Credit Guarantee Corp sees record year ahead

  • Business
  • Wednesday, 11 Jun 2003


CREDIT Guarantee Corp Malaysia Bhd (CGC) plans to guarantee more than RM2bil in loans this year, excluding the RM1bil under the Special Relief Guarantee Facility (SRFG) aimed at facilitating entrepreneurs involved in SARS-hit industries that it is also managing. 

Managing director Datuk Wan Azhar Wan Ahmad said he believed the company was on track to another record performance this year and that the Severe Acute Respiratory Syndrome crisis would not have bearing on the company's projection in 2003. 

He was speaking after the company's AGM and presentation of the SMI Top Supporter Awards in Petaling Jaya yesterday. 

Last year, CGC guaranteed 8,215 loans valued at RM2.7bil under the various schemes against 7,486 loans worth RM1.9bil in 2001. 

CGC chairman Datuk Mohd Salleh Harun congratulating Maybank deputy president Datuk Mohamed Hussein (left) at the awards presentation.

Azhar said that to ensure CGC become more market-driven than being just a provider of access to credit for SMEs, the company had initiated a business advisory panel, Business Advisory Services Entity (Base), which would be launched this year. 

Azhar said the consultancy service was designed to upgrade multi-disciplinary skills and competencies, such as ability to draw up comprehensive working papers and related proposals. 

“We want entrepreneurs to be more bankable in future,'' he added.  

He said Base would facilitate CGC in becoming the main provider of access to credit for SMEs and to develop them into financially stronger units possessing entrepreneurial spirit, management skills and sound business acumen.  

He added that the effort was targeted at enhancing the contribution of small- and medium-size enterprises (SMEs) to the overall economic growth of the country. 

Azhar also said CGC planned to invest RM5mil this year to open four more branches – one each in the Klang Valley, Johor, Sabah and Sarawak – adding to the 12 currently in operation. 

On non-performing-loans, he said the NPL level for loans guaranteed by the company was at 15% currently, 5% lower than earlier projected amid the outbreak of SARS early this year. 

The recipients of the SMI Top Supporter Awards under the commercial bank category – MALAYAN BANKING BHD, RHB Bank Bhd and Bumiputra-Commerce Bank Bhd – collectively contributed 82% of the total 6,793 loans and 81% of the total RM1.9bil in SMEs loans disbursed last year. 

Mayban Finance Bhd, the winner under the finance company category, contributed 45% of the total 484 loans and 26.5% of the RM89.3mil disbursed. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Across The Star Online