Latest news with #CreditGuaranteeCorpMalaysiaBhd
The Star
23-07-2025
- Business
- The Star
CGC targets mid-tier companies to provide ease of access to bank loans
KUALA LUMPUR: Mid-tier companies (MTCs) – often overlooked in the financing landscape – are getting a targeted boost through an enhanced credit guarantee scheme by Credit Guarantee Corp Malaysia Bhd (CGC), designed to ease their access to bank loans, especially for growth-stage firms lacking collateral. Launched on Feb 25, the BizJamin/-i MTC scheme is CGC's dedicated programme for MTCs, offering credit guarantees of up to RM20mil per customer with total group exposure limit of up to RM60mil. The scheme supports a wide range of facilities, including term loans, trade lines and revolving credit, with guarantee cover of up to 80% and tenures of up to 15 years. In a recent enhancement to the scheme, CGC provides guarantee for unsecured financing of between RM1mil and RM5mil – a move aimed at further easing access to funding for growth-stage MTCs that may lack sufficient collateral. 'MTCs often operate as the unsung heroes of our economy,' CGC chief business officer Sean Tan said at the CGC mid-tier momentum 2025 forum yesterday. MTCs – defined as entities generating between RM50mil and RM500mil in revenue for manufacturers, and RM20mil to RM500mil for service providers – represented only 0.8% of all registered businesses and they contributed 36% of Malaysia's gross domestic product. 'Many are on the cusp of regional or international expansion, yet they frequently encounter hurdles in scaling up, especially when it comes to accessing adequate financing,' he said. To address this, he said CGC launched the BizJamin/-i MTC scheme which is backed by 28 financial institutions. 'This is about enabling access, particularly for those in the 'missing middle' –companies too large for typical small and medium enterprise schemes but not yet sizeable for corporate credit standards,' Tan pointed out. Malaysian Consortium of Mid-Tier Companies honorary president Callum Chen said the financing gap remains a key barrier for MTCs to grow. 'MTCs need more support. The myth is that MTCs don't need support,' he said. 'Without the funds, without the support from the banks, how can we grow?' According to Chen, a scheme like this not only helps mid-tier businesses, but creates ripple effects across the broader economy. 'When mid-tier companies expand, we bring in more foreign exchange, create more employment and pay more taxes,' he said. Meanwhile, Federation of Malaysian Manufacturing vice-president Datuk Noraini Soltan said the capital-intensive nature of the manufacturing sector makes access to financing critical – not just for efficiency, but also to stay competitive globally. 'Many of our members are exporters. They need improved access to affordable financing to initiate environmental, social and governance or ESG efforts to meet supply chain compliance,' she said during a panel discussion titled 'Innovative financing: Leveraging bank and CGC support for business growth'. 'They're ready to do their part, but lack the financial muscle to get started.' She called for financial tools tailored to MTC profiles and simplified access frameworks. 'Working capital is currently under severe strain. Leveraging CGC's guarantee scheme can be transformative – especially for companies investing in sustainability or gearing up for future shocks.' CIMB Bank Bhd group commercial banking head of SME banking Jaya Balan Kathiravalu said mid-tier companies, while not often discussed, are very much part of the banking ecosystem. 'If you look at the SME setup, we talk about micro, small and medium – but there's still a portion we don't talk a lot about, which is the MTCs. And that's actually a big 25% to 30% for banks,' he said. He added that banks are already organised to support the segment. 'Within the bank, we have dedicated teams for micro, small, medium and large businesses. So there's no shortage of focus in driving growth across all core segments. 'For the country to grow, all portions of the business must grow as an ecosystem,' he said, adding that businesses should also invest more in research and development to stay competitive and avoid losing market share. Bank Islam Malaysia Bhd group institutional banking director of commercial client solutions Ahmad Haliman Abdul Halim said the current environment offers a reset moment for MTCs. 'We see this not just as a hurdle but a catalyst for MTCs to strengthen resilience and pursue new purpose-driven growth,' he said. 'That includes investing in digitalisation, ESG compliance and operational excellence to move up the value chain.' CGC, established in 1972 to assist micro SMEs with inadequate or without collateral to get loans from banks by providing guarantees, is 78.65%-owned by Bank Negara and 21.35% owned by the commercial banks in Malaysia. As of June 2025, CGC has provided over 540,000 guarantees and financing to MSMEs valued at over RM100bil since its inception.
