesses. CGC will continue MSMEs to be assisted in every manner possible, be it in the form of guarantee, financing or beyond guarantee initiatives.

Ladies and Gentlemen,

In closing, I would like to take this opportunity to thank all our stakeholders for your presence today and continuous support. I would to reaffirm CGC’s commitment to being the Partner for MSME Growth Across the Life Stages.

To all Kuching branch colleagues, I wish you all the very best and I would like to encourage you to keep learning and discharge your duties to the best of your ability to serve Sarawak MSMEs with the highest level of integrity.

With that, I end my speech and I wish you a pleasant evening and happy networking.

Terima kasih.

Sekian, Wabillahi taufik wal hidayah wassalamualaikum.

YBhg Dato’ Agil Natt

Chairman, Affin Bank Berhad

YDH Tuan Haji Musa Abdul Malek

Chairman, Affin Islamic Bank Berhad

YBhg Dato’ Mohammed Hussein

Chairman, CGC Malaysia Berhad

YBhg Datuk Wan Razly Abdullah

President & Group Chief Executive Officer, Affin Bank Berhad

YBhg Dato’ Mona Kamaruddin

Chief Executive Officer, Affin Hwang Investment Bank

YBerusaha Encik Ferdaus Toh Abdullah

Acting Chief Executive Officer, Affin Islamic Bank Berhad

Distinguished Guests

Respected Members of the Media

Our Friends in Affin

My CGC Colleagues

Ladies and Gentlemen,

Assalamualaikum W.B.T and good afternoon,

Firstly, I would like to congratulate Affin Bank for successfully organising the ‘SME Sustainability Conference’ for SMEs and Start-Ups. We all agree that ESG is a critical factor that contributes to business sustainability and together, we must continue to raise awareness of the importance of ESG considerations in business operations.

During CGC’s 27th FI/DFI & SME Awards ceremony last month, our Minister of Finance said that a strong MSME sector means a stronger economy for Malaysia. He challenged us in the financial industry on how we can strengthen our MSMEs. Apart from digitalisation, MSMEs must also embrace sustainability principles and we all play a critical role in facilitating the transition of MSMEs to low-carbon and sustainable practices, and where necessary, guiding the MSMEs in achieving their ESG targets.

Ladies and Gentlemen,

I would also like to congratulate Affin Bank on the launch of AFFIN ASPIRA, a multi-award-winning strategic proposition for the start-up segment, offering MSMEs financing, simplified onboarding, and transactional digital tools as advisory and support.

CGC is pleased to play our role in AFFIN ASPIRA, and we look forward to providing guarantee coverage on its financing to MSMEs through our Portfolio Guarantee (PG) Schemes. Today, we are here to commemorate the collaboration between Affin Bank and CGC by exchanging the documents for the 3rd tranche of PG BizDana-i valued at RM30 million and PG BizDana valued at RM20 million.

This is another significant collaboration between Affin and CGC, as we stay true to our commitment to serving the Malaysian MSMEs. These PGs are a continuation of Affin and CGC collaboration which started with the 1st BizDana-i tranche valued at RM15 million in October 2020, followed by the 2nd tranche of RM20 million in June 2021, and now the 3rd tranche. This is the 1st tranche of PG BizDana, which provide MSMEs financing for start-ups.

With this latest tranche, CGC’s total commitment is to provide guarantees totalling RM375 million to Affin Banking Group which was recently recognised by BRAND FINANCE MALAYSIA to be the fastest growing brand in Malaysia (brand value up 45% to US$232 million). Syabas Affin!

Ladies and Gentlemen,

CGC’s vision is to be an effective financial institution that is dedicated to promoting the growth and development of competitive and dynamic MSMEs.

We celebrated our 50th Anniversary on the 5th of July 2022 and I am pleased to share that since its inception, CGC has been assisting MSMEs with inadequate or without collateral and track records to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. As of June 2022, CGC has assisted 360,000 MSMEs and availed 516,000 guarantees and financing valued at over RM89.0 billion, an average of RM1.8 billion annually.

In response to the Covid-19 pandemic, from April 2020 until June 2022, CGC issued guarantees amounting to RM13.1 billion to participating financial institutions or PFIs who provided financing to MSMEs affected by the pandemic. This RM13.1 billion amount is 4 times what we have done on average annually. This demonstrates our commitment to assisting competitive and dynamic Malaysian MSMEs during those very challenging times.

As a Development Financial Institution, CGC plays both a growth-oriented role and a counter-cyclical role to assist the MSMEs, especially during difficult times. We all agree that 2020 and 2021 have certainly been challenging for the MSMEs as well as for us. In this endemic phase, many MSMEs struggles to either restart, rebuild, or revitalize their businesses. And CGC will continue to collaborate with our partners to ensure that MSMEs are assisted in every manner possible be it in the form of guarantee, financing or beyond guarantee initiatives.

Ladies and Gentlemen,

In closing, I would like to extend my utmost gratitude to our host for your gracious hospitality and to both our working teams in Affin and CGC, many thanks for a job well done. Let us all look forward to many more collaborations between Affin and CGC so that together we can be Partners for MSMEs’ Growth Across Life Stages.

Sekian, Wabillahitaufik wal Hidayah wasalammualaikum wbt.

Assalamualaikum warahmatullahi wabarakatuh and good afternoon everyone.

Yang Berhormat Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance

Chairmen and Chief Executive Officers of Financial Institutions and Development Financial Institutions

Members of the Board of Credit Guarantee Corporation Malaysia Berhad

Yang Berbahagia Datuk Mohd Zamree Mohd Ishak, President/Chief Executive Officer, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests

Members of Media

We are indeed honoured by your presence, as we welcome you to CGC’s 27th FI/DFI & SME Awards 2021 ceremony.

Ladies and Gentlemen,

This year marks CGC’s 50^th Anniversary, when we were established in 1972 with the mandate to be a catalyst for the development of a strong SME’s sector. Since inception, CGC has assisted 360,000 MSMEs, and availed over 500,000 guarantees and financing valued at over RM90.0 billion, an average of RM1.8 billion annually. 

Consistent with our overriding objective, we are conscious that we have to play not only a growth-oriented role but also a counter-cyclical role to assist the SMEs sector during difficult times. The last two years have certainly been difficult. times for the SMEs. Whilst the green shoots of recovery have blossomed for some, many SMEs are still struggling to rebuild and scale up their business.  Some are even still struggling to restart their business. This is clearly evident when we visit major towns and still see many shops and offices with closed shutters.

Our response to the challenging last two years, therefore, has been to work strongly with our Financial Institution partners to provide SMEs with access to the various schemes provided by the Government and Bank Negara to help them restart and rebuild. This has also forced us to review and enhance our own effectiveness so that there is congruence with our operational readiness to fulfill the changing needs of the SMEs.

Reflecting these strong joint efforts with our financial institution partners, from April 2020 to June 2022, these efforts have resulted in guarantees amounting to RM13.1 billion being issued for SMEs of which,

• 1 billion was for the Special Relief Facility (SRF) and Target Relief and Recovery Facility (TRRF),
• 6 billion for the Portfolio Guarantee/Wholesale Guarantee schemes.

Ladies and Gentlemen,

CGC is also committed to other longer-term measures beyond just providing access to funding. Last year, at our virtual 26^th CGC FI/DFI & SME Awards, the Minister of Finance stressed the importance of teaching entrepreneurship at a young age.  CGC has decided to take up that challenge.  As a famous Islamic scholar said 1,300 years ago, “what is learned at a young age will be engraved in stone”.

Going forward, the gig economy will be a major growth sector, participated mainly by the younger budding entrepreneurs. We need not only to provide them access to financing but more important to nurture them with the values that would help to build their resilience in coping with good and difficult times. In other words, to borrow the Minister’s marathon runner’s mindset, to build endurance. 

To implement this, CGC is proud to announce that, in collaboration with PINTAR, a strong and proven partner in youth development programs, we will soon roll out a  youth entrepreneurship development program for the young to hone their entrepreneurship skills and instil in them the core values that will lead to better resilience i.e.

• Honesty and trustworthiness
• Building competency
• Perseverance & endurance.
• Accountability i.e. responsibility for one’s own actions.
• Collaboration, which is the ability to work with others.
• Community consciousness i.e. impact on the betterment of the community.

This program, which we will call CGC100 Youth entrepreneurship program, will emphasise developing new skills (up-skilling), empowering existing youth skills (re-skilling), and intersecting youth with other skills (cross-skilling).  There are 2 tracks in this programme, the Fast Track with a duration of 6 months, and the Comprehensive Track which will incorporate 12-month learning.  The targeted youths are in the 18-23 age group from the B40/M40 communities nationwide.

It is our aspiration that upon completion of this programme, the participants will have a better understanding of how to identify and evaluate the viability of business opportunities. They will be given the opportunity to present the viability of their ideas to CGC management for financing possibilities.

It is our earnest desire that other organisations will join in, or embark on similar programs on their own, so that this effort can benefit a bigger group of youth, particularly from the B40s.

CGC’S 27^TH FI/DFI & SME AWARDS 2021

Ladies and Gentlemen,

We now come to the awards, to recognise exemplary MSME customers for their excellent credit track record and business success. The awards also acknowledges our strategic FI/DFI partners, for their significant role in providing a valuable contribution toward MSME financing and development in Malaysia.

This year, there are 31 awards in total consisting:

1. 14 awards for SMEs
2. 1 award for Non-FI partner
3. 16 awards for leading FIs and DFIs  

The awards for the SME category consist of:

1. TPUB-i Exemplary Customer: for CGC Tabung Projek Usahawan Bumiputera-i (TPUB-i) customers with the highest number of contracts completed.
2. Merdeka Award Customer: this category was introduced in 2021 to encourage substantive partnerships or joint ventures between various races. The focus is not on the share of equity but more on substantive collaboration where all partners are actively involved. The underlying objective is to build competency which is a key element in building resilience, and to stress that competency can only be acquired by way of experience through active participation.
3. Top Rebate Customer: this is given to SMEs who have been exemplary in managing their financing and prompt in meeting their financial obligations.
4. Top Graduate Customer: recognises SMEs whose credit standings have improved and are now able to secure financing from FIs on their own without guarantees from CGC.

The Top FI Partner Award is to recognise our outstanding FI and DFI partners for their commitment and support in providing SMEs with better access to financing.

This year, we have a new category which is the Top Non-FI Partner Award.  This award recognises our outstanding Non-FI partners for their contributions to assisting SMEs to obtain financing.  The Top Non-FI Partner Award – imSME, recognises our Non-FI Partner that had contributed the highest number of accounts approved and disbursed from matched leads on imSME, our online financing/loan referral platform.

CLOSING

Ladies and Gentlemen,

In closing, on behalf of CGC, our deepest appreciation to Yang Berhormat Minister of Finance for gracing us with your presence. The strong and unwavering support of the Ministry of Finance and Bank Negara Malaysia and our FI partners will always be critical for CGC in executing our mandate to be a strong catalyst for the development of the MSMEs sector, particularly as we try to nurture the green shoots of recovery into a strong growth momentum.

To our MSME customers, congratulations to all winners and we wish you every success.

Wabillahi taufik wal hidayah wassalamualaikum.

Assalamualaikum Warahmatullahi Wabarakatuh and good afternoon everyone.

Yang Berhormat Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz,
Minister of Finance

Chairmen and Chief Executive Officers of Financial Institutions and Development Financial Institutions

Yang Berbahagia Datuk Mohd Zamree Mohd Ishak
President / Chief Executive Officer, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests

Ladies and Gentlemen

We are honoured to welcome you to CGC’s 26th FI&DFI and SME Awards 2020 ceremony.

Firstly, I would like to thank the Yang Berhormat Minister of Finance for your presence, which demonstrates the Government’s strong support for Malaysia’s Micro, Small and Medium Enterprises (MSMEs) as we address the effects of the Covid-19 pandemic and embark on the national recovery plan.

The growth of SMEs’ domestic production has historically always been higher than the growth of Malaysia’s GDP. However, in 2021, according to the Department of
Statistics, and for the first time in 17 years, the growth of SMEs’ domestic production registered a negative 7.3% – lower than Malaysia’s GDP of negative 5.6%. This is no doubt attributed mainly to the impact of the Covid-19 pandemic. We need therefore to strengthen our focus and efforts to ensure first the recovery of the MSMEs and more importantly ensuring their strong contribution to the Malaysian economy.

Ladies and Gentlemen,

In response to this, CGC has reviewed and re-aligned our strategies and operational readiness to ensure that we are able to support our MSMEs in their business recovery phase and subsequent phases as they adjust to the new normal.

In 2021, our efforts pivoted towards recovery and rehabilitation of business, through constant engagements and providing access to:

1. Bank Negara Malaysia’s Fund for SMEs, such as the Targeted Relief and Recovery Facility,
2. Targeted Repayment Assistance (TRA) program which includes the 6-month Moratorium and Rescheduling & Restructuring of loan obligations.

From April 2020 to December 2021, CGC has committed to providing guarantees up to RM10.0 billion for MSMEs affected by the Covid-19 pandemic. We are very confident of achieving this target by December 2021.

Our customers are now entering the phase of recovery. With the phased re-opening of businesses starting 16 August 2021, and with the National Vaccination Programme gaining traction, slowly and surely we can see and feel the green shoots of recovery.

But we have to acknowledge the reality on the ground that many MSMEs still face difficulties in resuming their businesses and adjusting to the new normal. The even more stark reality is that some businesses may not resume at all.

We are certainly not yet out of the woods.

In moving forward under the National Recovery Plan, new growth sectors for MSMEs will emerge. To support this, as a strategic component in the MSME ecosystem, CGC is aware that we need to enhance our own skills to ensure our operational readiness to meet these new challenges and opportunities. Our 5-year Strategic Plan 2021-2025 is focused on how we can become a more effective partner and a catalyst for MSMEs’ growth across their business cycle.

One particular skill gap that we, and maybe some FIs as well, need to work on is in respect of the gig economy i.e. how good are we in supporting the gig economy – in terms of evaluating new proposals and in structuring our financial products to meet their needs? Whilst some FIs are further ahead in the learning curve than others, I think it is fair to say that there is still some learning to do. But going forward, the gig economy will be a major growth sector, especially for the younger entrepreneurs. So we have to be able to do this well, otherwise not only would we miss out on the growth but we could see some loss of brainpower if the budding entrepreneurs in this sector feel that they are not able to obtain funding for their ventures because the financial sector doesn’t fully understand how to evaluate the gig economy.

One specific suggestion is for some training-based institutions such as FIDE and Asian School of Business or some other relevant tertiary institutions to conduct proper research on financing the gig economy, using the case studies approach and to identify the risks and key success factors. This will assist us, the FIs in our evaluation to enable us to properly support the gig economy.

Ladies and Gentlemen,

Coming back to today’s event, CGC started our Awards ceremony in 1995 with the dual aim to recognise our exemplary MSME customers who have displayed excellent credit track records and business success, and to acknowledge the FIs, our strategic partners, for their significant role and valuable contribution towards MSME financing and development.

We have since added several more categories for the MSMEs to recognise their performance. This year, we have 31 awards in total consisting of:
1. 9 awards for SMEs
2. 13 awards for leading FIs and DFIs
3. 9 Special Merdeka Awards for SMEs

For the SMEs, the awards are:

1. TPUB-i Exemplary Customer: for CGC Tabung Projek Usahawan Bumiputera-i (TPUB-i) customers with the highest number of contracts completed.
2. Top Rebate Customer: this is given to SMEs who have been exemplary in managing their financing and prompt in meeting their financial obligations.
3. Top Graduate Customer: recognises SMEs whose credit standings have improved and are now able to secure financing from FIs on their own without guarantees from CGC.

For the FIs and DFIs, there are 13 awards to recognise our outstanding partners for their commitment and support in providing MSMEs not only with better access to financing but also in assisting our MSMEs to recover their businesses, making their businesses more resilient, and implementing digitalisation.

For 2021, we have a special category, the Merdeka Awards for MSMEs. This award recognises our MSMEs with multi-racial partners, reflecting the strength of Malaysia’s diversity and unity.

Let me share the thinking behind this Merdeka Awards.

The clear lesson from the Covid-19 pandemic is that businesses must strive to be resilient. In recent months, the Government, and particularly the Minister of Finance, have been emphasising this message, particularly to the Bumiputera companies – the need to build resilience.

We believe the key to building resilience is not only having a sound and viable business model but the partners must also be competent in managing the key aspects of their business. Competency, I’m sure you would all agree, can only be acquired by way of experience through active participation.

Focusing on joint ventures between the races, what we are trying to do is to recognise and encourage more substantive and active partnerships between the various races, in the supply chain. Bumiputera participation based on equity-sharing alone, even if majority-owned, will not be sustainable in the long term unless it is backed by competency i.e. it must be competency-based, not just based on shareholding – recognising that resilience and long-term sustainability can only be built through experience and active participation. I emphasise the word ‘trying’ because our efforts and strategies are still very much work in progress.

Ladies and Gentlemen,

In closing, I would like to once again thank Yang Berhormat Minister of Finance, Yang Berbahagia Governor of Bank Negara Malaysia, and our FI and DFI partners for your unwavering support to CGC in executing our mandate for the development and growth of MSMEs, particularly in these challenging times.

To our MSME customers, we reaffirm our support to you in your efforts to rebuild your business. What we request from you is that you have a clear business plan how to move forward and adjust to the new operating environment to resume and further grow your business.

On that note, Congratulations to all winners. We wish you every success.

Wabillahi taufik wal hidayah wassalamualaikum warahmatallh hi wabarakatuh.

Yang Berbahagia, Dato’ Agil Natt
Chairman, Credit Guarantee Corporation Malaysia Berhad

Esteemed Members of the Board

Distinguished Speakers

Colleagues from CGC

Ladies and Gentlemen,

Assalamualaikum W.B.T and good afternoon,

In the old days, we do not like disruption and do not like to be called as someone who is disruptive. In today’s world, disruption is no longer an ugly word.

This event is very significant and important for all of us in CGC. The objective of this Technology Day is to ensure that all of us are aligned with our CGC’s digital transformation agenda. Technology is fast changing the way we do business. As a team, we need to be aware of how disruptive technologies are changing things and what we must do is to be ready for the challenges and opportunities that come with it.

Reskilling is crucial to ensure that we are future ready. Ready to migrate to new roles, and to equip ourselves for the new types of challenges ahead. Take the opportunity with the upcoming technology initiatives that we have planned to unlearn and relearn, adapt and adopt.

Customers are becoming more accustomed to real-time and personalised experience which is made possible by big data, algorithms, AI and machine learning resulting in the demand for unprecedented level of products and services. Mike Walsh – the CEO of a global innovation research lab, Tomorrow is a leading authority on 21st century business as well as the best-selling author of Futuretainment. He said and I QUOTE “the algorithmic world of 2030 will run on massive data sets from billions of conected devices and AI platforms that learn from them constantly”.

This afternoon, our distinguished speakers from Bank Negara Malaysia, the Securities Commission, IDC Market Research and Microsoft will share their thoughts and the latest trends on Innovation, Digitisation, Big Data, Artificial Intelligence and Machine Learning that will continue to shape the financial services industry

Ladies & Gentlemen,

CGC Technology Day is in alignment with the 5th Strategic Objective in our 5 Year Strategic Plan (5SP+) that is for CGC to Embark on Digitisation. This Strategic Objective was added during the middle of last year to emphasise our commitment towards embracing technology in our digitisation journey.

As an organisation, we need to think big and fast about the transformative potentials of the digital age, constantly challenge our assumptions about the future, discuss and widen our point of view, and learn to better incorporate new frame of references into our ideas and strategies.

There are 3 Key Takeaways for us and they are:

1. Digital Transformation is NOT an Option;
2. Innovation must be the Norm; and
3. Re-skilling is of paramount importance – lets get ready to unlearn and re-learn.

Recently, Yushida & I attended an ICLIF program on IR 4.0 and I would like to share 4 main things:

1.Digital Innovation is key and not embracing it will definitely make us irrelevant.
2.Applied AI is a must to survive in IR 4.0.
3.Collaboration is key and we must keep up with new and emerging technologies.
4.And finally, the most important….is the Readiness of Our People, in short making Our People Future Ready.

Before I end my speech, I would like wish my utmost appreciation to Dato’ Agil and Members of the Board for their continued support in our Digitisation Journey. This support is very important because as with any strategy, the tone must be set at the top. Special thanks to Yushida and her team for organising this event. Let us all work together in embracing Technology to drive digitisation across CGC, transforming and upskilling ourselves so as to create superior value for Malaysian MSMEs.

Sekain, Wabillahi Taufik Walhidayah Wassalamualaikum Warahmatullahi Wabarakatuh.

Pn. Rosmawati Abdullah
Head of Intervention Programme, National Autism Society of Malaysia Teluk Pulai Branch

Ms. Rajeshwary
Administrator of the National Autism Society of Malaysia Teluk Pulai Branch

Dear Caretakers and Children Colleagues from CGC

Ladies and Gentlemen

CGC is pleased to organise a special corporate responsibility programme with the National Autism Society of Malaysia (NASOM) in serving another community segment – those with autism.

Autism has been and still is a major concern in our society as it does not differentiate one’s color, gender and background. While there has yet to be a permanent and effective cure for it, early intervention affords the affected individual with the opportunity to be guided on issues regarding their health and personal development. In the long run, this can help reduce the prejudice that society would have towards autistic people.

For that, we would like to commend and applaud NASOM for their tireless endeavour in assisting the patients, their parents and the general public. We are indeed blessed to be given the privilege and opportunity of supporting an organisation that has contributed tremendously towards autism awareness and care. Today’s programme has certainly helped us gain a better understanding on autism.

To us, every organised programme not only leaves an imprint, but also provides us with the opportunity of giving back to society. The realisation of such programme also helps reiterate our belief and capability of changing as many lives for the better as possible.

Ladies and Gentlemen,

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5th July 1972 as a credit guarantee provider. While CGC’s core business is to primarily serve and assist the Micro, Small and Medium Enterprises, we believe in going beyond the norm and giving back to society as we want to reach out to as many community segments as possible.

Before I end my speech, I would like to once again thank Pn. Rosmawati, Ms. Rajeswary and her team for the cooperation in making our Corporate Responsibility programme today a success. We hope the residents have a fun and memorable day and that our small contribution helps make a difference for both the home and the children.

Thank you.

Yang Berbahagia, Datuk Yunos Abd Ghani
Chief Executive Officer, Bank Simpanan Nasional

Yang Berusaha, En. Mujibburrahman Abd Rashid
Chief Business Officer, Bank Simpanan Nasional

My Dear Friends in BSN and Colleagues from CGC

Distinguished Guests

Ladies and Gentlemen,

Assalamualaikum W.B.T and good afternoon.

I am delighted to be here today to witness the continuous collaboration between BSN and CGC with the launch of another RM50 million Portfolio Guarantee Micro-i Tranche 2.

Today’s partnership is another milestone and notable contribution to the development of Micro, Small and Medium Enterprises or in short, MSMEs. Both our teams have invested time and resources in realising this partnership, and I would like to take this opportunity to thank and congratulate them for making this collaboration and ceremony possible today.

Ladies and Gentlemen,

This is CGC’s second collaboration with BSN to enhance access to financing for Micro SMEs in Malaysia through our innovative Portfolio Guarantee (PG) scheme. I am pleased to share that the CGC PG scheme has proven to be an attractive product that is both cost effective and efficient. With this collaboration, we are well geared to provide greater access to financing to Malaysian MSMEs.

BSN and CGC first collaborated two (2) years ago with the launch of a RM50 million Portfolio Guarantee in May 2017. Our first collaboration has benefitted over 1,400 Micro SMEs throughout Malaysia and was made available through BSN’s over 380 branch network. The majority of the Micro SMEs that benefitted were Sole Proprietors which accounts for 76% of the 1,400 Micro SMEs. These Micros SMEs are concentrated mainly in the Wholesale sector followed by the Manufacturing sector.

Ladies and Gentlemen,

The Agreement to be inked today will see the roll-out of two (2) tranches of PGs worth RM 50 million, comprising of Islamic and Conventional PGs amounting to RM25 million each. Eligible Micro SMEs with a minimum of 2 years in operations will be offered financing ranging from RM5,000 to RM50,000 to finance their working capital and capital expenditure. CGC through this collaboration with BSN, aims to avail financing to about 1,000 micro SMEs with an average ticket size of RM20,000.

This PG scheme shall be made available from 16 August 2019 onwards and is expected to create more opportunities for Micro SMEs to obtain financing to expand their businesses.

Ladies and Gentlemen,

To date, CGC has availed over RM 14 billion worth of financing via our PG scheme, which has benefited more than 27,200 Micro SMEs. As for our WG scheme, a total of RM 1.46 billion worth of financing has been availed to over 7,600 Micro SMEs. Currently, 17 Commercial banks, 15 Islamic banks and 7 DFIs are participating in our guarantee schemes in order to provide access to financing to Malaysian Micro SMEs through their combined network of over 2600 branches throughout Malaysia.

At CGC, we believe in going beyond guarantee. We walk the extra mile by further promoting the growth and development of MSMEs. In February last year, we successfully launched imSME, Malaysia’s first SME financing/loan referral platform. I am pleased to share that up to 31 July 2019, imSME has received close to 700,000 visitors or an average of 1,370 visitors per day, with a total of 9,400 MSME registrations and 1,200 approved applications amounting over RM120 million.

For this year itself, imSME has won two global awards. The first was in February 2019 from the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) for Outstanding SME Development Project. The award was presented in Muscat, Oman during ADFIAP 42nd Annual General Meeting. The second was a Certificate of Merit for Best Innovation in Sustainable Financial Services awarded last month by the City of Karlsruhe, Germany and the European Organisation Sustainable Development.

Ladies and Gentlemen,

Before I end my speech, I would like to express my sincere thanks to Datuk Yunos and his team for their continued support. To the working group from both BSN and CGC, thank you very much for everything. I look forward for many more collaborations with BSN to provide greater access to financing to Malaysian MSMEs.

Sekian, Wabillahi Taufik Walhidayah Wassalamualaikum Warahmatullahi Wabarakatuh.

– Ends –

* Note: Referral applications from imSME to BSN as at 31 July 2019: Total referrals: 335, No of Applications Approved: 15, Amount Approved: RM584,000, Total number of Applications Disbursed: 13 and Total amount of Disbursement: RM554,000.

Speech by

Dato’ Agil Natt

Chairman, Credit Guarantee Corporation Malaysia Berhad

at the

Launch of CGC SME Apprentice Scheme – Cohort 2

Lanai Kijang, Bank Negara Malaysia

July 4 | Thursday

___________________________________________________________________

Yang Berbahagia Datuk M. Noor Azman bin Taib

Deputy Secretary General, Ministry of Youth and Sports

Yang Berusaha Encik Adnan Zaylani Mohamad Zahidi

Assistant Governor, Bank Negara Malaysia

Yang Berusaha Dato’ Dr Hajah Wasitah binti Mohd Yusof

Director General, Ministry of Youth and Sports

Board of Directors, Credit Guarantee Corporation Malaysia Berhad

Senior Management from the Ministry of Youth and Sports

Yang Berbahagia, Datuk Mohd Zamree Mohd Ishak,

President and CEO of Credit Guarantee Corporation Malaysia Berhad

Honored Guests, Distinguished TVET Graduates and Our MSME Partners

Ladies and Gentlemen,

Assalamualaikum and Salam sejahtera,

I would like to welcome Yang Berbahagia Datuk M. Noor Azman bin Taib who is representing YB Tuan Syed Saddiq Syed Abdul Rahman, Minister of Youth and Sports who is unable to be with us today.  We would like to accord our utmost appreciation for your presence amid your busy schedule.

This afternoon, we will be recognising our 11 Technical and Vocational Education and Training (TVET) graduates.  These TVET graduates will be attached with our 7 participating Micro, Small and Medium Enterprises (MSMEs) located throughout Malaysia during the 1-year programme.

THE IMPORTANCE OF TVET GRADUATES TO NATION BUILDING

Ladies and Gentlemen,

TVET includes formal, non-formal and informal learning that prepares graduates with the technical and vocational knowledge and skills required in various field of work.  In 2017, 90% out of 13,000 TVET graduates secured employment prior to graduation, implying a high demand for skilled workers.

More and more industries are also seeking TVET graduates with technical and vocational skills.  These industries include construction, building maintenance, tourism, retail, healthcare, education and most importantly, automation for IR 4.0.  Today, we see higher demand for mechanics, technicians, industrial designers, plumbers, carpenters, bakers, pastry chefs and construction contractors, to name a few.

ABOUT CGC SME APPRENTICE SCHEME

Recognising the importance of TVET graduates in supporting Malaysia’s journey towards becoming a developed nation, we launched the CGC SME Apprentice Scheme in May 2017 with 10 TVET graduates and 10 MSMEs.  Following the success of our First Cohort, we have now embarked on our Second Cohort. This is in line with the Malaysian Government initiatives to have TVET play a significant role in the country’s progress towards becoming a developed nation.

This programme stemmed from our objective to provide a platform for TVET graduates to be gainfully employed and at the same time, acquire useful practical working experience through on-the-job training while honing their entrepreneurial skills by working with MSMEs.  The desired outcome of this programme is to groom TVET graduates to become future entrepreneurs.

In addition, this programme also aims to address the lack of manpower especially skilled workers faced by MSMEs.  While MSMEs continue to grow to meet increasing demands, their growth is hampered by lack of new knowledge and skilled employees.   We believe, through our CGC SME Apprentice Scheme, we can make a difference to both TVET graduates and our MSMEs.

The CGC SME Apprentice Scheme will pay 90% of the programme cost, which include the monthly salaries, employment benefits and statutory contributions whilst the remaining 10% will be borne by our participating MSMEs. This way, the participating MSMEs will gain additional manpower to assist their development and growth while these TVET graduates will benefit from a one-year employment contract.

CGC received over 200 applications from TVET graduates nationwide.  We have a thorough screening process as part of the selection procedure.  I am pleased to share that the 11 TVET graduates selected today have successfully met the criteria set and has been offered a one-year attachment with the participating MSMEs.

We believe this programme will provide the opportunity for TVET graduates and aspiring students like all of you here today to capitalise on your learnings at TVET institutions and in the future, start your own businesses.

THE SECOND COHORT

We were faced with many challenges as we worked on getting the Second Cohort in place.  Among others, over 30%-40% of TVET graduates declined the opportunity to be employed by MSMEs.  The TVET graduates are more keen to work for established companies rather than MSMEs.  The other challenging task was to match the apprentices’ talents in their respective fields of interest and the requirements of our MSMEs due to varying level of commitment, interest and willingness to participate in this programme.

In this cohort, we have 11 TVET graduates working in various industries, which among others include building maintenance, oil and gas, industrial ventilation, maintenance and construction, IT and construction since February 2019. These TVET graduates have been employed by various MSMEs in Kelantan, Melaka, Sabah, Sarawak, Selangor and Terengganu.

Congratulations to these successful TVET graduates! My piece of advice to you is to be disciplined, communicate effectively, engage with your employers, and be proud of your work.  Make good use of this opportunity to polish your skills and gain new knowledge.  You are on the road to success and with the right attitude and mind set, you will be able to be the captain of your ship someday.  Aim high and soar to greater heights and CGC will be more than ready to assist you.

To all students present here today, I would like to encourage you to be more open and receptive of new learnings and employment opportunities.  Adopt a positive approach to employment and do not be selective. MSMEs too offer good learning and skill development, just like other large organisations. Look out for the many opportunities offered by the Government, private entities and corporations.  All you have to do is to embrace the opportunities with open arms.  It is more important that you remain committed to learning and adopt the right attitude to succeed.

CLOSING

Ladies and Gentlemen,

CGC believes in Changing Lives.  I am certain that this programme will adequately prepare the TVET graduates to meet the industry requirements and demand for skilled workers. We look forward to closer working relationship with Kementerian Belia dan Sukan and Institut Kemahiran Belia Negara in the future.

In closing, I would like to record my utmost appreciation once again to Yang Berbahagia Datuk M. Noor Azman bin Taib for gracing our event today and to represent YB Tuan Syed Saddiq, the Minister of Youth and Sports.  To all our participating TVET graduates, friends in Kementerian Belia dan Sukan, MSMEs, distinguished guests, Bank Negara Malaysia and media, thank you for your unwavering support to CGC.

