CGC president and CEO Zamree Ishak said for the RM1 billion financing guaranteed by CGC, RM280 million has been disbursed, with an additional RM150 million to be launched today.
“Taking into account Malaysia’s encouraging first half of the year economic growth, which surpassed economists’ forecast, our immediate plan is to jointly work with Public Bank on the remaining RM570 million.
“This is to meet the additional financing needs of SMEs, in line with the expected further improvement in the Malaysian economy,” he said in a statement.
Over the past 52 years, CGC said it has facilitated over RM96 billion in guarantees, benefitting over 380,000 SMEs.
Meanwhile, Public Bank managing director and CEO Tay Ah Lek said the bank is always mindful of the crucial role of SMEs in driving the nation’s economic growth and has always been a staunch supporter of the SME sector.
“As the largest SME financier of the nation with a market share of 17.5% in Malaysia’s SME financing segment, our partnership with CGC reaffirms our commitment to foster sustainable SME development.
“By offering these tailored financing solutions, we aim to further empower SMEs to seize growth opportunities and continue to contribute to the Malaysian economy,” he said.
As at June 2024, the bank has extended RM69.3 billion of financing to SMEs.
As part of this strategic collaboration, Public Bank has committed RM1 billion in financing to support SMEs, covering the latest tranche of the Portfolio Guarantee (PG) scheme, existing CGC schemes, and any upcoming CGC initiatives.
In the latest tranche of the PG scheme, Public Bank said it will offer two distinct loan packages, including the PG Property package and the PG Clean package.
The bank said the PG Property package is designed to provide financial support for new asset acquisition and working capital, offering a margin of financing of up to 200% of the property value or purchase price, whichever is lower.
“Meanwhile, the PG Clean package offers working capital without collateral.
“Both packages provide CGC’s guarantee of up to 70% of the facility amount intended for working capital,” it added.