Siaran Akhbar

Top SMI Supporter Award 2009

CGC recognises Banks

for their contribution to SME Financing

Petaling Jaya, 1 June ñ Four leading commercial banks and one Islamic bank were awarded the Top SMI Supporter Award in recognition of their significant financing of the SME sector in 2009 through Credit Guarantee Corporation Malaysia Berhadís (CGC) credit guarantee schemes. The awards were presented by Bank Negara Malaysiaís Deputy Governor-cum-CGCís Chairman Datoí Zamani Abdul Ghani at the Top SMI Supporter Award presentation ceremony held in conjunction with CGCís 37th Annual General Meeting on 1 June 2010.

The recipients of CGCís Top SMI Supporter Award for 2009 were Maybank, Public Bank, RHB Bank and CIMB Bank under the Commercial Banks category while Bank Islam was recognised under the Islamic Bank category. Maybank also won the coveted Best Financial Partner award that recognises the bank that contributed the most towards CGCís quality assets.

The award recipients, who were selected based on a set of criteria determined by the Corporation which include, amongst others, the number and value of loans guaranteed, loans growth as well as number and value of loans to Bumiputera borrowers, contributed 51% of the total loans guaranteed by CGC during 2009.

ìTheir active participation in CGCís guarantee schemes augurs well for the CGC-banksí partnership in SME development and for the SMEs in terms of their access to financing,î said Datoí Zamani Abdul Ghani.

In 2009, CGC guaranteed a total of RM3.1 billion to more than 14,000 SMEs.

ìConsidering that a large cross section of the SMEs faced difficulties sustaining their business operations due to the economic downturn and weak domestic demand in 2009, CGC focused on improving SMEs access to financing, speedier processing and disbursement of loans as well as reasonable cost of borrowing. This resulted in 35% increase in SME outreach, increasing from 8,500 SMEs in 2008 to more than 14,000 SMEs in 2009,î added Datoí Zamani.

He also added that CGC actively participated in Bank Negara Malaysia-initiated SME Assistance Guarantee Scheme, a RM2 billion fund launched in January 2009 to assist SMEs that faced difficulties in gaining access to financing. As at end December 2009, it had guaranteed a total of 8,955 SMEs valued at RM1.8 billion.

The Corporation had also implemented a revised pricing structure for its guarantee schemes with the support of the participating financial institutions. ìThis is to ensure that borrowers enjoy a more equitable interest/profit rates for financing which are ëcollateralisedí in the form of guarantees from the Corporation,î added Datoí Zamani. ìGreater focus is also being given to developing products that facilitate faster turnaround time and disbursement of loans.î

Datoí Zamani also called for greater participation from the financial institutions in the Green Technology Financing Scheme (GTFS) that was launched by the Government in January 2010 with a fund allocation of RM1.5 billion. CGC is one of the two implementation agencies appointed by the Government to manage the financing scheme that provides funding to users and suppliers of green technology. CGC provides 60% guarantee cover or RM900 million of total GTFS financing.

ìThe active participation of financial institutions is critical for the success of the Green Technology Financing Scheme,î stressed Datoí Zamani.

01-Jun-2010 18:54:40 PM

CGC step up efforts to promote GTFS

CGC step up efforts to promote Green Technology Financing Scheme

Kuala Lumpur, Wed – Credit Guarantee Corporation Malaysia Berhad (CGC) today announced that it was in partnership with CIMB Bank to promote the Green Technology Financing Scheme (GTFS) to producers and users of this environmental friendly technology.

CGC, one of the two implementation agencies, is spearheading the marketing and promotion of GTFS including forging strategic alliance with CIMB Bank. CIMB Bank, the second biggest lender based on asset, is willing to provide up to RM150 million in financing for the GTFS. Meanwhile, CGC is committed to a three-day turnaround time to process GTFS applications received from CIMB Bank.

ìWe are confident that this three-day turnaround commitment would help to further expedite the approval and disbursement of the funds to borrowers, a special arrangement that we have made with CIMB Bank in view of their participation in supporting the GTFS, the first bank to do so in Malaysia,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad..

ìCIMB Bank’s participation in this scheme demonstrates the bankís confidence in the potential of this relatively new sector,î added Datuk Wan Azhar.

CGC, the leading credit guarantee provider, has been mandated to provide 60% guarantee to borrowers of GTFS, effectively covering RM900 million out of the total RM1.5 billion established by the Government to improve the supply and utilisation of green technology. The remaining 40% financing risk shall be borne by the participating financial institutions (PFIs).

The producers of green technology can avail financing of up to RM50 million whereas users, a maximum of RM10 million. The financing tenure is up to 15 years and 10 years for producers and users respectively.

Borrowers are charged an annual guarantee fee of 0.5% for GTFS, a small percentage compared to fees charged for other CGC schemes that are calculated based on the risk-profile of the borrower. In addition, the cost of borrowing is cushioned by the 2% interest/profit rate subsidy provided by the government.

CGC has been stepping up its promotional efforts to create awareness of the huge potential in this sector through its participation in various exhibitions and seminars organised by trade associations and business chambers nationwide.

ìSoon we will be running an advertising campaign to further increase awareness of the Scheme not only amongst the producers and users but also amongst the general public with the objective of enlightening them on the impact of green technology on the environment and the general well-being of the Malaysian populace,î said Datuk Wan Azhar.

The response to the GTFS is very encouraging with more than 470 companies having registered with the National Green Technology Centre and enquired how to avail the Green Technology Financing Scheme.

ìWe hope the willingness shown by CIMB Bank will encourage other financial institutions to come forward and aggressively participate in the Scheme within the shortest possible time,î added Datuk Wan Azhar.

The Scheme, officially launched by the Prime Minister YAB Datuk Seri Najib Tun Razak on 26 January 2010, is expected to provide benefits to more than 140 companies within the next two to three years. The GTFS was rolled out effective 1 January 2010.

05-Apr-2010 09:29:54 AM

CGC & SCB Launch Portfolio Guarantee for Women Entrepreneurs

PRESS RELEASE For immediate release   Credit Guarantee Corporation and Standard Chartered Malaysia LAUNCH New Financing Scheme for Women Entrepreneurs   Target disbursement of RM100 million in the next 18 months     Kuala Lumpur, 22 October 2009 ñ Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Bank Malaysia Berhad (Standard Chartered Malaysia) have collaborated to offer yet another initiative for small and medium enterprises (SMEs) ñ the Portfolio Guarantee Scheme for women entrepreneurs. Through the Scheme, the institutions aim to disburse RM100 million in the next 18 months to enable women entrepreneurs to accelerate participation in the economic development.   First in Malaysia, the Scheme for women entrepreneurs offers swift financial access and the opportunity to boost business competitiveness. Women are emerging as a significant economic force in Malaysia and progressively venturing into SMEs. According to a research, there are close to 83,000 woman-owned enterprises, mainly in services, manufacturing and agriculture sectors, and the numbers are expected to increase.   Commenting on this new initiative, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said, ìWith increasing participation of women in the business sector, not only the demand for financing will see an increase but also quicker disbursement of funds. We hope to address these issues through our strategic alliance with Standard Chartered Malaysia, offering a new source of financing for women entrepreneurs and at a much faster rate as the customers eligible for this Scheme are pre-selected based on certain criteria.î   ìWe have been in support of woman-owned enterprises which make up 16 per cent of the SMEs in the country. To date, we have guaranteed close to RM3.7 billion to more than 9,500 women in SMEs,î added Datuk Wan Azhar.   Tiew Siew Chuen, Country Head of Consumer Banking, Standard Chartered Malaysia said, ì99 per cent of business establishments in Malaysia are SMEs. This sector remains a major engine of the countryís economic recovery and we will continue to facilitate and support the growth of SMEs. With women entrepreneurs increasing in the country, we are pleased to offer a special scheme for them in partnership with CGC.î   The Scheme for women entrepreneurs offers a term financing facility, range between RM100,000 and RM500,000, which provides working capital and financing of SME asset acquisitions. CGC will act as the guarantor, offering partial guarantee cover to the loan. The Scheme is made available to women whose businesses have been operating for a minimum of five years and are seeking to expand.   The Scheme also comes with additional benefits such as one-year free insurance coverage of up to RM100,000 against female-related illnesses for the first 100 successful customers and corporate current accounts which yield high interest rates.   Standard Chartered Malaysia will also sponsor the first three women customers to attend the Global Banking Alliance for Women (GBA) Conference in Singapore from 29 to 30 October 2009. The GBA is a coalition of financial institutions whose network provides in-depth access to knowledge, resources, access to capital and market programmes for women SMEs growth and sustainability. These financial institutions are recognised as the ìbank of choice for womenî in their respective markets.   Encouraged by the response of the first Portfolio Guarantee Scheme introduced in April this year, CGC is looking at partnering with more financial institutions in the near future. CGC believes that the initiative complements the Governmentís efforts to support SMEs as it not only creates a new avenue to gain access to financing but also improves turnaround time in terms of approval and disbursement of loans. For media enquiries, please contact: V. Kumaran Head, Corporate Communications Credit Guarantee Corporation Malaysia Berhad Tel: 03-78062300 (ext. 232) kumaran@cgc.com.my 23-Oct-2009 10:07:45 AM

CGC Appoints Deutsche Bank to Provide Advisory Services

Joint Press Statement by

Credit Guarantee Corporation Malaysia Berhad

And Deutsche Bank

Petaling Jaya, 16 July: Credit Guarantee Corporation Malaysia Berhad (CGC) today announced it has appointed Deutsche Bank AG Singapore Branch to provide advisory and risk management services to CGC. The agreement includes the implementation of a unique credit risk management system that will help CGC more efficiently process loan guarantee applications and manage credit risk.

