CGC aims to approve guarantees worth RM4.7bil this year

New logo: Johari (centre) at the launching of the new CGC logo. With him are Zamree (right) and Agil.

KUALA LUMPUR: Credit Guarantee Corp Malaysia Bhd (CGC) is targeting to approve 9,500 guarantees valued at RM4.7bil this year, up 12% from 2016 in terms of value.

This is to provide SMEs with greater access to funding, said CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak, adding that last year, it approved 7,568 guarantees valued at RM4.2bil.

“The growth will come from portfolio guarantee and wholesale guarantee. It is expected to contribute 70% of about RM3.3bil worth of proposals we are working on in 2017,” he said after the launch of its new logo and CGC SME Award 2016 yesterday.

Consequently, he expects CGC’s revenue to grow about 12% in 2017.

CGC’s revenue rose 17% to RM378.1mil in 2016 from RM323.8mil the previous year while net profit grew 20% to RM167.7mil compared to RM140mil previously.

“We have a comprehensive strategy as part of our five-year plan and we are confident that we can achieve our target for 2017,” he said.

Zamree added that CGC would have an increased focus on bumiputra SME financing this year, apart from its Green Technology Financing Scheme and various infrastructure financing facilities.

Second Finance Minister Datuk Seri Johari Abdul Ghani, who officiated at the event, said the strong first-quarter gross domestic product (GDP) growth of 5.6% would strengthen investor confidence in Malaysia’s economy.

“The growth seen in the first quarter will encourage more funds to come in and invest in our stock exchange, bonds, private debts and also expand business activities in Malaysia,” he said.

CGC presented its CGC SME Awards to top financial institutons for their significant contributions towards CGC’s overall SME financing through its guarantee schemes.

The winners of the Top FI Partner Award (overall category) were Malayan Banking Bhd (Maybank), Maybank Islamic Bhd, CIMB Bank Bhd and Standard Chartered Bank Bhd.

Maybank also took home the Best Financial Partner Award while Maybank Islamic bagged the Top Bumiputera FI Partner Award and Top FI Partner Award (Islamic Banks).

The four award recipients contributed about RM2.1bil, representing 50% of the total financing amount approved by CGC in 2016.

CGC also launched its new logo as part of its initiative to enhance its brand presence among the public and the SME community.

“The new logo, with it striking simplicity, embodies our progressive corporate spirit. We aim to elevate the level of awareness on CGC among the SME community with the launch of our new logo,” said CGC chairman Datuk Agil Natt.