By LYDIA NATHAN
Credit Guarantee Corp Malaysia Bhd (CGC) has targeted to seal RM4.7 billion worth of guaranteed loans with 9,500 small and medium enterprises (SMEs) this year.
CEO Datuk Mohd Zamree Mohd Ishak said the projection is part of the company’s aim to be a household name for financial assistance among SMEs by 2020.
He said the target is also achievable based on the booming infrastructure business that is currently taking place in Malaysia.
“There are several major infrastructure projects that are ongoing, including the Pan Borneo Highway and the East Coast Rail Link worth RM55 billion.
“Closer to the Klang Valley, we have the Light Rail Transit Line 3. There is more room for small contractors to be involved and CGC is very much involved in financing small contractors,” he said after the launch of “CGC SME Apprentice Scheme” yesterday.
As of June 30, 2017, CGC achieved 44% of the targeted amount of RM4.7 billion in guaranteed loans.
“For the first-half of this year (1H17), we targeted RM2.35 billion worth of financing for SMEs, but only achieved RM1.5 billion, with 3,103 guaranteed loans.
“Despite the economy growing for 1H17, we have met with challenges partly due to people being more cautious of making financial commitments, but we will remain positive,” Mohd Zamree said.
The apprentice scheme offers a long-term advantage to CGC as it will provide on-the-job training skills to unemployed Technical and Vocational Education and Training (TVET) students all over the country.
CGC chairman Datuk Agil Natt said by providing training opportunities for TVET graduates, more students will undertake studies at TVET colleges and eventually become entrepreneurs by starting their own SMEs.
“The screening process started late in the third-quarter last year, and we had 800 applications from TVET graduates. Out of the 69 SMEs that applied, 30 were shortlisted. In the end, we picked 10 TVET students and 10 SMEs who were very committed,” he said.
Under the scheme that was launched by Deputy Minister of Youth and Sports Datuk M Saravanan, CGC will pay 90% of the costs, including monthly salaries, employment benefits and statutory contributions, while the remaining 10% will be borne by participating SMEs.
The group will be spending more than RM500,000 to undertake the apprentice scheme.
The 10 participating SMEs are located in Johor, Kelantan, Pahang, Sabah, Sarawak and Selangor, involving in businesses such as construction, green technology, laundry services, human resources, IT solutions and oil and gas industry.