Known as the Comprehensive Approval System (COMPAS), the web-based system will help CGC better manage the varying levels of risk associated with the guarantees it issues, streamline approval processes and manage balance sheet risk. COMPAS achieves this by using unique criteria to assign loan applications with an internal credit rating, allowing them to be automatically processed or evaluated further by the Management.

With increased processing and better risk management capabilities, customers are expected to enjoy faster turnaround time and disbursement of loans. In addition, the implementation of this robust credit rating system will enable CGC to improve its accuracy in terms of risk profile identification and consequently benefit deserving customers who could potentially enjoy the competitive guarantee fees that come with better credit ratings.

COMPAS also enables CGC to enhance its management of loan quality.

ìWith increasing focus on customer service level, turnaround time and loan quality, it is critical for CGC to review its existing risk rating model and implement a more robust and dynamic one such as the COMPAS system that incorporates new risk parameters. This new initiative combined with the SME Credit Bureauís ratings on SMEs would enable CGC to determine the credit risk of borrowers with greater accuracy and thereby allowing us to effectively structure the guarantee fees based on the credit risk of SMEs and borrowers,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad.

Datuk Wan Azhar further stressed that the review of its risk rating model is part of CGCís overall efforts to improve its loans quality as well as to better serve the SMEs who form 99.2% of total business establishments and contribute 32% of the countryís gross domestic product.

Wolfgang Topp, Head of Risk Management Advisory at Deutsche Bank said: ìCOMPAS provides an excellent means for CGC to streamline its loan processing and potentially lower processing costs, while improving overall risk management and enhancing credit quality. Used in conjunction with Deutsche Bankís risk advisory services, COMPAS is a powerful tool which can enable CGC to maximise risk efficiencies and increase the quality of assets it holds on its balance sheet.î

The platform is an integral part of Deutsche Bankís integrated risk management advisory service, which is designed to support banks and financial institutions price, manage and distribute balance sheet risk and improve lending systems.

With Deutsche Bankís proven credit rating system and their wide experience as a provider of advisory and risk management services, CGC is confident that it will enhance its support to the SME sector in efforts to sustain the growth of this vital segment of the economy.

27-Jul-2009 18:43:57 PM

CGC Organises Training Sessions for SMEs

1 July 2009

CGC ORGANISES TRAINING SESSIONS FOR SMEs

TO HELP OVERCOME BUSINESS CHALLENGES

Credit Guarantee Corporation Malaysia Berhad (CGC) will be organising a two-part training session that are specially designed to assist SMEs cope with the business challenges they are facing currently as a result of the economic slowdown.

The first training session titled ëGetting The Bank to Say ëYesí to your Loan Restructuringí presents a unique interactive learning experience for SMEs who will be able to learn more about how to deal with the banking institutions especially in presenting their case for restructuring and repayment period of their existing loan facility.

The second session titled ëManaging Your Cash Flow & Collections In Time of Business Uncertaintyí shall provide SMEs the opportunity to learn how to manage their cash flows especially collection of debts on a timely basis, persuading customers to pay on time and how to conduct effective field visitations before deciding on payment arrangement, amongst others.

The training sessions form part of CGCís ongoing efforts to assist SMEs cope with this difficult time and to sustain their businesses besides providing restructuring options and business advisory services.

The training sessions will be conducted in collaboration with SBF-Integrated Business Centre Sdn Bhd, an established company specialising in entrepreneur development and training programs. The training sessions will take place on 9th and 10th July 2009 respectively at Bangunan CGC, Kelana Jaya, Selangor from 9am to 5pm.

Interested participants are encouraged to contact CGCís Marketing & Promotions Department (Puan Norhafiza Othman) at 03-7806 2300 (ext. 480) for more information.

14th CGC Top SMI Supporter Award - Press Release

Press Release (For Immediate Publication or Broadcast) 21 May 2009     Financial Institutionsí Contribution to SME Development Recognised By CGC     Petaling Jaya, 21 May ñ Eight leading financial institutions were honoured today for their support and significant contribution towards SME development in 2008 by Credit Guarantee Corporation Malaysia Berhad (CGC) at its Top SMI Supporter Award Presentation ceremony. The event, held in conjunction with CGCís 36th Annual General Meeting, was officiated by Datoí Zamani Abdul Ghani, CGCís Chairman and Deputy Governor of Bank Negara Malaysia.   The recipients of the Top SMI Supporter Awards for 2008 were Maybank, Public Bank, CIMB and RHB Bank under the Commercial Banks category; EONCAP Islamic Bank under the Islamic Banks category; Agrobank under the Development Financial Institutions (DFI) category; and OCBC Bank under the Foreign-owned Banks category. The eight award recipients contributed a total of RM2.2 billion, representing 74% of the total loans guaranteed to SMEs by CGC in 2008.   Maybank was also accorded the coveted Best Financial Partner Award in recognition of their commendable efforts and contribution towards CGCís quality assets.   CGC Chairman, Datoí Zamani Abdul Ghani said in his speech that the active participation and continued support of the financial partners has enabled the Corporation to stamp its mark in SME development through the provision of easier access and more affordable financing for business growth and expansion.   ìThese awards not only recognise the contributions of the participating financial institutions to loans growth but also to quality asset. These two conditions, i.e. participation and asset quality, are critical for both parties, especially to the Corporation as it gears itself to be more commercially-driven and achieve financial sustainability,î said Datoí Zamani.   The award recipients were selected based on a set of criteria determined by the Corporation which includes number and value of loans guaranteed, loans growth and number and value of loans to Bumiputera borrowers amongst others.   Speaking to reporters at a press conference after the ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said the contribution by the financial institutions to SME financing had been encouraging despite the challenges that emerged in 2008.   ìIn general, the financial institutions have maintained strong commitment and support to SME financing via their participation in our guarantee schemes,î added Datuk Wan Azhar.   He said that CGC will continue to strengthen its alliances with financial partners to further expand its SME outreach and support viable businesses to tide over the difficult times while assisting new ones to grow.   CGC remains actively involved in Bank Negara Malaysia (BNM)-initiated funds such as the SME Assistance Guarantee Scheme, a RM2 billion launched in January 2009 to assist SMEs facing difficulties during the current economic crisis. As at mid-May, it had guaranteed a total of 1,783 accounts valued at RM369.6 million.   In 2008, CGC participated in two other BNM-initiated funds namely the SME Assistance Facility and the SME Modernisation Facility. The RM1.2 billion facilities were established to help SMEs continue business operations with funds for working capital and project financing as well as to modernise operations through the purchase or upgrading of energy-saving machineries and equipment. As at end March 2009, about 4,928 SMEs had benefited from these Facilities, with a total loan value of RM1.08 billion. In 2008, CGC extended credit guarantees to 10,368 accounts valued at RM3.01 billion.     For media enquiries:   V. Kumaran Head, Corporate Communications Tel: 03-7806 2300 ext 232 E-mail: kumaran@cgc.com.my 09-Jun-2009 12:46:51 PM

