KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) has affirmed its commitment to supporting Bank Negara Malaysia’s SME Stabilisation Relief Facility (SME SRF) during this period of heightened uncertainty.
CGC provides short-term financial relief to micro, small and medium enterprises (MSMEs) experiencing cash-flow pressures arising from external economic headwinds linked to the West Asia conflict.
CGC Malaysia chairman Datuk Mohammed Hussein said the ability to produce a comprehensive stabilisation package within just two months of the onset of the West Asia conflict demonstrates the maturity and responsiveness of the financial services sector.
It also reflects the strong collaboration between the Ministry of Finance, Bank Negara Malaysia, and participating financial institutions, he said in a statement today.
"As Malaysia’s national SME guarantee institution, CGC is privileged to play a central role in this response. Our mandate has long been to keep credit flowing to viable businesses through periods of stress, and the SME SRF is precisely the kind of counter-cyclical intervention CGC is mandated to perform,” he said.
Under the SME SRF, eligible SMEs may obtain working capital financing of up to RM750,000 for a tenure of up to five years.
The financing rate is capped at 3.75 per cent per annum -- inclusive of a guarantee fee of 0.5 per cent per annum -- to ensure financing remains accessible to all SMEs. The facility will be made available through participating financial institutions (PFIs).
Meanwhile, CGC president and chief executive officer, Mohamed Nazri Omar said that CGC will work hand-in-hand with PFIs to ensure that the otherwise viable SMEs are not constrained by short-term liquidity pressures.
"By taking on a substantial share of credit risk through our guarantee, we enable financial institutions to extend working capital financing more efficiently and at concessionary rates, allowing affected businesses to sustain operations and safeguard jobs with minimal disruption,” he said.
The facility is open to a broad range of business entities, including sole proprietorships, partnerships, limited liability partnerships, private limited companies, and professional practices, provided that they are locally incorporated with a minimum of 51 per cent Malaysian ownership.
For further information, SMEs may contact CGC’s client service centre at 03-7880 0088 or email at csc@cgc.com.my, or reach out to any of CGC’s branches nationwide. - Bernama