Wasalam Mualaikum and thank you for your kind attention.

– Ends –

Yang Berbahagia, Dato’ Ong Eng Bin
Chief Executive Officer, OCBC Bank (Malaysia) Berhad

Yang Berusaha, Mr. Wong Chee Seng
Head of Emerging Business, OCBC Bank (Malaysia) Berhad

Dear Friends from OCBC Bank and Colleagues from CGC

Distinguished Guests,

Ladies and Gentlemen,

Assalamualaikum W.B.T and good morning.

It is my pleasure to be here today to witness the strategic collaboration between OCBC Malaysia and CGC through our award winning Wholesale Guarantee Scheme.

This is another milestone for both OCBC Malaysia and CGC, enhancing our partnership and reaffirming our joint commitment to do more to promote greater access to financing for Micro, Small and Medium Enterprises – MSMEs.

To recap, our first WG scheme totalling RM250 million was launched 5 years ago in April 2014. To date, a total of four (4) tranches totaling RM 1.39 billion have been successfully launched benefiting over 6,200 MSMEs. Today, CGC marks another new WG scheme totalling RM250 million with OCBC Malaysia whereby RM 200 million shall be for OCBC Bank and RM 50 million shall be for OCBC Al-Amin.

The WG scheme provides capital relief to OCBC and OCBC Al-Amin in accordance to Basel II and at the same time provides additional security on their MSME exposure. This in turn will enable OCBC and OCBC Al-Amin to reach out to more MSMEs and over 1,000 MSMEs are expected to benefit.

Ladies and Gentlemen,

As you are aware, PG and WG schemes are our main products. To date, CGC has availed over RM 14 billion worth of financing via our PG scheme, which has benefited 27,200 MSMEs; while a total of RM 1.46 billion worth of financing was recorded for our WG scheme, benefitting more than 7,600 MSMEs.

Since our inception in 1972, we continue to bridge the gap between the Financial Institutions and the underserved MSME segments, having availed 45 guarantees and financing schemes including 16 government backed schemes. Currently, 17 Commercial banks, 15 Islamic banks and 7 DFIs are participating in our guarantee schemes, to provide financing to Malaysian MSMEs through their combined network of over 2600 branches throughout Malaysia. Over the past 47 years, CGC has availed over 460,000 guarantees and financing valued over RM 70 billion, benefitting more than 330,000 MSMEs.

In addition to our guarantee schemes, we also undertake our initiatives which we call Beyond Guarantee. One example is the launch of imSME, Malaysia’s 1st Financing/Loan Referral Platform in February last year.

I am pleased to share that as at 31 May 2019, imSME recorded over half a million visitors ie more than 1,000 visitors per day. More than 7,500 MSMEs have registered and 1,000 cases have been approved totalling over RM 100 million.

I am also delighted to share that in February this year, imSME received a Merit Award as the “Outstanding SME Development Project” from the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in Muscat, Oman.

Before I end my speech, I would like to express my sincere thanks to Dato’ Ong Eng Bin and his team for their continued support. Special thanks to the working group from both OCBC Malaysia and CGC for making this event a success. I look forward for many more collaborations with OCBC Malaysia, to provide greater access to financing to Malaysian MSMEs.

Sekian, Wabillahi Taufik Walhidayah Wassalamualaikum Warahmatullahi Wabarakatuh.

– Ends –

Bismillah

Yang Berbahagia Dato’Mohd Ross Mohd Din
Chairman, CIMB Islamic Bank Berhad

Mr. Choong Tuck Oon
CGC Director

En. Rafe Haneef
CEO, CIMB Islamic Bank Berhad

En. Ahmad Shazli Kamarulzaman
Deputy CEO, Group Commercial Banking, CIMB Bank Berhad

My Dear Friends in CIMB and Colleagues from CGC

Distinguished Guests and Members of the Media

Ladies and Gentlemen

Assalamualaikum W.B.T and good morning

It feels great to be here today to mark the collaboration between CIMB Bank Berhad, CIMB Islamic Bank Berhad and CGC in provising MSMEs access to RM 2 billion in financing through CGC’s Portfolio Guarantee-I scheme.

This is a major milestone for both the CIMB Group and CGC, reflecting our strategic partnership and intent of promoting the growth and developments of competitive and dynamic MSMEs in Malaysia.

I am pleased to share that over the last 5 years, both the CIMB Group and CGC have successfully launched 13 Portfolio Guarantee Schemes totalling RM 1.4 billion, benefiting over 2,000 SMEs (ave rage ticket size of RM 560k). I am also pleased to shrae that 86% of the RM 1.4 billion have been taken up.

Ladies and Gentlemen,

Today’s event is very significant as we jointly pledge to provide MSMEs with access to financing totalling RM 2.0 billion, of which the 1st RM 500 million will be via our Shariah Compliant Portfolio Guarantee-I scheme. With this scheme, MSMEs who have been in business for at least 3 years will be able to obtain unsecured working capital financing ranging from RM 10,000 to RM 1 million with tenure of up to 7 years and CGC’s 70% guarantee. This is a testament of our commitment to assist Malaysian MSMEs to grow and develop their business successfully.

Ladies and Gentlemen

Our Award winning Portfolio and Wholesale Guarantee Schemes (in short PG and WG schemes) are our main products. To date, CGC has availed RM 14.4 billion worth of financing under our PG/WG schemes benefiting over 23,000 Malaysian MSMEs.

A little bit about history…

Since 1972, CGC has been playing a crucial role in the MSMEs ecosystem by bridging the gap between FIs & DFIs.. and underserved MSMEs. In total, we have 45 guarantees and financing schemes including 16 government-backed schemes. Currently, seventeen (17) Commercial Banks, fifteen (15) Islamic Banks and seven (7) Development Financial Institutions (DFIs) are participating in our guarantee schemes to provide financing to Malaysian MSMEs through their total network of more than 2,600 branches throughout Malaysia.

For the last 47 years, we have availed over 460,000 guarantees and financing valued over RM 70 billion that has benefitted more than 330,000 SMEs. And we look forward to doing more especially with the CIMB Group.

Ladies and Gentlemen

There is still so much to do in the MSME space and CGC is well positioned to contribute more. Moving forward, we plan to extensively reach out to more MSMEs including those who are currently underserved and bring them into the formal financial system. The operating environment for SMEs is evolving fast, so are their financing needs. And CGC remains committed to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs through our various products and services.

In this regard, I am pleased to share that our imSME, Malaysia’s 1st financing/loan referral platform, has over the last 14 months received over 420,000 visitors or 30,000 visitors a month. In total, 6,000 MSMEs have registered and 735 applications have been approved amounting to almost RM 80 million. We are excited about these encouraging response on imSME… and we are currently working on its enhancement, so… please watch our imSME space.

In closing, I would like to thank my dear Brothers Dato’ Ross, Rafe and Shazli for their continuous support. Special thanks to both our CIMB and CGC teams for their hard work in making this event a success.

I look forward to many more collaborations with the CIMB Group in FORWARDING SMEs TOGETHER!

Terima kasih. Sekian. Wabillahi Taufik Walhidayah Wassalamualaikum Warahmatullahi Wabarakatuh.

– Ends –

YB Dato’ Ir. Amiruddin Hamzah
Deputy Minister of Finance

Mr. Abrar A. Anwar
Managing Director and CEO
Standard Chartered Bank Malaysia Berhad

Mr. Ali Allawala
CEO, Standard Chartered Saadiq Berhad

Members of Management from Standard Chartered Bank & Standard Chartered Saadiq

My colleagues from CGC
Distinguished Guests
Members of the Media

Ladies and Gentlemen,

Assalamualaikum W.B.T and good morning.

Firstly, I would like to express my special gratitude to YB Dato’ Amiruddin for taking time from his busy schedule to be with us today to celebrate Standard Chartered Bank and CGC’s 10th Anniversary of Collaboration.

Ladies and Gentlemen,

I am indeed very pleased to be here today to celebrate this longstanding strategic alliance. Over the last 10 years, the Standard Chartered Bank and CGC collaboration has grown from strength to strength, and I am certain that it will be further strengthened for us to better serve Malaysian SMEs.

On this special day, I would like to record our utmost appreciation to Standard Chartered Bank for being our 1st Portfolio Guarantee Scheme Partner when we launched of a tailor made PG Scheme for Women Entrepreneurs in 2009.

Through our close collaboration spanning over a decade, both Standard Chartered Bank and CGC have launched 11 PG tranches worth RM1.37 billion benefitting more than 3,300 SMEs. With today’s signing ceremony, we will have 13 tranches, totaling RM1.46 billion.

Ladies and Gentlemen,

The event today marks another significant milestone in our journey as we witness two signing ceremonies and the launch of WOWnita.

Standard Chartered Bank, Standard Chartered Saadiq and CGC will sign PG Agreements worth RM 85 million in conjunction with our 10th anniversary. These latest PGs will be made available in two tranches ie RM75 million with Standard Chartered Bank for the development of SMEs and RM10 million with Standard Chartered Saadiq to provide working capital for Women Entrepreneurs.

Ladies and Gentlemen,

Following the success of PG, we have also launched our Wholesale Guarantee Scheme (known as WG) in April 2014 that enables FIs & DFIs to free up their capital so as to reach out to more SMEs. To-date, CGC has launched 102 tranches of PG totaling to RM12.2 billion benefitting about 25,000 SMEs. In addition, we also have 6 tranches of WG worth RM1.5 billion with an outreach of 7,700 SMEs. In total, CGC has availed over RM13.7 billion worth of financing through our PG/WG schemes in collaboration with 20 FIs and three (3) DFIs, outreaching over 32,600 SMEs.

As a DFI dedicated towards promoting the growth and development of competitive and dynamic SMEs, CGC has been in the forefront of SME financing since our inception in 1972. Over the last 47 years, we have availed 460,000 guarantees and financing valued over RM70 billion benefitting 330,000 SMEs or 1/3 of Malaysian SMEs. That averages to 10,000 guarantees and financing valued at RM1.5 billion per annum.

Ladies and Gentlemen,

A bit about FINTECH. You may recall that on 9th February last year, CGC launched imSME – Malaysia’s 1st SME online Financing Referral Platform, marking our maiden entry into FINTECH.

Prior to imSME being launched, Malaysian SMEs have to search for financing options from each and every bank, and this is very time consuming. We decided to make it easier for Malaysian SMEs. What we did was, we created a platform similar to Trivago. Just like Trivago that searches for the best hotel rates, imSME searches for the best financing deals.

To-date, imSME has received over 360,000 visitors with RM50million of SME financing approved online. imSME connects SMEs to more than 20 FIs & DFIs, 4 P2P Financiers and 3 Capacity Building Partners.

And I am pleased to share that exactly a week ago, imSME won a Merit Award as an Outstanding SME Development Project from the Association of DFIs in Asia and the Pacific (ADFIAP) in Muscat, Oman. The award was presented by Her Highness Sayyida Rawan Ahmed Al Said – a member of the Oman Royal Family.

There will be many more to come for imSME, so please watch this space.

Ladies and Gentlemen,

In closing, I would like to extend my gratitude to YB Dato’ Amiruddin for gracing our event today with his presence, Mr. Abrar and Mr. Ali Allawala for their continuous support to CGC, and last but not least, many thanks to our team members in Standard Chartered Bank, Standard Chartered Saadiq and CGC for making our collaboration a great success.

Sekian, wabillahitaufik wal Hidayah wasalammualaikum wbt.

Yang Berbahagia Tan Sri Azman Hashim
Chairman, AmBank Group

Yang Berusaha Mr. Voon Seng Chuan
Chairman, AmBank (M) Bhd

Yang Berbahagia Dato’ Sulaiman Mohd Tahir
Group CEO, AMMB Holdings

Mr. Cheng Seng Fook
Marketing Director, Proton Edar Sdn Bhd

Mr. Liew Vee Lee,
President, Proton Edar Dealers’ Association Malaysia

YBhg Dato Agil Natt
Chairman, CGC

My Colleagues in CGC and our dear Friends in AmBank

Distinguished Guests and Members of the Media

Ladies and Gentlemen,

Assalamualaikum W.B.T and good morning.

I am indeed delighted to be here for the Official Exchange of Document Ceremony between CGC and AmBank on the RM100 million Portfolio Guarantee exclusively for Proton dealers. This is another significant milestone for both AmBank & CGC in our effort to continue serving Malaysian SMEs better.

Before I proceed with my speech, I would like to share a few words on the long-standing relationship that CGC has with AmBank. Tan Sri Azman, Dato’ Agil Natt and I go a long-way back together having had many opportunities to work closely.

Tan Sri has always been a big supporter of SMEs which the only segment that CGC serves. AmBank CGC relationship was further strengthened by Dato’ Sulaiman when he was appointed as the Group CEO of AMMB Holdings in November 2015.

Recently, I was delighted to hear about the appointment of Mr Voon Seng Chuan as the Chairman of AmBank (M) Berhad. I had the privilege of knowing Mr Voon during his IBM days and when I was with Maybank. I am confident that our AmBank CGC relationship will be further strengthened.

Ladies and Gentlemen,

As you are aware, CGC plays an important role in increasing access to financing for SMEs by bridging the gap between Banks and SMEs through our innovative Portfolio & Wholesale Guarantee Schemes. Since our inception in 1972, CGC has availed over 450,000 guarantees and financing to SMEs valued more than RM67 billion.

AmBank CGC partnership began in January 2015 and over the last 4 years, we have jointly delivered 10 PG tranches totalling RM2.15 billion, benefiting over 2,400 SMEs. (Note: average ticket size is RM900k).

Today’s event is very significant to both AmBank and CGC as this special PG will provide exclusive financial access for Proton car dealers to upgrade their facility to 3S & 4S centres. CGC is indeed honoured and proud to be part of this landmark collaboration to support Proton, an important brand in Malaysia’s automotive industry.

This PG will enable all new and existing Proton dealers to provide better services and enhance customer experience, resulting in better business and increased earnings. Hence, I would like to call upon all existing and new Proton dealer to utilise this opportunity to grow and develop your businesses. This latest edition of PG is an unsecured term loan facility offering financing ranging from RM1 million to RM3 million with 70% of the loan being guaranteed by CGC.

Ladies and Gentlemen,

In closing, I would like to once again thank Tan Sri Azman, Mr Voon and Dato’ Sulaiman for their support. Special thanks to both the AmBank & CGC working teams for their hard work in making this event successful. I look forward to many more collaborations in powering Malaysian SMEs with the AmBank Group.

Thank you and I wish everyone a pleasant day.

Good afternoon

Mr. and Mrs Albert Ong
Founders of the Good Samaritan Home

Dear Caretakers

Children of the Home

CGC Senior Management and Staff

I am pleased to represent the Management of Credit Guarantee Corporation Malaysia Berhad (CGC) here today for the Christmas celebration with all of you, residents of the Good Samaritan Home.

It is meaningful for the team and me to be able to share the Christmas spirit with everyone. Are you all excited to celebrate Christmas? Let’s hear some noises. Show me you are excited.

But before that, kindly allow me share a little story about CGC. We were established in 1972 to support Malaysia’s development agenda. We help small and medium enterprises (SMEs) with potential to establish and grow their businesses. CGC provides financing to these SMEs through our guarantee and direct financing schemes.

Today, we are here to celebrate Christmas through this programme that we have out together for all of you. The CGC team has lined up many interesting things for you today.

Did you children enjoy decorating the home? We will be playing games, enjoy a few Christmas carols by the CGC team, have a hearty meal…and then…there is a little token for everyone. We hope everyone will have lots of fun with us today.

I can sense the excitement! I am almost at the end of my note. Before that, allow me to thank Mr. and Mrs. Albert Ong and all the kind caretakers of the Home. Thank you for being supportive of our Corporate Responsibility initiative today. You have given CGC an opportunity to give back to the community. Keep up your good work of caring for the residents here. You are making a difference in their life through your dedication and love. Well done!

Looks like all of you are excited to start the celebration. So let us not waste time. Let the fun begin! Thank you. Back to you emcee.

Good morning everyone.

Welcome to CGC “Go Digital Talk”. This is an interactive talk session that is going to change your way of doing business.

I am impressed with the turnout today! Thank you for making time to attend this half-day workshop. Well done to all of you present here today!

Ladies and Gentlemen,

Digital is the new norm. There are digital technologies, digital data, digital media, digital transformation and digital marketing. Today, everyone wants to go digital. With the rise of the Internet of Things and mobile devices, our lives and habits are changing rapidly. Everything is now connected and if it is not, it is about to.

We live in a world where you can connect your coffee machine to the Internet and make your coffee via Bluetooth. If your coffee machine can go online, think what would happen next? Why it is important for you to embrace digital marketing? How are you going to go about it? Get the answers here today at this CGC Go Digital Talk.

Ladies and Gentlemen,

Speaking about digital, we are discovering new frontiers, leveraging on innovation and technology to fuel businesses. It is about finding new possibilities, designing and delivering better experience for our customers. Realising the importance of going digital and mastering digital marketing tools, this half day workshop will share insights on going digital.

This Go Digital Talk is part of CGC Developmental Programme, a tailor-made initiative to help and guide SMEs to stay relevant and successful in the market place.

There are three main pillars in CGC Developmental Programme. First, the Mentoring Programme, second Market Access to assist SMEs expand their businesses to both local and international markets, and third the Cross Border Initiative, a collaboration with our counterparts across the region.

Ladies and Gentlemen,

Today, we have Mr. Alex Liew, PR Lead from Shopee Malaysia and Ms. Catherine Chan, Regional Channel Partner Manager from Alibaba.com. They will be sharing tips for successful online marketing and digital sales.

Not to forget, we have also prepared a line-up of exciting activities such as sign up with Shopee and Alibaba for online market access opportunities, instant application for e-TRADE grant by Malaysia External Trade Matrade Development Corporation (Matrade), free consultation on credit scoring as well as sign up for business financing assistance via imSME, Malaysia’s 1st SME Financing/Loan Referral Platform.

Ladies and Gentlemen,

I am about to end my speech, before that allow me to convey my appreciation to our valuable speakers for being here with us today. To all participants, I hope you will take this opportunity to gain the many insights that is about to being shared, and wish everyone productive learning.

With that, thank you.

Good morning.

Welcome to “Go Digital Talk”, an interactive talk session under CGC Developmental Programme organized by Credit Guarantee Corporation Malaysia Berhad (CGC).

I hope at the end of this session, you will be able to understand and strategise your marketing approach using the digital marketing tools and techniques to grow your business.

Ladies and gentlemen,

The evolution of marketing in the last decade alone has been remarkable. The billboard, television, radio and email campaigns of yester year have transformed into in-app messages, chatbots and social media. It seems like the market will see more marketing channels in future.

Organic social media, paid social media, search engine optimization, programmatic advertising are some of the digital marketing tools whereby utilizing these channels effectively will make business more visible.

Today, CGC wants you to get creative with your digital marketing efforts!

Ladies and gentlemen,

Before I elaborate further on digital marketing, allow me to share CGC’s role in SME development. CGC is mandated to assist SMEs, especially those with inadequate or without collateral and track record, to obtain credit facilities from the banks by providing guarantee cover. In addition, CGC also provides direct financing under Bizmula-i, Bizwanita-i, BizBina-i and Bumiputera Entrepreneur Project Fund (TPUB-i).

Since 1972, CGC has availed 453,337 guarantees and financing to SMEs valued over RM67 billion. Besides, CGC also offers credit information and credit rating services through our subsidiary, Credit Bureau Malaysia.

I am also pleased to inform you that 14 commercial banks, 14 Islamic banks and six (6) Development Financial Institutions (DFIs) are currently participating in our guarantee schemes.

Ladies and gentlemen,

Moving on to today’s agenda, digital marketing is one of the essential tool to cope with the changing market trends. The most recent digital marketing trends not only prepare you for any changes within your specific market but also help to establish a comprehensive marketing strategy – designed to increase visibility using digital marketing strategies and maximise revenue.

Almost every business constantly looks for new ways to market itself in an attempt to stay ahead of the advancement. It is better to gain a competitive edge and attract higher website traffic, turn them into new leads and more customers. It is cost effective and at the same time faster platform to reach out to the mass.

How to do this? And how to stay up to-date on the latest trends in digital marketing? Our speakers will share with you the twist and turn in digital marketing today!

Ladies and Gentlemen,

We have two industry experts with us today; Lee Zhern Yuen, iFleet Manager of Digi Telecommunications Sdn Bhd, and Mr. Shah Suriye Ruben, Co Marketplace Chief Officer of Lazada Malaysia.

Both the speakers will share their knowledge and expertise on how digital marketing can open up new business growth channels for the SMEs, as well as tips and strategies for effective digital marketing.

Before I end my speech, I would like to know how many of you here have heard, surfed or explored imSME? Anyone here know what is imSME?

Well briefly, launched in February this year, imSME is Malaysia’s first online SME Loan/Financing referral platform. It is one of CGC’s digital effort designed to simplify the process of searching for financing/loan for SMEs from 15 financial institutions and Development Financial Institutions.

imSME is user friendly and has four easy steps – log on and register, key in relevant information, select your preferred financing options and the banks will call in two (2) working days. The response towards imSME is very encouraging as over 40,000 visitors have visited imSME. I would urge all of you here to explore imSME at www.imsme.com.my.

To elaborate further on imSME, let’s hear from En. Azman Mohd Ariffin, CGC’s Head of Accelerator Lab for the imSME.

With that, I convey my special thanks and appreciation to our valuable speakers for being here with us today.

To the members of the media, we appreciate your continuous support and thank you for being an important channel of CGC to communicate our noble efforts and initiatives for the benefit of SMEs, at large.

Thank you.

It is my pleasure to address you this evening at the SME Awards hosted by Credit Guarantee Corporation Malaysia Berhad (CGC). I would like to commend CGC for the continuous effort in championing the SME cause, and in recognising the banking and financial industry players that have made meaningful contribution in supporting the SMEs.

As mentioned by Dato’ Agil, ‘Digital Disruption’ has become the new normal not only for the banking and financial industry, but also for other sectors and industries. We have seen the fortunes of traditional businesses changing overnight with technological disruption. In fact, the financial industry may at times need to play catch up to ensure products and services are relevant in a new digital economy. We believe CGC will continue in its efforts to be agile and dynamic in embracing the higher expectations of meeting the financing needs of SMEs moving into the future.

SMEs and Financial Inclusion

In broad terms, financial inclusion means access to affordable financial products and services that meet the needs of individuals and businesses and that are delivered in a responsible and sustainable manner. At Bank Negara Malaysia, we recognise the impact of financial inclusion on the broader economic performance of our country. Financial inclusion facilitates productive financing and investments which generates income for the underserved, improves equality and contributes to sustainable growth. Having an inclusive financial system is also important to ensure economic and social progress on the development agenda is achieved. Therefore, CGC’s goal of ensuring access to financial services for SMEs via a fair and transparent marketplace for financial products and services, including extending credit that provides a pathway towards balanced economic growth and prosperity for all Malaysians should be lauded.

Based on the Economic Census 2016: Profile of Small and Medium Enterprises by the Department of Statistics, Malaysia (DOSM), SMEs in Malaysia constituted 98.5% of the total business establishments. Majority of the businesses were in services sector, mainly in wholesale & retail trade, followed by manufacturing, construction, agriculture and mining & quarrying.

Financial institutions are the major source of financing for SMEs. As at end-2017, growth in financing to SMEs continues to be sustained above 5%, outstripping financing growth to households and large corporates. The approval rate for financing applications by SMEs of 75%, has also been consistently higher than that for all customers. The share of SME financing over total business financing has steadily trended upwards to more than 50% from 38% in 2010. This reflects an increased focus on SMEs as a strategic growth driver for financial institutions.

According to the latest bi-annual survey by SME Corporation Malaysia (SME Corp), 97% of SMEs which applied for financing from FIs affirmed that they were able to obtain financing. Of this, 27% were first time borrowers and 23% were without collateral and credit guarantee.

Nevertheless, our work is far from done. There are pockets of SMEs, particularly the start-ups and those operating in new and high risk segments that continue to face challenges in obtaining financing. When businesses have insufficient access to financial products and services, they may be deprived of a chance to pursue new business opportunities, and as a nation, we are deprived of the benefits of their potential contributions to the economy.

Over the past 45 years, CGC has played a crucial role in bridging the gap between financial institutions and underserved SMEs via its innovative products and services. I commend CGC’s efforts for its latest venture in developing a dedicated online referral platform that connects the banks and the SMEs, known as imSME. The imSME has the potential to transform the SME Financing Landscape in the country, by matching SMEs’ financing needs with suitable products, thus reducing search costs and improving financing prospects for SMEs. 

The implementation of imSME exemplifies the importance of technology in increasing SMEs’ financing access. SMEs are now able to submit financing applications 24 hours a day, without the need to visit individual financial institutions to search for suitable product offerings. The Platform also facilitates the partnership between key collaborators to deliver end-to-end solution for SMEs that face higher hurdles to obtain financing. With the Financial Advisory Team in imSME, unmatched or unsuccessful applicants will be further motivated to enhance their capacity and capability with relevant trainings aimed at improving their chances to secure financings or loans in the future.

The imSME complements existing initiatives in the SME financing ecosystem, such as BNM’s Fund for SMEs, alternative financing channels such as equity crowdfunding and P2P lending, and the Small Debt Resolution Scheme.

BNM’s Role to Encourage Financial Inclusion & SME Financing

SMEs is a pertinent component of Malaysia’s economy. To reap their full potential, SMEs must be continuously nurtured, guided and developed to become more competitive. The financial services industry needs to play its role in continuously innovating, adapting to the digital disruption and be the frontier in driving the national SME agenda, by ensuring adequate access to financing.

Technology has the potential to transform financial services. Most notably it

• dramatically reduces the costs of providing access to financial services, particularly in remote locations and to small borrowers;
• transforms credit decision-making ability by enabling lenders to tap into alternative data sources. This has made it possible for people without collateral or credit histories to borrow; and
• simplifies finance and enabling providers to significantly improve the quality of customer interactions.

There is a need to advance new ways to deliver financial services to the underserved, beyond the provision of access points. In particular, the potential to effectively integrate the delivery of financial services with the day-to-day activities of underserved segments remains largely untapped. More effective utilisation of technology to improve customer engagements can also increase confidence in the use of financial services.

To this end, Bank Negara Malaysia will continue providing an enabling regulatory environment and active facilitation to increase the impact of technology on financial inclusion. This is being driven through several strategic initiatives by the Bank, including the regulatory sandbox, adoption of digital identities for SMEs and piloting the use of psychometric tools for SME credit evaluations.

Role of the Financial Industry to drive efforts in SME Financing and Financial Inclusion

It has become increasingly important for the financial industry to come forward and address related perceptions on SME financing matters. The industry should actively address issues affecting access to financing by SMEs, by advocating the players to adopt best practices in financing activities and lead initiatives to reform inefficient practices. Key strategic recommendations should be made to the Government and regulators to enhance the SME financing ecosystem, particularly in supporting new growth areas and increase contributions by financial institutions to SME sector. In this regard, the financing ecosystem needs to be complemented with comprehensive SME development strategies and initiatives to strengthen SMEs’ capacities and capabilities. This includes efforts towards training and retraining of workers, adoption of technologies in business and operating process, as well as in governance, finance and accounting practices.

The financial industry should also address any negative perceptions by having an effective communication strategy and ensuring swift response time to SME customers, as these are vital in maintaining the integrity and public image of financial institutions. Moving forward, it is imperative and almost inevitable for financial industry to undertake measures to advance financial literacy and capabilities of SME customers.

The commitment to better serve the SME segment would reinforce the critical role of the financial industry in supporting the Government’s development agenda in a well-functioning financial system.

CGC has demonstrated that efforts to assist underserved SMEs can be achieved in a financially sustainable manner through its suite of innovative financial products and services. Financial institutions should also explore strategic partnerships with adjacent industries such as telcos and fintechs to reduce market gaps and reliance on Government subsidies for the SMEs. Importantly, the financing ecosystem needs to be complemented with a comprehensive SME development ecosystem to nurture and elevate our SMEs towards greater size and competition.

I hope today’s recognition and appreciation of FIs and CGC customers would spur both parties to become more innovative, resilient and progressive. My heartfelt congratulations to all the winners and may you continue to inspire and set benchmarks on SME financing landscape. Thank you.

Yang Berusaha En. Abu Hassan Alshari Yahaya

Deputy Governor, Bank Negara Malaysia,

Distinguished Guests and Valued Business Partners,

Ladies and Gentlemen.

Assalamualaikum w.b.t and a very good evening.

I am pleased to welcome you this evening to celebrate the efforts and achievements of our business partners comprising the financial institutions (FIs), Development Financial Institutions (DFIs) and our SMEs. Each of us in this hall here, today has a role to play in the growth of the country’s SME Development agenda – to make SMEs competitive and sustainable.

Welcome to our 23^rd CGC SME Awards!

Ladies and gentlemen,

Before speaking on the awards proper, please allow me to digress a little to say a few words on the disruption that is taking place in the business landscape and how CGC is embracing these changes. Advances in technology have had tremendous impact on what we do and how we relate to one another. Now, disruption and disruptive technology has become the catch-all word to describe a period of transformative changes that has migrated into the everyday vocabulary of many especially businesses.

Malaysia has already felt the effects of disruptive technology, from ride-hailing apps such as Grab, to shopping within one’s own comfort using online shopping apps such as Lazada, 11street and Fave and latest, travel app such as Airbnb and Trivago. These apps barely existed a decade ago have become household names now. This indicates that in order to survive the age of disruption, the SMEs are required to adopt a business strategy that can quickly respond to customer needs and market changes in a cost-effective manner. Against this backdrop, CGC has stepped up its efforts to create the awareness among the SMEs on the need to be tech savvy, improve business operations and succeed as an SME in the age of digital disruption.

Ladies and gentlemen,

On Feb 9, this year, CGC has introduced, imSME, Malaysia’s first online SME Financing/Loan referral platform, which has the capabilities to shorten the time span for SME’s and micro businesses to obtain loans and other financing needs. With imSME, SMEs need not go to different banks to apply for financing. Currently imSME provides an array of products and services offered by CGC and our 15 FI, and DFI partners.

In the event that there is no suitable match, the said SME will be referred to an imSME Financial Advisory Team which will liaise with agencies that have Accelerator and Capacity Building Labs such as CEDAR, INSKEN, MIA and SMECorp Malaysia. We also have three alternative financiers namely Fundaztic by Peoplender Sdn Bhd, Funding Societies Malaysia by Modalku Ventures Sdn Bhd and QuicKash by ManagePay Systems Bhd on board imSME. We are excited to welcome all SMEs and micro businesses to try this new approach in sourcing for financing.

To-date, close to 700 SMEs have applied for financing via the imSME online platform; whereby, a total of RM 2.94 million worth of financing was approved. Small the initial number maybe, but this serves as a new way for businesses, particularly the SMEs to source for loans/financings.  

Through increased awareness of imSME and the benefits it offers; especially, the convenience and speed, we are confident that imSME will indeed be a real game changer in the SME financing landscape. Thereby, at this juncture, I would like to express my utmost gratitude to participating FIs, DFIs and agencies for being part of this transformative agenda. At the same time, I invite the rest of the FIs and DFIs to come on board and support financial inclusion of SMEs. Enough of the commercial for now.

Ladies and gentlemen,

Moving on to today’s agenda, the CGC SME Awards is a recognition to the commitment and excellence demonstrated by FIs and DFIs, who have made access to financing possible through diversified products and services to SME’s. There are seven award categories for our Top FI Partner Award and there will be more than one award winner from different categories provided they meet the criteria.

Today, we are also honouring our SME customers in recognizing their exemplary record in meeting their loan and guarantee fee commitments in the last financial year. For being good customers, CGC is giving them rebates on their guarantee fees ranging from RM3,000 to RM18,000. Since we launched this rebate mechanism back in 2015, to-date, we have given a total of RM1.6 million worth of rebates to about 2,300 SME customers.