14th CGC Top SMI Supporter Award - Chairman's Speech

Speech by Y.Bhg. Datoí Zamani Abdul Ghani Chairman, Credit Guarantee Corporation Malaysia Berhad at the 14th Top SMI Supporter Award Presentation Ceremony 21 May 2009   Bismillahirrahmanirrahim   Fellow members of the Board of Directors of CGC   Distinguished Guests   Members of the media   Ladies and Gentlemen,   Assalamualaikum w.b.t. and a very good morning.     On behalf of the Board of Directors and Management of Credit Guarantee Corporation Malaysia Berhad (CGC), I would like to extend our warmest welcome to all of you to the Top SMI Supporter Awards Presentation ceremony this morning. The event is organised in conjunction with the Corporationís 36th AGM which was successfully concluded earlier this morning. As you are aware, the Top SMI Supporter Award ceremony is one of the most important events in our corporate calendar. On this day, we officially recognise and express our appreciation to our financial partners in SME development for their active participation in the Corporationís credit guarantee schemes. This is the 14th edition in its series. I am pleased to note that SME outreach is gaining strength each year with the support of participating financial institutions who value the significance of the award in the context of SME development in the country. We are honoured to have accorded these awards to 19 financial institutions since its introduction in 1996.   Ladies and gentlemen,   2. This year, 2009, the Corporation will be turning 37 years old. We believe CGC has achieved significant success as a credit enhancer to SMEs in the country. It has enabled the operation of more than 390,000 SMEs by guaranteeing loans close to RM42 billion to date. This is surely a feat for an institution that started in a small way in 1972, supporting enterprises in the agricultural, commercial and industrial sectors, with individual loans ranging from RM5,000 to RM75,000. We have progressed in tandem with the development of the nation that increasingly became more industrialised and diversified. Our target groups expanded to include medium-sized businesses, and guaranteeing loans from as low as RM10,000 to as high as RM10 million.   3. We acknowledge that we could not have accomplished the above without the active participation and continued support of the financial partners in our guarantee schemes. The confidence and commitment of these financial partners has enabled the Corporation to stamp its mark in SME development, through the provision of easier access and more affordable financing for business growth and expansion. In 2008, for example, the Corporation extended loan guarantees of more than RM3 billion, benefiting close to 10,400 SMEs. About 74% of the loans guaranteed was contributed by the seven award recipients today. In view of their significant contributions and to further encourage them to continue participating actively in our schemes, we shall be according them the Top SMI Supporter and Best Financial Partner awards. These awards not only recognise the contributions of the participating financial institutions to loans growth but also to asset quality. These two contributions, i.e. participation and asset quality, are critical for both parties, especially to the Corporation as it gears itself to be more commercially-driven and achieve financial sustainability.   Ladies and gentlemen,   4. The forecast for the year ahead is that of one that will be full of challenges. It is, therefore, imperative for the government-private sector collaboration to be accelerated in order to address some of the pertinent concerns of the SMEs. This is especially so in the pace of loan approvals, in ensuring a more efficient and speedier credit flows to SMEs without compromising prudential requirements. To resolve this, the Corporation and its financial partners have to iron out whatever stumbling blocks there are in the processing pipeline and explore innovative ways through which funds could be disbursed more effectively and speedily to deserving customers. In this respect, the Corporation has recently established a strategic alliance with one of its financial partners to provide guarantee on a portfolio basis. A general improvement of administrative efficiency is noted with the use of an automated mechanism. Borrowers no longer have to go through the routine administrative procedures to get their applications processed as the guarantee cover provided is automatic upon approval by the financial institution. This model provides the most effective delivery channel and, moving forward, we are optimistic of entering into such partnerships with more financial institutions in the near future.   5. The Corporation has also adopted pragmatic approaches in the implementation of its business strategies, which are all aimed at being more customer-centric and providing greater value to the borrowers. The Corporation has been forthcoming in terms of ensuring credit lines remained open to the SMEs by participating actively in the Bank Negara Malaysia-initiated funds, the most recent is the SME Assistance Guarantee Scheme. As at mid-May, a total of 1,544 accounts valued at RM312 million has been approved. These initiatives come at a critical time when the business community struggles to survive the current economic slowdown.   Ladies and gentlemen,   6. Looking back into 2008, it is certainly noteworthy that the financial institutions have contributed significantly to SME financing, accounting for 42.3% of total business financing as at end 2008. To the Corporation, their contributions were substantial and we are indeed grateful for having received their fullest support and cooperation. As a matter of fact, we have seen increased participation from both commercial banks and development financial institutions in our credit guarantee schemes in recent years. Several foreign-owned banks too have been quite robust in their support of the SMEs.   7. In view of this positive development, we have concluded that there need to be a level playing field for all financial institutions to compete for the Corporationís Top SMI Supporter Award. Thus, we would like to announce that beginning 2009, we will no longer have the Top Foreign-Owned Bank and Development Financial Institutions as separate award categories. We are confident that this move would allow the institutions to compete on level terms and indirectly promote healthy competition amongst them. Most importantly, for us, it is a step forward to ensure the financial institutions are motivated to participate in our guarantee schemes and contribute to SME development.   8. We are pleased to announce that, for this edition of the Top SMI Supporter Awards, a total of seven financial institutions shall be accorded the honour for having fulfilled the criteria set by the Corporation. These criteria include number and value of loans guaranteed, loans growth and the number and value of loans to Bumiputera borrowers. Besides, we also have the Best Financial Partner Award category that recognises the financial institution that has contributed the most towards the asset quality in CGC.   Friends and Colleagues,   9. On behalf of the Corporation, I would like to take this opportunity to congratulate all award recipients. It is our hope that these awards will foster a higher level of competition and inspire other financial institutions to play a bigger role in SME development and be a catalyst for economic growth by participating actively in the Corporationís credit guarantee schemes. Deserving and viable SMEs need our support to sustain their businesses during this critical period. The Government too requires our commitment and cooperation to help it stimulate the economy, all for the benefit of our citizens.   Thank you and have a pleasant day. 09-Jun-2009 12:44:16 PM

CGC & Standard Chartered Sign Portfolio Guarantee Agreement

Press Release

For immediate release

Credit Guarantee Corporation and Standard Chartered Bank Malaysia Sign Portfolio Guarantee Agreement

Kuala Lumpur, 7 April – Credit Guarantee Corporation Malaysia Berhad (CGC) and Standard Chartered Bank Malaysia Berhad (Standard Chartered) has entered into a partnership agreement that would enable SCB to extend financial assistance to SMEs via the Portfolio Guarantee.

The agreement was signed by CGCís Managing Director, Datuk Wan Azhar Wan Ahmad and Standard Charteredís Chief Executive Officer, Mr Julian Wynter at a signing ceremony held today in Kuala Lumpur. The ceremony was witnessed by Datoí Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia, who is also CGCís Chairman.

The Portfolio Guarantee Agreement, the first agreement of its kind to be signed in the financial industry, would enable SMEs not only to enjoy a new avenue to gain access to financing but also improved turnaround time in terms of approval and disbursement of loans.

Speaking to the media at the signing ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said: ìThrough this arrangement, designed for Standard Charteredís SMEs loans, we hope to deliver speedier application processing time as the customers eligible for this portfolio guarantee are pre-selected based on certain criteria.î

He also added that this initiative is in line with the call of the government for greater government-private sector collaboration to drive economic growth.

ìCGC and Standard Chartered Bank Malaysia have an important role in helping to stimulate economic growth, and supporting viable SMEs to sustain their businesses is the way to go at this crucial period,î he said.

Julian Wynter, Managing Director and CEO of Standard Chartered Malaysia, ìSMEs will be the engine of any global economic recovery. Yet, worldwide they are struggling to survive as flight away from risk affects credit flows. It is critical that governments, banks and public agencies, collaborate to avert consistent and wide-scale failure of this sector.

ìAs a bank, we recognise our role in the equation. This Portfolio Guarantee partnership with CGC sees Standard Chartered leading the way in supporting SME potential. By enabling working capital financing to small businesses, we demonstrate our promise to be their right partner through both bull and bear times.î

Through the Portfolio Guarantee, a facility of RM50 million shall be made available to the SMEs in the first tranche and eventually up to RM300 million in subsequent tranches. The Portfolio Guarantee, a term loan facility, offers a loan range of between RM100,000 to RM500,000 and is designed with the primary objective of providing working capital and asset acquisition to SMEs.

With Standard Chartered on board, CGC hopes to see more such opportunities with other financial institutions to further enhance its support to the SME sector in efforts to sustain the growth of this key component of the economy.

