KUALA LUMPUR: The Securities Commission Malaysia (SC) and Credit Guarantee Corporation Malaysia Bhd (CGC Group) are working together to boost access to capital market financing for Malaysia's micro, small, and medium enterprises (MSMEs) and mid-tier companies (MTCs).
TheSC, CGC Group and its subsidiary CGC Digital Sdn Bhd signed a three-year Memorandum of Understanding (MoU) to leverage on CGC Group's expertise in providing credit guarantees and its extensive network in the MSME sector to address financing challenges faced by these businesses.
The partnership will focus on enhancing access to financing through CGC's imSME platform, which currently connects businesses with six Peer-to-Peer (P2P) financing operators with plans in place to onboard more P2P operators, broadening the range of funding options available to businesses.
Additionally, the MoU will expand the use of credit guarantees to new capital market solutions, helping to mitigate investment risks and instil confidence among investors.
The agreement aligns with the SC's 5-Year Roadmap (2024–2028), aimed at catalysing MSME and MTC participation in the capital markets.
The MoU was signed by SC chairman Datuk Mohammad Faiz Azmi, CGC group president and CEO Datuk Mohd Zamree Mohd Ishak, and CGC Digital CEO Yushida Huin.
Since its establishment in 1972, CGC has facilitated guarantees and financing worth over RM98.31 billion, benefiting more than 538,000 MSMEs.
"By leveraging CGC Group's credit guarantees, we can instil greater investor confidence, which in turn improves access to funding for these businesses", Mohammad Faiz said.
"This partnership reflects CGC Group's unwavering commitment to advancing the growth and development of Malaysian businesses. Together with the SC, we aim to unlock transformative growth trajectories while addressing barriers faced by unserved and underserved businesses," Mohd Zamree said.