For the last financial year, more than 350 SME customers were eligible for this rebate. Sadly, it is not possible for us to invite all of them today. We have with us, only five of these exemplary customers to receive the Exemplary Customer Awards!

Next year we plan to give a new award to participating FIs, and DFIs that actively avail financing via the imSME platform. We hope this will further encourage FIs, DFIs and other participants to reach out to more SMEs and micro businesses via imSME. I would also encourage more SMEs to apply for loan facilities through imSME.

CGC will continue to reach out to more SMEs, and we also welcome effective collaboration between FIs and DFIs to further improve the SME financing ecosystem. We believe, working together is no longer just nice to have but a necessity with specific focus on innovation.

With that, ladies and gentlemen, I wish to express my sincere appreciation to our valued business partners for your unwavering support to CGC. I am also deeply grateful to FIs, DFIs, Bank Negara Malaysia, ministries and government agencies, chambers of commerce, business and trade associations; as well as organisations and all those who have supported us thus far. A big thank you for your continued confidence and trust in CGC.

Congratulations to all the winners of CGC SME Awards today.

Thank you and do enjoy the awards ceremony, followed by Our Majlis Jamuan Aidilfitri at the Grand Ballroom here.

Datuk Hamirullah Boorhan,
Head, Community Financial Services Malaysia
Malayan Banking Berhad (Maybank)

En. Adnan B. Sharif
Head, SME Banking
Malayan Banking Berhad (Maybank)

Maybank’s SME Team

My dear fellow colleagues

Assalamualaikum W.B.T and a very good morning to all of you.

It’s a pleasure to be back again, to forge another significant partnership with Malayan Banking Berhad (Maybank), our most valuable partner in SME financing. Before I proceed further, I would like to take this opportunity to express my appreciation to YBhg. Datuk Hamirullah and his team for making this new episode in our collaborative book, a reality today.

Ladies and Gentlemen,

Today’s signing ceremony is to formalise the recently launched PG-i Retail and SME (PG-i RSME) agreement that was signed on the 4th of May, for the value of RM 300 million. I am pleased to note that there would be another collaboration that would take place sometime later this month for the conventional PG RSME tranche, with the value of RM 500 million.

CGC first partnered Maybank on the PG scheme collaboration back in September 2013, with the mutual purpose of offering non-collateralized financing to the SMEs, with a portfolio size of RM 100 million; of which the funds were equally allocated for both the Islamic and Conventional financing end.

To date, our strong partnership with Maybank records a healthy performance of RM4.96 billion worth of financing, which has been disbursed to deserving SMEs nationwide. On an overall basis, CGC has availed RM 11 billion worth of financing under the PG and Wholesale Guarantee schemes; through the participation of 14 Financial Institution, 14 Islamic Financial Institution and 6 Development Financial Institution partners.

This year, we are looking forward to approving RM 3.50 billion worth of financing to approximately 6130 SMEs under the PG and WG schemes, compared to last year’s record of RM 1.92 billion worth of financing that was approved to 6936 SMEs.

Ladies and Gentlemen,

CGC plays a vital role in bridging the financing gap between the SMEs, the Financial Institutions and the Development Financial Institutions via the provision of various innovative products and services. One fine example is the award winning Portfolio Guarantee (PG) scheme that is customised based on the product features; as well as, pre-determined criteria and is offered to participating FIs and DFIs on a portfolio basis. CGC’s PG scheme remains a preferred financing option, in being the key driving factor in ensuring that the banks continued to have the ability to lend to SMEs, with the support of a CGC guarantee.

In addition to that, I am also pleased to inform that imSME; Malaysia’s first online SME financing/ loan referral platform that was launched in February 2018, is receiving encouraging response from the SMEs and our Financial Institution partners. The imSME is an initiative that was mooted and supported by Bank Negara Malaysia (BNM); whereby, the platform matches eligible SMEs to suitable financing products that are offered by the participating banks.

As of 28th May 2018, a total of 682 SMEs have applied for financing via the imSME online financing/ loan referral platform; whereby, a total of RM 2.94 million worth of financing was approved. This is remarkable, considering that it is only in its fourth month of operation. Through increased awareness of imSME and the benefits it offers; especially, the convenience and speed rate, we are confident that imSME will indeed be a real game changer in the SME financing landscape.

I would like to thank Maybank for being one of our top supporters for the imSME initiative. We look forward to future collaborative opportunities, in driving forth the visibility and awareness of imSME, at the Maybank outlets.

Ladies and Gentlemen,

In closing, I would like to share a quote from a renowned American motivational speaker, Robert Harold Schuller, he said and I quote, “Today’s accomplishments were yesterday’s impossibilities.”

On that note, I would like to once again thank Maybank for the continuous support and to YBhg. Datuk Hamirullah and his team for the realisation of this new chapter in our collaborative book today.

I am confident that our continued partnership will bring about immense benefits to the SME community at large.

Thank you.

Wassalam.

Good Morning and welcome to “Go Digital Talk”, an interactive talk session that is going to change your way of doing business, from today!

Ladies and gentlemen,

This signature talk is hosted by CGC, a subsidiary of Bank Negara Malaysia. CGC’s mandate is to assist Small and Medium Enterprises (SMEs), especially those with inadequate or without collateral and track record, to obtain credit facilities from the banks by providing guarantee cover.

Since 1972, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.7 billion. Besides, CGC also offers credit information and credit rating services through our subsidiary, Credit Bureau Malaysia.

I am also pleased to inform you that 14 commercial banks, 14 Islamic banks and six (6) Development Financial Institutions (DFIs) are currently participating in our guarantee schemes.

Ladies and gentlemen,

Back to our event today, can anyone from this floor tell me, ‘’Why are you here today?”

Well, I’m sure all of you would have heard, talked or even dealt with Digital Marketing, a new wave that is transforming the business landscape not only in this region, but globally. Knowing the importance of Digital Marketing, CGC has designed today’s talk for you to have a better understanding on the subject matter and thus, implement the knowledge that you will gain from today, to bring your business to the next level.

This talk is part of CGC Developmental Programme. Through this programme, we help SMEs guided by three (3) main pillars, which are Mentoring Program such as today, Gaining Market Access in which we assist SMEs to expand their businesses to both local and international markets, and Cross Border Initiative.

Ladies and gentlemen,

The government has also emphasised on the importance of Digital Marketing. Projects such as Digital Free Trade Zone (DFTZ) launched by Prime Minister YAB Dato’ Sri Mohd Najib Razak and founder and executive chairman of Alibaba Jack Ma, is indeed a visionary effort.

So now, how are you going to be a part of this development? I am very sure today’s talk will lead you to this answer.

For that, we have two industry experts with us today; Lee Zhern Yuen, iFleet Manager of Digi Telecommunications Sdn Bhd, and Nadhir Ashafiq, the Co-Founder and Executive Director of TheLorry.com, an online logistics platform.

Both the speakers will share their knowledge and expertise on how digital marketing can open up new business growth channels for the SMEs, as well as tips and strategies for effective digital marketing. My special thanks and appreciation to our valuable speakers for being here with us today.
Before I end my speech, I would like to know how many of you here have heard, surfed or explored about imSME?

Well, yes, being the country’s first online SME Loan/Financing referral platform, imSME is one of our digital effort to assist the SMEs to connect with the right financing product in a fast, customer-friendly and hassle-free environment.

To further brief you on imSME and the wonders it can bring into your business, let’s hear from En. Azman Mohd Ariffin, CGC’s Head of Accelerator Lab for the imSME.

With that, thank you.

Mr. Abrar A. Anwar
Managing Director and Chief Executive Officer
Standard Chartered Bank Malaysia Berhad

Mr. Aaron Loo
Country Head of Retail Banking
Standard Chartered Bank Malaysia Berhad

Mr. Leong Weng Choong
Chief Business Officer, CGC

Distinguished Guests,

Assalamualaikum W.B.T and a very good morning to all of you.

I am delighted to be here today for the Strategic Partnership signing ceremony on the Portfolio Guarantee (PG) scheme between CGC and Standard Chartered Bank Malaysia. I would like to thank one and all for making this collaboration a reality today.

Today’s partnership would not only mark another significant milestone in our book but, the partnership would also bring home a sweet reunion since our last signing ceremony back in 2009.

Ladies and Gentlemen,

Let us take a trip down memory lane for a bit.

CGC first partnered with Standard Chartered Bank Malaysia in the year 2009, for the launching of a specially tailored PG scheme for women entrepreneurs.

The partnership in 2009 not only marked the maiden entrée of our PG scheme but, it also marked SCB as being the first bank in the country to venture into CGC’s PG scheme. The said partnership also marked the first of such scheme to be established for women entrepreneurs.

Through our close collaboration spanning a decade, both CGC and Standard Chartered Bank Malaysia have supported 3,056 SMEs in various sectors to obtain financing to sustain and grow their businesses. We still remain committed to our common objective which is to address the unique financing needs of SMEs by providing innovative financing options and alternate avenues to help them secure financing of their choice.

Ladies and Gentlemen,

CGC has played a vital role in bridging the financing gap between the SMEs and the Financial Institutions and the Development Financial Institutions via the provision of various innovative products and services.

The PG scheme is a scheme that is customized based on the product features and pre-determined criteria and are offered to participating FIs and DFIs on a portfolio basis.

CGC’s PG scheme remains a preferred financing option, in being the key driving factor in ensuring that the banks continued to have the ability to lend to SMEs, with the support of a CGC guarantee!

Ladies and Gentlemen,

CGC has availed RM 11 billion worth of financing under the PG/WG scheme, through the participation of 19 FIs and DFIs to date.

This year we are looking forward to approving RM 3.5billion worth of financing to approximately 6,130 SMEs under the PG; as well as, via our Wholesale Guarantee (WG) schemes, compared to last year’s record of RM 1.92 billion worth of financing that was approved to 6,936 SMEs.

The PG scheme received international attention and was recognized as an innovative product that made a huge difference in the SME financing landscape. In 2012, CGC was accorded the ‘Outstanding Development Project Award’ by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP). Last year, we were once again the holder of the same award for the forward looking PG for micro financing, through our collaboration with Bank Simpanan Nasional (BSN).

As a financial institution that is dedicated towards promoting the growth and development of competitive and dynamic SMEs, CGC has been in the forefront of SME financing over the last 46 years. In February 2018, we launched the imSME, Malaysia’s first online SME financing/loan referral platform which matches eligible SMEs to suitable financing products that are offered by the participating banks. Our innovative portfolio guarantee scheme will also be made available at this platform, as part of our product offering to ease the SMEs search for the best financing option that matches their business needs. To date, 14 FIs and DFIs; as well as, four capacity building partners have come on board with CGC, to make the imSME a success and a ‘game changer’ in SME financing. As we speak, there are five (5) more banks lining up to be on board imSME. As you are aware, this initiative by CGC is supported by Bank Negara Malaysia (BNM).

Ladies and Gentlemen,

For CGC, innovation is a part of our DNA and it is thanks to this as well as the support from both our Board and staff that we are able to churn out and provide the best financing products and services to our bank partners and customers.

The officiating of our latest PG scheme; which we are about to witness shortly, commences with a commitment of RM75 million and has a tenure of seven (7) years.

At this juncture, I would like to share a quote from Henry Ford, he said and I quote, “Coming together is a beginning. Keeping together is progress and working together is success.”

On that note, I would like to once again thank Standard Chartered Bank Malaysia for this sweet reunion and the realization of this new chapter in our books.

I am confident that our continued partnership will bring about immense benefits to the SME community at large.

Thank you.

Wassalam.

Good Morning and welcome to “Go Digital Talk”, an interactive talk session that is going to change your way of doing business, from today!

Ladies and gentlemen,

This signature talk is hosted by CGC, a subsidiary of Bank Negara Malaysia. CGC’s mandate is to assist Small and Medium Enterprises (SMEs), especially those with inadequate or without collateral and track record, to obtain credit facilities from the banks by providing guarantee cover.

Since 1972, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.7 billion. Besides, CGC also offers credit information and credit rating services through our subsidiary, Credit Bureau Malaysia.

I am also pleased to inform you that 14 commercial banks, 14 Islamic banks and six (6) Development Financial Institutions (DFIs) are currently participating in our guarantee schemes.

Ladies and gentlemen,

Back to our event today, can anyone from this floor tell me, ‘’Why are you here today?”

Well, I’m sure all of you would have heard, talked or even dealt with Digital Marketing, a new wave that is transforming the business landscape not only in this region, but globally. Knowing the importance of Digital Marketing, CGC has designed today’s talk for you to have a better understanding on the subject matter and thus, implement the knowledge that you will gain from today, to bring your business to the next level.

This talk is part of CGC’s Developmental Programme. Through this programme, we help SMEs guided by three (3) main pillars, which are Mentoring Program such as today, Gaining Market Access in which we assist SMEs to expand their businesses to both local and international markets, and Cross Border Initiative.

Ladies and gentlemen,

The government has also emphasised on the importance of Digital Marketing. Projects such as Digital Free Trade Zone (DFTZ) launched by Prime Minister YAB Dato’ Sri Mohd Najib Razak, and founder and executive chairman of Alibaba Jack Ma, is indeed a visionary effort.

So now, how are you going to be a part of this development? I am very sure today’s talk will lead you to this answer.

For that, we have two industry experts with us today; Lee Zhern Yuen, iFleet Manager of Digi Telecommunications Sdn Bhd, and Nadhir Ashafiq, the Co-Founder and Executive Director of TheLorry.com, an online logistics platform.

Both the speakers will share their knowledge and expertise on how digital marketing can open up new business growth channels for the SMEs, as well as tips and strategies for effective digital marketing.
Before I end my speech, I would like to convey my special thanks and appreciation to our valuable speakers for being here with us today.

To the members of the media, we appreciate your continuous support and thank you for being an important channel of CGC to communicate our noble efforts and initiatives for the benefit of SMEs, at large.

With that, thank you. May your business soar to a new heights with Digital Marketing!

Yang Berusaha Mr. Domenico Fuda,

Group Managing Director and CEO of Hong Leong Bank Berhad

Yang Berusaha Mr. Terrence Teoh,

Head of Group SME Banking, Hong Leong Bank Berhad

Mr. Leong Weng Choong,

Chief Business Officer of CGC

Distinguished Guests and Ladies and Gentlemen,

A very good morning.

I am delighted to be here today for the Strategic Partnership Signing Ceremony on Portfolio Guarantee (PG) between Hong Leong Bank Berhad and CGC, another significant milestone for both parties in the development of Malaysian SMEs. Thank you to everyone for making this collaboration possible today.

Ladies and gentlemen,

Briefly, CGC’s mandate is to assist small and medium enterprises (SMEs) that have viable businesses but lack collateral and track record to obtain financing from the banks, to grow and succeed. Our role is to bridge the gap between the SMEs and the banks by providing guarantees to help them obtain their financing facilities.

To-date, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.7 billion.

Ladies and gentlemen,

CGC has played a vital role as a financial intermediary to bridge the financing gap between the financial institutions (FIs) and the SMEs through an array of innovative products and services.

Launched in 2009, CGC’s PG scheme remain as one of the key driving factor in materialising that commitment; which is to ensure the banks continued to have the ability to lend to SMEs with the benefit of a CGC guarantee.

With pre-determined eligibility criteria, CGC has been able to provide approvals within  two (2) days upon receipt of the application from the participating financial institutions. The current approval rate is 98%, which is relatively higher compared with our other schemes due to the efficiency of the process flow.

To-date, cumulatively, CGC has availed RM9.75 billion worth of financing to 26,102 SMEs under its PG scheme. This year, we are looking to approve RM3.5 billion worth of financing under PG scheme to about 6,130 SMEs, as compared to last year’s target of RM3.3 billion of financing to 5,000 SMEs.

The PC scheme is internationally acknowledged and recognised as an innovative product that can make huge difference in SME financing.  In 2016, CGC was accorded the Merit Award by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in recognition of its forward-looking Portfolio Guarantee (PG) for Micro Enterprises (under the financial inclusion category). Prior to that, in 2012, CGC received ADFIAP’s Development Award for its PG scheme under the SME Development category.

Ladies and gentlemen,

We are pleased to ink our maiden partnership with Hong Leong Bank, which shares the same objective as we do –  assist SMEs in achieving their business goals by addressing their financial needs. CGC’s commitment towards SMEs span over four decades and we have to date offered numerous financing options to suit the requirement of the SMEs; particularly the clients of our banking partners through the innovative PG scheme.

SMEs will now have more options to consider to access financing for their business as we are committed to offer up to RM200 million in financing via this significant collaboration.

The scheme would also be made available through CGC’s online SME loan/financing referral platform known as imSME, which matches eligible SMEs to suitable financing products that are offered by the participating banks.

In line with our strong entrepreneurial spirit, CGC will continue to provide support and financing solutions to SMEs, by understanding their business challenges and requirements for growth.

The  CGC PG scheme with HLBB has kick-started on January 2016 and to date, we have about 243 SMEs on board who have benefitted up to RM80 million from this partnership. Our latest tranche of PG scheme, which we are going to witness the strategic partnership signing ceremony shortly, will commence on 19 March onwards, with a commitment of RM70 million.

Ladies and Gentlemen,

For CGC, innovation is part of our DNA and it is a guiding force in our effort as we strive to provide the best products, services and support to our customers and bank partners.

There is an old saying that ‘small opportunities are often the beginning of great enterprises’, and we believe, our collaboration with HLBB will make way for the sustainable growth of more SMEs in the country.

On that note, I would like to thank HLBB once again for the continuous support and trust in our partnership. I am confident that our collaboration today shall be the beacon for many more opportunities to work together for our mutual benefit and also for SMEs in the country.

Thank you.

Wassalam.

Jessica Chew Cheng Lian,

Deputy Governor, Bank Negara Malaysia

Yang Berbahagia Dato’ Agil Natt,
Chairman, CGC

Yang Berbahagia Datuk Mohd Zamree Mohd Ishak
President and CEO, CGC

Yang Berbahagia Tan Sri-Tan Sri, Puan Sri-Puan Sri, Datuk-Datuk and DatinDatin,

Distinguished Guests,

Ladies and Gentlemen.

INTRODUCTION

1. Firstly, I would like to extend my sincere gratitude to Credit Guarantee
Corporation Malaysia Berhad (CGC), for inviting me to launch Malaysia’s first
SME financing referral platform, the “imSME”. Allow me to commend Bank
Negara Malaysia (BNM) and Credit Guarantee Corporation Malaysia Berhad
(CGC) for their relentless efforts to uplift the entrepreneurial spirit among the
SMEs in Malaysia. It is indeed a forward looking initiative that is expected to
reshape the delivery and accessibility of SME financing services in Malaysia,
in line with global trends.

IMPROVED GROWTH PROSPECTS

Ladies and gentlemen,
2. 2017 had been a momentous year of dynamism on the economic front
as growth momentum became more entrenched. Global economic activity is
projected to pick up pace in 2017 onwards. Higher global growth of 3.9% is
forecasted for 2018, underpinned by sustained growth in the advanced
economies and a better performance in the emerging economies. Upswing in
investment and manufacturing activities will also continue to have a positive
impact in enhancing global trade flows.

3. On a similar note, the Malaysian economy continues to show
encouraging trends, registering a growth rate of 5.9% up until the third quarter
of last year. The World Bank has revised upwards Malaysia’s GDP forecast
three times – from 4.9% to 5.2%, and by the end of last year, they have once
again revised their forecast to 5.8% for 2017. These figures are well above the
growth rate of 4.2% recorded in 2016.

4. For 2018, domestic growth momentum will continue, and is projected to
expand in the range of 5% to 5.5%. We expect growth to be broad-based,
supported mainly by expansion in construction, services and manufacturing
sectors, with an estimated annual growth of 7.5%, 5.8%, and 5.3%
respectively. Growth in construction will be driven mainly by pickup in civil
engineering works for infrastructure projects, such as LRT3, MRT, HSR and
ECRL. For the services sector, growth will be supported by robust consumer
spending, whereas growth in the manufacturing sector will be driven by the
continued expansion in the export-oriented industries in light of better external
conditions.

5. A favorable labor market condition, income growth, improved consumer
sentiment, and ongoing income support measures are expected to lend
support to sustained private consumption growth. In addition, measures under
the 2018 budget to reduce income tax rates for individuals in the lower income
brackets and to provide cash bonuses to current and former public servants
will also uplift consumer spending.

6. As we opt for inclusive growth, the overall income distribution has also
improved. This is reflected by Malaysia’s most recent Gini coefficient of 0.399
in 2016, down from 0.401 in 2014. From a regional perspective, Malaysia has
done a relatively credible job in reducing overall income imbalances, with a
lower Gini coefficient than some advanced economies such as Singapore
(0.458) and Hong Kong (0.539). Bottom line – these figures reflect our sound
fundamentals that enable Malaysia to remain on track in growing the economy
despite numerous challenges over the years.

SME AS BACKBONE FOR GROWTH
Ladies and gentlemen,
7. The business sector plays a vital role in providing job opportunities and
nurturing the creation of an entrepreneurial culture within our country. These
businesses, especially the SMEs, form an integral part of the value chain in
the overall production network. Many of the successful international

businesses that we observe today started out as SMEs, bearing testament to

the fact that today’s SMEs are tomorrow’s business leaders and innovators.
8. Thus, the government focuses on a holistic and comprehensive
approach to strengthen our businesses through formulating measures to
promote their resilience, productivity, and competitiveness. As SMEs account
for 97% of business establishments, contributing 37% to GDP, 18% to
exports, and 65% of employment, SMEs must be well equipped to compete
and operate in the economy of the future. It is forecasted that SMEs’
contribution to GDP will reach 41% in 2020, and its share of Malaysia’s export
to achieve 23%.

9. While positive growth trajectory is increasingly evident, the government
is well aware of the challenges faced by SMEs in finding capital for
expansions, with choices are sometimes limited to the traditional banking
channels. Traditionally, the SMEs tend to borrow from banks and as such,
they remain unaware of other sources of financing that are offered by
Development Financial Institutions (DFIs), venture capital firms and also
special SME funds and grants provided by Bank Negara Malaysia and the
Government.

imSME: A GAME CHANGER
Ladies and gentlemen,
10. imSME is aimed to ease the expansion of micro, small and medium
enterprises, or what I will refer today as MSMEs (Micro, Small & Medium
Enterprises). Via Malaysia’s first online referral platform for MSME financing,
they can now explore various financing options offered by the banks and pick
financial products that suit them best – all in one single platform.

11. The imSME platform also provides tailor-made financing products,
avoiding them the hassle of going through a time consuming process while
catering the higher degree of business module sophistication. The platform
will ensure that MSMEs, at different stages of their business developments,
will be guided to the legitimate and authorized channels to source for their
business financing needs.

12. I was made to understand that CGC has set up an imSME Financial
Advisory Team, which will liaise with agencies with accelerator and capacity
building labs namely Center for Entrepreneur Development & Research
(CEDAR), Institut Keusahawanan Negara (INSKEN), Malaysian Global
Innovation & Creativity Center (MAGIC) and the Malaysian Institute of
Accountants (MIA), particularly to assist SMEs that were unsuccessful in
finding a financing match through the imSME referral platform. They can
simply refer to the expertise of these agencies that better understand the
needs of SMEs to come up with a more sustainable financing structure.

13. I also wish to suggest imSME to act as a knowledge center to share
various existing funding avenues that we have in our ecosystem to the SMEs.
As their businesses grow, they will require a bigger capital and source of
funding, which can be provided by existing established financing channels as
well as credible alternative funding platforms to support businesses such as
Equity Crowdfunding (ECF), Peer-to-Peer (P2P) lending and the Investment
Account Platform (IAP). Bursa Malaysia had also very launched the Leading
Entrepreneur Accelerator Platform (LEAP) Market – the first of its kind in
ASEAN, which aims to provide SMEs with an alternative and efficient fundraising
platform and visibility through the capital market.

14. As the alternative funding avenues continue to grow in signifiance, I wish
to also suggest CGC to look into the possible ways to provide support to the
SMEs to obtain financing from these platforms. For example, GCG may
engage the relevant P2P platforms to device one mechanism in which CGC
can lend its support to the targeted and competitive SMEs. This will indeed
benefit all parties- for the P2P investors, they can take comfort in CGC’s
support and assurance to lend their monies to the SMEs, and for the SMEs,
assurance from CGC will help them in having better access to capital at a
favorable rate.

Ladies and gentlemen,
15. I believe that imSME platform would strengthen the MSMEs’ self-service
capabilities, enhancing their experience in line with Bank Negara Malaysia’s
direction for the SMEs and businesses to embrace FinTech services, given
that they are more cost-effective and efficient. At an era where people are
more familiar with search-centric apps, CGC’s effort in developing imSME, is
timely and commendable. The platform will enable users to be in control, by
searching and discovering the perfect financing channel, similar to a few
popular digital applications namely Trivago and iMoney.

16. The significance of SMEs to the Malaysian economy goes beyond of just
being the engine of growth. There are growing interest among SMEs to tap on
the benefits of digitization by using the social media, Internet marketing and ecommerce
as the platform to reduce cost and to market quality products and
services in untapped markets all over the world.

17. I must say that CGC’s innovative financial offering is in line with the
direction of Eleventh Malaysia Plan (RMK-11) and the targets of the SME
Masterplan towards enhancing the overall resilience of SMEs and towards
becoming “home grown” champions. Today, we can take comfort that
Malaysia is on the right course in realizing this national aspiration.

CLOSING REMARKS
Ladies and gentlemen,
18. My presence here marks the government’s commitment towards
promoting a robust ecosystem for SMEs to thrive and prosper. Once again, I
would like to acknowledge Bank Negara Malaysia (BNM) and CGC for their
unwavering support in bringing our local SMEs to the next level. Truly, the
imSME platform promotes an innovative, progressive and inclusive agenda for
the SME financing landscape.

19. I envision that CGC will continue to play a bigger role in SMEs’
development, particularly in encouraging SMEs to transform and innovate,
which I believe are the key elements for any businesses to weather storms
along their path towards the light at the end of the tunnel.
Thank You.

Yang Berhormat Datuk Seri Johari Abdul Ghani

Minister of Finance II

Yang Berusaha Puan Jessica Chew

Deputy Governor, Bank Negara Malaysia)

Distinguished guests,

Members of the media and,

Ladies and gentlemen.

Assalamualaikum, and good morning.

It is my pleasure to welcome and to thank all of you for being with us today. I would like to express my special gratitude to Yang Berhormat Datuk Seri Johari Abdul Ghani, Minister of Finance II for making time to this ceremony to launch Malaysia’s First SME Loan/Financing Referral Platform.

I believe this initiative is profound and fundamental in our journey to develop a meaningful ecosystem for our entrepreneurs, particularly for the SME community.

Ladies and gentlemen,

A one stop platform for convenient access to financing and structured assistance, was mooted by Bank Negara Malaysia and CGC was tasked to develop and implement this idea. A great deal of thought and hard work had gone into developing this platform. It is equally important to emphasize that without guidance from Bank Negara Malaysia, collaboration with 10 participating financial institutions (FIs), four (4) development financial institutions (DFIs), four (4) agencies and three (3) alternative financiers, this initiative could not have been brought to fruition.

Access to Financing

We know that micro, small and medium sized enterprises (MSMEs), commonly known as SMEs in Malaysia, play an important role in our economy and they contributed 36% of our GDP in 2016[1]. By 2020, their contribution to our GDP is targeted to increase to 41%. 

However, access to capital and financing has always been the bane for SMEs, a factor that constrains their ability to grow and become more productive.

A Harvard research paper titled “State of Small Business Lending – Credit Access during Recovery and How Technology May Change the Game” indicated that entrepreneurs spend almost 25 hours on paperwork to search for financing and having to approach multiple banks. No definitive research has been done on how long Malaysian SMEs take to source for financing and capital. What is evident is that there is a need to reduce the time. Aimed at addressing this issue, aggregating financial products for SMEs on one single platform will assist SMEs to reduce their search costs and time as well as to improve their access to financing.

What is “imSME”?

The imSME is a comprehensive site for information and financing application where small businesses can browse through an array of financial products and services in a fast, customer-friendly, and hassle-free environment.

The concept of “imSME” was presented to the National SME Development Council chaired by the Prime Minister on the 12^th of July last year. It was well received by the Prime Minister; as well as, the rest of the council members.

The first public announcement on this project was made by Bank Negara Malaysia’s Governor, Tan Sri Muhammad Ibrahim at the “Karnival Kewangan Sabah” that was held from 4^th-6^th August 2017.

The launch of “imSME” will enable SMEs to broaden their information access to an array of products and services offered by CGC and our FI, DFI partners. In the event that there is no suitable match, the said SME will be referred to an imSME Financial Advisory Team which will liaise with agencies that have Accelerator and Capacity Building Labs such as CEDAR, INSKEN, MIA and SMECorp Malaysia.

Rising to the Challenge

The past seven months have not been easy for the project team as they have encountered challenges in making this online platform into a reality.  We invested resources on this project and engaged various agencies, FIs and DFIs. I would say that we have been successful in convincing our partners that imSME is a timely platform that can meet the changing demands of SMEs financing needs, and at the same time, generate more business for the participating financial institutions.

The next challenge was to find a suitable name for this aggregator. We wanted a name which is simple and easy to remember. At the same time, we would want the SME community to closely associate with the aggregator. Following various interactions with several parties including a SME focus group, we decided to name this aggregator “imSME”.  The letter mSME stands for micro, small and medium size enterprises.

imSME is not just about availing existing products and services to SMEs but also to provide complete end-to-end financial services according to their preferences. It is accessible through devices that are connected to WiFi or mobile data via web browser such as Chrome, Internet Explorer, Mozilla Firefox and etc.

Since the soft launch in November 2017, 321 SMEs have submitted their applications of which 64 matched with the available products on imSME, and five (5) were approved, valued over RM500,000.

I believe, this number will further increase after the launching of imSME today, and I am sure imSME will redefine the SME Loan/Financing landscape in Malaysia.

As they say it, Rome was not built in one day. It is the same for imSME. This is just the beginning of imSME which will be developed in 3 phases. Currently, we are launching phase 1 with search, referral and matching capabilities. Further enhancements in the next 2 phases will include psychometric assessment, incorporate more products with additional banks and agencies, to ensure more options within the ecosystem and data analytics. These enhancements are expected to take place within the next 24 months.  We have a very enthusiastic team and I am confident that we can achieve the time frame. Watch this space! 

Conclusion

In closing, I would like to extend my gratitude to Datuk Seri Johari Abdul Ghani for gracing our event today. I wish to also express our appreciation to Yang Berusaha Puan Jessica Chew, Deputy Governor Bank Negara Malaysia for her presence.

It is pertinent for me to re-emphasise that the occasion today is an important step in our journey to enhance SME loan/financing ecosystem in the country. The progress that we have made would not have been possible without the dedication and commitment of our imSME Team and our Partners. Together, let’s make the difference.

Thank you.

The honourable Ms. Marina Abdul Kahar,

Director of Development Finance and Enterprise, Bank Negara Malaysia

The honourable Mr. Vincent Tsai

Chairman of Small and Medium Enterprise Credit Guarantee Fund (Taiwan SMEG)

Delegation from Taiwan SMEG,

Distinguished guests,

Members of the media and,

Ladies and gentlemen.

Good evening.

It is my pleasure to warmly welcome Mr. Tsai, Chairman of Small and Medium Enterprise Credit Guarantee Fund of Taiwan (Taiwan SMEG), and his delegation to our signing ceremony today at Sasana Kijang, a state-of-the art centre of knowledge and learning excellence established by Bank Negara Malaysia (the Central Bank of Malaysia).  I think we have chosen an ideal venue for this occasion as Sasana Kijang embodies the Central Bank’s commitment for the development of regional and international collaboration in central banking and financial services. 

I would also like to thank our guest-of honour Ms. Marina Abdul Kahar, Director of Development Finance and Entreprise, Bank Negara Malaysia for making time to attend and witness our signing ceremony.

I believe, this maiden Memorandum of Understanding (MoU) between CGC Malaysia and Taiwan SMEG will elevate our working relationship further.