For media enquiries, please contact:

V. Kumaran

Head, Corporate Communications

Credit Guarantee Corporation Malaysia Berhad

Tel: 03-78062300 (ext. 232)

kumaran@cgc.com.my

13th Top SMI Supporter Award Presentation

13th Top SMI Supporter Award Presentation Press Release
Petaling Jaya, 9 June 2008 ñ Credit Guarantee Corporation Malaysia Berhad (CGC) presented the Top SMI Supporter awards to seven financial institutions in recognition of their commitment and valuable contribution towards SME development. The awards were presented by CGCís Chairman, Datoí Zamani Abdul Ghani during the 13th edition of the Top SMI Supporter Award ceremony held at CGCís headquarters in Petaling Jaya.

The ceremony, held in conjunction with the Corporationís 35th Annual General Meeting, witnessed the presentation of Top SMI Supporter Awards under four different categories – Commercial Banks, Islamic Banks and Development Financial Institutions (DFIs) as well as the Best Financial Partner. The Top SMI Supporter Award for commercial banks was introduced in 1996 whereas the Islamic Banks, Development Financial Institutionsí and the Best Financial Partner awards categories were introduced for the first time in 2008.

The Islamic Banks and Development Financial Institutionsí (DFIs) categories were introduced to encourage these new entities to be more competitive in the Corporationís credit guarantee schemes. Both these categories of institutions came on board in 2007, following the signing of memorandum of understanding (MoU) with the Corporation.

The Best Financial Partner Award, on the other hand, recognizes the institution that has not only contributed significantly to the Corporationís loans growth but also contributed substantially towards quality assets.

The Top SMI Supporter Awards were presented to Maybank, OCBC Bank, RHB Bank, CIMB Bank and Public Bank under the commercial bank category while EONCAP Islamic Bank and SME Bank for the Islamic bank and development financial institution categories respectively. The recipient of the Best Financial Partner award was CIMB Bank.

The selection of award recipients is based on the fulfillment of several criteria determined by the Corporation. Among others, the criteria are total value of loans guaranteed, loans growth, rate of default and rate of recovery.

In 2007, the seven recipients of these coveted awards contributed a total of RM3.9 billion, representing 85% of the total loans guaranteed by CGC for the year. In the said year, the Corporation recorded a strong surge in its loans growth, financing more than 13,000 SMEs valued at RM4.6 billion through its main schemes, programmed lending schemes and securitisation of SME loans. The Corporation also registered a 13% increase in revenue, posting RM275.2 million in 2007 compared with RM243.6 million in 2006.

CGCís Chairman, Y.Bhg. Datoí Zamani Abdul Ghani said the remarkable loans growth and amount guaranteed by the Corporation was the result of the strong support of participating financial institutions. ìIt is the unwavering support of these institutions that the Corporation is able to further expand its outreach to SMEs that are in need of financing and register robust loans growth,î added Datoí Zamani.

ìThe strong surge in loans growth of 53% to RM4.6 billion is unprecedented in the history of the Corporation, reflecting a strong demand for the Corporationís credit guarantees and its participation in SME development,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad. ìAnother significant milestone achieved is the participation of the Corporation in the first-ever synthetic securitization of SME loans in the country, worth RM600 million ,î added Datuk Wan Azhar.

ìThe support and commitment towards SME development displayed by the award recipients have been encouraging. We believe that this is due to the strategic initiatives undertaken by CGC and the closer cooperation forged over the years between CGC and the banks,î said Datuk Wan Azhar.

For media enquiries:

V. Kumaran

Manager

Corporate Communications Department

Tel: 03-7806 2300 ext 232/016-638-1747

E-mail: kumaran@cgc.com.my

Enhancer-i Press Statement

PRESS STATEMENT BY

DATUK WAN AZHAR WAN AHMAD,

MANAGING DIRECTOR

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

We are pleased to announce that Credit Guarantee Corporation Malaysia Berhad (CGC) has launched the Enhancer-i, a new credit guarantee scheme that is designed to further enhance SMEs (Small and Medium Enterprises) access to Islamic financing.

The innovative Enhancer-i is introduced to meet the increasing demand for alternate sources of financing from SMEs especially Syariíah-compliant financing facility. It is an enhanced version of CGCís Islamic Banking Guarantee Scheme (IBGS), the first Islamic guarantee scheme introduced in 2003, to enable SMEs to be more bankable by adding more value to their financing applications. It provides access to financing up to RM10 million and a guarantee coverage of up to 90%.

As with the conventional ENHANCER scheme introduced in August 2006, Enhancer-i is a guarantee scheme where the guarantee fee charged is calculated based on the risk profile of the borrower. The risk-adjusted pricing structure offers competitive terms for borrowers with low risk profiles.

Since the introduction of its Islamic credit guarantee schemes in 2003, CGC has cumulatively guaranteed a total of RM492 million under two of its Islamic schemes.

With the introduction of Enhancer-i, the SMEs now have enhanced access and also options to obtain Islamic financing. In addition to that, with wider and improved access especially with the participation of more Islamic and development financial institutions in CGCís guarantee schemes since early 2007, the SMEs can look forward to exploring newer business opportunities, expand their existing businesses or even penetrate non-traditional markets.

To avail Enhancer-i, the SMEs are encouraged to contact any of the participating financial institutions which offer Islamic financing facilities namely Maybank, Affin Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, EONCAP Islamic Bank Berhad, Hong Leong Islamic Bank Berhad and RHB Islamic Bank Berhad as well as the development financial institutions such as Bank Rakyat, Bank Pertanian and the Malaysian Industrial Development Finance (MIDF).

CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs with inadequate collateral or without collateral and has no track record, a niche area in which the Corporation has served for 36 years. To date, it has cumulatively guaranteed about RM40 billion benefiting more than 400,000 SMEs in the country.

MOU CGC & OCBC Press Release

OCBC IS FIRST FOREIGN BANK TO PARTICIPATE IN CGCís DIRECT ACCESS GUARANTEE SCHEME (DAGS)   Kuala Lumpur, 15 January 2008 ñ OCBC Bank (Malaysia) Berhad today took a major step toward entrenching its position as one of the top supporters of SMEs in the country by becoming the first foreign bank to participate in the Credit Guarantee Corporationís (CGC) Direct Access Guarantee Scheme (DAGS).   DAGS provides SMEs with ìdirect accessî to guarantees from CGC and the required financing from participating banks. Apart from OCBC Bank, other participating banks are Maybank, CIMB, EON Bank, AmBank, RHB Bank and Affin Bank.   According to CGCís Managing Director and CEO, Datuk Wan Azhar Wan Ahmad, OCBC Bank is the first foreign bank to be offered the opportunity to participate in the scheme in view of its active involvement with SMEs and in CGCís other guarantee schemes.   ìCGCís collaboration with OCBC is part of our SME outreach initiative to enhance financial access and support to SMEs across all sectors of the business community,î said Datuk Wan Azhar.   ìWith this initiative, we hope to reach out to all the business entities that have been banking with OCBC and help them to access our credit guarantee facilities,î Datuk Wan Azhar added.   In 2007, OCBC Bank was awarded the Top SMI Supporter Award (Foreign-Owned Bank Category) by CGC, the first for a foreign bank, for its outstanding contribution to SME development in Malaysia. With this, OCBC underlined its commitment to be at the forefront of providing financial services support to SMEs in the country and its quest to be recognised as one of the top financial partners to the SMEs.   ìWe are confident that OCBC Bank will continue to pay special attention to SMEs by providing innovative, financial solutions to them whilst establishing a mutually beneficial customer-banker relationship,î Datuk Wan Azhar added.   Unlike other CGC schemes, all loan applications under DAGS are processed, evaluated and approved by CGC before the applications are channeled to participating banks for documentation and disbursement. Since the introduction of DAGS in year 2000, CGC has approved a total of RM6.2 billion to 11,364 borrowers and loans outstanding as at financial year ending 31 December 2007 is RM3.9 billion.   Facilities offered under the scheme are term loans, overdrafts and trade lines, with each loan quantum capped at lower and upper limits of RM50,000 and RM3 million respectively. The guarantee tenure ranges from 5 years for working capital lines to 15 years for asset acquisition loans.   According to OCBC Bankís Director & CEO, Datoí Albert Yeoh, the Bank has set up a dedicated CGC Support Unit to ensure that OCBC provides prompt turn-around for loan approval and disbursement of CGC guaranteed loans. ìWe also look forward to leveraging on CGCís distribution network and benefiting from their market-driven and customer-centric approach and practices,î he said.   While the Bank expects initial revenue growth in proportion to overall expansion to be modest, it remains confident that, over time, the partnership with CGC would be mutually beneficial.   ìBut beyond this, we believe the SME market out there stands to benefit most through a widening of the access to financial institutions and financing options,î he said. ___________________________________________________________________   About CGC CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs with inadequate collateral or without collateral and have no track record, a niche area in which the Corporation has served for 36 years. To date, it has cumulatively guaranteed about RM40 billion benefiting more than 400,000 SMEs in the country. About OCBC Bank Singapore’s longest established local bank, OCBC Bank, currently has assets of S$170 billion and a network of over 420 branches and representative offices in 15 countries and territories including Singapore, Malaysia, Indonesia, Thailand, Vietnam, China, Hong Kong SAR, Taiwan, Brunei, Myanmar, Japan, Korea, Australia, UK and USA. This network includes more than 330 branches and offices in Indonesia operated by OCBC Bankís subsidiary, PT Bank NISP. OCBC Bank and its banking subsidiaries offer a wide range of specialist financial services, from consumer, corporate, investment, private and transaction banking to global treasury and stockbroking services to meet the needs of its customers across communities.   OCBC Bankís insurance subsidiary, Great Eastern Holdings, is the largest insurance group in Singapore and Malaysia, in terms of assets and market share, and its asset management subsidiary, Lion Capital Management, is one of the largest asset management companies in Southeast Asia. Additional information may be found at www.ocbc.com.

