Funding Societies and Credit Guarantee Corporation Malaysia Berhad (CGC) have joined forces to launch an additional RM30 million financing through the Shariah-compliant Small and Medium Enterprises Portfolio Guarantee Scheme (SME PG-i) to drive the growth of Small and Medium Enterprises (SMEs) through easier access to financing.
This collaboration follows the success of CGC’s first Portfolio Guarantee program with Funding Societies totaling RM10 million, which was launched in April 2023.
In addition to providing a larger allocation, the SME PG-i scheme has been enhanced to provide working capital financing to a wider segment of marginalized SMEs through Funding Societies‘ leading Shariah-compliant digital financing solution.
Eligible SMEs will continue to have access to longer financing periods and enjoy special, lowest-in-market interest rates within Funding Societies‘ existing financing portfolio.
Kelvin Teo, Co-Founder & CEO of Funding Societies | Modalku, stated that the Shariah-compliant SME PG-i Portfolio Guarantee Scheme is a continuation of Funding Societies‘ product roadmap, offering Shariah-compliant solutions to support qualified Malaysian SMEs.
CGC’s President & CEO, Datuk Mohd Zamree Mohd Ishak, mentioned that in their efforts to provide financing access to more SMEs, CGC launched a RM10 million Portfolio Guarantee in April 2023 with Funding Societies, which received positive feedback from neglected and marginalized SMEs in Malaysia.
„Following the success of the first tranche, I am pleased that CGC has launched the second tranche of the Islamic Portfolio Guarantee amounting to RM30 million with Funding Societies,“ he said.
„This initiative is in line with CGC’s Five-Year Strategic Plan 2021-2025, and fulfills our objective to continue being SMEs‘ partner at every stage of their lifecycle by providing end-to-end financial offerings and becoming a digitally savvy organization to scale up and enhance SMEs‘ impact,“ he added. – DagangNews.com
In conclusion, the collaboration between Funding Societies and CGC through the SME PG-i Portfolio Guarantee Scheme is a significant step towards providing easier access to financing for SMEs in Malaysia. This initiative not only supports the growth of SMEs but also aligns with CGC’s strategic plan to enhance its digital capabilities and strengthen its partnership with SMEs to drive economic growth.