MALAYSIA & TAIWAN TRADE TIES

Taiwan is Malaysia’s eighth largest trading partner with bilateral trade soaring to US$14.1 billion in 2016, up 1.4% from the US$13.6 billion recorded a year earlier. Between January and September 2017, bilateral trade between Taiwan and Malaysia has recorded up to US$12.8 billion.

Malaysia has also hosted investments from Taiwan, including some big names such as Inmax, Wistron, AUO, Sunpower, Formosa Prosonic, Hotayi Electronic and China Steel.

Malaysia serves as a gateway to the enormous Asean market with a population of 620 million. Although Malaysia and Taiwan have yet to formalise any free trade agreement, both could create a win-win situation through stepped up business collaborations.

The Taiwan government via its New Southbound Policy (NSP) is looking to create economic collaborations to various countries within the Southeast and South Asia region. I am sure, Malaysia also can benefit from this policy.

THE BUSINESS OF EMPOWERING SMEs BY CGC & TAIWAN SMEG

CGC Malaysia and Taiwan SMEG share the same objective, to provide financial assistance to SMEs particularly, enterprises without or with

inadequate collateral and track record. CGC Malaysia operates as a subsidiary of Bank Negara Malaysia or the Central Bank, while, Taiwan SMEG operates in line with its government’s financial and economic policies, as they play a pertinent role to the economic development of both Malaysia and Taiwan.

Established in July 1972, CGC Malaysia has availed over 444,700 guarantees and financing to SMEs valued over US$16.22 billion (RM63.7 billion), while Taiwan SMEG has assisted more than 390,000 SMEs to obtain over US$0.57 trillion (NT$16.68 trillion) bank loans since its establishment in 1974.

As trade between Malaysia and Taiwan is growing, and the number of SMEs are increasing, we believe a joint collaboration is timely to further drive the SME Development agenda in both Malaysia and Taiwan, and here we are today to realise the signing of the MoU to support the growth of SMEs and promote the development of credit guarantee services.

LANDMARK MoU BETWEEN CGC AND TAIWAN SMEG

For the past 30 years, CGC Malaysia and Taiwan SMEG have established informal ties via our membership in Asian Credit Supplementation Institution Confederation (ACSIC). Through the annual ACSIC conferences, we have shared knowledge and experiences in various fora. At this juncture, I would like to take this opportunity to express our heartfelt gratitude and appreciation to Mr. Tsai and your team for having extended your warmest hospitality to our delegation during the 30^th ACSIC Conference in November 2017, which was held in Taipei. Thank you Mr. Tsai.

Under this MoU, both parties will collaborate in enhancing the credit guarantee framework to support the development of SMEs, at large. Technical assistance will also be shared to improve existing credit guarantee schemes and other operational matters to achieve the objectives of our institutions.

In addition, CGC Malaysia and Taiwan SMEG will share and exchange their best practices via R&D, training and study visits to enhance knowledge and skills pertaining to the credit guarantee business in our respective organisations. Most interestingly, both CGC Malaysia and Taiwan SMEG are expected to explore CGC Malaysia-initiated “cross border guarantee” mechanism.

CONCLUSION

The development of inclusive finance should be a priority so that SMEs and micro business can receive consistent support to grow and sustain their business. The financing for SMEs is a global challenge that needs to be highly prioritized.

In closing, I would like to extend my gratitude to Mr. Tsai and his team and to all our guests present today. I wish to also express our appreciation to Ms. Marina Abdul Kahar, Director of Development Finance and Enterprise for gracing and witnessing our signing ceremony today.

To the CGC and Taiwan SMEG team, thank you for making today’s event a success. I am sure that CGC Malaysia and Taiwan SMEG will continue to sail through the prevailing global challenges with greater confidence, moving forward. Thank you.

Yang Berbahagia Dato’ Sulaiman Mohd Tahir
Group CEO, AmBank

Jade Lee, Managing Director,
Retail Banking, AmBank

Leong Weng Choong
Chief Business Officer, CGC

David Yeoh,
Head of SME Banking, AmBank

Senior Management of AmBank and CGC,

Distinguished guests,

Ladies and gentlemen,

1. Assalamualaikum W.B.T and a very good afternoon.

2. I’m pleased to be here to witness the signing of another strategic partnership agreement between AmBank and CGC to further support the SMEs via a new, unique product namely SME Biz Property Extra.

3. Since January 2015, AmBank Group has executed seven (7) tranches of Portfolio Guarantees totaling RM1.35 billion under its business banking and SME banking Divisions. This includes today’s launch of SME Biz Property Extra with a total fund size of RM100 million.

4. SME Biz Property Extra will be a game changer in the SME financing landscape as it allows SMEs to obtain higher margin of loan through asset financing by using the same collateral. It is a partially secured financing package with 70% of the amount guaranteed by CGC.

5. We recognize the vital role of SMEs to Malaysia’s sustainable economic development. In this regard, we are committed to collaborate with AmBank to ensure that the SMEs are given the opportunity to expand their business without much difficulties in gaining access to financing. I look forward to many more opportunities and successful collaboration between AmBank and CGC to further enhance our SME outreach nationwide through timely yet innovative products and services in the years to come.

Ladies and gentlemen

6. As of today, we have approved RM3.2 Billion under various guarantee and direct financing facilities and has benefitted about 7,200 SMEs. With active participation of leading financial institutions such as AmBank in our innovative portfolio guarantee schemes, we are optimistic of achieving our 2017 business targets and our Aspiration “To Be the Household Name for SMEs by 2020.”

Ladies and gentlemen

7. As a final note, I would like to take this opportunity to commend our very valuable partner, AmBank’s relentless efforts in coming up with timely products and services for the SMEs. I’m very sure our strategic partnership will add more value towards increasing the GDP contribution of SMEs to Malaysia’s economy.

8. I also wish to record my appreciation to all of you here today, for your continued commitment and dedication towards serving the SME fraternity. Let’s keep this going and continue to work towards a more dynamic and sustainable SME Ecosystem in Malaysia.

Thank you.

Sekian,

Wabillahitaufik Walhidayah Wasalammualaikum Warahmatullahi Wabarakatuh.

-ends-

Distinguished participants of the 27th ACSIC Training Programme,

Members of the media,

Ladies and gentlemen

Assalamualaikum and good morning. To all participants of the 27th ACSIC Training Programme, wish you all “Selamat Datang ke Malaysia” or welcome to Malaysia!

I am delighted to note the good response given by all ACSIC members which is crucial for the success of every ACSIC Annual Training Programme. Thank you for coming.

Ladies and gentlemen,

The Small and Medium Enterprise (SME) sector is one of the major economic drivers in most countries. In promoting the growth of SMEs, Credit Supplementation Institutions are globally acknowledged to play an important role in the development of SMEs specifically to address the issue of access to financing.

As the leading financial provider and supporter of the SMEs in Malaysia, CGC Malaysia shall continue to guide and assist the SMEs to be bold in their strategies so as to move to the next level.

Against this backdrop and in line with ACSIC growth strategy, the theme for our 27th ACSIC training programme is “Credit Supplementation Institutions: Going Beyond Guarantee for SMEs”. This theme is indeed timely and perfectly fits into the current industry’s scenario, given the rising competition between various financial and non-financial institutions in providing financial solutions to SMEs.

This also magnifies the objective of ACSIC to promote and develop sound credit supplementation systems for SMEs in our Asia-Pacific region.

Ladies and gentlemen,

In these 2 days, you all, the ATP 2017 participants from 10 member countries representing 14 institutions, will discuss the issues and challenges as well as share your respective country’s experience in handling SMEs growth as well as strategies for our credit supplementation industry to grow beyond guarantee for SMEs.

This platform would be a great avenue for all of you to share knowledge and ideas, develop comprehensive and thoughtful blueprints that would chart our path in the coming challenging years.

On that note, I would like to congratulate the organizing committee of ATP 2017 and to all participants, welcome to Malaysia once again. Have a productive training sessions and enjoy your stay in our beautiful Malaysia!

Terima Kasih

Arigatou gozaimasu (Japanese)

Bayarlalaa (Mongolian)

Dhan’yavāda (Nepali)

Gomabseubnida (Korean)

Bohoma Istuti (Sinhalese)

Kob-kun Ka (Thai)

Salamat Po (Philippines)

Xie-Xie Ni men (Taiwanese)

Thank you!

-Ends-

Good evening

To all delegates attending the 27th ACSIC 2017 training programme, I would like to say “Selamat Datang” to Malaysia, truly Asia. ‘Selamat Datang’ is ‘Welcome’ in the Malay language.

On behalf of CGC Malaysia, we are honoured and delighted to host this programme. I understand that we have 46 delegates from 10 countries across Asia. Whether you have been to Malaysia before or here for the first time, please use the time made available to you to know Malaysia better. We are a melting pot of friendly people from various ethnicities, our multi-cultural food has been rated as one of the best and the warmth of the people will make you come back again. Malaysia is indeed, truly Asia.

We have lined up a very exciting programme for you. There will be presentations, discussions, and ample opportunities for you to mingle and exchange ideas with your counterparts from other credit supplementation organisations. We have also arranged cultural tours, visit to some interesting sights of Kuala Lumpur, our capital city, and visits to the historical city of Melaka. I hope by the time you have gone through the programme, you will be further enriched with a better understanding of other credit supplementation organisations and equally you will know more about Malaysia and come back again to visit us.

The theme for this year’s ATP is ‘Credit Supplementation Institutions: Going Beyond Guarantee for SMEs’. We have deliberately chosen this topic as we believe that credit supplementation organisations should go beyond its traditional role of just providing guarantees so as to continue to remain relevant in the fast changing world. We have to give more value add to our customers. We have to change and think out of the box. Change is an imperative and if ignored, we run the risk of being left behind. These are just my initial thoughts and I am sure the discourse will be lively when this topic is discussed at the plenary sessions.

Let’s hear you out.

I also recognise that the ATP is principally designed as a platform for greater knowledge and experience sharing, enhance the development of the credit supplementation institutions within the Asia-Pacific Region, as well as to adopt best practices that may lead to greater sustainability. I urge you to share and exchange notes with your counterparts during your time here.

I am sure many of you are exhausted after a long journey from your respective countries. I do hope that our refreshing cuisine and a good rest will get you all recharged by the morning.

On that note, delegates, thank you very much and I hope you will enjoy the rest of the evening.

Dato’ Agil Natt
Chairman
Credit Guarantee Corporation Malaysia Berhad

Yang Berbahagia Dato’ Adissadikin Ali,

Managing Director of RHB Islamic Bank Berhad

Yang Berbahagia, Datin Amy Ooi Swee Lian,

Director, Group Business & Transaction Banking of RHB

Yang Berusaha Mr. Leong Weng Choong,

Chief Business Officer of CGC

Distinguished Guests, Members of the Media, and Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good morning.

I am delighted to be here today for the signing ceremony on Wholesale Guarantee Islamic (WG-i) Bumi between RHB Islamic and CGC, another significant milestone for both parties in enriching the business development of Bumiputra SMEs. Thank you to everyone for making this WG-i Bumi collaboration possible today.

Ladies and gentlemen,

Briefly, CGC’s mandate is to assist small and medium enterprises (SMEs) that have viable businesses but lack collateral and track record to obtain financing from the banks, to grow and succeed. Our role is to bridge the gap between the SMEs and the banks by providing guarantees to help them obtain their financing facilities.

Since 2014, we have also ventured into providing direct financing for underserved segments such as start-ups and women entrepreneurs. To further value add to our customers, CGC has also introduced the CGC Developmental Program to assist our customers to gain access to local and international markets.  

To-date, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.7 billion.

Ladies and gentlemen,

CGC has launched the WG-i product in April 2014, the country’s first Islamic SME wholesale guarantee scheme that was developed to ensure that banks continued to have the ability to lend to SMEs with the benefit of a CGC guarantee.

In fact, in 2015, CGC has won the Development Award from the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in recognition of our forward-looking WG-i scheme.

Ladies and gentlemen,

The WG-i Bumiputera scheme to be introduced today, is the first of its kind of Islamic wholesale guarantee between CGC and RHB, marking another milestone in enhancing the SMEs’ bankability through our guarantee mechanism.

Our aim is to capture financial institutions’ participation by providing capital relief in accordance with Basel II and at the same time allow the participating financial institutions (PFIs) to obtain additional security to unsecured or partially secured SME loans.

Via WG, CGC will provide guarantee coverage for existing SME financing facilities in the books of FIs, that are not currently covered by CGC. A pool of selected accounts with similar eligibility criteria will be enrolled to form a portfolio. This mechanism will enable FIs to enjoy reduction of its own provision funds against credit exposure and thus, will enable to free capital to avail more SME loans and enhance outreach.

This scheme is unique as it is applied through online submission with simplified implementation method via a blanket guarantee on loans already underwritten by the bank through thorough understanding on the underwriting standards and performance of such loans.

Of the total RM50 million of WG-i Bumiputera scheme with RHB Islamic, CGC will guarantee 50% or RM25 million for up to five years from the date of approval or up to the loan maturity, whichever comes first.

The scheme has kick-started on July 3^rd and to date, we have about 72 SMEs on board who have benefitted from this partnership.

Ladies and Gentlemen,

For CGC, innovation is part of our DNA and it is a guiding force in our effort as we strive to provide the best products, services and support to our customers and bank partners.

There is an old saying that ‘small opportunities are often the beginning of great enterprises’, and we believe, our collaboration with RHB Islamic will make way for the sustainable growth of more SMEs in the country.

On that note, I would like to thank RHB Islamic once again for the continuous support and trust in our partnership. I am confident that our collaboration today shall be the beacon for many more opportunities to work together for our mutual benefit and also for SMEs in the country.

Thank you.

Wassalam.

Yang Berbahagia Dato’ Agil Natt,

Chairman of Credit Guarantee Corporation Malaysia Berhad,

Yang Berbahagia Datuk Mohd Zamree Mohd Ishak,

President and CEO of Credit Guarantee Corporation Malaysia Berhad

Honoured guests and distinguished participants

Members of the Media

Ladies and Gentlemen

Introduction

1. A very good morning to everyone. On behalf of YB Brigadier General Khairy Jamaluddin Abu Bakar, I am pleased to be here today to launch the CGC SME Apprentice Scheme (CGC SAS) hosted by Credit Guarantee Corporation Malaysia Bhd. It is a unique scheme and I believe, this will be a landmark programme for any other corporation in Malaysia to provide an opportunity for the unemployed technical and vocational education and training (TVET) graduates.

2. At the outset, I applaud CGC for developing such a scheme, an initiative that is in line with the Government’s overall human capital and SME development agenda.

CGC’s SME Apprentice Scheme

Ladies and gentlemen,

3. Initiatives such as CGC’s SME Apprentice Scheme are in sync with the current manpower needs of the country. A big shout-out to the participating SMEs and apprentices here. This is a useful platform to promote connectivity between TVET graduates, SMEs and the real job market.

4. It serves as the starting point for the apprentices to galvanise and continue to contribute in innovation, creativity and inclusion of competitive entrepreneurship. I tend to agree that in order to ensure continuous growth of our economy, all parties must work together as one big team. Valuable talents must be nurtured and not be limited to a specific group.

Ladies and gentlemen,

5. Entrepreneurship is the seed that grows jobs. Starting a business increases competition in the market, creates jobs and promotes sustainable growth in the greater economy – all of which are key to tackling youth unemployment.

6. A report by the Bank Negara Malaysia says that in 2015, the country’s youth unemployment rate increased by 1.2% touching 10.7%, from an estimated 9.5%, while the national unemployment rate increased by only 0.2%, to 3.1%. In fact, Malaysia is said to be a country among its regional economies with an incidence of youth unemployment in the double-digits, despite a low overall unemployment rate.

7. Since the youth represents more than half of total unemployed workers, the government has gathered its concerted efforts to lend a helping hand to the youths through entrepreneurship agenda. Our aspiration is to move young entrepreneurship agenda to greater heights. The government through various agencies and ministries is preparing the mind-set of youngsters to emerge as entrepreneurs.

8. Particularly on TVET, the government under 2017 budget has set aside RM4.6billion to produce local workforce that meets the industries’ requirement, with an additional RM270 million to upgrade educational equipment in TVET institutions as well as RM360 million for Skills Development Fund Corporation.

Ladies and Gentleman,

9. CGC’s effort to materialise its CGC SME Apprentice program targeting the unemployed TVET graduates, is indeed a very noteworthy initiative. I was made to understand that CGC will be spending more than half a million ringgit to nurture the talents by providing a 1-year contract employment with selected SMEs.

10. On top of that, CGC bears 90% of the programme cost, while only about 10% is borne by SMEs or the employers. With an average monthly salary of between RM2,000 and RM2,400, coupled with medical benefits EPF and SOCSO, I believe this is one good opportunity that one should never miss.

11. I believe, the event today marks another milestone for CGC in reaffirming its commitment to foster the growth and development of SMEs as well as to nurture sustainable and competitive talents in this country.

The CGC SME Apprentice Scheme focuses on key elements that are pivotal to the development of TVET graduates as a successful entrepreneur. It is a platform for them to learn from the captains of SME industry, nationwide. 

Youth Entrepreneurial Network (YEN)

Ladies and gentlemen,

12. The Ministry of Youth and Sports has introduced its latest initiative, the Youth Entrepreneurial Network (YEN), a portal to streamline the activities, information and database for young entrepreneurs. Our ultimate aim is to foster entrepreneurial culture and mind-set among the youngsters in this country.

13. We believe YEN will help the young businesses to grow by providing them updates on available grants, training sessions as well as other related information that are required for a business to grow.

14. Whilst the Government is actively encouraging businesses to adopt the latest technology, especially the industrial revolution 4.0, we believe acess to relevant information is equally essential.

Closing

Ladies and gentlemen,

15. There is nothing more liberating than being your own boss and doing a job you love. It is hard work and a real roller coaster ride, but if you have the will power and determination to see things through, coupled with guidance from corporations such as CGC, it may just turn out to be the best decision you would have ever made.

16. With that, I would like to thank you once again for inviting me to launch the CGC SME Apprentice Scheme today. I wish CGC SME Apprentice Scheme every success and hope this noteworthy effort will be emulated by other organisations. I now officially launch the CGC SME Apprentice Scheme 2017.

Best of luck and thank you.

Yang Berhormat Datuk M. Saravanan

Deputy Minister of Youth and Sports

Yang Berbahagia, Datuk Mohd Zamree Mohd Ishak,

President and CEO of Credit Guarantee Corporation Malaysia Berhad

Honoured guests and distinguished participants,

Members of the Media

Ladies and Gentlemen,

Assalamualaikum Warahmatullahi Wabarakatuh,

And a very good morning,

On behalf of CGC, I would like to express our utmost appreciation to YB Datuk M. Saravanan, Deputy Minister of Youth and Sports for being with us this morning, despite his busy schedule.

We are aware that YB is tied up with a lot of commitments, particularly the 29^th Southeast Asian Games, and the 9^th ASEAN Para Games. Your presence is indeed very meaningful to us and we are truly humbled and honoured to have you here, to launch the CGC SME Apprentice Scheme.

As this is your maiden event with CGC, please allow me to say a few words of introduction on CGC. We were formed in 1972, principally tasked to assist SMEs which lack collateral and track record to obtain financing from financial institutions. Since our inception 45 years ago, we have availed more than 444,700 guarantees and financing to SMEs valued over RM63.6 billion. Our guarantee facility ranges from as low as RM50,000 to as high as RM5 million, depending on the activities and projects undertaken by the SMEs. In recent years, we have widened our product offerings to include guarantees for the micro finance space and this is very much consistent with the government’s aim to make financing available to as

many people as possible. We also offer loans to SMEs on a much smaller scale. I would like to specifically mention our 2 loan products ie Biz Mula and Biz Wanita. Biz Mula is tailor made for people who have just commenced businesses and Biz Wanita caters for small women entrepreneurs.  Presently, our portfolio of guarantees and financing cover activities such as building construction, restaurants, services, petty traders, green technology, just to name a few. 

Ladies and Gentlemen,

Now back to this morning’s event.

Today we are gathered to celebrate another milestone initiative by CGC and that is to launch an apprentice programme that focuses on unemployed technical and vocational education and training (TVET) graduates.  

We believe that this is the first program in the country that provides a platform for TVET graduates to be gainfully employed and at the same time, acquire useful practical working experience through on-the-job training whilst honing their entrepreneurial skills by working with SMEs.

There are other apprenticeship programmes available, but they mostly cater for University and college graduates. It is worth noting that this Apprenticeship Scheme is different from the rest as CGC will pay 90% of the programme cost, which include the monthly salaries, employment benefits and statutory contributions whilst the remaining 10% will be borne by the participating SMEs. In total, CGC will be spending more than half a million ringgit to undertake this scheme and this is part of our corporate and social responsibility activity.

It is our fervent hope that by providing this training opportunity for TVET graduates, more aspiring students will undertake studies at TVET colleges and, more importantly, become entrepreneurs by starting their own SMEs in the future.

Let me share with you our experience in bringing this idea to fruition. It was indeed a very challenging task to match the apprentices’ talents in their respective fields of interest and the requirements of our SMEs. This is because of the varying level of commitment, interest and willingness to participate in this program.

In brief, we received applications from 69 SMEs, of which 30 were shortlisted based on the selection criteria and their keenness to participate. From the 30 SMEs, who were selected based on their repayment track record with CGC, 10 have committed to take on the challenge.

As for the TVET graduates or “Apprentices”, we had earlier received close to 800 applications nationwide. After a thorough screening process, coupled with the close cooperation from the selected SMEs, finally 10 Apprentices have been hired as we see today. All 10 have been offered a one-year training contract after undergoing an earlier induction programme organized by CGC.

When we interviewed the initial list of candidates, some were too choosy and demanding while some showed poor attitude. For instance, three apprentices who have accepted the offer to work with SMEs, did not turn up on the actual day of work. The most disappointing fact is that none of them was reachable either by phone, SMS or email and they did not even bother to inform us that they will not turn up at their work place. This lackadaisical attitude of the youngsters does not bode well. They don’t realise that in the current job market, there are more job seekers than there are jobs and obviously, prospective employers only favour those who show interest in wanting to get a job.   

We also faced difficulties in dealing with SMEs, particularly to convince them to take on the challenge. We had to convince the SMEs that apprentices are not cheap labour but are long-term investments in individuals. Recruiting an experienced employee may give immediate returns, but training apprentices from the beginning allows a company to shape their work habits, train them in specific practices, or to work within niche industries.  There were also cases where the SMEs rejected the candidates just because their curricular vitae were not attractive, some SME’s demanded for more experienced candidates and some even demanded for up to 10 apprentices to work at one company.

Nevertheless, though the journey was long and arduous, we persevered and today we are celebrating the outcome. The SMEs and Apprentices that we see here today are the ones fully deserving, geared and committed in making the program a sterling success.

To all the young people out there, I advise all of you to adopt a positive and engaging attitude towards your respective career. There are a lot of opportunities being provided by the government, private entities and corporations but you have to have the right attitude, be more committed and willing to learn. Remember, poor attitude and being too choosy about your work choices can hinder your success.  This reminds me of a saying “It’s your attitude and not your aptitude that determines your altitude”. Think about this!

Since May 22, 2017, the 10 apprentices have already joined the respective participating SMEs that are based in Perak, Pahang, Kelantan, Johor, Selangor, Sabah and Sarawak: and ranging from industries such as laundry services, green technology, construction, Agro-based manufacturer, IT solutions, civil/electrical contractor and the oil & gas industry.

To these trainees, I have a word of advice. We have come this far to provide you with this opportunity. Please take advantage of it and we sincerely hope that you will learn as much as you could during the one-year apprenticeship and equip yourselves with relevant skills and experience that would enable you to be entrepreneurs eventually. As I have said earlier, the desired outcome of this CGC SME Apprentice Scheme is that these apprentices will become the entrepreneurs of the future. If this pioneer batch proves to be successful, we can continue this programme in the following years.

On that note, once again I would like to thank YB Datuk M. Saravanan, Deputy Minister of Youth and Sports for his support towards our initiatives which is aimed at nurturing skilled talents and entrepreneurs for our youths, and at the same time, supporting the national SME development agenda.

 To the members of the media and guests, thank you for being with us this morning.

To the 10 apprentices of CGC SME Apprentice Scheme, I have a special message for all of you. I’m proud to declare that you are all hired, not fired!

Thank you for your kind attention.

Mr. Litercelon Kaon Anak Juin

Headmaster of SK ST. John

Teachers and Students of SK ST. John

Fellow colleagues,

Members of the Media,

Distinguished guests, Ladies and Gentlemen,

A very good morning

I am delighted to be here this morning, as a part of a very meaningful event to celebrate Gawai Harvest Festival with the students and teachers of SK ST. John, Bau, Sarawak. The event today is one of our many corporate responsibility (CR) initiatives and I am happy to note that this is the third time for CGC to host a CR initiative in Sarawak.

In CGC, we believe that corporate responsibility is meaning less without giving it back to the society, and that is why we are here today. Besides giving back to the people who have supported us since CGC’s establishment in 1972, this CR programme provides CGC an opportunity to engage meaningfully with the deserving segment of the community.

Among our giving back efforts are in the form of “Back-to-School” programme for the Orang Asli children, Majlis Berbuka Puasa with underprivileged children and festive shopping spree in conjunction with Chinese New Year and Deepavali celebrations, just to name a few.

Beloved children, teachers and distinguished guest,

We came to know that the pre-school within SK ST. John has limited funds to provide a conducive and convenient learning environment for the kids. A good study environment requires basic necessities such as chairs and tables, book racks and learning materials. Therefore, on behalf of CGC, I would like to announce our contribution of RM10,000 cash to SK ST. John, to provide the basic necessities that are lacking at the moment. We hope our contribution today will motivate the students and teachers here to continue the day-to-day activities in a more education-friendly and conducive environment.

Besides the cash contribution, CGC is also conducting a colouring contest and interactive games for the pre-school students here, where they stand to win exciting prizes. The cash contribution and the activities here are indeed very meaningful for us at CGC, and I hope the students, their parents and the teachers will enjoy and appreciate our kind gesture.

Beloved children, teachers and distinguished guest,

Before I end my short speech, please allow me to share with you a little bit about CGC as I believe some of you are hearing the name ‘CGC’ for the very first time. Briefly, this is what we do.  CGC was established by Bank Negara Malaysia to assist small and medium enterprises (SMEs) that have viable businesses but lack collateral and track record to obtain financing from the banks to grow and succeed. CGC is mandated to bridge this gap between the SMEs and the banks by providing guarantees to help them obtain their financing facilities. Since 2014, CGC has also ventured into providing direct financing for underserved segments such as start-ups and women entrepreneurs. To further value add to our customers, CGC has also introduced the CGC Developmental Program to assist our customers to local and international market access.

Being the largest state in the country, Sarawak continues to be a key growth state for CGC. In 2016, CGC availed a total of RM46.23 million to SMEs in Sarawak under its main schemes, government-backed schemes and direct financing facilities. We target to provide RM74.15 million of guarantees and financing to SMEs through our branches in Kuching (RM42.45 million) and Miri (RM31.7 million), this year.

Beloved children, teachers and distinguished guest,

On that note, I would like to take this opportunity to thank Mr. Litercelon Kaon Anak Juin, the Headmaster of SK St. John and his fellow staff for their cooperation in making CGC’s CR programme today at your school possible. We hope that our small contribution would smoothen your day-to-day operations and further motivate the young children here. May this festival bring an even more bountiful season to come in the future. A special thanks to the members of the media for your presence here, today. Thank you for your continuous support to CGC and all our activities.

I believe it is not too late to wish Selamat nyambut ari Gawai” (in iban). May this festival shower us with pink of health, abundant joy and wealth.  On that note, thank you.

Yang Berhormat Datuk Seri Johari Abdul Ghani

Minister of Finance II

CGC’s Board of Directors

Yang Berbahagia Datuk Mohd Zamree Mohd Ishak

President / CEO, CGC

Our valued partners from the Financial Institutions,

Our valued Customers,

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum W.B.T and a very good afternoon.

On behalf of the Board of Directors, Management and Staff of CGC, I would like to welcome you to this 22nd SME Awards Ceremony. Today’s ceremony brings a more noteworthy moment as compared to the previous years, as we have another very important agenda, which is the launching of our new logo.

I would like to convey my utmost gratitude to YB Datuk Seri Johari Abdul Ghani and the Ministry of Finance, for their unwavering support shown towards CGC’s initiatives aimed at promoting the growth and development of Malaysian SMEs.

Thank you YB Datuk Seri for sparing some time from your very busy schedule, in order to grace our momentous event today. I would also like to extend my sincere appreciation to all our distinguished guests for your presence.

Ladies and Gentlemen,

This annual award, is aimed at celebrating our partnerships with financial institutions in facilitating the access to financing by SME’s. This afternoon, CGC will also be according the ‘Exemplary Customer Awards’ in recognition of our customers who have been regularly meeting their loan and guarantee fee commitments. We will be giving them rebates on the guarantee fees paid to CGC during the year. These rebates range from RM3,000 to RM18,000 which represent an average reduction of up to 40 basis points off their guarantee fees. I am pleased to inform that since the launch of this rebate mechanism back in 2014, we have handed out a total of RM1.2 million as rebates to 1,953 customers as of April this year.

For our SME customers which had established credible track record and are now able to secure financing from financial institutions without CGC’s guarantee, these customers are classified as ‘Graduated Customers’. They will also be celebrated under the ‘Excellent Customer Awards’. My heartiest congratulations to all the award recipients this afternoon!

Our acknowledgement and appreciation to our customers is evidenced by way of promoting their products in major events such as this. In this connection, all gift packs from us will contain products which are produced by SME’s supported by CGC. The gift packs contain products manufactured by 5 of our SME customers namely, Kicap Tamin, AZAD Food Industries, TLN Food Industry, Rich Timur Enterprise; as well as, Tehki Food. One of the products in your gift pack is produced by one of our Biz-Mula customers – Asia Green Produce Enterprise who came to us in 2015. In addition to providing financing and guarantees, we also assisted them in getting their products placed on the shelf of a major hypermarket in Malaysia. All these customers are present here today. Let us give them a hearty round of applause.

Ladies and Gentlemen,

Earlier today, we concluded our 44th Annual General Meeting and it gives me a great pleasure in sharing the news with you that CGC was able to deliver its mandate on meeting its target and intensifying SME development for the year 2016, notwithstanding a challenging operating environment. Our business model continued to serve us well in delivering yet another healthy financial performance. Against this backdrop, CGC continued to register a strong growth trajectory.

In 2016, we have availed over 7,500 guarantees and financing with a value of RM4.2 billion. We have also made good strides in driving forth our transformation journey and progress towards achieving our Headline Targets, Key Performance Indicators (KPIs) and Efficiency Charter.

CGC undertook several initiatives to equip SMEs with the information and knowledge required to gain local and international market access as part of our Developmental Programme. We have also created windows of opportunity for five (5) of our promising customers, in which three (3) of them participated at the China-ASEAN Expo which was held in Nanning and two (2) of them participated at the Canton Fair Expo in Guangzhou, China in September 2016 and May 2017, respectively. The Expo served as an important learning experience and platform for the SMEs to gain international exposure in showcasing and marketing their products.

Ladies and Gentlemen,

As mentioned earlier on in my speech, we will also be launching our new logo as part of our initiatives, in enhancing CGC’s brand presence. Our new logo embodies our progressive corporate spirit coupled with the striking simplicity of the logo. We aim to elevate the level of awareness of CGC among SMEs with the launch of our brand new logo.

The year 2017 also marked another major milestone for CGC as we won the bid for the Naming Rights of Glenmarie LRT Station which was renamed CGC Glenmarie Station on 1^st May 2017. This would serve as a major boost in our brand building exercise, which will have a profound and far-reaching impact on our CGC brand. This is in line with our Aspiration to be the Household Name for SMEs by 2020.

On that note, I would like to express my sincere appreciation to YB Datuk Seri Johari for officiating our New Logo Launch and SME Awards Ceremony. I would also like to convey my gratitude and appreciation to all our valued customers and stakeholders; especially Bank Negara Malaysia, financial institutions, ministries and government agencies, chambers of commerce, business and trade associations, organisations and all those who have supported us, for their continued confidence and trust in our efforts to fulfil our mandate.