MOU CGC & OCBC - MD's Speech

Speech by

Datuk Wan Azhar Wan Ahmad, Managing Director

of Credit Guarantee Corporation Malaysia Berhad (CGC)

at the MoU Signing Ceremony Between CGC and OCBC Bank

15 January 2008.

Yang Berbahagia Datoí Albert Yeoh, Director and Chief Executive Officer of OCBC Bank Malaysia Berhad

Distinguished guests, members of the media

Ladies and Gentlemen

Assalammualaikum and a very good morning to you.

Foremost, on behalf of Credit Guarantee Corporation, I would like to take this opportunity to thank OCBC Bank Malaysia Berhad in particular Datoí Albert Teoh for laying the groundwork for this milestone collaboration between our two organizations, which I believe will be mutually beneficial and enriching. I would also like to thank the officers involved in this initiative for their relentless efforts, leading to the signing of the Memorandum of Understanding today.

Ladies and gentlemen,

We are pleased to be associated with OCBC Bank, one of the top five foreign banks in Malaysia and Asia’s leading financial services group. With a strong presence in Malaysia especially in the small and medium-sized enterprises market, OCBC Bank offers valuable opportunities for CGC to further expand its SME outreach especially those business entities that were traditionally banking with OCBC. In fact, through this collaboration both the organizations could leverage on their combined network of 45 branches located nationwide to connect with a wider cross section of the SMEs.

OCBC Bank has been participating in CGCís guarantee schemes and in 2006, it was recognized as CGCís Top SMI Supporter under the foreign-owned bank category. Their commendable performance continued in 2007 where it emerged as the Top 3 financial institutions in terms of its contribution to SME financing through CGCís guarantee schemes. By making our Direct Access Guarantee Scheme (DAGS) and Direct Access Guarantee Scheme-Islamic accessible to OCBC customers, we are confident that OCBC would increase its participation in our schemes even further and contribute significantly to overall loans guaranteed to the SMEs. DAGS and DAGS-i have contributed more than RM1.5 billion in 2007 and it is projected to expand further in 2008. Our collaboration with OCBC is projected to contribute RM200 million or 10% of the total projection. We hope that the active participation of OCBC Bank will encourage other foreign banks to seize the opportunity and increase their contribution to SME sector development not only through direct financing but also via our guarantee schemes. With greater involvement of foreign banks comes wider options and access to financing for the SMEs.

Ladies and gentlemen,

As I have said earlier, our collaboration with OCBC is part of the SME outreach program that we have embarked since 2006. In the last two years, we further expanded our outreach by forging strategic alliance with more than 10 Islamic Financial Institutions and Development Financial Institutions. In addition, we have also taken the initiative to broaden our range of products and services. More credit enhancement products and services such as securitization, portfolio guarantee and credit information services have been gradually introduced and established. As you may recall, we have been party to the first SME loan securitization exercise undertaken in Malaysia together with Maybank. CGC has also entered into a strategic partnership with Aureos Capital to offer equity financing.

In the last six months, we have also introduced two new guarantee schemes, the latest being the ENHANCER-Islamic launched early this year. The ENHANCER-Islamic is not only aimed at enabling SMEs to access to alternate sources of financing but also to tap into the growing Islamic financing for SME sector that registered RM6 billion in growth in 2006[1]. We are also in the midst of establishing the SME Credit Bureau, a first in the country to offer SME credit ratings and credit-related information services. We are partnering with Dun and Bradstreet Malaysia Sdn Bhd and all work towards the setting up of the Bureau is progressing as planned. This initiative is of strategic importance to the national agenda of promoting a sound credit culture and greater transparency amongst the SMEs.

Ladies and gentlemen,

These are initiatives that we could not do without as the SMEs are quite dynamic and always in demand of a diverse range of financing facilities. Together, we can do more and I am confident that we would be able to play a bigger role in SME development by providing innovative financial solutions whilst establishing a mutually beneficial customer-banker relationship. Our collaboration holds promise as we could leverage on our distinctive and complementary strength.

In closing, I would like to once again thank OCBC Bank for making this collaboration possible. Today’s signing of MoU for the participation of OCBC Bank in CGCís DAGS and DAGS-i schemes is a first step towards a win-win partnership. As we share a common vision vis-‡-vis SME development, we look forward to working together to build an enduring partnership that will create greater financing access to SMEs and add value to both CGC and OCBC Bank.

Thank you.

——————————————————————————–

MOU CGC and Bank Rakyat

CGC Aims to Enhance Its SME Outreach via Bank Rakyat

KUALA LUMPUR, July 24 – Credit Guarantee Corporation Malaysia Berhad(CGC), Malaysiaís leading credit enhancer to the small and medium enterprises (SME), announced today that it has signed a Memorandum of Understanding with Bank Rakyat to further expand its outreach to the SMEs and promote the growth and development of this sector in Malaysia.

CGCís Chief Executive Officer, Datuk Wan Azhar Wan Ahmad said that the strategic collaboration with Bank Rakyat is expected to pave the way for CGC to bridge the gap further in terms of SMEs access to financing.

He further added that the presence of institutions such as CGC and development financial institutions(DFIs) like Bank Rakyat complement the banking institutions in meeting the financing requirements of the economy, particularly in supporting the economic and social development of the nation.

ìFor CGC, this strategic collaboration would enable it to widen its outreach to a completely new clientele base, reachable through Bank Rakyatís more than 100 branches nationwide while the SMEs will enjoy the availability of another new avenue to secure financing for their business,î he added.

In going forward, CGC will continue to explore strategic partnership with other DFIs to further expand its outreach to the SME community and provide support to as many sectors as possible especially the least supported ones that are significant to the nationís economic growth.

Early this year, CGC forged strategic alliances with eight Islamic financial institutions to further enhance its outreach to the SME community, in particular those that require Islamic financing. To date, this alliance has benefited SMEs with credit guarantees valued close to RM8 million. It has also forged strategic alliances with two DFIs namely MIDF and Bank Pertanian Malaysia and thus far approved close to RM16 million loans, benefiting about 250 SMEs in the first six months of 2007.

ìCGCís expansion of credit enhancement to the Islamic financial institutions and the DFIs is a timely response to the increasing demand for financing by SMEs, which is fuelled by the expanding economy projected to grow at about 6%,î he said.

CGC has also forged strategic alliances with several benchmarked foreign institutions such as global fund manager Aureos Capital and Dun & Bradstreet Malaysia Sdn Bhd, a worldwide operator and provider of credit bureau and risk management solutions, to tap into their expertise especially in equity financing and SME credit bureau services respectively.

In addition to that, CGC had participated in the first ever SME loan securitisation in Malaysia launched in May 2007. This would enable CGC to secure funding for the SMEs from the capital market through the issuance of bonds, asset securitization and collaterised loan obligation.

ìWith these strategic partners on board, CGC is adequately positioned to innovate and introduce new products, reflecting its commitment to expanding avenues for SMEs to enhance their access to credit facilities,î he added.

Since its establishment in 1972, CGC, a subsidiary of Bank Negara Malaysia, has remained focused in its mandated role to assist SMEs accessibility to credit facilities. To date, CGC has been instrumental in the establishment of more than 365,000 SMEs, having cumulatively guaranteed about RM36 billion.