The Star
19-05-2025
- Business
- The Star
Malaysia's top exporters to be honoured tomorrow
PETALING JAYA: Tomorrow night (May 20), Malaysia's most dynamic exporters will be honoured at the fifth edition of the Export Excellence Awards (EEA) – an event that celebrates not just trade performance, but also innovation, resilience and global ambition. The EEA has evolved into a platform that highlights how Malaysian businesses are navigating shifting global dynamics and raising their competitiveness on the world stage. The panel of eminent judges, drawn from both government and industry, was impressed by the quality and breadth of submissions. Credit Guarantee Corp Malaysia Bhd bumiputra development and products senior vice-president Mohamed Azman Mohamed Taufik said the calibre of finalists this year stood out, showcasing the country's most innovative and resilient exporters. 'These companies demonstrate cutting-edge solutions, global competitiveness and a commitment to sustainability – reflecting the dynamism of Malaysia's trade sector,' he said. Investment, Trade and Industry Ministry deputy secretary-general (trade) Mastura Ahmad Mustafa welcomed the diversity of participants. 'I am very happy with the wide range of the finalists, from small and medium enterprises (SMEs) that are just embarking on their export journey, to well-developed companies that already have international footing.' Adding to that, Malaysia External Trade Development Corp (Matrade) strategic planning division senior director Raja Badrulnizam Raja Kamalzaman said sustainability featured prominently in many of the submissions. 'What stands out a lot is their emphasis on adopting sustainable practices in most of their operations, and not only for themselves but also ensuring that suppliers also align with their policies.' He also underscored the role of innovation in driving long-term growth. 'You cannot stay the same all the time. If you don't innovate, you'll never get ahead of the have to maintain consistency and quality, and that's the role that innovation should play.' Drawing from his experience working closely with SMEs, Mohamed Azman highlighted the strengths he observed among this year's shortlisted smaller exporters. 'One common thing that I found out is that they have original solutions – unique products or services they have created that can be commercialised and exported with high global standards.' Meanwhile, Mastura encouraged companies to step forward and take part in awards like the EEA, noting that the process enables businesses to reflect on their strengths and benchmark themselves against peers. This year's strong display of resilience and innovation among Malaysian exporters has also been deeply meaningful to Standard Chartered as a cross-border bank supporting the growing trade corridors and ecosystem. 'Reflecting on this year's EEA, I am reminded of our deep-rooted history in Malaysia as its oldest operating bank. 'We have the privilege of growing with this nation for over 150 years, and are now seeing the growth of Malaysian exports in globally competitive high-tech and high value sectors – including halal exports,' said Standard Chartered Saadiq Malaysia chief executive officer (CEO) Bilal Parvaiz. 'In 2024 alone, Malaysia's total exports reached RM1.51 trillion, a 5.7% year-on-year increase, within which halal product exports surged to RM61.79bil, a 15% increase from 2023. This exceptional performance has resulted in a trade surplus of RM136.88bil for the 27th consecutive year since 1998. 'The level of resilience and innovation our Malaysian exporters are showing – especially in the face of ongoing global uncertainties – is nothing short of inspiring. 'Leveraging our global network and local expertise, as well as our Islamic banking arm Standard Chartered Saadiq, we are able to play a pivotal role in supporting exporters through our syariah-compliant products and services to help them scale in fast-growing Islamic trade corridors across Asia, Africa and the Middle East.' As the organiser of the EEA, Star Media Group Bhd (SMG) has had a front-row seat to Malaysia's evolving trade landscape – and the shift has been unmistakable. 'We take pride in witnessing how Malaysian exporters are evolving – not just to survive global headwinds, but to lead with purpose and agility,' said SMG CEO Chan Seng Fatt. 'In the past year, we've seen a notable shift toward innovation-led growth, ESG integration and a more strategic approach to market expansion. Malaysian exporters are demonstrating a deeper understanding of global standards and long-term competitiveness, which is essential as trade dynamics continue to shift.' But for SMG, the awards are more than just a moment of recognition. 'At its core, the EEA is not just a ceremony – it is a catalyst for dialogue, knowledge-sharing and long-term growth. 'By bringing together stakeholders from across industries, we aim to spark meaningful conversations on how Malaysian businesses can stay competitive, sustainable and globally connected,' Chan added. Stay tuned for the announcement of the winners. The EEA 2024 is organised by SMG in partnership with Standard Chartered Malaysia, with PKT Logistics Group as a co-sponsor and Matrade as patron. It is audited by BDO. For more information on EEA 2024, go to or email eea@
