Khazanah Nasional Berhad (Khazanah) and CGC Digital Sdn Bhd (CGC Digital) have announced an investment in Funding Societies, the largest integrated digital financial platform for small and medium enterprises (SMEs) in Southeast Asia. This strategic move aims to expand access to financing for businesses that are underserved or lack access to traditional financing options.
Director of Khazanah, Datuk Amirul Feisal Wan Zahir, stated that the investment is intended to promote financial inclusion and bridge the financing gap, particularly within the micro, small, and medium enterprise (MSME) community. He emphasized the crucial role that MSMEs play in the economy, contributing nearly half of the country’s employment.
„Funding Societies was established in 2015 and is the first company registered as a Recognized Market Operator (RMO) by the Securities Commission Malaysia. Its goal is to address the RM90 billion financing gap for MSMEs,“ said Amirul Feisal. By 2025, the platform aims to serve over 25,000 MSMEs beyond Kuala Lumpur, Selangor, Penang, and Johor.
Meanwhile, CEO of CGC Digital, Yushida Husin, expressed the company’s commitment to advancing innovative digital guarantee products for MSMEs. The investment is seen as a strategic win for both parties, as it allows for the offering of financing products through Funding Societies to enhance MSMEs‘ access to much-needed funding.
„This initiative aims to increase their chances of obtaining the necessary financing, directly support MSMEs‘ business activities, and promote financial inclusion,“ Yushida added.
Additionally, Board Member and President of CGC Digital’s parent company, Datuk Mohd Zamree Mohd Ishak, shared the sentiment that the collaboration between Khazanah and Funding Societies reflects their collective commitment.
„This partnership is aimed at taking MSMEs, especially those with limited credit history, to the next level,“ Mohd Zamree remarked.
On the other hand, Co-Founder and CEO of Funding Societies, Kelvin Teo, echoed the enthusiasm to make a positive impact on MSMEs. Despite representing 97% of businesses and contributing 38% to the Gross Domestic Product (GDP), MSMEs still face significant challenges in accessing credit.
„Funding Societies will strive to assist MSMEs in managing their cash flow and financial needs through a wide range of financing solutions,“ Kelvin emphasized.
The collaboration between Khazanah, CGC Digital, and Funding Societies signifies a shared commitment to supporting the growth and development of MSMEs in Malaysia. By leveraging innovative digital financial solutions, the aim is to empower MSMEs, drive economic growth, and foster financial inclusion within the business community.