24-Jul-2007 15:24:04 PM

CGC and D&B to establish SME Credit Bureau

PRESS RELEASE

3 July 2007

CGC and D&B to establish SME Credit Bureau

KUALA LUMPUR, July 3 ñ The Credit Guarantee Corporation Malaysia Berhad (CGC) and Dun & Bradstreet (D&B) Malaysia Sdn Bhd announced today they have entered into a strategic alliance to establish a SME Credit Bureau.

The SME Credit Bureau is a central databank of credit information on Small and Medium Enterprises (SMEs) and will act as a key source of information on registration details, credit track records, debt level and obligations, financial statements and trade partners of SMEs.

ìMore importantly, the Bureau would enrich the databank with credit scoring or ratings of SMEs, the availability of which would facilitate better risk management and credit decision-making for users,î said CGCís Managing Director, Datuk Wan Azhar Wan Ahmad.

He added that the credit ratings can be used to guide the pricing of loans and determination of credit limits. SMEs with strong credit ratings would be able to reap the benefits of lower funding costs and greater access to financing while the weak ones are expected to leverage on the informational value of their credit ratings to improve their credit standing.

ìIn addition, the financial institutions will have access to a more comprehensive and reliable credit information on SMEs while SMEs will enjoy the benefit of assessing their own bankability,î he said.

Banks and other financial institutions will be able to avail themselves to a comprehensive range of information on the SMEs in the country from the central database of the Bureau. Convenient, timely and efficient access to SME information and credit ratings is expected to assist the lending institutions to make more objective and speedier evaluation of loan applications from SMEs.

Both CGC and D&B are confident that the establishment of the Bureau will further promote the development of a sound credit culture among financial institutions and SMEs.

ìBy setting up this bureau, it is our hope that the overall transparency in SME financing will be enhanced and the workings of the credit industry strengthened in a more holistic manner thus contributing to a more stable and efficient financial system in the country,î he added.

The Bureau would also encourage non-financial entities, including the SMEs themselves to share information through the Bureau. In this regard, the members of the business community could use the Bureau to decide with confidence when evaluating existing and prospective trade credit or other business deals.

To increase membership, both CGC and D&B will work closely with financial institutions and SME-related trade associations to ensure that SMEs are convinced of the bureauís role in helping them to improve their access to finance. In addition, SMEs will also be made aware of the benefits of joining the Bureau and encouraged to be transparent in reporting their financials.

The Bureau is poised to be an integral component of the developing credit information infrastructure in Malaysia. Its establishment is expected to contribute significantly towards assisting or enabling SMEs to gain access to the financial markets.

CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs in Malaysia, a niche area in which the corporation has served for 35 years. D & B Malaysia Sdn Bhd, a subsidiary of New York-based Dun & Bradstreet Corporation, is a global operator and provider of credit bureau and risk management solutions besides others like market intelligence and receivables management.

The signing of strategic alliance therefore, represents a meeting of the common objective of both parties to bridge the gaps in the availability and access to SME credit information in the country.

For further information, please contact:

Siti Badarny Hassan

Manager, Corporate Communications

Tel: 7806-2300 ext 231

03-Jul-2007 17:37:00 PM

MARC Assign CGC AAA Issuer Credit Rating

PRESS STATEMENT MARC Assign CGC ‘AAA’ Issuer Credit Rating Credit Guarantee Corporation Malaysia Berhad (CGC), a leading credit guarantee institution serving the small and medium enterprises (SMEs) in the country, has attained a ‘AAA’ issuer credit rating from Malaysian Rating Corporation Berhad (MARC). The rating reflects CGC’s healthy financial fundamentals, its sound credit culture, adequate risk governance procedures, loan guarantee schemes portfolio effectively managed and mitigated, the intrinsic liquidity of its assets, strong shareholder support especially Bank Negara Malaysia (BNM) and the strength of its management team. ìWe are delighted to obtain ‘AAA’ issuer credit rating as it is a key to the expansion of our core business, that is, the provision of credit guarantees to SMEs. With this rating and its expanded role under the transformation plan, CGC will provide a mechanism to link SME borrowers and lenders with investors in private capital markets,î said CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad. The ‘AAA’ rating, a pre-requisite to be recognised in the capital market, is expected to strengthen the development of CGC’s credit enhancement role, especially in the area of securitisation of SME loans where CGC’s role as credit enhancer is vital. ìEssentially, CGC would be instrumental in creating an avenue for the SMEs to tap the capital market while at the same time encouraging the capital market investors to be indirectly involved in the development of our SMEs,î Datuk Wan Azhar added. He further added that the capital market is an alternative source of funds that SMEs can tap into and enjoy not only competitive but more importantly, attractive rates than those offered by the financial institutions. îWith its backing as a credit enhancer of ‘AAA’ issuer credit rating, CGC makes it possible for SMEs to access the capital market for funds and enjoy better rates,î he said. ìThe credit rating enhances CGC’s potential to raise funds through the issuance of private debt securities to fund its various programmes designed specially to meet the needs of SMEs, which is commonly done in the developed countries such as Germany, Japan and South Korea,î he further added. Entry into the capital market is part of CGC’s 3-year transformation plan, which will see it transforming itself from a traditional credit guarantee provider to a financially sustainable institution that offers a wide range of products and services to SMEs. CGC, formed in 1972 to assist in SME development, has been instrumental in the establishment of more than 360,000 SMEs, guaranteeing a total of RM35 billion in value. It posted 21.2% increase in revenue from RM200.9 million in 2005 to RM243.6 million in 2006. Its investment income also saw an increase, registering 15.2% growth from RM127.5 million to RM146.9 million in 2006 with net profits reaching RM119.2 million. With the increase in the Corporation’s reserves by 2.8% in 2006, the shareholder’s fund rose to RM2.69 billion from RM2.62 billion as at 31 December 2006.   For further information, please contact: Siti Badarny Hassan Manager, PR & Special Programmes Tel: 03-7806-2300 ext 231 27-Jun-2007 15:26:13 PM

CGC Recognizes Financial Institutions

Press Release

For Publication or Broadcast
21st May 2007

CGC Recognizes Financial Institutionsí

Contribution Towards SME Development

Petaling Jaya, 21 May – Five leading financial institutions were formally recognized for their significant contribution towards SME development in 2006 by Credit Guarantee Corporation Malaysia Berhad (CGC) today. The financial institutions were Maybank, CIMB, EON Bank, OCBC and RHB Bank who received the Top SMI Supporter Award from CGCís Chairman Datoí Zamani Abdul Ghani at the awards presentation ceremony held at its head office in Petaling Jaya.

Maybank and CIMB Bank once again emerged as the Top SMI Supporters, making it their 12th award since the Award was inaugurated by CGC in 1996. For RHB Bank and EON Bank, this is their 7th and 2nd award respectively. The five award recipients contributed RM2.5 billion, representing 83% of the total loans guaranteed by CGC in 2006.

Held in conjunction with the Corporationís 34th Annual General Meeting, the 12th edition also witnessed the recognition of OCBC, a foreign-owned bank under CGCís Top SMI Supporter-Foreign-owned Bank category, introduced for the first time in 2006. CGC introduced this new category basically to demonstrate its appreciation to the foreign-owned banks for their support towards the development of local SMEs and also to further encourage their continued participation in its credit guarantee schemes.

Speaking to reporters at a press conference after the award presentation ceremony, CGCís Managing Director Datuk Wan Azhar Wan Ahmad said that foreign-owned banks have shown increasing interest in supporting the local SMEs, which has great potential for growth in the coming years.

ìWe have seen their increasing interest not only in supporting the local SMEs directly but also through their participation in our credit guarantee schemes. It is an encouraging trend that CGC will continue to promote,î added Datuk Wan Azhar.

He further emphasized that with the foreign-owned banks showing more interest in financing the SMEs, local banks are expected to step up their efforts to face off the increasing competition in this market.

ìThe healthy competition among the banks would greatly benefit the SMEs in terms of access to financing as they will not only have greater options but also enjoy the convenience of the extensive network of the banksí branches nationwide,î stressed Datuk Wan Azhar.

ìWith the signing of the Memorandum of Understanding with eight Islamic financial institutions in February this year, we are also considering another new award category to recognize the contribution of these Islamic institutions,î said Datuk Wan Azhar.

