Latest news with #RM60mil
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
18-07-2025
- Business
- The Star
PTT Synergy buys Gombak land for RM60mil to build automated warehouse
PETALING JAYA: PTT Synergy Group Bhd 's wholly owned unit PTT Logistics Hub 2 Sdn Bhd, has entered into eight separate sale and purchase agreements with Koperasi Kakitangan Bank Rakyat Bhd to acquire eight parcels of freehold land in Gombak, Selangor for a total cash consideration of RM60mil. In a filing with Bursa Malaysia, the group said it plans to develop a single-storey industrial facility equipped with an automated storage and retrieval system (ASRS) on the lands, which will subsequently be leased to a third party upon completion. The land parcels collectively span up to 7,215 sq m, with individual prices of up to RM9.5mil. The proposed development is expected to cost RM270mil and will be funded with a mix of internally generated funds and bank borrowings. Construction is slated to begin on July 31, 2025, with completion targeted within 18 months. Upon completion, the facility is expected to generate annual rental income of RM22.2mil. PTT Synergy noted the land acquisition will support its investment strategy to develop a fully automated commercial warehouse and reinforce its commitment to providing end-to-end intralogistics solutions.
The Star
16-06-2025
- Business
- The Star
Deleum's unit acquires oilfield service business in Thailand for RM60mil
PETALING JAYA: Deleum Bhd will acquire oilfield services assets and business in Thailand for RM60mil. The oil and gas company said this move is part of its strategic growth plan for regional expansion. Deleum will, through its Thai subsidiary named Deleum Oilfield Solutions (Thailand) Co Ltd (DOST) purchase assets including slickline, hydraulic workover and well head maintenance from MPC Future Co Ltd. The purchase consideration for these assets would be satisfied through a combination of cash payment and issuance of new shares in DOST, it said. This will result in Deleum being a 49.93% and MPC a 48.34% shareholder of DOST after this corporate transaction, it added. 'The proposed acquisition is aligned with Deleum's strategy to strengthen its regional footprint and enhance its service offerings beyond Malaysia,' it said. Barring unforeseen circumstances, the company said this acquisition is expected to be completed within the second half of 2025.
The Star
12-06-2025
- Business
- The Star
Thong Guan scraps plan to sell F&B ops
The group said it terminated its plans due to both parties failing to reach an agreement on the final sale price. PETALING JAYA: Thong Guan Industries Bhd will not go ahead with its plan to sell its food and beverage (F&B) business to its largest shareholder, Foremost Equals Sdn Bhd (FESB). FESB has a 37.03% stake in Thong Guan. In a filing with Bursa Malaysia, Thong Guan said it will refund the deposit of RM60mil to FESB interest-free within 14 days from the termination agreement which was yesterday. The group said it terminated its plans due to both parties failing to reach an agreement on the final sale price, which was higher than the purchase consideration proposed on Nov 21, 2024. 'Pursuant thereto, the group will continue its operations in the F&B business segment,' it said. The termination of the sale is not expected to have any impact on Thong Guan's earnings, net assets, or gearing for the financial year ending Dec 31, 2025.
The Star
12-06-2025
- Business
- The Star
Thong Guan terminates F&B unit sale to major shareholder
PETALING JAYA: Thong Guan Industries Bhd will not go ahead with its plan to sell its food and beverage (F&B) business to its largest shareholder, Foremost Equals Sdn Bhd (FESB). FESB has a 37.03% stake in Thong Guan. In a filing to Bursa Malaysia, Thong Guan said it will refund the deposit of RM60mil to FESB interest-free within 14 days from the termination agreement, which was today. The group said it terminated its plans due to both parties failing to reach an agreement on the final sale price, which was higher than the purchase consideration proposed on Nov 21, 2024. 'Pursuant thereto, the group will continue its operations in the food and beverage business segment,' it said. The termination of the sale is not expected to have any impact on Thong Guan's earnings, net assets, or gearing for the financial year ending Dec 31, 2025. The board noted it is in the best interest of the group to go ahead with its plans.
