– Malaysia’s first-ever Portfolio Guarantee (PG) agreement
signed to avail RM50million of financing for micro-enterprises-
From left: CGC’s Chairman, Dato’ Agil Natt, CGC’s President/CEO, Datuk Mohd Zamree Mohd Ishak, BNM’s Director of Development Finance and Enterprise, Marina Abdul Kahar, Malaysia’s Deputy Finance Minister I, YB Dato’ Wira Othman Aziz, BSN’s Deputy Chief Executive, Kameel Abdul Halim and BSN’s Chairman, Ybhg. Tan Sri Abu Bakar Hj. Abdullah.
Credit Guarantee Corporation Malaysia Berhad (CGC) and Bank Simpanan Nasional (BSN) have penned a Portfolio Guarantee (PG) agreement in January 2017 to avail up to RM50 million of financing to micro-enterprises. This is the first-ever PG in Malaysia in support of the micro business segment.
Under the PG scheme, micro enterprises can apply for either Islamic or Conventional financing facilities from BSN, from a minimum of RM5,000 up to a maximum of RM50,000 and at a fixed tenure of five years. CGC will provide guarantee of up to 70% of the approved financing amount by the Bank via its Portfolio Guarantee scheme.
CGC’s President / Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said this agreement marks CGC’s first collaboration with BSN to support micro business segment in the country. “We are committed to address the challenges faced by this segment and are confident that our collaboration with BSN will not only create additional financing facilities but also financing avenues through its extensive network nationwide.”
Zamree said that through this joint effort, CGC is targeting to reach out to about 2,500 Bumiputera and non-Bumiputera micro businesses throughout the country. ‘We are confident of achieving this target as this PG is tailored to suit their business needs in terms of financing amount besides speed of approval and disbursement,” he said. “Importantly, this partnership provides a convenient way for micro businesses to gain access to financing.”
“We are looking at exciting times ahead through our partnership with BSN as the significant step taken today will open many more gateways and opportunities for both parties to join hands in uplifting micro enterprises to another level,” said Zamree.
As an intermediary dedicated to SME development, CGC remains committed to improving its SME outreach through its various programmes and initiatives undertaken to serve the needs of SMEs through financial and other advisory support services more effectively.
Since its inception in 1972, CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.6 billion.
Meanwhile, BSN Chairman, Tan Sri Abu Bakar Abdullah said, “the collaboration with CGC today, demonstrates our unified effort in providing financial assistance to eligible and viable Micro Enterprises and help spur their transformation progress into SMEs”.
“As our vision roars No Malaysian Left Behind, we promise that we will provide a better life for our customers. I truly believe that this collaboration will strengthen the quality of the borrowers at the same time on a bigger agenda would allow BSN to assist more micro borrowers and ultimately help to stimulate the economy of the country. Championing the financial inclusion initiative is part of our mandated role to ensure and provide prudent banking accessibility to the relevant micro finance borrowers”.
The partnership agreement was signed by CGC’s President / CEO, Datuk Mohd Zamree Mohd Ishak and BSN’s Deputy Chief Executive of Strategy and Communications, Kameel Abdul Halim. It was witnessed by the Deputy Finance Minister I, YB Dato’ Wira Othman Aziz, CGC’s Chairman, Dato’ Agil Natt and BSN’s Chairman, Tan Sri Abu Bakar Hj. Abdullah.
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Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5 July 1972 and it is 78.65% owned by Bank Negara Malaysia and the remaining 21.35% owned by various commercial banks in Malaysia.
The core business of CGC is to assist SMEs, especially those with inadequate or without collateral and track record, to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has availed over 444,700 guarantees and financing to SMEs valued over RM63.6 billion since its establishment.
Currently, seventeen (17) Commercial Banks, fifteen (15) Islamic Banks, and seven (7) Development Financial Institutions (DFIs) are participating in CGC’s guarantee schemes in providing financing to customers through a wide network of more than 2,600 branches nationwide to avail financing.
BANK SIMPANAN NASIONAL (BSN)
BSN endeavours to give all Malaysians an equal opportunity to pursue a better and more promising financial future, and be their gateway to better lives. To achieve this, the bank leverages its expertise and experience of financial inclusiveness, supported by a comprehensive product and service range delivered through multiple touch points in all areas of the country.
Founded in 1974, BSN currently has more than 7,200 employees, 403 branches, 734 Automated Teller Machines (ATMs), 401 Cash Deposit Machines (CDM) and more than 6,900 Registered Banking Agents (Ejen Bank BSN) or EB BSN across the country. BSN has over 9.1 million customers across Malaysia with retail deposits amounting to RM14.8billion. (As of November 2016).
BSN offers a range of savings, wealth management, business and personal financing and card products both in conventional and Islamic banking.
For more information about BSN, visit the website at www.mybsn.com.my