The award recipients were selected based on the fulfillment of the various criteria set by the Corporation, amongst others, are the total value of loans guaranteed, loans growth, rate of default and rate of recovery.

In the financial year ended 31st December 2006, the Corporation sustained its loans growth at a respectable level of over 7,500 SME accounts valued at slightly over RM3 billion, benefiting largely the general business, manufacturing and agricultural sectors. CGC registered 21.2% increase in revenue, posting RM243.6 million in 2006 as opposed to RM200.9 million in the corresponding year.

ìWith the increasing participation of the conventional banks and the Islamic financial institutions in CGCís credit guarantee schemes coupled with the introduction of new and revised products, we are optimistic of achieving our target of RM4.5 billion in 2007,î said Datuk Wan Azhar.

On its 3-year Business Transformation Plan that it embarked on in 2006, Datuk Wan Azhar said it is on track with several of the strategic initiatives outlined under the plan having been implemented and have progressed substantially. These include the expansion of the scope of its guarantee beneficiaries to Islamic and development financial institutions, the establishment of a joint venture company with an international partner to provide equity funding to SMEs, securitization of SME loans and the introduction of risk-adjusted pricing structure in its guarantee schemes as well as strengthening of its institutional capacity in the areas of human capital management, IT infrastructure and corporate governance.

CGC has cumulatively guaranteed more than 360,000 SME establishments with a loans value of RM35.14 billion since its establishment in 1972.

Brief on CGC

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on July 5, 1972. Current shareholders are Bank Negara Malaysia (major shareholder) and all commercial banks. CGC has 16 branches nationwide which were established since year 2000.The core business focus of CGC is to assist SMEs, especially those without or with inadequate collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities.

CGC has also expanded its role by providing business advisory services, i.e. assisting SMEs who are unfamiliar with the procedures involved in preparing the required documents for financing through its panel of Business Advisory Service Entity (BASE).

For Media Enquiries:

Siti Badarny Hassan

Public Relations and Special Programme

Tel: 03-78062300 ext 231

E-mail: badarny@cgc.com.my

12-Jun-2007 17:21:26 PM

MARC Assign CGC 'AAA' Issuer Credit Rating

PRESS STATEMENT

For Immediate Release 31st May 2007

MARC Assign CGC ‘AAA’ Issuer Credit Rating
Credit Guarantee Corporation Malaysia Berhad (CGC), a leading credit guarantee institution serving the small and medium enterprises (SMEs) in the country, has attained a ‘AAA’ issuer credit rating from Malaysian Rating Corporation Berhad (MARC).

The rating reflects CGC’s healthy financial fundamentals, its sound credit culture, adequate risk governance procedures, loan guarantee schemes portfolio effectively managed and mitigated, the intrinsic liquidity of its assets, strong shareholder support especially Bank Negara Malaysia (BNM) and the strength of its management team.

ìWe are delighted to obtain ‘AAA’ issuer credit rating as it is a key to the expansion of our core business, that is, the provision of credit guarantees to SMEs. With this rating and its expanded role under the transformation plan, CGC will provide a mechanism to link SME borrowers and lenders with investors in private capital markets,î said CGC’s Managing Director, Datuk Wan Azhar Wan Ahmad.

The ‘AAA’ rating, a pre-requisite to be recognised in the capital market, is expected to strengthen the development of CGC’s credit enhancement role, especially in the area of securitisation of SME loans where CGC’s role as credit enhancer is vital.

ìEssentially, CGC would be instrumental in creating an avenue for the SMEs to tap the capital market while at the same time encouraging the capital market investors to be indirectly involved in the development of our SMEs,î Datuk Wan Azhar added.

He further added that the capital market is an alternative source of funds that SMEs can tap into and enjoy not only competitive but more importantly, attractive rates than those offered by the financial institutions. îWith its backing as a credit enhancer of ‘AAA’ issuer credit rating , CGC makes it possible for SMEs to access the capital market for funds and enjoy better rates,î he said.

ìThe credit rating enhances CGC’s potential to raise funds through the issuance of private debt securities to fund its various programmes designed specially to meet the needs of SMEs, which is commonly done in the developed countries such as Germany, Japan and South Korea,î he further added.

Entry into the capital market is part of CGC’s 3-year transformation plan, which will see it transforming itself from a traditional credit guarantee provider to a financially sustainable institution that offers a wide range of products and services to SMEs.

CGC, formed in 1972 to assist in SME development, has been instrumental in the establishment of more than 360,00 SMEs, guaranteeing a total of RM35 billion in value. It posted 21.2% increase in revenue from RM200.9 million in 2005 to RM243.6 million in 2006. Its investment income also saw an increase, registering 15.2% growth from RM127.5 million to RM146.9 million in 2006 with net profits reaching RM119.2 million.

With the increase in the Corporation’s reserves by 2.8% in 2006, the shareholder’s fund rose to RM2.69 billion from RM2.62 billion as at 31 December 2006.

For further information, please contact:

Siti Badarny Hassan

Manager, PR & Special Programmes

Tel: 03-7806-2300 ext 231

Triple A Rating_statement_310507_1820hrs

27-Jun-2007 15:25:40 PM

Launching of Strategic Partnership

Press Release 6 February 2007

CGC and Islamic Financial Institutions forge Strategic Partnership to accelerate SME growth and drive new opportunities

Kuala Lumpur, Tues 6 Feb – The development of the small and medium-sized enterprises (SME) took a significant step forward today as Credit Guarantee Corporation Malaysia Berhad (CGC) and eight Islamic Financial Institutions announced their strategic partnership that has the potential to increase SMEs access to financing as well as open up new growth opportunities for the institutions.

This decisive step, a customer-centric approach taken by CGC and the Islamic financial institutions, will provide a wider avenue for the SMEs to avail themselves of the varied financing facilities to be made available through the institutionsí network of branches nationwide.

The eight participating Islamic financial Institutions are Affin Islamic Bank Berhad, AmIslamic Bank Berhad, Bank Islam Malaysia Berhad, Bank Muamalat Malaysia Berhad, CIMB Islamic Bank Berhad, EONCAP Islamic Bank Berhad, Hong Leong Islamic Bank Berhad and RHB Islamic Bank Berhad.

Speaking to reporters at the launch of this strategic partnership, CGC Chairman Datuk Zamani Abdul Ghani said that the initiative is indeed an extension of the Corporationís on-going efforts to be in the forefront of SME development in the country. ìThis strategic move is in line with the Corporationís transformation exercise embarked a year ago to assist SMEs through new channels,î added Datuk Zamani.

The collaboration with Islamic financial institutions, Datuk Zamani said, is a testimony of CGCís conscientious efforts to find new ways of assisting the SME community that requires financial and developmental support. ìCGC has anticipated an increasing demand for alternate sources of financing from SMEs, especially Syariíah-compliant financing schemes in the light of the fast developing Islamic financial system in parallel with the conventional structure in Malaysia. The initiation of guarantee schemes in Islamic finance complements our overall efforts in the development of Islamic finance as an effective driver of economic growth,î explained Datuk Zamani.

ìIt will not only enable CGC to assist SMEs requiring Islamic guarantees but also help expand its financing base to more customers requiring Islamic facilities. The collaboration also paves the way for CGC to make further inroad into Shariíah-based Islamic financing,î he added.

With this collaboration, it is anticipated that CGC and the Islamic financial institutions will step up their efforts even further to assume a greater role in SME development as envisioned by the National SME Development Council. The concerted efforts by both parties will bring mutual benefits as the Islamic financial institutions are able to extend more financing to its customers with CGC guarantees while on the other hand CGC is able to reach out to new SME customers.

In terms of volume of business, Datuk Zamani revealed that this collaboration is expected to generate RM300 million in 2007.

Year 2007 marks the 2nd phase of CGCís transformation plan where expansion of products and services will be given greater prominence. In addition to extending the guarantee facilities to Islamic financial institutions and development financial institutions, CGC will expedite its efforts in the provision of equity financing as well as securitisation of SME loans. ìThese initiatives are expected to facilitate the Corporationís entry into capital market activities intended for the development of SMEs,î said Datuk Zamani.

He explained further that the new CGC will take a more holistic approach to address SMEs ëaccess to financingí by offering not only conventional and Islamic guarantee products but also non-financial ancillary services i.e. advisory services on financial and business management, marketing and other business aspects to strengthen the capacity and capabilities of SMEs.

CCG, a leading credit enhancer in the country for more than three decades, has to-date been instrumental in the establishment of about 360,000 businesses, guaranteeing over RM35 billion worth of loans.

