by ANIS HAZIM / pic HUSSIEN SHAHARUDDIN
CREDIT Guarantee Corp Malaysia Bhd (CGC) is projected to offer RM5 billion guarantees for small and medium enterprises (SMEs) this year driven by the bank’s higher lending rates.
CGC president and CEO Datuk Mohd Zamree Mohd Ishak said that the projection is achievable and could reach more as the corporation has issued RM2.3 billion guarantees during the first half of 2022.
From April 2020 to June 2022, CGC has offered a total of RM13.2 billion guarantees for SMEs, of which RM6.1 billion was for the Special Relief Facility (SRF) and Target Relief and Recovery Facility (TRRF).
Another RM5.6 billion for the Portfolio Guarantee/Wholesale Guarantee schemes.
In 2021 alone, CGC issued a total of RM6.1 billion guarantees, higher than the RM5.9 billion guaranteed in 2020.
CGC chief business officer Leong Weng Choong said that the company has completed a number of guarantees under the SRF and TRRF.
“As for post-Covid, we are working with the banks to provide guarantees to help SMEs to go on revival mode and move towards the next phase,” Leong said in a press conference in conjunction with CGC 27th Financial Institution/Development Financial Institution and SME Awards 2021 on Friday.
He noted that lending for this year would likely be mainly applied by SMEs in the retail sector.
Over the last two years, CGC has been working strongly with its financial institution (FI) partners to provide SMEs with access to the various schemes provided by the government and Bank Negara Malaysia (BNM) to help them restart and rebuild during the pandemic.
“Whilst the green shoots of recovery have blossomed for some, many SMEs are still struggling to rebuild and scale up their businesses. Some are even still struggling to restart their business,” Mohd Zamree said.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz who was also present at the award highlighted in his keynote address that a strong MSME sector could strengthen the Malaysian economy.
“A concerted effort must be made to improve MSMEs’ knowledge, digital capabilities and collaborations with the innovator community such as multinational corporations (MNCs) and academia to help MSMEs’ build better offerings,” said Tengku Zafrul.