I thank you for your kind attention.

Dato’ Agil Natt

Chairman

Credit Guarantee Corporation Malaysia Berhad (CGC)

INTRODUCTION

1. It gives me great pleasure to be invited once again to officiate Credit Guarantee Corporation (CGC) event this afternoon. I was made to understand that besides the awards presentation to the financial institutions and clients, CGC has taken a leap in enhancing its corporate image and brand presence among the SMEs with the launch of its new logo today.
2. With regard to CGC’s efforts and initiatives undertaken to further support SME development in the country, I would like to applaud CGC for their effort in organizing this event in appreciation of their collaborative partners – the financial institutions; and recognizing their exemplary clients who have made significant contributions to the Malaysia economic growth.
3. Today’s recognition and appreciation of financial institutions by CGC is in regards to their immense contribution to SME financing. I do hope that this recognition would spur financial institutions to become more innovative and forward-looking to continuously explore the best solution to address the challenges faced by SMEs in gaining greater access to financing. I also strongly believe that the recognition, which shall be accorded to CGC’s customers, should serve as a motivation for all SMEs in the country to strive harder to be successful in their businesses.

SME AS DRIVER OF GROWTH AND INNOVATION

Ladies and Gentlemen,

4. As a highly trading nation with total trade amounting to RM1.5 trillion or 130 percent of GDP, Malaysia is no stranger to entrepreneurial activities. Against the backdrop of challenging external environment and moderate global growth, entrepreneurship could be the impetus to engender continued economic prosperity in Malaysia for many years to come.
5. It goes without saying that entrepreneurship in Malaysia has grown at a pace that has never been seen before. At the core of this expansion lies the significance of Small and Medium Enterprises (SMEs). 97% of business establishments in Malaysia are SMEs. These businesses are responsible for nearly 36% of the country’s GDP, 65% of the country’s employment and nearly 18% of Malaysia’s export. SMEs employ about 6.6 million people of which, the majority is in the service sector. Our SMEs are indeed the backbone of our economy, being a source of foundation to propel growth and support economic development of our nation.
6. Under the scope of Malaysia’s 2012-2020 SME Masterplan, we aim to push SMEs’ contribution to GDP to 41%, and the share of the country’s exports from SMEs to 23% by the year 2020. Malaysia’s transition to a high-income economy will highly depend on SME. In view of this, the SME Masterplan is one of the game changers to accelerate growth, focuses on innovation and technology adaptation.

FACILITATING A MORE ROBUST SME ECOSYSTEM

Ladies and Gentlemen,

7. Given the significance of SMEs in charting our future growth, the Government is ever committed to provide a robust support system for entrepreneurial activities to thrive in Malaysia. In creating a more holistic financial ecosystem, the close collaboration between

CGC and financial institutions has been instrumental in enhancing access to financing for SMEs via its guarantee mechanism. I am also pleased to note the extensive opportunities and channels created by their collaboration over the years in championing the SMEs’ cause specifically on SMEs’ access to financing.

8. The financial sector contributes to the growth and development of the economy through efficient mobilization and deployment of financial resources. Further, some financial institutions, notably the development financial institutions (DFIs), are not only expected to provide financing for nation building but also undertake a higher degree of developmental role to nurture and develop the targeted sectors. Greater financial inclusion supported by robust financial sector development has led to rapid growth of SME financing. For the last 10 years, loans to SMEs have expanded at an average of 9.6% per annum and thus, supporting entrepreneurship in Malaysia.
9. In sustaining such trend, domestic financial institutions have continuously portrayed their commitment towards SME development through initiatives such as the establishment of dedicated SME units to provide customized financial services and capacity-building initiatives for SMEs. Since its inception, CGC has availed over RM63.6 billion worth of guarantees, financing to over 320,000 SMEs, especially those with remarkable potential to propel economic growth to a greater height, as well as SMEs that face difficulties in gaining access to financing for their businesses due to lack of collateral and track record. Serving as a perfect fit in bridging the credit gap, allow me to commend CGC for its consistency with its mandate over the past decades.
10. Complementing these financing-related policies, are strategic initiatives to enhance inclusivity in SMEs’ growth. Among others, these include stimulating development of B40 entrepreneurs through Mobileprenuer Programme by GIATMARA and Agropreneur programme. While the government continues to pursue its endeavors in creating a well-laid platform to initiate and encourage businesses for the SMEs, the private sector should also play their part.
11. The private sector should step forward to assist the government to boost SME development. This could include some accommodation of risk-taking to finance SMEs and entrepreneurs as angel investors or venture capitalists. The private sector is also encouraged to place their resources into human capital improvement, obliging them to prepare and reskill their human capital resources to meet industry requirements. They should not be depending on low-skilled foreign workers but instead, to have a pool of skilled personnel who can be absorbed in the market and get better at closing the productivity gap to be globally competitive. Taken together, greater synergy between the Government, private sector and financial institutions are key to build a lasting ecosystem that encourages innovation and entrepreneurship in Malaysia.

PREPARING SMEs FOR THE FUTURE

Ladies and Gentlemen,

12. The significance of SMEs to the Malaysian economy goes beyond of just being the engine of growth. SMEs are also drivers of innovation in the business landscape of Malaysia. They are heavily involved in shaping our future – such as creating new brands, keeping up with current trends and needs of new generation of customers. There are growing interest among SMEs to tap on the benefits of digitization by using the social media, Internet marketing and e-commerce as the platform to reduce cost and to market quality product and services in untapped market all over the world.
13. Indeed, the digital revolution and widespread penetration of technology-driven applications in nearly every segment of the economy is already upon us. This is an age in which economic activities are enabled by information and communications technologies. For example, equipped with technologies and greater penetration to the client base, Uber and Grabcar is slowly replacing traditional cabs, and AirBnB is fiercely challenging the status quo of hotels and accommodation businesses.
14. Meanwhile, FinTech is disrupting how people get access to financing beyond traditional channels such as banks and capital market intermediaries. For SMEs which are crucial for economic growth and jobs creation, FinTech provides access to a more diverse funding options. Further, innovative FinTech products can be better tailored to the needs of SMEs through reduction of information asymmetry in the marketplace and better capability to match investors, lenders and borrowers.
15. Cognizant of the potential that digital economy brings forth, the Government is taking vigorous steps in bringing more SMEs to embrace digitization. This includes initiatives such as eUsahawan and eRezeki programmes under MDEC (RM100 million). Hundreds of millions have been allocated for MDEC for the implementation of e-commerce initiatives such as e-commerce ecosystem and Digital Maker Movement.
16. The Government remains committed to mainstream alternative finance into Malaysia’s financial ecosystem. These include providing a platform for equity crowdfunding (ECF), peer-to-peer (P2P) financing, online trade finance, merchant and e-commerce finance, and various more. Initiatives such as Fintech regulatory sandbox framework and Investment Account Platform (IAP) by Bank Negara are also paving the way for greater innovation in the banking system.
17. To realize full potential of the Fourth Industrial Revolution, we must quickly adapt and innovate. Rather than looking at digital phenomenon such as Fintech, as a disruptive force, the financial industry ought to rise to the challenge by embracing innovation and start evaluating commercially viable ways to collaborate with technology providers, particularly on enhancing financial services to SMEs. SMEs will also need to be creative and seek alternative ways of financing such as crowd funding, peer-to-peer lending or even merge or combine forces to raise funds from the capital market. The initiatives put in place will go a long way towards empowering SMEs to greater heights.

CONCLUDING REMARKS

Ladies and Gentlemen,

18. In conjunction with today’s award ceremony, I am proud to note that CGC will be unveiling its new Corporate Logo as part of its major initiative in enhancing its brand image and presence to show a progressive corporate spirit, particularly amongst the SMEs. Allow me to congratulate CGC, for having made the transformation of CGC, which is in line with their mandate in Powering Malaysia SMEs.
19. My heartfelt congratulations to this year’s award winners. To the financial institutions, with this recognition, I hope you will continue to play a bigger role in SME financing through your collaboration with CGC. To CGC’s customers, I wish you a greater success in your businesses and hope the accolades extended to you would serve as an inspiration to many more SMEs out there.
20. On this note, I applaud CGC and the financial institutions in reaching out and offering assistance to SMEs, and for your continued support towards the nation’s economic agenda. Once again, my deepest gratitude to CGC for inviting me to officiate the SME Awards and Logo Launch Ceremony this afternoon. Let me conclude by wishing CGC every success in hosting this prestigious ceremony.

Thank you.

Speech by

Datuk Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad(CGC)

at the Portfolio Guarantee Signing Ceremony

between

CGC and AmBank SME Banking

Banquet Hall Level 7, Bangunan AmBank Group

22 March 2017

­­­­­­­­­­­­­­

Yang Berbahagia Dato’ Sulaiman Mohd Tahir

Group CEO, AmBank

My dear friends in AMBANK & CGC

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum W.B.T. and a very good afternoon.

1. First and foremost, I would like to thank AMBANK for the warm hospitality and cooperation that have always been accorded to us. It is indeed a great pleasure in working with Your Bank, Malaysia’s Bank, AmBank once again, in providing financing assistance to SMEs via CGC’s Portfolio Guarantee Scheme aimed at Powering Malaysian SMEs.

2. Today’s event marks CGC’s 4th PG strategic partnership with AmBank to further support Malaysian SMEs.

3. CGC has unwaveringly upheld and kept a sharp focus on our tagline: Powering Malaysian SMEs – through the provision of our distinctive yet varied innovative financing products.

4. It is indeed my pleasure to inform you that this mutual goal of ours would be advancing a step further today with this signing ceremony that would serve to seal the second tranche of CGC’s Portfolio Guarantee (PG) scheme with AmBank SME Banking. A total of RM200 million worth of financing is allocated under this second tranche.

Ladies and gentlemen,

5. From the time of its inception, the PG scheme; as compared to other products of CGC, is one of the most innovative in terms of its cost effectiveness and efficiency as it requires only two (2) working days to get approved with an approval rate almost 100%. This augurs well for both our FI partners and also for the SMEs as business requires a reasonable level of certainty in order to operate and thrive.

6. At this juncture, I would like to extend my congratulations to all who were involved in the running and management of the first tranche, as it was a huge success; whereby, the allocated RM150 million funds were utilized within five (5) months.

7. To date, CGC has availed over RM 9.1 billion worth of guarantees benefitting about 19,000 SMEs via our PG & WG schemes. In 2016, RM3.1 billion (or 74%) out of our total approvals of RM4.2 billion were channeled via PG & WG reaching out to 5,500 SMEs. Our total outreach for 2016 is 7,600 SMEs.

8. This year, CGC aims to enhance its outreach to 9,500 SMEs which is a 25% increase from 2016. And we are targeting to approve RM4.7 billion of which RM3.3 billion (or 70%) will be from PG and WG.

9. Where the Malaysian SMEs financing landscape is concerned, CGC has been steadfast in the growth and expansion of SMEs as guided by our vision; that is, to be an effective financial institution that is dedicated towards promoting the growth and development of competitive and dynamic SMEs. Despite the challenges faced, we have remained committed and played a vital role in bridging the gap between the Financial Institutions and SMEs through the provision of our innovative products and services.

Ladies and Gentlemen,

10. I am optimistic that our collaboration with AmBank today; in teaming up towards achieving a mutual goal to develop Malaysian SMEs, would prove to be the key in opening many more opportunities. As it is a never ending journey of discovery, we at CGC will continue with our efforts in coming up with better products and services that would augur well with our aspiration to be the household name for SMEs by 2020.

11. On behalf of CGC, I would like to once again thank Dato’ Sulaiman and his entire AmBank team for the continuous support and confidence in CGC.

12. I would also like to thank everyone for taking time off your busy schedule to be with us today. My special thanks to the members of the media for their continuous strong support.

Have a pleasant day ahead.

Sekian, Wabillahi Taufiq Walhidayah Wassalamualaikum Warahmatullahi Wabarakatuh

Yang Berhormat, Dato’ Wira Othman Aziz

Deputy Finance Minister I,

Puan Marina Kahar

Director, Development Finance & Enterprise

Bank Negara Malaysia

YBhg. Tan Sri Abu Bakar Hj. Abdullah

Chairman of BSN

Encik Kameel Abdul Halim

Deputy Chief Executive

Bank Simpanan Nasional

YBhg. Datuk Mohd Zamree Mohd Ishak

President / Chief Executive Officer

Credit Guarantee Corporation Malaysia Berhad (CGC)

Members of CGC and BSN’s Board

Distinguished Guests,

Members of the Media,

Assalamualaikum W.B.T and a very good morning to all of you.

Foremost, I would like to express my heartfelt gratitude to Yang Berhormat Dato’ Wira Othman Aziz for gracing this auspicious ceremony. We are truly honoured to have your presence Yang Berhormat Dato’.

We are indeed looking forward to today’s partnership which I believe will have a notable contribution for SME development in Malaysia, particularly the micro SME sector. Both our teams from BSN and CGC have been continuously working hard on this partnership and I would like to take this opportunity to congratulate them for making this signing ceremony possible today.

Ladies and Gentlemen,

I am pleased to note that this shall be our first collaboration with BSN. This is also the first time in the country that we are guaranteeing a portfolio of micro financing and this is made possible through our innovative financing product – the Portfolio Guarantee (PG). I would also like to state that CGC’s PG Scheme has proven to be an attractive product that is both cost effective and efficient. With this collaboration, we are able to reach out to the micro SME segment which will benefit both Bumiputra and non-Bumiputra enterprises, thus achieving our developmental objective.

Today’s agreement will see two (2) tranches of PG rolled out, comprising of Islamic and Conventional PG amounting to RM25 million each, making a total of RM50 million for the micro sector. In accommodating the micro SME segment, we are offering financing ranging from as low as RM5,000 to as high as RM50,000. Through this collaboration with BSN, we are targeting to avail financing to about 2,500 micro SMEs.

Since PG’s inception in 2009, we have availed a total of RM8.7 billion worth of financing with 16 participating financial institutions and we are now bringing on board BSN as our collaboration partner. For the current year, we aim to increase our SME outreach by 12% and 26% in terms of value and numbers respectively. This would be done by availing 9,500 worth of guarantees and financing amounting to RM4.7 billion whereby 70% i.e. RM3.3 billion will be via the PG / WG schemes.

Ladies and Gentlemen,

CGC has supported the growth and expansion of the nation’s SMEs which is guided by our vision to be an effective financial institution dedicated towards promoting the growth and development of competitive and dynamic SMEs. We have remained committed and played a vital role to bridge the gap between the FIs and SMEs. We understand the changing needs of SMEs better and, with this wealth of knowledge, we have tailored many of our initiatives to assist some of the pressing issues of SMEs especially access to financing, cost of borrowing and time to market. In addition to creating direct access to financing, I would also like to add that we have provided competitive and reasonable financing cost for our customers. With this PG, it is hoped other FIs will venture to such partnerships with CGC to provide micro financing which can be further strengthened with CGC guarantees.

With continuous support from the Ministry of Finance (MOF) and Bank Negara Malaysia, we at CGC will ensure the mandated role which been entrusted to us is fulfilled at its very best. On that note, I would like to take this opportunity to convey our gratitude to our Finance Minister II, YB Datuk Johari Abdul Ghani, Deputy Finance Minister I, YB Dato’ Wira Othman Aziz and MOF officials as well as Bank Negara Malaysia for their unstinting support to CGC in promoting the growth and development of SMEs in Malaysia. I would also like to express my most profound thanks and appreciation to Yang Berbahagia Tan Sri Abu Bakar and his colleagues at BSN for their unwavering trust and confidence in CGC. I am optimistic that with our first collaboration today, it shall open many more gateways and opportunities for us to work together to propel SME growth agenda in Malaysia especially to the somewhat underserved micro segment.

Thank you very much for your kind attention and have a good day ahead.

Wassalam W.B.T

YBhg. Dato’Agil Natt

Chairman

Credit Guarantee Corporation Malaysia Berhad

“Da jia zhong wu hao” dan salam sejahtera:

En. Henry Ooi,

Presiden, Kechara Soup Kitchen

Wakil- wakil Media

Rakan-rakan sekerja saya dari Credit Guarantee Corporation Malaysia Berhad (CGC).

Tuan-tuan, Puan-Puan dan juga Adik-adik yang dihormati sekalian,

Pertama sekali, izinkan saya untuk mengucapkan ribuan terima kasih kepada Presiden dan pihak pengurusan Kechara Soup Kitchen di atas kerjasama mereka dalam memberi peluang kepada CGC untuk menjalankan program amal ini.

Saya berbesar hati kerana dapat bersama kalian semua pada hari ini untuk menyambut ketibaan perayaan Tahun Baru Cina yang bakal menjelang pada hari Sabtu ini. Tahun Baru Cina ini menandakan tahun ayam jantan merah berapi (Red Fire Rooster) – yang membawa simbol kekuatan, tuah yang baik serta mempunyai prinsip pegangan hidup.

Siapa di sini yang dilahirkan pada tahun ayam jantan (Rooster)? (Tunggu untuk maklumbalas daripada para hadirin selama 30 saat).

Jika ada, tahniah kerana kalian lahir pada zodiak yang sama dengan Emperor Li Longji (Emperor terkenal dalam sejarah China), Faye Wong (Penyanyi China yang terkenal) dan Fang Bing Bing (Pelakon China yang terkenal),

Tuan-tuan, Puan-puan dan Adik-adik sekalian,

Sebagai rakyat Malaysia yang berbilang kaum dan bangsa, kita mempunyai banyak peluang untuk turut serta dalam meraikan perayaan kaum-kaum yang lain. Justeru itu, dalam menjalankan hasrat kami untuk membantu keluarga yang memerlukan, program amal sebegini dirancang dan dijalankan dengan harapan yang ianya dapat meringankan sedikit sebanyak beban perbelanjaan yang perlu ditanggung semasa menyambut perayaan.

Pada hari ini, kami akan bersama kalian dalam menyerikan suasana kegembiraan program ini melalui hidangan makanan tengahari yang lazat beserta tarian singa. Kami harap usaha kami dapat mengeratkan lagi hubungan silaturahim di antara kita sebagai rakyat Malaysia yang majmuk dan prihatin terhadap satu sama lain..

Tuan-tuan, Puan-puan dan Adik-adik sekalian,

Sebelum saya mengakhiri ucapan ini, sekali lagi saya ingin mengucapkan terima kasih kepada ‘Kechara Soup Kitchen’ dan rakan-rakan sekerja saya di CGC yang turun padang untuk menjayakan program ini.

Saya juga ingin mengucapkan terima kasih kepada para wakil media yang hadir untuk membuat liputan program ini.

Akhir sekali, saya juga ingin mengucapkan kepada pihak Hotel Armada di atas kerjasama yang diberikan sepanjang perjalanan program ini.

Dengan ini, saya mengakhiri ucapan saya dengan mengucapkan “Xin nian kuai le”.

YBhg. Dato’ Agil Natt

Chairman of Credit Guarantee Corporation Malaysia Berhad (CGC)

Mr. Teoh Kok Lin

CGC’s Board of Director

YBhg. Datuk Ter Leong Yap

President of The Chinese Chamber of Commerce & Industry of Kuala Lumpur & Selangor (KLSCCCI)

Dato’ Azlin Ahmad Shaharbi

President of PERNIAGAWATI

Datuk Haji Mohd Fauzi Zakaria

President of PERDASAMA Kuala Lumpur

Datuk Hassan Saad

Chairman of MYMARKET

Mr. Tan Thiam Hock

Founder of Silky Girl

Mr. Clarence Leong Chee Yee

Chief Executive Officer of Easy Parcel

Distinguished Participants & Guests

Members of the media

Ladies and Gentlemen,

Good morning and welcome to CGC. It is our pleasure to have your presence at today’s programme – Retailing in a Digital Era. Foremost, I would like to extend my heartfelt gratitude to The Chinese Chamber of Commerce & Industry of Kuala Lumpur & Selangor or (KLSCCCI) for co-organising with us series of talks on current topics which are relevant to today’s aspiring as well as established businesswomen and men. Thank you to YBhg. Datuk Ter and his team at KLSCCCI.

Ladies and Gentlemen,

Looking at such a big participation, I am convinced that we have chosen the right topic for today’s talk. I also believe it is due to the distinguished speakers namely Mr. Tan Thiam Hock and Mr. Clarence Leong Chee Yee who are not only subject matter experts but also successful in their own right as founder of SILKYGIRL and CEO of EASY PARCEL respectively. SILKYGIRL is an award winning homegrown brand and Easy Parcel is the Malaysian Top 20 Cradle Coach and Grow Startup company. With such credentials, Mr. Tan and Mr. Leong make a perfect choice to speak on today’s topic ‘Retailing in a Digital Era’. Please give them a big round of applause.

As I understand it, retailing involves selling products and services to consumers for their personal or family use at a convenience.  Retailers add value to products by making it easier for manufacturers to sell and consumers to buy.  By bringing multitudes of manufacturers and consumers together at a single point, retailers make it possible for products to be sold, and, consequently, business to be done.  As the final link between consumers and manufacturers, retailers are a vital part of the business world. However, with the increase in competition and advent of new channels like web and mobile technology, consumers can choose from multiple options when it comes to making final purchase decisions. Therefore, like in any business, providing a superior customer experience across channels has become critical for acquiring new customers and retaining existing ones. I have heard that retail is detail and hence, I shall leave the details to our distinguished speakers.

Ladies and Gentlemen,

Please allow me to briefly share with you on CGC’s role in SME development in Malaysia. CGC’s core function is to facilitate SMEs’ access to financing via our guarantees. CGC addresses the SMEs’ main constraint namely the lack of collateral and track record. In recent years, we have also ventured into direct financing for certain business segments that are underserved such as start-ups through our BizMula-i product and women entrepreneurs through the BizWanita-i.

CGC had offered many innovative products to suit the financing needs of SMEs in various sectors. We have offered 45 schemes, both in terms of guarantee and direct financing as well as Government-backed schemes through which over 442,000 guarantees and financing were availed to SMEs valued over RM61.5 billion. In short, CGC is very much focused on creating greater access to financing for viable SMEs including Start-ups and women entrepreneurs.

I am also pleased to inform that we have gone beyond providing guarantees and financing. We have ventured into providing advisory services and guidance to our clients through our Developmental Programme which is aimed at assisting SMEs to gain access to both local and international markets. To demonstrate our commitment, we facilitated and sponsored three (3) of our clients to participate in the 13th China-ASEAN Expo which was held in Nanning, China in September 2016. The exhibition served as an important learning experience and platform for them to gain international exposure in showcasing and marketing their products. About a month ago, we had also organised a half day workshop on ‘Entry to Hypermarkets’ to share insights and knowledge on gaining entry into hypermarkets. It is one of the initiatives under our Developmental Programme in assisting SMEs to overcome challenges faced in gaining access to hypermarkets. It was organised in collaboration with Steinbeis Malaysia Foundation, an initiative of Agensi Inovasi Malaysia where the participants had the privilege of hearing first hand from the industry practitioners from TESCO and GIANT hypermarkets and subject matter experts from Universiti Kebangsaan Malaysia.

Ladies and Gentlemen,

I believe today’s programme would serve as a well-laid platform for you to learn and expand your business or to venture into something new. Our doors at CGC are always open to all of you as we operate through 16 branches nationwide, offering a wide range of products and services to suit the diverse needs of SMEs. Besides our branches, we also operate in various platforms for SMEs to get in touch with us, such as through our client service centre, website and our official facebook page. Next Friday until Sunday, that is from 13 to 15 January, we shall be at PWTC for the Karnival Kewangan organised by Bank Negara Malaysia and I hope to see you all there as well.

As this is an ongoing initiative, CGC will be organising more of such programmes to cater to the various needs of the SMEs in equipping them with the much-needed knowledge and skills. On this note, I would like to once again thank all the participants for coming this morning. Special thanks and appreciation to our distinguished speakers for sparing your valuable time to share your success stories and expertise with us. I would also like to extend our sincere appreciation to KLSCCCI for co-organising today’s programme with us. To the members of the media, I thank you for providing coverage to this event and as there will be many more similar programmes in the future, I truly appreciate your continued support to communicate our initiatives for the benefit of the SMEs.

With that, I wish all of you a fruitful session. Thank you very much for your kind attention.

Assalamualaikum W.B.T dan Salam Sejahtera saya ucapkan kepada,

En. Hafiz Mat Samsuri

Pegawai, Jabatan Kemajuan Orang Asli Daerah Hulu Selangor,

En. Hikang Saria

selaku Tok Batin bagi penduduk Kampung Ulu Melaka,

En. Shamsudin

selaku wakil Jawatankuasa Kemajuan dan Kesejahteraan penduduk Kampung Ulu Melaka,

Wakil Media

Rakan sekerja dari CGC

Selamat Datang saya ucapkan kepada adik-adik, ibu-bapa dan hadirin sekalian ke Program Amal ‘Kembali ke Sekolah’ anjuran Credit Guarantee Corporation Malaysia Berhad.

Program Amal yang diadakan pada hari ini merupakan salah satu usaha dari pihak CGC dalam memberi bantuan dan sokongan kepada anak tuan-tuan dan puan-puan yang masih bersekolah.

Untuk makluman sekalian, pihak CGC telah menganjurkan pelbagai program berbentuk kemasyarakatan dalam usaha kami untuk mendekati pelbagai lapisan komuniti bagi menyampaikan sumbangan dalam meringankan beban perbelanjaan seharian serta bantuan-bantuan lain yang merangkumi pelbagai aspek.

Seperti yang kita sedia maklum, kos sara hidup pada masa kini kian meningkat dan segolongan besar lapisan masyarakat menghadapi kesulitan dalam menghadapi situasi sebegini. Oleh itu, kami dengan rasa berbesar hati, harap sumbangan kami pada hari ini dapat sedikit sebanyak meringankan beban tuan-tuan dan puan-puan serta memberi semangat kepada adik-adik untuk menempuh sesi persekolahan baru pada tahun 2017.

Tuan-tuan dan Puan-puan sekalian,

Pihak CGC amat berbesar hati diatas kehadiran tuan-tuan dan puan-puan bersama anak-anak yang masih bersekolah pada hari ini.

Kami di CGC ingin melihat adik-adik bukan sahaja mempunyai masa depan yang cerah, malah pergi lebih jauh lagi untuk menjadi generasi baru yang dapat memajukan lagi masyarakat dan negara kita.

Tuan-tuan dan Puan-puan sekalian,

Sebagai ibu-bapa, pendidikan merupakan hadiah atau anugerah yang paling istimewa dan penting yang dapat kita berikan kepada anak-anak kita, oleh itu, pihak kami berharap agar tuan-tuan dan puan-puan dapat mendorong anak-anak anda untuk mencapai impian mereka kerana tiada apa yang mustahil dicapai jika kita berusaha sedaya dan tidak putus asa.

Di sini, saya ingin mengambil kesempatan ini untuk mengucapkan ribuan terima kasih kepada pihak Jabatan Kemajuan Orang Asli (JAKOA) diatas kerjasama yang diberikan sepanjang perjalanan program ini. Program pada hari ini merupakan kali yang ketiga diadakan dengan kerjasama JAKOA dan warga kamuniti masyarakat Orang Asli di kawasan Hulu Selangor. Terima kasih juga kepada pihak media yang hadir bagi membuat liputan pada pagi ini.

Akhir kata, bagi pihak Credit Guarantee Corporation Malaysia Berhad, saya mengucapkan selamat maju jaya kepada anak-anak yang akan memulakan musim persekolahan pada tahun hadapan.

Terima kasih kepada semua pihak diatas sokongan yang diberikan. Salam Sejahtera.

Sekian, Wasalam.

Puan Nazleena Nordin

bagi pihak

YBhg. Datuk Mohd Zamree Mohd Ishak

Presiden / Ketua Pegawai Eksekutif CGC

8 Disember 2015

Salam Sejahtera diucapkan kepada,

En. Patrick,

President Caring and Sharing Homes,

Para wakil media

Rakan sekerja

Tuan-tuan, Puan-puan serta adik-adik yang di hormati sekalian,

Saya amat berbesar hati kerana dapat bersama anda pada hari ini di Program Tanggungjawab Sosial Korporat anjuran Credit Guarantee Corporation Malaysia Berhad (CGC) dengan kerjasama Pertubuhan Caring & Sharing Friends serta Mydin Mall.

Kami amat teruja kerana dapat bersama anda pada pagi yang indah ini, terutamanya bersama-sama adik-adik yang dikasihi sekalian.

Dalam merealisasikan hasrat murni serta harapan kami, iaitu untuk menganjurkan program CSR bersempena perayaan Deepavali, pihak CGC telah diberi peluang untuk bersama dengan anda semua untuk menganjurkan program ini dengan harapan bagi menyerikan lagi perayaan Deepavali bersama adik-adik serta tuan-tuan dan puan-puan sekalian.

Tuan-tuan dan Puan-puan serta adik-adik sekalian,

Pada pagi ini, pihak CGC akan bersama anda bagi aktiviti membeli-belah barangan keperluan bagi menampung sedikit sebanyak perbelanjaan anda untuk perayaan Deepavali yang akan tiba tidak lama lagi.

Seperti yang anda tahu, Deepavali merujuk kepada pesta cahaya yang menyinari segala laluan kegelapan. Pelita yang dinyalakan melambangkan sinar kejayaan dan harapan dalam mengharungi segala kegelapan dan kesusahan.

Saya dan warga kerja CGC hadir pada pagi ini untuk bersama anda semua bagi merasai kegembiraan membeli-belah bersama sebentar lagi. Bukan itu sahaja, kami juga ada sediakan aktiviti-aktiviti yang menarik, khas bagi adik-adik semua pada hari ini, dalam merapatkan hubungan sesama kita sebagai rakyat Malaysia yang saling prihatin antara satu sama lain.

Tuan-tuan dan Puan-puan,

Sebelum saya mengakhiri ucapan, saya ingin mengucapkan terima kasih kepada Pertubuhan Caring & Sharing Friends dan kepada warga kerja CGC dari Ibu Pejabat dan cawangan Ipoh diatas usaha dan sokongan anda dalam menjayakan program ini. Terima kasih juga diucapkan kepada para wakil media yang hadir bagi membuat liputan bagi program ini. Terima kasih juga kepada pihak Mydin Hypermarket Bandar Meru Raya bagi tajaan lokasi dan diatas kerjasama yang diberikan sebelum dan sepanjang program ini berlangsung.

Dengan ini, saya mengucapkan ‘Yalarakum Deepavali Nal Valthukal’ kepada adik-adik dan para hadirin sekalian yang akan menyambut Deepavali pada 29 Oktober ini. Romba Nandre.

 Yang Berbahagia, Datuk Hamirullah Boorhan

Head of Community Financial Services Malaysia, Maybank

Yang Berusaha, Encik Mohd Zaini Aris

Head of SME Banking, Community Financial Services, Maybank

Yang Berusaha Encik KJ Balan

Head of Business Development, SME Banking, Maybank

Yang Berusaha Encik Arshad Mohamed Ismail

Head of Product Management, Maybank Islamic

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum W.B.T. and a very good afternoon.

I am pleased to welcome all of you to our strategic partnership signing ceremony.

1. I would like to take this opportunity to thank Datuk Hamirullah and his team for making this collaboration possible today. It is a significant step undertaken by both Maybank and CGC in our endeavour to further push the boundaries in developing SME businesses to a greater level. I would like to thank Maybank for their confidence and continuous support in our Portfolio Guarantee Scheme or better known as PG scheme.

Ladies and Gentlemen,

2. Maybank is our key partner in SME financing as we have availed RM3.2 billion to SMEs since 2013 to July this year through a total of 28 tranches. The tranches with a diverse loan size were availed through our PG to Retail SME, Business Banking and Bumiputera SMEs. For year-to-date 2016, we have approved a portfolio size totaling RM680 million and we look forward to closing the year with a PG size of up to RM1.5 billion deal. This is another breakthrough that we are proud to highlight. I was told that Maybank would shorten its Turn Around Time (TAT) for disbursement from five (5) days to two (2) days and this is good news for SMEs. Indeed, we are looking at exciting times ahead through our strong partnership. To date, we have availed over 6,000 guarantees through our PG scheme with Maybank which is worth RM3.2 billion.

