Financing pact: CGC’s Mohd Zamree (centre) holding the MoU documents together with Affin’s Wan Razly (second left) and Affin Islamic Bank’s Syed Mashafuddin (second right), witnessed by Wan Lizozman (third left), Agil (left), Mohammed (third right) and Musa (right). — ZULAZHAR SHEBLEE / The Star
KUCHING: Affin Group and Credit Guarantee Corporation Malaysia Bhd (CGC) will work together to provide up to RM500mil in financing support for micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) across Malaysia.
Both parties signed a memorandum of understanding (MoU) on the collaboration, which focuses on the development and implementation of structured guarantee schemes.
Anchored on the principles of financial inclusion and sustainable business growth, the initiative aims to address critical funding gaps faced by MSMEs and MTCs while strengthening their capacity to scale, innovate and contribute to Malaysia’s economic growth.
The MoU was signed by Affin Group president and group chief executive officer (CEO) Datuk Wan Razly Abdullah, Affin Islamic Bank Bhd CEO Datuk Paduka Syed Mashafuddin Syed Badarudin, and CGC president and CEO Datuk Mohd Zamree Mohd Ishak at a ceremony here yesterday.
It was witnessed by State Financial Secretary Datuk Seri Wan Lizozman Wan Omar, Affin Bank Bhd
chairman Datuk Agil Natt, Affin Islamic Bank Bhd chairman Musa Abdul Malek and CGC chairman Datuk Mohammed Hussein.
Star Media Group Bhd chief operating officer Lydia Wang was among the guests present at the ceremony.
Under the MoU, Affin and CGC will roll out a wider range of financing solutions, including guarantee-backed facilities for established enterprises, tailored financing for startups and early-stage ventures, and inclusive credit products such as working capital solutions to improve cash flow.
The collaboration will also facilitate sustainable financing to support responsible growth and Malaysia’s transition to a low-carbon economy.
In addition, it seeks to extend greater access to underserved and underbanked business segments to ensure no entrepreneur is left behind.
Mohd Zamree said while CGC’s mandate is national, signing the MoU in Kuching reflects the potential of local enterprises in Sarawak and Sabah.
“The RM500mil is open to all Malaysian MSMEs, but we also see the potential in both Sabah and Sarawak, given that these states are not as developed as the Peninsula, and we want to ensure that we provide the same opportunities for businesses in Sarawak as well as Sabah,” he told a press conference after the signing ceremony.
Mohd Zamree also said CGC and Affin had agreed in principle that RM300mil of the RM500mil in financing support would go to MTCs and MSMEs under the BizJamin scheme, and RM50mil for startups under BizDana. He said another RM50mil each would be allocated for other schemes, including a low-carbon transition facility.
“These are just broad guidelines. We will adjust accordingly to meet the needs of the SMEs that we serve,” he said, adding that the size of the financing would be increased as and when appropriate.
Wan Razly said the initiative is a five-year programme.
“We are optimistic that the programme can be disbursed within three years or sooner, depending on demand from MSMEs and MTCs,” he said.
The signing ceremony was followed by CGC’s appreciation night to pay tribute to the resilience and innovation of Sarawak’s MSMEs, whose contributions continue to drive the state’s economic progress.
The event also recognised the support of key partners, including the Sarawak state government, financial institutions, trade chambers and the media.
