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 microenterprises. This is the first-ever PG in Malaysia in support of the micro business segment.
Under the PG scheme, microenterprises 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 PG scheme.
CGC’s President & Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said this agreement marks CGC’s first collaboration with BSN to support the microbusiness 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.”
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, demonstrates our unified effort in providing financial assistance to eligible and viable microenterprises and help spur their transformation progress into SMEs”.