3. Throughout the years, Maybank has proven to be a strong entity being Malaysia’s largest bank by market capitalisation with total assets exceeding US$165 billion, making it one of the largest banks in South East Asia. I am also pleased to applaud their recent ranking as the 95^th Bank in the Banker’s Top 1,000 World Banks and also was granted a spot in the Forbes Global 2000 Leading Companies in June this year. We are proud to collaborate with Maybank and reach out to a larger number of SMEs through Maybank’s diverse network.

4.  Our PG Scheme that was introduced in 2009 has proven to be an innovative financing product that is both cost effective and efficient since the turn-around-time is much faster i.e. two (2) days to avail to our guarantee and the approval rate is almost 100%. Hence, SMEs’ can be rest assured that they are in good hands in terms of speed and cost effectiveness. To date, we have availed a total of RM6.2 billion worth of financing via PG with 13 financial institutions. In 2015, we had availed 8,225 guarantees and financing to SMEs valued at RM3.4 billion of which RM1.7 billion (or 50%) were via our PG scheme. As for the current year, we aim to increase our SME outreach by 15% and 5% in terms of value and number respectively. This would be done by availing 8,650 worth of guarantees and financing amounting to RM4.0 billion whereby 70% i.e. RM2.8 billion is projected to be achieved via the PG scheme.

5. CGC has been an integral part of SME development, especially SMEs who lack collateral and track record. Our guiding principal has always been to position CGC as an effective financial institution that is dedicated towards promoting the growth and development of competitive and dynamic SMEs. In line with our mission, this has then opened doors for us to stay ahead of the game by providing innovative financial products that would broaden our SME outreach. SMEs have been the driving force for CGC to further innovate our products and services to better serve them as they are one of Malaysia’s leading economic contributors. To date, SMEs contribute about 35.9% to GDP and is expected to increase to 41% by 2020 under the SME Masterplan (2012 – 2020).

6. Since our inception in 1972, we have approved over 442,000 guarantees and financing, valued at over RM61.5 billion to SMEs. We at CGC believe that SMEs would need to equip themselves with the dynamics and interconnectivity of different challenging environments in order to succeed.

7. With the need to evolve and remain current, CGC has mapped out a 5-Year Strategic Plan (2016-2020). This Plan supports our mandate and developmental role in Malaysia’s economic development agenda by assisting marginal but potentially viable SMEs to flourish as we aspire to be the “Household Name for SMEs by 2020”. We are also undertaking a Business Process Re-engineering exercise and putting in place an IT Blueprint with the aim of further improving our effectiveness and efficiency and staying relevant to the ever-changing and dynamic needs of SMEs. As we strive to further widen our outreach to SMEs and provide them with more opportunities to grow their businesses, we have strategically inked several collaborations on mega infrastructure projects such as MRT Line 1 and 2 where we have been providing financing to contractors awarded with Government and GLCs contracts. Apart from that, we have signed an MoU with Johor Petroleum Development Corporation (JPDC) to support SMEs in the Pengerang Integrated Petroleum Complex. The months ahead will be a busy period for us as we are looking into many more significant and exciting collaborations such as our collaboration with Pan Borneo Highway Projects in Sabah and Sarawak.

Ladies and Gentlemen,

8. Our collaboration with Maybank today is a testimony of our interest in evolving together and venturing forth in the way that we conduct our business. Allow me to share a quote from Thomas Edison, he said and I quote “I never perfected an invention that I did not think about in terms of the service it might give others – I find out what the world wants, then I proceed to invent.”

9. On this note, I would like to thank Maybank once again, particularly Datuk Hamirullah and his team, for their support and trust in realising this alliance. I am confident that our strategic partnership signing ceremony today shall pave the way to many more opportunities of working together in tandem with Malaysia’s SME outreach agenda.

Thank you very much for your kind attention and have a good evening ahead.

Wabillahi taufiq walhidayah wassalamualaikum warahmatullahi wabarakatuh

Mohd Zamree Mohd Ishak

President / CEO

Credit Guarantee Corporation Malaysia Berhad

Yang Berhormat Dato’ Sri Mustapa Mohamed

Menteri Perdagangan Antarabangsa dan Industri

Kementerian Perdagangan Antarabangsa dan Industri

Yang Berbahagia Tan Sri Dr. Ali Hamsa

Ketua Setiausaha Negara

Merangkap Pengerusi MRT Corp                                                                                                                                                                                                                                                                            

Ahli Lembaga Pengarah CGC

Yang Berbahagia, Dato’ Sri Shahril Mokhtar

Ketua Pegawai Eksekutif, MRT Corp

Yang Berusaha Encik Mohd Zamree Mohd Ishak

Presiden / Ketua Pegawai Eksekutif, Credit Guarantee Corporation Malaysia Berhad

Para Wakil Media,

Para Hadirin yang Dihormati sekalian,

Assalamualaikum W.B.T dan Salam Sejahtera.

Bagi pihak Ahli Lembaga Pengarah, Pengurusan serta Warga Kerja CGC, saya ingin merakamkan setinggi-tinggi penghargaan kepada Yang Berhormat Dato’ Sri Mustapa Mohamed diatas kehadiran YB Menteri bagi merasmikan Majlis Menandatangani Memorandum Persefahaman di antara MRT Corp dan CGC. Terima kasih YB Dato’ Sri kerana sudi meluangkan masa bersama kami pada pagi ini.

Setinggi-tinggi penghargaan juga diucapkan kepada Yang Berbahagia Tan Sri Dr. Ali Hamsa kerana sudi hadir bersama di majlis yang amat bermakna ini. Seterusnya, ucapan terima kasih juga kepada para media dan hadirin yang saya hormati sekalian yang turut bersama di majlis ini.

2. Pada hari ini, CGC memacu selangkah lagi ke hadapan dalam memainkan peranan kami untuk terus membantu usahawan Perusahaan Kecil dan Sederhana (PKS) khususnya PKS Bumiputera di Malaysia, melalui Memorandum Persefahaman bersama MRT Corp yang Insha Allah, akan dimeterai sebentar lagi. Sebagai sebuah institusi kewangan pembangunan, kami di CGC amat berbangga untuk menjadi pembiaya pilihan (preferred financier) bagi membiayai kontraktor Bumiputera yang terpilih melalui projek mega MRT dibawah penyeliaan MRT Corp yang telah dilaksanakan sebagai sebahagian daripada Rancangan Malaysia ke-10 (RMK-10).

3. Kerjasama yang akan diterajui bersama MRT Corp merupakan satu pengiktirafan buat CGC bagi memainkan peranan kami dalam menyokong agenda Bidang Ekonomi Utama Negara (National Key Economic Areas – NKEA). Usaha ini juga adalah sejajar dengan Pelan Strategik 5 Tahun kami dengan halatuju menjadikan CGC sebagai ‘Jenama Terpilih di kalangan PKS’ atau ‘Household name for SMEs’ menjelang tahun 2020.

Para Hadirin yang Dihormati Sekalian,

4. PKS di Malaysia merupakan tunjang kepada pembangunan ekonomi negara yang merangkumi lebih daripada 97% perniagaan di Malaysia. Selaras dengan tanggungjawab yang telah dimandatkan kepada CGC, kami peka dengan situasi dan keadaan semasa sektor PKS di negara kita. Kami di CGC akan terus memperkenalkan produk pembiayaan yang inovatif bagi membantu para PKS Bumiputera untuk mendapatkan akses kepada pembiayaan bagi perniagaan mereka.

5. PKS Bumiputera memainkan peranan yang penting dalam memajukan kepelbagaian sektor perusahaan di Malaysia. Sehubungan dengan itu, adalah penting bagi CGC memudahkan para PKS Bumiputera untuk mendapatkan akses kepada pembiayaan dengan harga yang berpatutan dalam usaha untuk memajukan perniagaan mereka.

6. CGC adalah sebuah institusi yang berdedikasi dalam menggalakkan pertumbuhan dan pembangunan PKS yang berdaya saing dan dinamik. Melalui kepelbagaian produk inovatif yang telah diperkenalkan, kami yakin dapat membantu menaikkan taraf PKS di Malaysia, terutamanya para PKS Bumiputera selaras dengan Agenda Pembangunan Bumiputera Nasional.

7. Usaha serta inisiatif yang dijalankan oleh CGC selama ini, pastinya tidak akan memberi impak yang tinggi di kalangan PKS tanpa usahasama dan sokongan padu dari Kementerian Perdagangan Antarabangsa dan Industri (MITI), Kementerian Kewangan, Bank Negara Malaysia, TERAJU, SME Corp serta agensi-agensi kerajaan dan dewan-dewan perniagaan yang terus memberi keyakinan dan kepercayaan kepada kami dalam memainkan peranan kami.

Para Hadirin yang Dihormati Sekalian,

8. Skim Tabung Projek Usahawan Bumiputera (TPUB-i) yang telah diperkenalkan pada tahun 2009, merupakan produk pembiayaan kontrak untuk membantu para PKS Bumiputera yang telah dianugerahkan kontrak oleh kerajaan, syarikat dan agensi berkaitan kerajaan. Kami amat menghargai dan berterima kasih diatas kepercayaan yang diberikan oleh Bank Negara Malaysia kepada CGC dalam menguruskan dana skim TPUB-i. Setakat ini, CGC telah meluluskan lebih 1,200 permohonan bernilai lebih RM850 juta melalui skim ini. Untuk Projek MRT Jajaran 2, unjuran kami adalah untuk meluluskan pembiayaan sehingga RM100 juta dalam tempoh 3 tahun pertama. Ini akan menyokong sasaran pembiayaan kami sebanyak RM220 juta bagi skim TPUB-i pada tahun ini.

9. Melihat kepada jangkaan bagi capaian PKS Bumiputera melalui skim ini, kami yakin bahawa perjanjian yang dimeterai bersama MRT Corp pada hari ini akan berperanan sebagai ‘batu loncatan’ bagi membuka lebih banyak peluang di masa hadapan dalam membantu PKS Bumiputera.

10. Kerjasama ini juga akan memperlihatkan pertumbuhan yang positif bagi skim TPUB-i, dimana kontraktor yang dianugerahkan kontrak ini merupakan kontraktor yang bertauliah, dan juga dibawah naungan TERAJU. Sehubungan dengan ini, CGC akan sentiasa membantu kontraktor-kontraktor Bumiputera bagi projek-projek lain di masa hadapan melalui TPUB-i.

11. Selain daripada kerjasama ini dalam usaha membantu PKS Bumiputera, CGC juga telah menandatangani perjanjian persefahaman bersama Johor Petroleum Development Corporation (JPDC) bagi Projek Kompleks Intergrasi Bersepadu Petroleum di Pengerang Johor. Selain dari itu, kami juga berharap untuk memuktamadkan kerjasama bersama pelbagai agensi berkenaan bagi menyediakan pembiayaan kepada kontraktor-kontraktor yang terlibat di dalam Projek Lebuhraya Pan Borneo di Sabah dan Sarawak.

12. CGC akan terus memacu kearah pembangunan PKS dengan memperluaskan kerjasama kami bersama institusi-institusi kewangan serta syarikat berkaitan kerajaan, seiring dengan slogan CGC, ‘Memperkasakan PKS di Malaysia’.

13. Sebelum saya mengakhiri ucapan, saya ingin merakamkan setinggi-tinggi penghargaan kepada MRT Corp, khusus nya Yang Berbahagia Dato’ Sri Sharil diatas kepercayaan dan sokongan kepada kami di dalam mengiktiraf CGC sebagai pembiaya pilihan untuk projek MRT.

Saya juga ingin mengambil kesempatan ini untuk mengucapkan setinggi penghargaan kepada Yang Berhormat, Dato’ Sri Mustapa Mohamed dan Yang Berbahagia Tan Sri Dr. Ali Hamsa diatas kehadiran bersama bagi menyempurnakan majlis ini.

Ucapan terima kasih juga ditujukan kepada para wakil media diatas kehadiran anda bagi membuat liputan di majlis ini. Dengan ini, saya akhiri ucapan dengan Wabillahi Taufiq wal Hidayah Wassalamualaikum Warahmatullahi Wabarakatuh

Yang Berbahagia Tan Sri Dato’ Azman Hashim

Chairman, AmBank Group

Yang Berbahagia Dato’ Sulaiman Mohd Tahir

Group CEO, AmBank Group

Yang Berusaha Ms Pushpa Rajadurai

Managing Director – Wholesale Banking Coverage, AmBank Group

Yang Berusaha Encik Eqhwan Mokhzanee Muhammad

Chief Executive Officer, AmIslamic Bank

Yang Berusaha Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good morning.

Thank you Yang Berbahagia Tan Sri for your warm welcome and great hospitality that you have accorded to all of us. I would also like to thank you for graciously hosting our Portfolio Guarantee signing ceremony this morning. We are honoured for being given the opportunity once again to work together with Ambank Group on yet another partnership that I believe will have a significant impact on SME development. Both our teams have been continuously working hard on this partnership and I would like to take this opportunity to congratulate them for making this ceremony possible today.

Ladies and Gentlemen,

2. We are here today with one main objective, which is, to further strengthen our strategic partnership with Ambank Group to promote the growth and development of SMEs in Malaysia. In recent years, AmBank and CGC have made great strides in providing innovative financing products to benefit the SME community. We are pleased to inform that we shall be taking this initiative even further today with the signing of another agreement to avail RM300 million of financing through CGC’s Portfolio Guarantee (PG) scheme.

3. CGC’s PG Scheme has proven to be an attractive product that is both cost effective and efficient. Our guarantee can be approved within 2 days and the approval rate is almost 100%. I am pleased to inform that the first tranche of RM300 million was a huge success with 99% utilized. The second tranche has already seen a 15% utilisation with both tranches having benefitted about 160 SMEs to date. This would not have been possible without the relentless and aggressive marketing and sales efforts of the AmBank Team. Our heartiest congratulations to the team.

4. Since PG’s inception in 2009, we have availed a total of RM6.2 billion worth of financing with 13 participating financial institutions. In 2015, for example, we had availed 8,225 guarantees and financing to SMEs valued at RM3.4 billion of which RM1.7 billion (or 50%) were via our PG scheme. As for the current year, we aim to increase our SME outreach by 15% and 5% in terms of value and number respectively. This would be done by availing 8,650 worth of guarantee financing amounting to RM4.0 billion whereby 70% i.e. RM2.8 billion will be via the PG scheme.

Ladies and Gentlemen,

5. Allow me to share a little on our other initiatives that have benefitted the SMEs directly. CGC has been proactively forging new alliances and collaborations with various Government-linked companies and agencies. Through our Tabung Projek Usahawan Bumiputera-i (TPUB-i), we have been providing financing to contractors awarded with Government and GLC contracts. Notable infrastructure project includes the MRT Line 1 where we were the preferred financier and this will continue for MRT Line 2. I am pleased to inform you that recently we had signed an MoU with Johor Petroleum Development Corporation (JPDC) to support Malaysian SMEs in the Pengerang Integrated Petroleum Complex. As for the near future, we are finalising our collaboration with various agencies to provide financing for contractors involved in the Pan Borneo Highway Project.

Ladies and Gentlemen,

6. CGC has supported the growth and expansion of the nation’s SMEs which is guided by our VISION to be an effective financial institution dedicated towards promoting the growth and development of competitive and dynamic SMEs. We have remained committed and played a vital role to bridge the gap between the FIs and SMEs. We understand the changing needs of SMEs better and with this wealth of knowledge, we have tailored many of our initiatives to assist some of the pressing issues of SMEs especially access to financing and cost of borrowing. In addition to creating direct access to financing, I would also like to add that we have provided competitive and reasonable financing cost for our customers. For example, some of our customers are granted rebates for their satisfactory conduct of their accounts. Further, in line with the recent Overnight Policy Rate (OPR) reduction, CGC has also reduced the financing cost for our direct financing products such as BizMula-i and BizWanita-i.

7. With the need to evolve and remain current as time progresses, we have mapped out a 5-Year Strategic Plan (2016-2020). This Plan supports CGC’s mandate and developmental role in the nation’s economic development agenda by assisting marginal but potentially viable SMEs to continue to obtain financing quickly at a reasonable cost and we also aspire to be the Household Name for SMEs by 2020. We are currently undertaking a Business Process Re-engineering exercise and putting in place an IT Blueprint with the aim of further improving our effectiveness and efficiency and staying relevant to the ever-changing and dynamic needs of the SMEs.

8. We are watching the landscape very closely and in particular, are excited with the great strides being undertaken by the Fin-tech companies especially their crowd funding and P2P initiatives, just to name two of them. They have been termed as disruptive by certain quarters but if viewed positively, they can also be collaborative. We are currently studying them and intend to work with them to increase our outreach to SMEs. So all I can say for now is “watch this space”.

9. On this note, I would like to express my most profound thanks and appreciation to Yang Berbahagia Tan Sri Azman Hashim and his team for their continued trust and unwavering support to CGC. I am optimistic that with the strengthening of our partnership today, it shall open many more gateways and opportunities for us to work together to propel SME growth in Malaysia.

Thank you very much for your kind attention and have a good day ahead.

Wassalam wbt

Yang Berhormat Datuk Johari Abdul Ghani

Deputy Minister of Finance II

Ministry of Finance Malaysia                                                                                                                                                                                                                                                                                                                                                                                                            

CGC’s Board of Directors

Yang Berusaha Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Our valued partners from the Financial Institutions

Our valued customers,

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

On behalf of the Board of Directors, Management and staff of CGC, I would like to welcome you to our 21st CGC SME Awards Ceremony.

I understand that for some of you, this maybe your first time joining us at our annual awards ceremony. I would like to extend my sincere appreciation to all of you for taking time off to attend our prestigious awards ceremony today.

I would also like to extend my gratitude to YB Datuk Johari Abdul Ghani for his support towards all our initiatives in the past year, such as our launch of Biz Wanita, Graduate Trainee Programme and for taking time off to visit our CGC headquarters.

Ladies and Gentlemen,

CGC’s SME Awards is a tribute to the high level of commitment and excellence demonstrated by the financial institutions who have stood by SMEs, weathered the odds of the economy and made access to financing readily available through innovative financing products which have become more diverse throughout the years. We, at CGC, hope that this award will continue to motivate the FIs to further assist our SMEs and also encourage more FIs to follow suit in ‘Powering Malaysian SMEs’.

We are pleased to inform that we have expanded this awards ceremony to include our SME customers as well this year. In recognition of their exemplary record in meeting their loan and guarantee fee commitment, we are giving rebates on their guarantee fees ranging from RM3,000 to RM18,000. Since we launched this rebate mechanism, we have given a total of RM837,000.00 worth of rebates to about 1,500 SME customers. This year alone, about 800 customers will benefit from this rebate scheme. We are unable to invite the entire 800 SMEs today but we have invited five of these customers to receive the Exemplary Customer Awards.

In addition to the aforementioned award, we will also be recognising our past SME customers who had established credible track record and are now able to avail financing from banks without CGC’s guarantee. These customers that we have internally classified as ‘Graduated Customers’, will be accorded with ‘Excellent Customer Awards’. This I believe, is truly inspiring as these SMEs are able to grow out of our guarantee mechanism and succeed in obtaining financing on their own accord. We have identified five customers who have met the requirements of becoming a Graduate Customer. Their success is our success, although we are sad that we are losing them as our customers. However, we are pleased to be able to play a role in their early years of establishment. With more SMEs gaining financial independence, we are now able to avail our services to other deserving SMEs that require our assistance.

Ladies and Gentlemen,

As some of you are aware, we had concluded our 43^rd Annual General Meeting just now, and it gives me great pleasure to share with you that CGC was able to deliver on its mandate on intensifying SME development. We did well in terms of our SME outreach agenda. Our achievement was underscored by the noteworthy growth in the number and value of guarantees and financing approved, which rose by 120% and 106% respectively. We exceeded our target in 2015 by approving 8,225 guarantees and financing, with a value of RM3.4 billion, further strengthening our commitment to ensure access to financing to SMEs.

I am pleased to note here that CGC’s strong performance was driven primarily by our aggressive marketing initiatives, particularly our Portfolio Guarantee (PG) and Wholesale Guarantee (WG) products; which had contributed RM2.1 billion in 2015. Today, both the PG and WG schemes make up 63% of CGC’s guarantee approvals and continue to drive forth the growth of CGC’s outreach agenda. For 2015, we approved a total of RM1.7 billion worth of PGs through our collaboration with 6 (six) banks which accounted for 50% of the guarantee approvals.

As for our forward-looking Islamic Wholesale Guarantee (WG-i) scheme, I am pleased to mention that in June last year, we inked a RM450 million deal with an Islamic bank to support the bank’s existing unsecured SME portfolio.

Ladies and Gentlemen,

The year 2016 marked a major milestone, as we have mapped out a strategic blueprint which is supported by our Vision and Mission statements not only to elevate CGC to the next level; but also towards our aspiration for ‘CGC to become the household name for SMEs’. We have embarked on various initiatives to strengthen CGC’s awareness and presence in the industry. Among our initiatives are increasing efficiency and effectiveness of our internal processes, so that our SME customers may enjoy better services and receive faster financing assistance.

Externally, we have geared up our participation in SME-related events as well as sponsorships. We have also taken steps to intensify awareness amongst the SMEs through our corporate events, exclusive media interviews, and strategic collaborations with industry- specific stakeholders and also through Corporate Social Responsibility Programmes.

CGC is looking forward to greater achievements and aiming to push beyond our current limits. We will be challenging ourselves to be more efficient and effective overall. We have done well in the past but we intend to do better in the future. Limitation is a word that was created for those who do not desire greatness. And for our pledge in assisting SMEs, we are looking to achieve higher level of SME outreach in the next 5 years. Our 5-year-strategic plan, an all-inclusive approach that is supported by our Vision and Mission statements and a set of new core values, has identified 4 Strategic Objectives with 15 strategies and 31 initiatives that serves as our pillars to realise our goals.

Our schemes, products and services are continuing to grow each year, as we look to diversify and reach out to more SMEs. Over the course of a year, we have strengthened our outreach to Bumiputera entrepreneurs through our Tabung Projek Usahawan Bumiputera-I (TPUB-i). We have also tied-up with Mass Rapid Transit Corporation Sdn Bhd (under MRT Line 1) to provide contract financing to more Bumiputera contractors; especially, with the roll-out of MRT Line 21, the Pan Borneo Highway and the Pengerang Intergrated Petroleum Complex in Johor. Ultimately, we will continue to offer financing at reasonable cost, and we will continue to reward good SMEs with our rebate mechanism, price review and, where necessary, subsidising our niche market products. With our 5-Year-Strategic-Plan in place, we target to have RM14.5 billion loan base, 50% graduation rate and 80% brand awareness amongst SMEs by 2020.

Ladies and Gentlemen,

Some of our efforts have been recognised and appreciated both in our country and abroad. This appreciation transcends through international awards for our innovative products such as the ‘Outstanding Development Project 2015 under the SME Development category for innovation for our Portfolio and Wholesale Guarantee Schemes by ADFIAP, the Association of Development Financing Institutions in Asia and the Pacific. CGC was also accorded the Karlsruhe Sustainable Finance Award for 2015 for Best Innovation in Financial Services for our Biz Mula, a direct financing scheme facility we have launched for start-ups. In addition to that, I am also pleased to share with you that CGC’s efforts are also widely recognised by other countries in the Asia Pacific region. This is evident through our international assistance in terms of trainings, knowledge transfer and expertise rendered in establishing and enhancing other credit supplementation organisations in these countries. Amongst the countries which we have assisted to date are Timor-Leste, Rwanda, Papua New Guinea, Egypt and Mongolia. A few more countries are also in talks with CGC to seek our assistance.

I wish to express my sincere appreciation to our valued customers for their unwavering support to CGC. I am also deeply grateful to the financial institutions, Bank Negara Malaysia, ministries and government agencies, chambers of commerce, business and trade associations; as well as organisations and all those who have supported us, for their continued confidence and trust, in our efforts to fulfil our mandate. I would like to end my address by congratulating all the winners of CGC SME awards today. I am very certain that one success will lead to another. I invite all of you, the FIs and relevant parties, to continuously stand together and work towards creating a conducive environment for SMEs to thrive and grow. SME’s success is our success.

Thank you for your kind attention and please enjoy the awards ceremony and the luncheon.

Dato’ Agil Natt

Chairman

Credit Guarantee Corporation Malaysia Berhad (CGC)

YBhg. Dato’ Agil Natt

Chairman Credit Guarantee Corporation Malaysia Berhad

CGC’s Board of Directors

YBrs. Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests, Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

INTRODUCTION

1. It is my great pleasure to be here today for the event to appreciate and celebrate the SMEs and financial institutions that have contributed in their own capacity to the nation’s economic growth. This may not be my first time officiating an event organised by the Credit Guarantee Corporation (CGC). However, this is my first time at the CGC SME Awards Ceremony and I am delighted to be here with you for this joyous occasion. I wish to thank the CGC for inviting me.

2. As mentioned by Dato’ Agil, this is the 21^st year since the awards for financial institutions were introduced in 1996. I would like to commend CGC for the tremendous effort they have put into this event each year in championing the SME cause; appreciating their collaborative partners – the financial institutions; and recognising the unsung heroes in the industry.

ROLE OF CGC AND FINANCIAL INSTITUTIONS FOR SMEs

Ladies and Gentlemen,

3. Access to financing for SMEs remains as one of their main challenges due to the lack of collateral and track record, particularly for start-ups and fledgling SMEs. In this regard, CGC has and continues to play an important role to support SMEs in obtaining financing through the provision of credit guarantee. Likewise, financial institutions have a pivotal role in providing access to financing for SMEs. Without adequate and timely financing, SMEs will not be able to run their businesses. This will then affect their operations and hence their contribution to the economy.

4. I am pleased to note the extensive amount of effort CGC has put into collaborations with the financial institutions in the past four decades. CGC’s dedication and collaborations have been instrumental in creating greater access to financing for SMEs across the nation. I also wish to commend the financial institutions in working together with CGC, as well as their readiness to assist the SMEs through their products and services.

5. The role of financial institutions is to promote an efficient, effective and sound financial sector capable of providing a wide range of demand-driven financial services, including financing requirements of SMEs. Indeed, the financial sector plays a central role in supporting the growth and development of the economy through mobilisation and deployment of financial resources. In 2015, outstanding financing by the banking system to SMEs grew by 15% to RM259.7 billion.

6. I am pleased to note that Malaysian financial institutions have shown their commitment and support towards the development of SMEs. Among several initiatives is the establishment of dedicated SME departments or units to provide customised financial services and capacity-building initiatives for SMEs.

7. Equally important is the role of CGC in assisting SMEs secure financing from the financial institutions, especially those which lack track record and collateral. Since its establishment in 1972, CGC has guaranteed loans totalling RM56 billion to some 430,000 SMEs. Meanwhile, in efforts to support an inclusive financing ecosystem for SMEs, CGC has introduced the BizWanita-I, a shariah-compliant scheme for women business owners.

Ladies and Gentlemen,

8. I am pleased to note the various initiatives taken by CGC to appreciate their SME customers. There are specific awards that are exclusively for their customers. This includes the Rebate Customer’s Award which is accorded to selected CGC customers for their excellent repayment track record on the financing facility.

9. Additionally, CGC provides a rebate on its guarantee fees to customers with a good repayment period to help lower their financing cost. Meanwhile, the Graduated Customer’s Award is presented to CGC customers, also based on their excellent credit track record with CGC, apart from their ability to avail financing from banks without CGC’s guarantee.

SMES MUST REMAIN PART OF THE INNOVATIVE ECONOMY

Ladies and Gentlemen,

10. SMEs are the backbone of the economy. They provide various products and services. They invest, create businesses and export products. More importantly, they create employment opportunities. All these activities contribute to economic growth and development.

11. SMEs are also drivers of innovation which is important to help the economy move up the value chain as well as compete in the marketplace. In the light of increasing competition, it is imperative that SMEs continue to innovate to generate creative solutions and products. This requires them to invest in technology as well as undertake research and development to create new products or improve on existing products. SMEs must also leverage social media, Internet marketing and e-commerce to capture a wider reach of customers in existing markets as well as potential customers in untapped markets.

IMPORTANCE OF SMEs, CHALLENGES AND OPPORTUNITIES

Ladies and Gentlemen,

12. SMEs are important to the Malaysian economy. They account for 97% of total business establishments and contribute 59% to total employment, 19% to total exports and 35% to the gross domestic product (GDP). SMEs employ about 6.2 million people, of which, the majority is in the services sector in line with SME dominance in the sector. Under the SME Masterplan (2012 – 2020), the target is to raise SME contribution to 41% of GDP, 25% of total exports and 62% of total employment by 2020.

13. The Government continues to emphasise the development of resilient and sustainable SMEs through several initiatives to increase their contribution to the economy. These initiatives include enhancing SME access to financing; providing business advisory services, capacity-building and mentoring programmes; promoting innovation and productivity; as well as encouraging SMEs to export.

14. While the Government continues to vigorously pursue efforts to create a conducive ecosystem to facilitate investment and business activity, including for SMEs and entrepreneurs, the private sector must also play their part. The private sector must step up and complement Government efforts to support the SMEs. This could include some accommodation of risk-taking to finance SMEs and entrepreneurs as angel investors or venture capitalists. The private sector must also invest in human capital development, requiring them to train, retrain and upskill their workers to meet industry requirements as well as rapid technological advancements. Private sector companies, including SMEs should not seek the easy way out by continuing to depend on low-skilled foreign workers.

15. On the part of SMEs, they also need to be creative and seek alternative ways of financing such as crowd funding, peer-to-peer lending or even merge or combine forces to raise funds from the capital market.

16. I am heartened by the fact that we have several success stories of SMEs in Malaysia. They are good examples of innovation, entrepreneurship and success. The initiatives put in place have contributed to empowering these SMEs to achieve success. New start-ups, aspiring and fledgling SMEs and entrepreneurs should draw inspiration from these success stories to reach greater heights. I think it is not necessary for me to quote the successful SMEs and entrepreneurs. You know best who they are.
17. Malaysian SMEs should not be content with merely being “jaguh kampung.” As they say, “the sky is the limit.” At the regional level, the establishment of the ASEAN Economic Community (AEC) in 2015 promises huge potential for our SMEs with a combined GDP of USD2.6 trillion and a population of more than 620 million. The free movement of goods, services, investment and skilled labour across the region will benefit Malaysian and regional SMEs.

18. At the regional level, I understand that there is an ASEAN Coordinating Committee on Micro, Small and Medium Enterprises to pursue programmes and initiatives to further promote SMEs across the region. These programmes and initiatives are guided by an ASEAN Strategic Action Plan for SME Development (2016 – 2025). Malaysia and Lao are the lead countries on the strategic goal of increasing access to finance.
19. Furthermore, our domestic SMEs should leverage the various bilateral and regional free trade area agreements that Malaysia has signed to penetrate the markets. In particular, the Trans-Pacific Partnership agreement (TPPA) will facilitate access for Malaysian products and services into bigger markets. SMEs should avail themselves to the funds, incentives and advisory services provided by the Government to exploit export markets.

UPDATE ON MALAYSIAN ECONOMIC PERFORMANCE

Ladies and Gentlemen,

20. Allow me to briefly touch on the Malaysian economy. Despite a more challenging external environment, the economy continued to expand with a growth of 4.2% in the first quarter of 2016. Growth was driven by domestic demand. On the supply side, all sectors recorded a positive growth except the agriculture sector. Inflation was higher at 3.4% in the first quarter of 2016 due to the base effect from the larger decline in petrol pump prices in the corresponding period of 2015. Labour market conditions remained favourable with the unemployment rate at 3.4%.

21. Despite some downward risks such as moderate global growth, a slowing Chinese economy, uncertainty over timing of US interest rate hike, lower commodity prices, and volatility in financial markets, the Malaysian economy remains resilient and is expected to grow 4% – 4.5% in 2016.

22. Let me assure you that the Government is committed to ensuring the economy continues to achieve sustainable and inclusive growth supported by strong macroeconomic fundamentals. Positive economic growth will provide opportunities for businesses, including SMEs.

