PETALING JAYA: Credit Guarantee Corporation Malaysia Bhd (CGC) and Public Bank Bhd have launched a RM700 million portfolio guarantee (PG) facility to strengthen access to financing for Malaysia’s micro, small and medium enterprises (MSMEs).
This facility forms the majority share of the RM1 billion PG jointly announced by CGC and Public Bank in September 2024 and is expected to directly benefit over 2,500 MSMEs nationwide.
The RM700 million facility is structured across three tranches to meet diverse business needs. Through PG Property, MSMEs can secure property financing together with working capital of up to 200% of the property value, allowing MSMEs to acquire fixed assets while maintaining liquidity.
PG Top Tier, meanwhile, caters to creditworthy MSMEs without collateral by offering clean, collateral-free financing that removes a common barrier to growth. Complementing these is the Low Carbon Transition Facility and High Technology & Green Facility, which encourage MSMEs to embrace low-carbon practices, invest in advanced technologies and develop sustainable solutions.
CGC president and CEO Datuk Mohd Zamree Mohd Ishak remarked, “The RM700 million portfolio guarantee is ultimately about impact – enabling MSMEs to scale up, to innovate and adapt to new frontiers of growth. This milestone is a testament to what can be achieved when two institutions work with shared purpose, creating the right conditions for MSMEs to prosper and for Malaysia’s economy to grow with them. We want to see MSMEs move beyond survival into innovation, digitalisation, and global participation – capturing opportunities in the green economy and establishing themselves as regional leaders.”
Public Bank managing director and CEO Tan Sri Dr Tay Ah Lek said, “MSMEs are central to Malaysia’s economy, and Public Bank is proud to continue our collaboration with CGC through this RM700 million portfolio guarantee. This reflects our long-term commitment to helping MSMEs strengthen their resilience and remain competitive.”
Through its continuous collaboration with CGC, Public Bank has consistently enhanced MSMEs’ access to financing. This latest RM700 million PG provides further opportunities for MSMEs to secure financing that supports both their current needs and long-term business expansion.