Financial help for micro businesses

(From left) Mujiburrahman, Yunos, Mohd Zamree and Leong at the signing of the portfolio guarantee deal.

BANK Simpanan Nasional and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a portfolio guarantee (PG) agreement today to provide RM50mil worth of financing to micro enterprises.

The strategic partnership was signed by BSN chief business officer Mujibburrahman Abd Rashid, and CGC chief business officer Leong Weng Choong, witnessed by BSN chief executive Datuk Yunos Abd Ghani and CGC president/ chief executive officer Datuk Mohd Zamree Mohd Ishak.

This is the second agreement established between BSN and CGC in support of micro enterprises, the first PG being in May 2017.

This arrangement will see BSN delivering the financing scheme in two tranches totalling RM50mil with RM25mil each for the Conventional and Islamic PG schemes.

This financing scheme is aimed at assisting micro entrepreneurs with their working capital and for asset acquisition.

This PG, which is intended to provide additional financing for micro businesses, will be made available by BSN through its 390 of branches nationwide.

In addition, this PG scheme will allow eligible micro enterprises to apply for either the Islamic or conventional financing facilities from BSN from a minimum of RM5,000 up to a maximum of RM50,000 for tenure of up to five years.

CGC will provide a guarantee of up to 70% of the approved financing amount for the micro enterprises.

Yunos said the collaboration with CGC demonstrated and indicated their unified effort in providing financial assistance to eligible and viable micro enterprises to help spur their transformation progress into SMEs.

“The growth of micro businesses will help spur Malaysia’s economy. BSN is committed to the financial inclusion initiative and to ensure financing accessibility is provided to micro enterprises.

“Since we launched the product in 2007, BSN Micro/i Financing Scheme has successfully funded over 64,000 customers by June 2019 with a total disbursement of RM1.7bil as compared to 320 customers with a total disbursement of RM5mil in the first year introduced,” he added.

Mohd Zamree said the partnership was another milestone and notable contribution to the development of micro, small and medium enterprises. (MSMEs).

“Our portfolio and wholesale guarantee schemes are both cost effective and efficient.

“With this collaboration, we are well geared to provide greater access to financing to Malaysian MSMEs,” he added.
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