23. While the Government will continue to implement programmes and initiatives to support SME development, SMEs must play their part to avail themselves to the facilities and incentives provided to grow, create and innovate. SMEs must also be responsible in ensuring prompt repayments on financing facility as this will enable other SMEs and entrepreneurs to obtain financing.

24. Our SME winners this afternoon are good examples of entrepreneurship through leadership and innovation. Pioneers in their own right, they have dared to push beyond their comfort zones and achieve admirable success. I must also applaud CGC and the financial institutions in reaching out and offering assistance to SMEs.

CONCLUSION

25. My heartfelt congratulations to this year’s award winners. May you continue to inspire and show everyone that the CGC, financial institutions, and SMEs through strategic initiatives and partnerships are capable of spurring the nation’s economic growth, development and prosperity.

Thank you and Wassalam.

Ministry of Finance

1 June 2016

Yang Mulia, Tengku Dato’ Sri Zafrul Tengku Abdul Aziz

Group Chief Executive Officer, CIMB Group Holdings Berhad

Yang Berusaha, Mr. Renzo Viegas

Chief Executive Officer, Group Consumer Banking, CIMB Bank Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good morning.

1. Firstly, allow me to take the opportunity to thank Tengku Zafrul and his team for making this momentous ceremony possible for both CIMB and CGC, which is aimed at further strengthening our strategic partnership in promoting the growth and development of SMEs. We are honoured to partner with CIMB, the bank that is bringing “ASEAN for You”. In recent years, CIMB and CGC have made great strides in providing innovative financing products to benefit the SME community. We are pleased to inform that we shall be taking this initiative even further today with the signing of strategic partnership to offer up to a total of RM1.0 billion worth of financing through CGC’s Portfolio Guarantee (PG) scheme.
2. As mentioned by Tengku Zafrul, “SMEs have clearly been and will continue to be a core pillar of the Malaysian economy”. He shared data on SME’s contribution to GDP, SME’s share of the labour force as well as exports. I would like to add that, over the last 10 years, Malaysia SME GDP growth have been higher than Malaysia’s overall GDP growth. Our SME’s average Compounded Annual Growth Rate is 7.1% compared to the 4.9% CAGR of our overall economy. This point further stresses the importance of SMEs to Malaysia’s economy.

Ladies and Gentlemen,

3. The mandate given to CGC has enabled us to gain the much needed support from financial institutions as well as from the relevant Ministries and agencies to execute our role effectively as a financial intermediary, for marginal but viable SMEs for over the last four decades. CGC has supported the growth and expansion of the nation’s SMEs which is guided by our VISION that is to be an effective financial institution dedicated towards promoting the growth and development of competitive and dynamic SMEs. In line with our vision, we have remained committed to facilitating SMEs’ access to financing through our array of products and services. CGC has played a vital role as an intermediary to bridge the gap between the FIs and SMEs. Over the last 44 years, we have approved over 437,000 guarantees and financing valued at over RM59 billion to SMEs. And we will continue to play our role in advancing Malaysia’s SME agenda.
4. CGC’s PG Scheme has proven to be an innovative product that is both cost effective and efficient since the turn-around-time is much faster and the approval rate is almost 100%. I am pleased to inform that since 2014, we have launched three (3) tranches of PG with CIMB worth RM250 million. At this juncture, I would like to thank CIMB for its continued support towards achieving our common objective of availing the much needed financing for SMEs in Malaysia.

Ladies and gentlemen,

5. The strategic partnership that shall be forged today is an initiative pursued by both CIMB and CGC to further increase our collaboration and expand our SME outreach through the PG scheme. Since PG’s inception in 2009, we have availed a total of RM4.6 billion worth of financing via 14 participating financial institutions.   In

2015, for example, we had availed 8,225 guarantees and financing to SMEs valued at RM3.4 billion of which RM1.7 billion (or 50%) were via our PG scheme. As for the current year, we aim to increase our SME outreach by 15% and 5% in terms of value and number respectively. This would be done by allocating RM4.0 billion worth of financing to benefit 8,650 SMEs. And 60% of the RM4.0 billion, ie RM2.4 billion will be via PG.

6. For CGC, strategic partnerships and collaborations that we have forged has helped us achieve our SME outreach goals in many ways. Our strategic partnership with CIMB will further advance this cause. Allow me to share a quote from the late Steve Jobs, he said and I quote “Great things in business are never done by one person. They’re done by a team of people,” unquote.
   

Ladies and Gentlemen

7. On this note, I would like to express my most profound thanks particularly to Tengku Zafrul and his team for their unwavering support. I am optimistic that with the further strengthening of our partnership today, it shall open many more gateways and opportunities for us to work together to propel SME growth in Malaysia.

Thank you very much for your kind attention and have a good day ahead.

Wassalam wbt

Mohd Zamree Mohd Ishak

President / CEO

Credit Guarantee Corporation Malaysia Berhad

Yang Berbahagia, Dato’ Khairussaleh Ramli

Group Managing Director of RHB Banking Group

Yang Berbahagia, Tuan Haji Ibrahim Hassan

Managing Director of RHB Islamic

Yang Berbahagia, Datin Amy Ooi Swee Lian

Head of Group Business & Transaction Banking of RHB

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

1. Firstly, I would like to take this opportunity to thank Yang Berbahagia, Dato’ Khairussaleh and his team for making this collaboration possible today. It is a significant step undertaken by both RHB Banking Group and CGC in our endeavour to chart new frontiers in developing SME businesses. I am pleased to note that it is indeed a major means for CGC to offer our product through RHB’s web-based solution to further serve our customers.

Ladies and Gentlemen,

2. The bloom of SME presence and diversification in the past decade has been the driving force for CGC to further innovate our products and services to better serve one of Malaysia leading economy contributors.

3. CGC has been an integral part of the SME’s expansion in the past four decades. Our guiding principal has always been to position CGC as an effective financial institution that is dedicated towards promoting the growth and development of competitive and dynamic SMEs. In line with our mission, this has then opened doors for us to stay ahead of the game by providing innovative financial products that would broaden our SME outreach.

4. We have also been bridging the gaps between banks and SMEs via providing our guarantee; as well as, explored and forged strategic partnerships with several leading banks, in order to make available products that are tailor-made to the needs of the SME’s. Since our inception in 1972, we have approved over 435,000 financing, valued at over RM59 billion to these enterprises.

Ladies and Gentlemen,

5. Our PG Scheme that was introduced in 2009 has proven itself to be an innovative financing product that is both cost effective and efficient since the turn-around-time is much faster and the approval rate is almost 100%. Hence, the SME’s can rest assured that they are in good hands in terms of speed & cost effectiveness.

6. We at CGC believe that SMEs would need to equip themselves with the dynamics and interconnectivity of different challenging environments in order to succeed. Hence, our products and services are specially customized, as part of our mandate to serve the SME’s by playing a key role in the SME ecosystem. Thus, we thrive on embracing current trends in order to be of better assistance to them.

7. The RHB Financial Supply Chain Portfolio Guarantee (FSCPG) fulfills the desired traits looked for and as such, the PG partnership that is forged today is an initiative we pursued in order to collaborate with RHB to expand the SME segment outreach in Malaysia.

8. I am also pleased to announce that our PG scheme has brought in the most contribution towards the growth of CGC in the past year, whereby a total of RM1.7 billion worth of financing with five (5) banks were approved. Through the guarantee, CGC has provided 12,000 financing products to SME’s, valued over RM4.5 billion to date. On an overall scale, a total of 8,225 financing to SME’s, valued at RM 3.4 billion was approved in the past year. As for the current year, we aim to grow our SME outreach via allocating RM4.0 billion to provide for 8,650 financing to SMEs.

Ladies and Gentlemen,

9. For CGC, innovation is a part of our DNA, as well as, a guiding force in our effort to provide the best products, services and support to the SME’s and our banks partners. Our collaboration with RHB Banking Group is a testimony of our interest in embracing innovation and venturing forth in the way we conduct our business. Allow me to share a quote from Thomas Edison, he said and I quote “I never perfected an invention that I did not think about in terms of the service it might give others – I find out what the world wants, then I proceed to invent.”

10. On this note, I would like to thank RHB Banking Group once again, particularly Yang Berbahagia Dato’ Khairussaleh and his team, for their support and trust in making this alliance come true. I am confident that our collaboration today shall give way to many more opportunities of working together in tandem with Malaysia’s SME outreach agenda.

Thank you very much for your kind attention and have a good evening ahead.

Wassalam.

Mohd Zamree Mohd Ishak

President / CEO

Credit Guarantee Corporation Malaysia Berhad

YBhg. Dato’ Agil Natt

Chairman, Credit Guarantee Corporation Malaysia Berhad

CGC’s Board of Directors

YBrs. Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests

Members of the Media

Ladies and Gentlemen,

Assalamualaikum w.b.t. Salam 1Malaysia and a very good morning.

1. It is my great pleasure to be here this morning to launch Credit Guarantee Corporation Malaysia Berhad’s Graduate Trainee Programme. Let me take this opportunity to congratulate CGC for this timely initiative. Indeed, the Government welcomes such corporate social responsibility (CSR) initiatives from the corporate sector.

2. I am very pleased to meet the young and bright talents who have been carefully selected to the inaugural programme by CGC. Allow me to congratulate you on your selection to the programme. I trust that you will benefit from the knowledge and internship under the programme.

3. I understand that CGC is staying true to its mandate of Powering Malaysian SMEs through the Graduate Trainee Programme. I was informed that, the handpicked graduates for the programme have an SME background. This seems to be a “perfect fit” as CGC has and continues to be in the forefront in SME development. I believe that these graduates with an SME background can better appreciate the issues and challenges faced by SMEs and will be able to contribute significantly to SMEs upon completing the programme.

4. As we all know, SMEs are important to the Malaysian economy. They account for 97% of total business establishments and contribute 59% to total employment, 19% of exports and 35% of the gross domestic product (GDP). This is why the Government continues to emphasise SME development and has taken several initiatives to raise their contribution to the economy. These initiatives include enhancing SME access to financing, building up their capacity and capability, promoting productivity and innovation, and encouraging SMEs to export. Under the SME Masterplan, the target is to raise their contribution to 41% of GDP, 25% of total exports and 62% of total employment by 2020.

Ladies and Gentlemen,

5. Graduate unemployment remains a pressing issue. A recent report by the Malaysian Employers Federation indicated the number of unemployed graduates at over 200,000. This suggests that the right jobs that are commensurate with tertiary qualification are not created in sufficient numbers for graduates even though the economy continues to achieve respectable growth. Furthermore, the unemployment rate is below 4% which is considered as full employment.

6. On the other hand, employers complain that our graduates lack communication skills especially English proficiency both in writing and speaking. The mismatch between industry requirements and qualifications and expectations of graduate jobseekers remains a persistent issue.

7. The Government has taken several initiatives to reduce this mismatch and to improve graduate employability. These include Skim Latihan 1 Malaysia or known as SL1M, the Graduate Career Accelerated Programme (GCAP), Industrial Skills Enhancement Programme (INSEP) and the Graduate Trainee Programme undertaken by several government entities such as Bank Negara Malaysia, the Securities Commission, Khazanah Malaysia, Multimedia Development Corporation, and now CGC. The learning of English language has also been given increased emphasis in schools and universities.

Ladies and Gentlemen,

8. Human capital is the most important asset of an organisation as well as the country. The dynamism, talent and potential of the workforce can be unleashed to drive greater growth of organisations and the nation. While the Government will continue to provide a conducive ecosystem for private sector activity to thrive, including development of human capital, employers must do their part in human capital development.

9. Employers should not seek the easy way out through job poaching or turning to foreign labour. They must instead train and retrain their workforce in line with changes in technology as well as provide better employment conditions to retain workers. Sufficient time must be given for job learning. In this regard, initiatives such as the Graduate Trainee Programme certainly go a long way to impart knowledge, skill and experience as well as enhance employability of graduates.

10. Employers should also be prepared to pay their workers better for performance and productivity improvement. In this regard, there is huge scope for better compensation of employees as the compensation of employees to GDP in Malaysia stood at 34.9% in 2015. In contrast, the level is much higher in advanced economies at 42.6% in Singapore, 44.7% in South Korea, 48.6% in Australia and 53.4% in the US. This means that employers must be prepared to pay more to their employees as we progress into a high-income and developed nation. The 11th Malaysia Plan targets to raise the compensation of employees to 40% to GDP by 2020.

11. It is pertinent to know that higher compensation of employees translates into increased purchasing power and spending which has a positive spillover impact on the economy. This will essentially benefit industries in terms of higher demand for their goods and services.

Ladies and Gentlemen,

12. These are challenging times for the Malaysian economy. A slowing China economy will affect our exports. Prolonged weak commodity prices, particularly crude oil will impact oil-related revenue to the Government. Volatile financial markets affect capital flows. Although a weaker ringgit benefits our exports, it also makes our imports more expensive. There is also the issue of the rising cost of living.

13. However, rest assured that the Malaysian economy remains resilient supported by sound fundamentals such as favourable labour market conditions, a strong financial system to support economic activity and healthy foreign reserves. The economy grew 5% in 2015 and remains on a positive growth trajectory. For 2016, the economy is forecast to grow between 4% and 4.5%. The sustainability of economic growth despite an increasingly challenging external environment is attributed to the measures taken over the years to enhance resilience and competitiveness of the economy. The transformation programme, in particular, the Economic Transformation Programme has resulted in increased private investment of 96.2% from RM101.3 billion in 2010 to RM198.7 billion in 2015 as well as created some 1.8 million job opportunities.

14. The Government will continue to pursue business-friendly policies to attract investment, while remaining committed to fiscal consolidation. The recent affirmation by Fitch Ratings of Malaysia’s sovereign rating at A- with a stable outlook is a testimony of the confidence in our management of the economy. The drivers for the rating include the recalibration of Budget 2016 to match lower crude oil prices and the Government’s firm commitment to stay the path of fiscal consolidation.

Ladies and Gentlemen,

15. As I mentioned earlier that these are challenging times for almost everyone. Seeking employment is not the only option for graduates. There are opportunities for graduates to be their own bosses by venturing into business. They can start small as entrepreneurs before progressing to SMEs and even up to public-listed companies. Nothing comes easy unless you are born rich. You must be prepared to work hard to build your own business. Today it is quite easy to start an online business.   You can quite easily start an online business at much cheaper costs. There are several Government agencies that can help you to venture into entrepreneurship either with access to financing or advisory service. These include MDeC, MARA, TEKUN and MaGIC (Malaysian Global Innovation and Creativity Centre).

Ladies and Gentlemen,

16. It is important for graduates to keep abreast of domestic and international developments. You need to be agile and adapt to rapid advancements in technology or changing requirements in the job. You need to be proficient in English. Like it or not, English is the language of commerce. A graduate jobseeker, who is proficient in English and other languages, will stand a better chance of getting the job.

17. I would like to once again congratulate CGC for undertaking the Graduate Trainee Programme. I hope more companies will emulate CGC’s initiative. I wish the graduates chosen for the programme every success. On that note, I am happy to launch CGC’s Graduate Trainee Programme.

Thank you.

Yang Berhormat Datuk Johari Abdul Ghani

Deputy Minister of Finance

CGC’s Board of Directors

Yang Berusaha Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and good morning.

I would like to take this opportunity to thank Yang Berhormat Datuk Johari Abdul Ghani for taking time off his busy schedule to be with us this morning to officially launch our very unique Graduate Trainee Programme. We are indeed deeply honoured to have your presence again today. Yang Berhormat Datuk Johari was also kind enough to launch our BizWanita program back in October last year.

Ladies and Gentlemen,

Today we are officially launching a unique CSR initiative.

In the spirit of helping talented people to succeed in life, CGC has developed a unique and exclusive Graduate Trainee Programme or GTP. It is unique and exclusive, not only because it is different from other graduate trainee programmes that are initiated by other companies but simply because the trainees must be from an SME background – either their parents or relatives must be operating a SME business or working for an SME. This is one of the main criteria to be selected, which makes CGC’s Graduate Trainee Programme distinctive and different from the rest.

Ladies and Gentlemen,

Our Graduate Trainee Programme is a part of our many initiatives in nurturing the 2^nd generation of the SME populace. The main objective of this programme is to improve the marketability and employability of unemployed graduates by providing them with on-the-job training opportunities so that they could acquire career enhancing skills and experience. The important thing about this program is that as a preliminary step, it will prepare them well to achieve their long-term career goals.

I am pleased to inform that we have on board 10 trainees who have joined us in the last two months. They were selected from amongst 600 applicants. All of them have an association with SMEs either their parents or relatives are operating and/or working in SMEs. During the year-long training programme, the trainees will be attached to various departments in the Business Division and upon successful completion of the program, we are confident that the trainees will be able to secure job opportunities in companies and organisations that require their skills and expertise. From the feedback I have received, they are all coping very well in the daily trainings and interactions with their fellow colleagues at the Business Division.

There is a phrase in Bahasa Malaysia, “Melentur buluh biarlah dari rebungnya”. This is indeed very true in terms of cultivating good values at a very early age to ensure that there is fundamental growth of our talents, which in return, will guarantee our future development. This would further strengthen CGC’s role in achieving its vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs, both directly and indirectly.

Dear trainees, we are proud to have initiated this training programme especially for you. We are happy to have you on board and hope that you will use this exclusive opportunity to learn as much knowledge and skills by actively participating in our training programmes. This would serve as a platform for you to gain the much-needed experience and knowledge in equipping yourself for future career development. At the same time, I also hope that you will become excellent ‘ambassadors’ of our Graduate Trainee Programme and help to spread the good word of this special initiative undertaken by CGC. Who knows, you yourselves, especially those inclined to do business, may set up a small business in the future and with this attachment, you can understand CGC better and avail yourselves to some of our product offerings.   This is our small way of contributing back to the SME community to which we owe our existence.

Ladies and Gentlemen,

I would like to now briefly touch on our business. It is a well-known fact that SMEs in Malaysia are the engine of the nation’s economic development and growth. In relation to this, CGC has proactively undertaken measures to ensure that we remain relevant in playing our role as the driving force for SMEs by offering innovative products and financing options. In 2015, we have approved 8,225 financing facilities valued at RM 3.4 billion and are targeting to approve about 8,650 facilities valued at RM4 billion for 2016. These targets will be achieved primarily through our strategic alliances with financial institutions via the Portfolio and Wholesale Guarantee as well as through our other shared-risk schemes. On our outreach to the Bumiputera SMEs, we will continue to leverage on our direct-financing products and the Tabung Projek Usahawan Bumiputera (TPUB-i), a product specifically designed to assist Bumiputera SMEs who lack the working capital to finance their projects or contracts that they have secured.

Ladies and Gentlemen,

On that note, I would like to thank Yang Berhormat Datuk Johari Abdul Ghani, the Deputy Minister of Finance for his unstinting support towards our initiatives which are aimed at supporting the national SME development agenda and in our own way, support the human capital development. We also appreciate your kind presence this morning to officiate CGC’s Graduate Trainee Programme. To the members of the media and guests, thank you for being with us to witness the launch of CGC’s Graduate Trainee Programme.

Thank you and have a great day ahead.

Wassalam.

Dato’ Agil Natt

Chairman

Credit Guarantee Corporation Malaysia Berhad

Launch of CGC’s Graduate Trainee Programme (GTP)

26 February 2016

Salam Sejahtera – Wen Hou

En. Ho You Meng

Penasihat, Pertubuhan Rumah Warga Tua Anning

En. Mok Soon Sang

Naib Presiden, Pertubuhan Rumah Anak-Anak Yatim & Warga Tua Anning

Rakan sekerja saya dari CGC,

Adik-adik, Tuan-tuan dan Puan-puan sekalian,

Pertama sekali, izinkan saya mengucapkan terima kasih kepada pihak pengurusan Rumah Kanak-Kanak Yatim dan Miskin & Warga Tua Anning di atas kesudian anda memberi peluang kepada CGC bagi menjalankan program kami bersama anda pada petang ini.

Saya dengan besar hati mengalu-alukan kehadiran anda semua ke Program Amal CGC bersempena perayaan Tahun Baru Cina yang akan tiba tidak lama lagi. Program ini merupakan salah satu inisiatif Tanggungjawab Sosial Korporat (CSR) untuk menghulurkan bantuan kepada warga komuniti, dari segi kewangan mahupun bantuan barangan keperluan.

Saya difahamkan bahawa hanya sebahagian dari adik-adik dapat bersama kita pada petang ini kerana yang lain sedang menghadiri sekolah pada sesi petang. Walau bagaimanapun, saya amat teruja dengan kehadiran adik-adik yang dapat hadir kerana kita pasti dapat bersuka-ria dan menikmati acara yang telah diatur pada petang ini. Jangan bimbang ya adik-adik, kami telah menyediakan beberapa aktiviti menarik untuk adik-adik. Tidak lupa juga kepada tuan-tuan dan puan-puan, kami juga telah aturkan aktiviti yang pasti menghiburkan semua.

Pada hadirin sekalian,

Pada hari ini, kami berhasrat untuk berkongsi bersama anda satu pengalaman manis yang sukar dilupakan dan kami warga kerja CGC amat terharu kerana dapat meluangkan masa bersama adik-adik serta tuan-tuan dan puan-puan sekalian melalui aktiviti serta acara yang akan diadakan pada petang ini .

Kami berharap kehadiran kami dapat membawa kegembiraan dan kemeriahan suasana kekeluargaan dikalangan anda semua dalam menyambut ketibaan perayaan tahun baru yang mendatang.

Para hadirin sekalian,

Tahun Baru Cina merupakan antara perayaan utama yang disambut diseluruh negara. Sebagai rakyat Malaysia yang hidup dalam masyarakat muhibbah dan berbilang kaum, adalah penting untuk kita saling menghormati antara satu sama lain. Kami di CGC berharap agar perayaan Tahun Baru Cina pada tahun ini membawa  kegembiraan, kemakmuran serta kehidupan yang sihat dan panjang umur.

Boleh saya bertanya kepada adik-adik sekalian, haiwan apakah yang mewakili tahun zodiak cina pada tahun 2016 ini? Mesti adik-adik tahu kan? Saya ada hadiah “surprise” untuk sesiapa yang dapat jawab dengan tepat.

Cepat-cepat…siapa cepat dia dapat.

Jawapan: tahun Monyet.

Ini hadiahnya untuk adik (to hand over chocolate)

Baiklah…Para Hadirin Sekalian,

Saya dan seluruh warga CGC berharap agar sumbangan kami ini akan sedikit sebanyak dapat memberi keselesaan dan membantu menyalurkan keperluan asas bagi warga Rumah ini.

Sekali lagi, saya ingin mengambil kesempatan ini untuk merakamkan penghargaan kepada Rumah Kanak-Kanak Yatim & Warga Tua Anning bagi sokongan mereka dalam menjayakan program amal ini bersama warga kerja kami di CGC.

Ucapan terima kasih juga kepada wakil media bagi kehadiran dan sokongan anda di program amal kami pada hari ini.

Dengan ini, saya mengucapkan ‘Gong Xi Fa Cai’ kepada warga Rumah Anning dan para hadirin sekalian yang akan menyambut Tahun Baru Cina yang bermula pada hari Isnin, 8 Februari nanti. Semoga tahun ini akan membawa seribu kebaikan kepada anda semua.

Sekian,

Xīnnián kuàilè (Happy New Year) & Xièxiè (Thank You)

Y.Bhg Dato’ Agil Natt

Chairman, Credit Guarantee Corporation Malaysia Berhad

Mr. Innocent Bulindi

Chief Executive Officer, Business Development Fund of Rwanda (BDF)

Distinguished Guests,

Fellow Colleagues,

Ladies and Gentlemen,

Assalamualaikum and a very good morning to all.

On behalf of CGC Malaysia, may I extend our warmest “Selamat Datang” or “murakaza neza – Moorahkahzah Nayza” to Mr. Innocent Bulindi and his delegation from BDF. We are honoured with your presence and are pleased to host the Memorandum of Understanding (MoU) signing ceremony today between BDF Rwanda and CGC Malaysia, which we hope will bring immense benefits to the SMEs and also to the people of Rwanda.

We are proud yet humbled that BDF has chosen to work with CGC, a subsidiary of the Central Bank of Malaysia to provide the necessary support required to develop suitable credit guarantee framework which will enhance the lending mechanism for SMEs in Rwanda. We understand that BDF’s objective is to position itself as a recognised body which facilitates SMEs with access to finance. We are pleased that our expertise and assistance are acknowledged and sought after by BDF to assist with the development of credit guarantee framework to facilitate SME growth at all stages of their business cycle and also in the product development to address SMEs specific financing needs.

Through this MoU, we hope to assist BDF in achieving its mission to create an enabling financial environment for SMEs to gain access to financing from the lending institutions and indirectly contribute to the overall development and well-being of the people of Rwanda. As discussed and agreed, we will provide hands-on knowledge sharing experience and we welcome our friends in BDF to CGC.

Ladies and Gentlemen,

CGC through the years had undertaken a number of similar initiatives and had supported several international DFIs. This is part of our agenda to support not only the growth of SMEs in Malaysia but also SMEs in the other regions through strategic collaborations. The international organisations that we have collaborated with include the Korean Credit Guarantee Corporation as far back as in 1989, to the more recent ones in the new millennium which includes the Credit Guarantee Fund of Mongolia, Small Business Development Corporation of Papua New Guinea and The Central Bank of Timor-Leste.

Ladies and Gentlemen,

As you are aware, SMEs are the engines of economic growth. At the core of the Malaysian economic system are the vibrant SMEs as the backbone of economic activities. The SMEs play a critical role in ensuring a balanced growth and shared prosperity as our country transitions into a high value-added and high-income economy. As a leading credit guarantee institution in Malaysia, CGC has been instrumental in nurturing thousands of SMEs especially those that do not have collateral and track record, to gain access to financing with the more established lending institutions in particular the commercial banks. Our guiding principle over the past 43 years is to assist potentially viable SMEs to secure financing to start or expand their businesses through our guarantee mechanism and innovative direct financing products. We have been quite successful as we have to date availed more than 430,000 financing valued over RM56 billion (about USD13.1 billion) benefitting 315,000 SMEs.

As the SME community evolves and becomes more diverse and complex, so do their needs and in this regard, we are constantly required to innovate its products to meet these changing needs. The development of our products and services had mirrored Malaysia’s economic development and the increased complexity of our SMEs. This is evident in the long list of schemes and direct financing products that we had developed and introduced over the years.

Ladies and Gentlemen,

Of late, I find that many are too focused on their own objectives that they forget to look at the bigger picture and also forget about what goes on around them, mainly the local community and society at large in their respective countries. However, it is pleasing to see that BDF is very much in touch with the needs of the society and is socially responsible. A clear example of what I have just mentioned is their efforts in giving back to the society through the social development programmes for Rwanda which includes their assistance to an orphanage in Rwanagana and a special programme of finance literacy and entrepreneurship for the women folk of the city of Kigali. Women and youth play an important role in the economic development of a country. Therefore, we must ensure that they are given adequate assistance for their personal development and well-being and also help them realise their full potential. We too have launched a similar initiative to empower women in Malaysia. This initiative was in the form of direct financing for women entrepreneurs. This gender specific product was launched to encourage more women to get into business and empowered through financial independence.

Ladies and Gentlemen,

As I have mentioned earlier, we hope to be of assistance to share our relevant experience and expertise to BDF. We hope that our collaboration will create a positive and desired impact on the SMEs and the people of Rwanda.

Once again, thank you for choosing CGC as your collaboration partner to learn and acquire the knowledge and expertise in developing and managing credit guarantee mechanism to enhance SMEs access to financing and nurture their growth. I would like to end with a quote from Henry Ford who was a very successful entrepreneur of his time, who said “Coming together is a beginning; keeping together is progress; working together is success”.

On that note, I wish the best for both BDF and CGC on our future endeavours. My team and I look forward in giving our full support in making our collaboration a success.

Thank you and have a pleasant day ahead.

Yang Berhormat Datuk Johari Abdul Ghani

Deputy Minister of Finance II

Yang Berbahagia, Datuk Muhammad bin Ibrahim

Deputy Governor, Bank Negara Malaysia

CGC’s Board of Directors

Yang Berusaha Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and good morning.

Allow me to take this opportunity to thank Yang Berhormat Datuk Johari Abdul Ghani for being with us at this momentous occasion to officially launch our new product, the BizWanita. I was made to understand from our President/CEO, En. Zamree that you had accepted our invitation soon after your visit to CGC a month ago. We appreciate your support and keen interest in CGC which will constantly drive us to work harder to help fulfill the Government’s SME development agenda.

I would also like to say a special welcome to Yang Berbahagia Datuk Muhammad Bin Ibrahim, Deputy Governor of Bank Negara Malaysia for gracing this occasion.

Ladies and Gentlemen,

CGC has played a very important role in SME growth and development in Malaysia. Our guiding principle has been and shall continue to be to assist viable SMEs to secure financing to start or expand their businesses. CGC has been reaching out to SMEs nationwide by providing guarantees and direct financing. We have been quite successful in this endeavour as we have availed our products to over 430,000 SMEs valued at over RM56 billion since our incorporation in 1972.

As the SME community evolves and becomes more sophisticated, so do their needs and in this regard, CGC has shown its ability to constantly reinvent itself to meet these needs. The development of our products and services had mirrored the economic development of the country and the increased sophistication of the SMEs.

The development of BizWanita is a natural step for CGC to reach out to a wider cross section of the SMEs, particularly women entrepreneurs in Malaysia who have contributed much to our national development, be it in the socio-political realm or in the economic sector.

BizWanita has been developed exclusively for women entrepreneurs with very attractive terms to assist them with their financing needs to start or expand their business.

The BizWanita product offers financing ranging from RM20,000 to RM300,000 with a financing rate as low as BFR + 0.20%, with financing tenures ranging from one (1) to seven (7) years. The BizWanita also complies with the Shariah principles for Islamic products under the Commodity Murahabah concept.

Ladies and Gentlemen,

On the subject of lending to women entrepreneurs, the experience of Grameen Bank in Bangladesh and research by the United Nations Development Programme have indicated that micro financing institutions prefer women borrowers for they have better repayment records. We take comfort from these experience and research, and we are confident that the women entrepreneurs whom we support would continue to live up to these standards.

Ladies and Gentlemen,

I am pleased to inform that we had a soft launch of BizWanita on 1^st October and since then, we have approved seventeen (17) loans valued at RM2.45 million. We have in our midst some of the BizWanita customers from across the country who will be receiving their Letter of Offer later this morning. May I take this opportunity to congratulate them and express my sincere appreciation to them for choosing CGC as their valued business partner.

I would also like to make a special mention to our past women entrepreneur customers who have now become a force to be reckoned with in the business world such as Datin Dr. Clara Chee, Chairman of the renowned Clara International Beauty Group Sdn. Bhd, and Datin Mina Cheah-Foong, the Franchise owner and Managing Director of Rampai Niaga Sdn. Bhd, the

franchise holder of Body Shop in Malaysia. Datin Dr. Clara Chee, please stand up so that we can honour you. We are extremely delighted to have been part of your success story and we look forward to help create more successful women entrepreneurs through BizWanita. May I also say “Ladies your success is our success”.

We have allocated an initial sum of RM30 million under the BizWanita financing facility and targeting to assist about 500 women entrepreneurs in the country. In line with our mandate to be an effective development financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs, CGC will continue to alleviate SMEs’ financing difficulties, with innovative products.

On this note, I would like to thank Yang Berhormat Datuk Johari Abdul Ghani, the Deputy Minister of Finance for his support towards our role in SME development in the country. I would also like to thank YB Datuk for taking time of your busy schedule to launch our new product this morning. I would also like to express our gratitude to Datuk Muhammad Ibrahim and Bank Negara Malaysia for their continued guidance, our customers and partners from the financial institutions for their trust and support. To the members of the media, thank you for being with us to witness the launch of BizWanita. We look forward to your continued support to all our initiatives.

Thank you for your kind attention and have a great day ahead.

Wassalam.

Dato’ Agil Natt

Chairman

Credit Guarantee Corporation Malaysia Berhad

Launch of BizWanita

30 October 2015

YBhg Dato’ Agil Natt

Chairman of Credit Guarantee Corporation Malaysia Berhad

YBrs Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Members of CGC’s Board

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Bismillahhirahmannirrahim

Assalamualaikum W.B.T and a very good morning to all of you.

