Khazanah Nasional Bhd and CGC Digital Sdn Bhd have announced an investment in the largest integrated digital financial platform for small and medium enterprises in Southeast Asia, Funding Societies | Modalku, to expand access to financing for businesses that do not have or have limited access to funding services.
This investment supports the government’s aspiration to enhance the performance of micro, small, and medium enterprises (MSMEs) through better access to financing, creating opportunities, and helping socio-economic growth for rural and semi-urban communities, as well as communities with limited access to financial services.
To make a significant impact in the MSME ecosystem in Malaysia, Khazanah’s investment in Funding Societies is carried out in collaboration with CGC Digital, which aims to enhance financial inclusion through the development of innovative digital guarantee products and its own credit assessment model that can bridge the gap and address key issues in financing micro and small businesses.
The initiative also aims to create equal opportunities for MSMEs, especially those with a short credit history.
To strengthen this collaboration, Funding Societies will continue to work with CGC Digital to provide digital guarantee products on its platform, which will continue to help micro and small businesses in Malaysia access financing for the long term.
The digital-first approach through its digital guarantee products that use alternative data will enable micro and small businesses to access broader financing at affordable costs.
Khazanah’s Managing Director, Datuk Amirul Feisal Wan Zahir, stated that the investment in Funding Societies reflects their commitment to promoting financial inclusion and bridging the financing gap, especially in the MSME community.
He emphasized the importance of MSMEs as the backbone of Malaysia’s economy, contributing to nearly half of the country’s employment. However, he also highlighted the challenges that MSMEs face in accessing financing services. Therefore, this investment aligns with their mission to contribute to the country’s development and socio-economic growth.
By supporting innovative platforms like Funding Societies with CGC Digital, Khazanah aims to empower the MSME community, create new opportunities to drive the country’s progress in line with the MADANI Economy vision to enhance socio-economic benefits for all.
Khazanah’s impact assessment is driven by the role of digital financial platforms like Funding Societies, which are at the forefront of delivering comprehensive digital financing to MSMEs with limited access in Southeast Asia. This enables better access to capital for MSMEs and promotes financial inclusion in the region.
Specifically for the Malaysian market, with the Impact Fund investment, Funding Societies aims to channel more than 50% of annual loans through Sharia-compliant financing by 2025, in line with the aspiration to support the growth of Bumiputera MSMEs. – DagangNews.com
In conclusion, the collaboration between Khazanah and CGC Digital in Funding Societies represents a significant step towards enhancing financial inclusion and addressing the financing needs of MSMEs in Malaysia. This investment not only supports the growth of businesses but also contributes to the overall socio-economic development of the country.