CGC targets RM1.4b new financing

Credit Guarantee Corp Malaysia Bhd (CGC) is optimistic of disbursing RM1.4 billion in new financing for small and medium
enterprises (SMEs) by year-end.

Managing director, Datuk Wan Azhar Wan Ahmad, said although CGC would not meet its earlier target of RM2 billion, it was still able to promote the lending for SMEs by changing its target group to those whom banks were not willing to give loans such as start-up companies.

"Another thing that we have planned is to promote certain sectors to create greater access to financing for Bumiputera borrowers. That is our agenda," he told a media briefing after the signing of Islamic Portfolio Guarantee Agreement between CGC and Standard Chartered Saadiq today.

He said next year, CGC would actively participate in financing more Bumiputera SMEs in order to open a new access for them into new areas.

CGC was established in July 1972 to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities.

The corporation has cumulatively guaranteed over 420,000 loans valued at close to RM51 billion since its establishment.