Foremost, I would to like thank Credit Guarantee Corporation (CGC) for giving me the opportunity to be here on this blessed Friday morning to officiate the launch of BizWanita, a direct financing facility for women entrepreneurs.

SMES’ CONTRIBUTION TO THE NATION’S GROWTH

Ladies and Gentlemen,

1. Much has been mentioned about the importance of SMEs’ contribution to the nation’s growth and their pivotal role in strengthening the economy. The SMEs are not only considered as an agent of growth for the nation but also for the people and their livelihood. They are also vital to the nation’s aspiration to transform into a high income and a high value-added economy.

2. As a group, SMEs are a formidable force in the economy as it forms 97.3% of established businesses and provides employment to about 59% of the nation’s workforce. This contribution was recognised in the SME Master Plan where SMEs contribution to GDP is targeted to increase from 35.9% (as at 2014) to 41% by 2020.

3. This remarkable story of growth is supported by the expansion of financing to the private sector by the financial system. For example, in 1973, outstanding loans by commercial banks in Malaysia stood at RM5.5 billion. As at end of July 2015, total outstanding loans by banking system increased to RM1.4 trillion while the outstanding amount of SME financing stood at RM247.6 billion.
4. The increase in the number of successful businesses in the country will create a positive effect on our nation’s economic situation as it will also help achieve most of the objectives underlined in the SME Masterplan 2012- 2020. The SME Masterplan envisions to create globally competitive SMEs that will enhance wealth creation and the social well-being of the nation through four strategic goals. These goals include:

1. to increase business formation,
2. expand the number of high-growth and innovative firms

• raise labour productivity of SMEs by enhancing their skill sets to allow the businesses to be at par with global businesses and

1. to intensify formalisation for the promotion of growth and fair competition

Employment opportunities for the local market would also be on the rise, thus eradicating unemployment issues and social ills that accompanies it.

5. One of the paramount challenges indicated is access to financing. Governing bodies such as Bank Negara Malaysia have been focused in ensuring that SMEs have adequate access to financing. A paradigm shift can also be seen amongst the financial institutions in the business of SME financing. This can be seen in their strategies for interfacing with SME customers and enhancing the financial products and services offered to the SME sector.

CGC ACCELERATE GROWTH OF SMES

Ladies and gentlemen,

6. I had the opportunity to visit CGC recently and hear from Encik Zamree and his team on the achievements made by CGC over the last 43 years of its establishment. From a humble beginning in 1972, financing small businesses with loans ranging from RM5,000 to RM75,000, CGC has evolved with the changing economic landscape of the country and the SME sector.

7. Today, a large number of its loans approved range from RM100,000 to RM500,000 and I am made to understand that CGC also guarantees loans of up to RM50 million especially under the Government-backed schemes.
8. From what I gather, besides the guarantee facilities, CGC had also ventured into direct financing which had benefitted hundreds of new businesses especially the start-up segment. I am pleased to acknowledge here that it is a step in the right direction as there are pockets of new but potentially viable businesses that out of the banks’ radar for mere lack of collateral or track record.

9. The World Bank study – ‘Voices of the Poor’ asked 60,000 poor people around the world on how they may escape poverty. Their synonymous answer – both men and women who took part in the survey, pinned their hopes on starting their own business.

BIZ WANITA EMPOWERING WOMEN ENTREPRENEURS

10. With this, I applaud CGC, especially on their most recent effort in offering yet another direct financing product which is the reason why we are all gathered here today – the launching of Biz Wanita. This new product has been specifically designed for women entrepreneurs.

11. The conception of BizWanita was to support enterprising women across the nation who are planning to start or expand their business to the next level. In my opinion, I think that the unique factor of this product is that it does not only facilitates access to financing but also empowerment of women through business.
12. The same report also states that a number of factors have been identified as contributing to the slow growth of women-owned businesses, including institutional and regulatory issues, lack of access to finance, relatively low rates of business education or work experience, risk aversion, confinement of women’s businesses to slower growth sectors, and the burden of household management responsibilities.

13. As access to financing is repeatedly identified as one of the major concerns of women entrepreneurs, BizWanita is much welcomed in improving access to financing for women-owned businesses. Through various feedback and further understanding of women entrepreneurs’ financing needs, it was found that women are frequently the primary beneficiaries of microfinance.
14. While this type of support is undeniably important in the early stages, some women entrepreneurs still face challenges once their company expands and its financing needs exceed micro-credit ceilings. They may then be confronted with hurdles such as insufficient track record to avail much higher financing.

15. I am informed that CGC’s BizWanita offers financing from as low as RM20,000 to as high as RM300,000 which is a considerable amount. This will be helpful for women who are gearing up and taking their businesses to the next level. To further facilitate access to this facility and also to help them manage their cost of borrowing, CGC has waived the collateral requirement and offers financing rate as low as BFR + 0.20%.

16. Again, this is a commendable effort and I sincerely hope that more financial institutions will emulate CGC by offering financing options either directly or through CGC’s guarantee to further enhance women entrepreneurs’ access to financing and help them to succeed in their business ventures.

CONCLUSION

Ladies and gentlemen,

17. Besides education and health that are considered as key factors contributing to Malaysia’s success in empowering women, entrepreneurship is also equally important for advancing sustainable economic opportunities for women and facilitating their contribution to the economy.
18. The women-owned businesses constitutes about 19% of total business establishments in Malaysia ranging from micro to large enterprises encompassing areas like food and beverage, trading, plantation, fishery, construction, finance, stockbroking, oil and gas as well as information and communication technology.

19. Therefore, I strongly implore women entrepreneurs and those who have an interest in venturing into business to be bold and seize the opportunities that lay ahead to empower themselves.

20. On this note, I would like to once again take this opportunity to thank YBhg Dato’ Agil Natt, En. Zamree and his team for the kind invitation, enabling me to be part of CGC’s milestone achievement that marked a new chapter in the financing of women entrepreneurs.

21. I sincerely look forward to seeing more of such products and services introduced that are aimed at addressing the lack of financial access for the underserved segment of the SME ecosystem. With that, I wish CGC every success in “Powering Malaysian SMEs”.

Thank you.

Wabillahi taufiq walhidayah

Wassalamualaikum Warahmatullahi Wabaraktuh.

Bismillahirrahmanirrahim

Fellow members of the Board of Directors
Credit Guarantee Corporation Malaysia Berhad

Yang Berusaha, En. Mohd Zamree Mohd Ishak
President / Chief Executive Officer
Credit Guarantee Corporation Malaysia Berhad

Our valued partners from the Financial Institutions
Distinguished Guests
Members of the Media

Ladies and Gentlemen, 

Assalamualaikum w.b.t. and a very good afternoon.

On behalf of the Board of Directors, the Management and staff of CGC, I would like to extend my warmest welcome to our SME Supporter Awards presentation ceremony organised to honour our valued partners for their significant contribution towards SME financing. The award itself has gained prominence as one of the premier awards to be looked forward to each year which we are proud of having initiated it in 1995. I am glad to see some of the captains of the industry in our midst who have taken their time off from their busy schedule to attend and personally receive the awards. We are certainly honoured and appreciate their kind presence. 

Ladies and Gentlemen,

We had just concluded our 42^nd Annual General Meeting at noon today which went very smoothly. On behalf of the Board of Credit Guarantee Corporation Malaysia Berhad, I had reported on the overall performance which I am glad to share with you briefly. In 2014, CGC performed remarkably well in terms of our SME outreach. As SME outreach remains our primary focus, we have improved year-on-year on the number and value of loans approved to SMEs, approving 6,839 loans valued at RM3.2 billion in 2014 as compared with 2,368 loans valued at RM1.5 billion in 2013. It is a significant improvement representing 188% increase in terms of numbers and 105% in terms of value approved. I am also pleased to inform that it is the 5^th year of profitability for CGC, posting RM143.8 million of net profits in 2014.

Overall, it was a commendable performance which I would like to attribute to CGC’s determined and concerted efforts to continue reaching out to the SME segment particularly those that are largely underserved. We have recognised the need to be proactively responsive to the rising expectations of SMEs and as such, have stepped up our SME outreach efforts in product innovation, process simplification and forging of strategic alliances with financial institutions. Ultimately, our efforts are all geared towards helping the Government to achieve its SME development agenda, that is, for SMEs to play a bigger role in the economic growth of the country by increasing their contribution to GDP from 32% currently to 41% by 2020.

I am also pleased to acknowledge that our strategic alliance with valued partners played a very significant part in our positive SME outreach in 2014. With their confidence and active participation, we managed to seal several portfolio and wholesale guarantee deals, which made headlines in terms of the size of the deals sealed and breakthroughs in business financing. In total, CGC secured RM2.25 billion of portfolio and wholesale guarantee deals in 2014 benefitting about 5,000 SMEs in all economic sectors. 

Ladies and Gentlemen,

Besides these initiatives, CGC had also taken the initiative to facilitate Bumiputera SMEs’ access to financing from the financial institutions and also our direct financing schemes in line with the national Bumiputera development agenda. Financing was extended to potentially viable Bumiputera SMEs by enhancing the bank’s level of confidence in providing financing through the provision of higher guarantee coverage by CGC.

In line with our mandated role and our vision to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs, CGC has also moved to serve new business segments generally viewed as high-risk within the financial sector. We launched the BizMula-i, the direct financing Syariah-compliant scheme for the benefit of new businesses devoid of track records or collaterals, as they play an important role in supporting the country’s economic growth. The underlying principle of BizMula-i scheme is to encourage and nurture budding businessmen equipped with reliable business plans, satisfactory business insight and a high entrepreneurship drive. It was a bold initiative on our part to ensure that the operations of new businesses become successful.

We have also introduced the rebate mechanism on our guarantee fee as a reward to our customers for the timely repayment and good conduct of their loan account. By rewarding the right customers, we sent a clear message to our borrowers that it pays to maintain their loan/financing facility. The rebate incentive was initiated as one of the proactive measures by CGC to ease the cost of borrowing for the SMEs. The rebate mechanism received favourable response from the borrowers and other stakeholders. We have decided to continue rewarding our customers with good credit conduct to ease their cost of borrowing and also to create greater awareness of the importance of maintaining good credit track record as our ultimate objective is to promote a sound credit culture amongst the SMEs in the longer term. 

Ladies and gentlemen,

With the various initiatives undertaken, we have made significant inroads in financing a wide cross-section of SMEs in particular the under-served segment and the sectors that have been supported largely by the banks in the past. This has been made possible by our valued partners as we were able to leverage on their wide distribution network to improve on our SME outreach significantly.

Today, we will be honouring our valued partners shortly for their resolute support and commitment towards SME financing through our guarantee schemes. Together, they have contributed 64% of the total number of loans and 53% in terms of value approved by CGC in 2014. That is a significant contribution to our overall SME financing and I, on behalf of the Board of Directors, the Management and staff of CGC, would like to take this opportunity to convey our heartiest congratulations to all the winners.

It is our hope that these awards will foster a higher level of competition and inspire financial institutions to play a bigger role in SME development and be a catalyst for economic growth. Deserving and viable SMEs need our financing support to sustain their business whilst the Government requires our commitment and cooperation to complement its efforts to spur SME development.

On this note, I would like to once again congratulate all the winners. I am confident that together, we would be able to play a bigger and more effective role in SME development and bring about long-term benefits to our institutions and to all our stakeholders. With that, I would like to end my speech with this pertinent quote by Helen Keller, “Alone we can do so little; together we can do so much.”

Thank you for your kind attention and have a great day.

Wassalam.

25 May 2015

Yang Berbahagia Tan Sri Dato’ Azman Hashim

Chairman, AmBank Group

Yang Berbahagia Datuk Mohamed Azmi Mahmood

Acting Group Managing Director, AmBank Group

Yang Berusaha Ms Pushpa Rajadurai

Managing Director – Wholesale Banking Coverage, AmBank Group

Yang Berusaha Encik Mohd Zamree Mohd Ishak

President / CEO, Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good morning.

I would like to take this opportunity to thank Yang Berbahagia Tan Sri Azman Hashim for the warm welcome and for graciously hosting this Portfolio Guarantee signing ceremony today. It is a significant step forward undertaken by both AmBank and CGC in our endeavour to chart new frontiers in developing SME business.

Ladies and Gentlemen,

For nearly 43 years, CGC has been an integral part of Malaysia’s SME development. Our guiding principle has been, and continues to be “to perform as an effective financial institution dedicated to promoting the growth and development of competitive and dynamic SMEs”. As mandated, CGC has performed as an effective intermediary, bridging the gap between financial institutions and SMEs by providing guarantee on the financing facilities applied for by the SMEs. I must say that, we have been successful in this endeavour as we have approved close to 427,000 loans worth RM56.1 billion since inception in 1972.

CGC has been a traditional guarantee provider for small businesses in the past. With the changing economic landscape and activities, the financing needs of the SMEs have also changed drastically. This necessitated the need for us to “think out-of-the-box” and provide innovative financing solutions to further broaden our SME outreach. In this direction, CGC has explored and forged strategic partnerships with several leading financial institutions to provide customized products to suit the specific needs of their customers.  The PG deal that we are signing today is one of those initiatives relentlessly pursued by CGC to leverage on our partners’ distribution network and reach out to a wider cross section of SMEs in the country, particularly those in the high growth sectors such as healthcare, construction, wholesale and retail, automotive as well as oil and gas sectors.

Ladies and Gentlemen,

The Malaysian government greatly values SME development efforts undertaken by the private sector. Over the years, a series of policies and measures have been implemented to spur the growth and development of the SME sector. I am pleased to note that our PG collaboration with AmBank is targeted to benefit five (5) main industries namely the healthcare, construction, wholesale and retail, automotive as well as oil and gas, sectors. All these have  been identified, under the SME Masterplan 2012-2020, with growth potential and where Malaysia has both comparative and competitive advantages with a high multiplier effect. This initiative augurs well for the Government’s overall SME development agenda, as SMEs that currently represent 97.3% of Malaysian businesses are targeted to contribute 41% to GDP by 2020.

Through PG, CGC to date has provided guarantees close to  RM2.25 billion worth of SME loans, benefitting about 6,000 SMEs. Overall, CGC has provided guarantees and direct financing to about 6,800 SMEs in 2014, surpassing our targets by 21%. And this year, we are aiming to grow our SME outreach by allocating RM3.0 billion to benefit 7,800 SMEs via our array of products and services.

Ladies and Gentlemen,

The Portfolio Guarantee model that had been introduced 6 years ago has proven to be an innovative financing option that is both cost-effective and efficient as the turnaround time is faster and has an approval rate of almost 100%. Based on our experience, SMEs can be rest assured they are receiving the best financing options through our PG scheme. The needs of the SMEs are given special attention as the PG is always designed and customized to suit the financing needs of our bank partners’ customers.

For CGC, innovation will be a continuous effort as we endeavour to delight our customers and bank partners. On this note, I would like to thank once again, AmBank Malaysia Berhad, led by its Chairman, Yang Berbahagia Tan Sri Azman Hashim for his encouraging support and confidence in our partnership. I am confident that our collaboration today shall be the gateway for many more opportunities to work together for our mutual benefit and also for SME development in the country.

Thank you for your kind attention and have a great day.

Wassalam.

PG Signing Ceremony between CGC & AmBank

 24 April 2015

Y.Bhg. Dato’ Ooi Sang Kuang

Chairman

OCBC Al – Amin Berhad

Mr. Ong Eng Bin

Chief Executive Officer

OCBC Bank Malaysia

Tuan Syed Abdull Aziz Syed Kechik

Chief Executive Officer

OCBC Al – Amin Berhad

En. Mohd Zamree Mohd Ishak

President / Chief Executive Officer

Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests

Members of the Media

Ladies and Gentlemen,

Assalamualaikum W.B.T. and a very good afternoon.

I am delighted to be here at this ceremony today to reaffirm our commitment to further support the SME development agenda through the Wholesale Guarantee facility in collaboration with OCBC Al Amin Berhad. I am pleased to note that both parties are targeting to provide RM1 billion in wholesale guaranteeby end of 2015 and I am confident that we can achieve the target.

Ladies and Gentlemen,

CGC has been at the forefront of SME development since 1972. Over the years, we have managed more than 43 products catering to the specific needs of the SMEs in every sector of the economy.

We have been exploring and developing innovative financial solutions to further improve SME outreach and it has worked well thus far especially in financing smaller businesses. For the last 43 years, we have approved over 427,000 loan guarantees valued about RM56.0 billion.

We are proud to introduce yet another innovative product, the Wholesale Guarantee, which has proven to be an efficient capital management tool.  It helps to free up the necessary capital for  financial institutions to increase their lending capacity. Additionally, with better management of risks in SME financing via CGC’s various flexible guarantee mechanisms,  banks are able to provide increased financing support for the SMEs. This augurs well for the Government’s overall SME development agenda, as under the SME Masterplan 2012-2020,  SMEs, that currently represent 97.3% of Malaysian businesses, are targeted to contribute 41% to GDP by 2020.

Ladies and Gentlemen,

Since the inception of the first Wholesale Guarantee arrangement in April 2014, a total of RM500 million of financing have been availed, benefitting more than 2,000 SMEs in 2014. With OCBC Al – Amin’s commitment to deliver at least another RM500 million in 2015, another 2,000 SMEs are expected to benefit from this mechanism.

In 2014, we have provided guarantee and direct financing to about 6,800 SMEs, surpassing our targets by 21% and this year, we are aiming to grow our SME outreach to benefit 7,800 SMEs via our array of products and services.

I am pleased to inform that in order to cater to the needs of all SMEs from various sectors, we have products and services that can support SMEs applying for loans ranging from as low as RM20,000 to as high as RM50 million.

Ladies and Gentlemen,

Powering Malaysian SMEs is our tagline. In line with this, our priority is to enhance the viability of SMEs by enabling them to obtain the much-needed financing, as their success is vital to the future of our economy.

I would like to quote the late Finance Minister, Tun Tan Siew Sin, who  said this at the launching of CGC in 1972 “we should aim to reach a situation in which poverty or lack of capital is no bar to success in business or industry”.

Having quoted that, I have no doubt that our continued partnership with OCBC Al – Amin will bring much benefit  to viable SMEs.

On this note, I would like to thank OCBC Al – Amin for making this partnership a success. Together, we can do more for the SMEs and this is completely in line with the government’s initiatives to further develop this very important sector. I would also like  to personally thank Dato’ Ooi for being with us here today.

Thank you for your kind attention and have a great day.

Wassalam.

Bismillahirrahmanirrahim

Fellow members of the Board of Directors

Credit Guarantee Corporation Malaysia Berhad

Yang Berbahagia, Datuk Wan Azhar Wan Ahmad

President and Chief Executive Officer

Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

I am pleased to welcome you to Credit Guarantee Corporation Malaysia Berhad, and a special welcome to the winners of the Top SME Supporter Award for the year 2013.
Once again, we are truly delighted to be able to pay tribute to our valued partners for their dedication and continuous support towards SME financing.

CGC’s Top SME Supporter Award epitomises the Corporation’s significant and symbiotic collaboration with its strategic partners within the financial sector, to improve the bankability of SMEs and to promote financing access for all business sectors.

Ladies and Gentlemen,

According to Bank Negara Malaysia’s Annual Report 2013, SME financing remained strong with approvals registering double-digit growth in most of the loans extended to the trade, wholesale and retail trade and manufacturing. Financing to SMEs increased to 42.1% of total business financing as at the end of 2013. In fact, Malaysia has been ranked in the top box in terms of access to credit for five (5) consecutive years (2009-2013) in the ‘Doing Business Report 2013’ by the World Bank.

CGC’s efforts to improve access to financing for SMEs have been through innovative products and services and this has resulted in good SME outreach. The number of loans guaranteed in 2013 increased by 45% compared with the previous year. SMEs which benefited the most from the RM1.5 billion of financing extended comprised general businesses, manufacturing and agricultural sectors. The improvement on SME outreach was achieved largely through its strategic partnerships with participating financial institutions.

Ladies and Gentlemen,

Throughout the banking industry, there is rising recognition that financing SMEs is the way forward for financial institutions to contribute to the economy. Credit guarantee schemes have also been successful in maintaining the funding flow of many SMEs in the country.

Therefore, by continuously innovating and offering customised financial solutions to the SMEs, we are gradually reaching out to a wider cross-section of our SMEs especially the under-served segment that requires our attention and financial support.

SMEs’ success does not solely depend on financing. There are many risks for entrepreneurs. Entrepreneurs need not only good business ideas and financing, but also financial and business skills to accomplish growth prospects. Therefore, it is vital that we continually understand their needs and identify financial services which will foster productivity and SME growth and investments.

In this respect, CGC is proud to be affiliated with financial institutions which support SMEs to find the right business model, by extending the much needed financial resource to make business viable.

Today, CGC would like to honour three financial institutions for their steadfast dedication and continued support, namely Maybank, Standard Chartered Bank and Public Bank as they emerge winners of CGC’s Top SME Supporter Award 2013. Congratulations to all winners!

In view of some of the FIs consistently putting in their best efforts and demonstrating high level of commitment towards participating in our guarantee schemes, we may consider introducing a special award for ‘Best Effort’ to recognise them beginning 2014. With that, the FIs can now look forward to another CGC award to win in the coming years.

Ladies and Gentlemen,

We have come a long way, thanks to the concerted effort to build a flourishing SME sector. The key ingredient? We need to synergize and share best practices, to deliver complete access for financial services to support SMEs.

It is here, I would like to highlight and thank you all – our partners – for the collective lessons learned, improvised and innovative services and ideas, which supports the efforts to build sustainable SMEs.

Before I close, I would like to congratulate you on your many achievements, and I look forward to hearing of your continued success.

Thank you for your kind attention.

Bismillahirrahmanirrahim

Yang Berbahagia, Dato’ Muhammad bin Ibrahim

Deputy Governor, Bank Negara Malaysia

Fellow members of the Board of Directors

Credit Guarantee Corporation Malaysia Berhad

Yang Berbahagia, Datuk Wan Azhar Wan Ahmad

President and Chief Executive Officer

Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests,

Members of the Media,

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

Credit Guarantee Corporation Malaysia Berhad is delighted and honoured to host this inaugural Customer Appreciation Luncheon today, and I am very pleased and excited to welcome you to this gathering.

This gathering is to express our sincere gratitude to everyone, specifically our customers, for their trust and confidence in CGC, and for enabling us to deliver on our promise to provide not only financial access but also the many critical needs of the SME sector in the country.

Ladies and Gentlemen,

I am attracted to the quote by Jeff Bezos, the CEO of Amazon.com when he said, I quote: ”If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.”

Supporting SME development is a type of public engagement critical to the future of our enterprising communities. CGC’s policy in this area is to ensure that viable businesses are able to access financing from a range of financial institutions.

As many of you are aware, one of the biggest concerns of the SMEs is the cost of borrowing. To address this, CGC made a decision to offer rebates on our guarantee fee to our customers as a reward for timely repayment and good conduct of their loan account. This was a proactive measure undertaken under our 2014 business agenda, in light of the recent overall escalation in the cost of doing business.

I am proud to announce that the rebate mechanism was successfully implemented in January this year. To date, all of our customers who were eligible for the rebates, have received the rebates as high as 38%. Congratulations!

The borrowers eligible for the rebates were those who did not have any adverse record on their existing loan facility and their loan guarantees were active for a minimum of one and a half years.

We truly believe that by rewarding our customers, we are advocating that it pays for SMEs to service their loan facility in a timely manner, and ultimately leads to a healthy credit culture amongst the SMEs.

Ladies and Gentlemen,

Over the years, as the leading SME-support institution in the country, CGC has evolved together with our customers and within the financial sector, availing financing resources for those requiring our services.

We have robustly strengthened and diversified our delivery mechanism through our strategic partnership with bank partners. We have constantly asked, what can we do better and more, to continue to enhance the growth of SMEs in Malaysia.

This resulted in the introduction of a direct financing scheme BizMula-i, targeted at the under-served Start Up segment. This is a boost for the development of new businesses devoid of track records or collaterals.

BizMula-i will encourage and nurture budding businessmen, who are equipped with viable business plans, strong market as well as business insight and a high entrepreneurship drive to succeed.

New business owners, usually start their businesses with their own limited savings or money borrowed from family members and friends. In the initial years, they have to juggle their finances in order to keep the businesses going. When the businesses grow, they have to look for additional funding to finance additional machinery, factory or office expansion, inventory and working capital. Those who manage to obtain business loans will continue to progress while others are content to let opportunities slip by.

Once again, we step in to tackle the issue at hand – funding.

Ladies and Gentlemen,

As said by the famous author, entrepreneur and marketer Seth Godin, I quote, ”Don’t find customers for your products, find products for your customers”

Our goal is ensure that we do just that, and successfully fulfil and exceed the prospects before us in the coming years.

We hope that you have benefitted from our products and services, and we will continue to delight you with more products at reasonable cost, combined with greater and hassle-free access.

With that thought, I shall leave you and just again, thank you all for honouring us with your presence. I wish you all every success with your businesses in the future.

I would also like to express our heartfelt thanks and gratitude to the Deputy Governor for gracing the occasion and lending your support to this initiative.

Have a good day and thank you for your attention.

Bismillahirrahmanirrahim

Fellow members of the Board of Directors

Credit Guarantee Corporation Malaysia Berhad

Distinguished Guests

Members of the media

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good afternoon.

It gives me great pleasure to extend my warmest welcome to all of you to CGC’s Top SME Supporter Award presentation ceremony today. This is the 18th year and we are proud to be able to continue with this tradition of recognizing our most valued partners in the banking industry for their continuous support towards SME financing. CGC’s Top SME Supporter award exemplifies CGC’s continued effort and the close partnership it has forged with its banking partners for the greater benefit of the SMEs.

Ladies and Gentlemen,

2. Today, the financial institutions have the biggest impact on SME development in the country. It is one of the largest financiers as about 22% of the SMEs source their financing either from the banks, financial or micro credit institutions. According to Bank Negara Malaysia’s 2012 Annual Report, financing by banking institutions and development financial institutions to SMEs accounted for 40.5% or RM189.0 billion of total business financing. There is increasing focus by the banks with many having established dedicated units and resources to cater to SME financing. This augurs well for the SME sector as the SMEs not only have wide financing options or avenues to avail funding for their business but are also not hampered by lack of funds to grow and expand their business.

3. CGC, being the financial intermediary, had the benefit of leveraging on the financial institutions’ strong support and their wide branch network to improve its SME outreach. This was made possible by its close collaboration with many of the participating banks that have been very supportive of CGC’s strategic initiatives to improve SMEs access to financing in particular the marginal SMEs that are viable but lacked collaterals and track record. In recent years, CGC have also been conscientiously helping its borrowers to graduate from the guarantee mechanism and to gradually source their loans based on their own merit. This is being done via Credit Bureau Malaysia by capturing their credit history and track record to help them improve their creditworthiness and bankability. This has resulted in many of our borrowers becoming less reliant of the guarantee mechanism to fund their business, an ultimate objective for CGC.

4. As part of its financial sustainability agenda, CGC will continue to accord greater focus on guarantee as its core business. As you are aware, CGC has been stepping up its efforts to bring many more banks on board to guarantee loans on a portfolio basis. The Portfolio Guarantee has proven to be an effective delivery system to address SMEs’ concerns about lengthy processing and approval procedures involved. CGC has made significant progress in this regard and are confident that more financial institutions will embrace the proven-PG model as a way forward to avail CGC’s guarantee schemes to viable SMEs. The response from the financial institutions has been encouraging with one more bank coming on board in March 2013.

Ladies and gentlemen,

5. On the Top SME Supporter awards for Year 2012, we will be honouring three financial institutions under three main categories, namely the Commercial Bank, Top Bumiputera SME Supporter and the Best Financial Partner categories. The recipients were selected based on, amongst others, the number and value of loans guaranteed, number and value of loans to Bumiputera borrowers, guarantee fee collection as well as net income growth and rate of default. We are pleased to inform that three award recipients had contributed significantly to CGC’s performance, accounting for 25% or RM268 million of the RM1.1 billion of financing guaranteed by CGC in 2012. With the SME landscape expected to grow steadily and become increasingly vibrant with the emergence of new sectors identified under the Economic Transformation Plan (ETP) and key economic sectors, we hope to see greater participation by all financial institutions in our guarantee schemes.

Ladies and gentlemen,

6. On that note, I would like take this opportunity to congratulate all the award recipients. On behalf of the Board of Directors, the Management and staff of the Corporation, we express our sincere appreciation to the winners for your continuous support and participation in our guarantee schemes. It is our hope that the Top SME Supporter Awards will be a source of motivation and an inspiration to all financial institutions to play a bigger role in SME financing in the coming years.

My heartiest congratulations to all the award winners. Thank you.

7 May 2013

Mr. Steve Miller

Executive Vice President and Head of Business Banking, Alliance Bank

Distinguished guests

Members of the media

Ladies and Gentlemen,

Assalamualaikum w.b.t. and a very good morning.

It gives me great pleasure to extend a warm welcome to all of you. It is a very special occasion for both CGC and Alliance Bank as we have reached an agreement to collaborate our effort to further enhance access to financing for SMEs, in particular the smaller businesses.

Ladies and gentlemen,
2. As you are well aware, CGC has been at the forefront of SME development since 1972. We have managed more than 40 schemes catering to the specific needs of the SMEs in every sector of the economy. We have consistently been looking out for new ways to improve SME outreach and it has worked well thus far especially in the financing of smaller businesses. To date, we have approved more than 420,000 loan applications valued about RM51 billion.

3. The Portfolio Guarantee is another delivery system that we have developed to cater to the needs of SMEs. I am pleased to inform that every Portfolio Guarantee arrangement that we have put together so far, is developed exclusively to suit the needs of our banking partner’s customers. In addition to that, we have also automated certain processes under which several bureaucratic requirements were removed allowing for speedier processing and approval of loans. By doing so, we have addressed two of the major concerns of the SMEs, that is, long processing time and disbursement of funds.

4. I am also pleased to inform that the loan applications received under the portfolio guarantee were approved within three days with an approval rate of almost 90%. Since inception of the first portfolio guarantee arrangement in 2009, to date, we have provided guarantee in the amount of about RM605 million worth of loans through this delivery system benefitting about 2,700 SMEs. I am confident that the portfolio guarantee will continue to benefit more SMEs through collaborations such as this with Alliance Bank because risk is better managed on a portfolio basis, thereby ensuring better loan quality for both parties. As loan quality improves, borrowers that have built good track records would be able to “graduate” from the guarantee mechanism and be able to obtain loans directly from the financial institutions. This is the ultimate strategic outcome of CGC having fulfilled its mandated role in enhancing access to financing for SMEs in the country.

5. In essence, the Portfolio Guarantee initiative reflects our determination to further broaden our SME outreach. Over the years, it has proven to be an innovative method to assist the SMEs in obtaining access to financing faster. In line with this, we have made specific arrangement with Alliance Bank to support its effort to grow smaller scale enterprises. Under this special arrangement, Alliance Bank’s SME customers will have the benefit of availing loans at reasonable borrowing cost, uncomplicated loan structure and higher certainty in approval. A loan range of RM100,000 to RM300,000 offered under this arrangement is expected to benefit small businesses that form the majority of SMEs in the country. With the portfolio size of RM50 million, we are targeting to reach out to about 250 to 300 SMEs in all sectors. At this juncture, I would like to express our sincere appreciation to Alliance Bank for their trust and confidence in the long term benefits of this venture to both institutions.

Ladies and gentlemen,
With the signing of Portfolio Guarantee agreement between CGC and Alliance Bank, we now have on board five banks in total that have given CGC the ability to reach out to more SMEs and to play a much bigger role in SME development in the country.

On this note, I would like to thank Alliance Bank Berhad specifically to Steve Miller and his team for making this collaboration a reality. Together, I am confident that we would be able to enhance our contribution to SME development and also bring long-term benefits to both institutions. Last but not least, I would like to thank the team on both sides working tirelessly behind the scene to put together the formalisation of this collaboration.

Thank you for your kind attention.

Wassalam.

Credit Guarantee Corporation Malaysia Berhad
13 March 2013