With the launch of this strategic partnership with the Islamic financial institutions, CGC hopes to see more opportunities and avenues to support the SME sector which remains the key driver of nationís economic growth.

For more information please contact:

Siti Badarny Hassan or V. Kumaran

at 03-7806-2300 ext 231/232

27-Jun-2007 15:23:28 PM

CGC introduces ENHANCER

CGC introduces ENHANCER to facilitate SME financing

Kuala Lumpur, 28 Aug – Building on the success of its various schemes, Credit Guarantee Corporation Malaysia Berhad (CGC), today launched the ENHANCER, a new credit guarantee scheme aimed at making it relatively easier for the small and medium enterprise (SME) community to obtain financing by enhancing the credibility of their loan applications.

Speaking to reporters after the launching ceremony, CGCís Chief Executive Officer Datuk Wan Azhar Wan Ahmad said, ìThis is one of the most customer-centric products that we have introduced to date as we are committed to see a continuous and dynamic development of the SME sector in the country.î

ìEssentially, the ENHANCER helps SMEs to strengthen their credit standing and business viability by adding more value to their loan applications,î stressed Datuk Wan.

The ENHANCER is a credit guarantee scheme where the guarantee fee that is normally charged to the borrower would be calculated according to the risk profile of the borrower. Under the ENHANCER, a borrower with a low risk profile would pay a low guarantee fee as opposed to a high-risk borrower.

ìThe risk-adjusted guarantee fee pricing structure under ENHANCER is an initiative by CGC to enable a broader segment of the SME community to have greater access to financing their businessî, added Datuk Wan.

The ENHANCER makes SMEs more ëbankableí as the question of risk is now being reflected with a flexible fee structure that is based on the profile of the borrowers.

ìThe new fee structure which is risk-adjusted will be based on the rating of the borrower determined using a scoring methodology,î added Datuk Wan. ìThis may also serve as an incentive for SMEs to enhance their risk profile in order to avail themselves of a lower fee.î

He also explained that under the ENHANCER scheme, the financial institutions that provide loans, are no longer required to comply with stringent requirements such as notification of the Non-Performing Loan (NPL) and any claims arising can be submitted immediately upon NPL.

Datuk Wan also added that the ENHANCER will be initially targeted at small and medium-sized businesses, a segment that has traditionally been finding it difficult to have excess to business loans. Subsequently ENHANCER will also be made available to the bigger enterprises.

ìAs a premier credit guarantee institution, CGC will continue to not only support the growth of SMEs but also to facilitate and sustain their development by paving the way for greater access to the much-needed financial assistance,î explained Datuk Wan.

CGC experienced encouraging demands for the credit guarantee schemes introduced over the years. As at end of July 2006, CGC has cumulatively guaranteed over 363,055 loans valued at RM33.25 billion. In 2005, it guaranteed a total of 8,600 loans valued at RM3.3 billion, benefiting three broad economic sectors namely, general business, manufacturing and agriculture.

ìFor 2006, we aim to maintain the momentum on loan approvals and ENHANCER will be contributing to that effort,î he added.

For the first time ever through its own branch network, CGCís DIRECT ACCESS GUARANTEE SCHEME (DAGS) surpassed the billion-dollar mark in 2005, registering close to 2,400 loans, valued at RM1.4 billion. DAGS and NPGS, the two main schemes, contributed significantly towards the Corporationís growth in loan guarantees, representing about 42% (RM1.4 billion) and 32% (RM1.0 billion) of the total value of loans guaranteed in 2005, respectively. As at end of July 2006, DAGS has seen an increase in total loans guaranteed, registering 16.5% growth compared with the corresponding year.

ìWith attractive features that are beneficial to both the borrowers as well as the financial institutions, we look forward towards greater participation by the financial institutions in the ENHANCER scheme,î said Datuk Wan. îWe also anticipate an increased participation by the locally incorporated foreign banks. Currently participation from the foreign banks only accounts for two percent of the loan base.

As part of its product strategy, CGC is also in the midst of expanding its strategic partnership with Islamic financial institutions to have greater reach to the SME community through the provision of credit enhancements for Islamic financial products.

The ENHANCER was officially launched by the Deputy Governor of Bank Negara Malaysia Datuk Zamani Abdul Ghani at Nikko Hotel, Kuala Lumpur.

CGC was established with the main aim of assisting the SMEs gain accessibility to credit facilities from financial institutions. It is one of the leading institutions in Malaysia, which provides guarantee on loans to SMEs which have no or inadequate collateral or track record.

Maybank and BCB Top SMI Supporters for 11 Consecutive Years

Press Release

For Publication or Broadcast
26th May 2006

Maybank and BCB Top SMI Supporters for 11 Consecutive Years

Petaling Jaya, 26 May ñ Maybank and Bumiputra-Commerce Bank have once again emerged as the Top SMI Supporters, making it the 11th award both the institutions have won since it was first introduced by Credit Guarantee Corporation (CGC) in 1996. Also recognised were Public Bank Berhad and EON Bank as among the top four SMI Supporters for 2005.

The Top SMI Supporter Award that recognises financial institutions for their significant contribution towards the financing of Small and Medium scale Industries (SMI) and their overall participation in CGCís guarantee schemes annually, was presented by CGC Chairman Datuk Zamani Abdul Ghani at its 33rd Annual General Assembly held in Petaling Jaya.

ìThe financial institutions have been very supportive of CGCís guarantee schemes. With their support CGC has been able to play a significant role in the overall growth of the SMI sector. It is in view of their unwavering support that we recognise them annually,î said CGCís Managing Director Datuk Wan Azhar Wan Ahmad.

ìThis recognition has to a certain extent increased competition among the financial institutions as we could see that they are more aggressive in terms of their contribution towards our guarantee schemes,î added Datuk Wan Azhar.

The Corporation registered yet another commendable performance for the year under review. It guaranteed 8,567 loans valued at RM3.3 billion for all its schemes compared with 8,452 loans valued at RM3.0 billion in the previous year. With this healthy growth, the Corporationís guarantee fees income increased by 11.7% to RM73.4 million, from RM65.7 million recorded in the previous year.

In October 2005, the Corporation announced that it would undertake a transformation exercise with a commitment to further enhance its role in supporting the growth and development of competitive SMEs. CGC will be transformed from a traditional guarantee provider into an effective and financially sustainable institution that offers a wider range of products and services that better serve the current and evolving needs of SMEs.

ìIn a nutshell, the transformation exercise would reposition CGC as a commercially-driven financial institution that offers financial as well as other products and services that are complementary to those provided by the banking institutions,î said Datuk Wan Azhar.

ìWe are on track with the transformation. The first of the few initiatives that we have already completed includes the broadening of the board of directors where we have included new members with diverse and relevant expertise that are very much needed by CGC. In addition, we have forged strategic partnership with a foreign SME institution to provide the much-needed expertise to help CGC in its pursuit of establishing itself as an SME institution of choice in Malaysia,î said Datuk Wan Azhar.

The corporation experienced continued demand for its various guarantee schemes in 2005. Two new products were made available for the SMEs. The Fast Track Pro-Finance, a co-branding activity with Bumiputra Commerce Bank (BCB) that catered for the needs of professional firms, was launched last July. This was followed by the debut of the Direct Access Guarantee Scheme-Islamic (DAGS-i), which was introduced in December and which signifies its entry into the Islamic financial infrastructure in the country.

As at end of April 2006, cumulatively CGCís Islamic Banking Guarantee Scheme (IBGS) and Direct Access Guarantee Scheme-Islamic have contributed a total of 525 guaranteed loans approved with a value of RM364 million.

ìWith the presence of a guarantee system in the Islamic banking community, the Corporation is now able to meet the needs of our customers seeking an alternative to conventional methods, and thereby delivering Syariah compliant products,î Datuk Wan Azhar said.

CGCís Direct Access Guarantee Scheme (DAGS), which has played an effective role in enhancing the SMEís bankability and access to financing, has for the first time surpassed the billion ringgit mark in 2005, registering 2,349 loans valued at RM1.4 billion compared with 2,076 loans valued at RM962.9 million in 2004. This commendable growth for DAGS is a result of aggressive marketing strategies, good branch networking and loan monitoring. Demand for DAGS has seen an increase this year with guaranteed loans, as at end of April 2006, reaching 703 valued at RM423.5 million.

CGC will continue to focus more on products and services that are complementary to those provided by banking institutions and that are to be provided at competitive terms to enable the Corporation to achieve long term financial sustainability. It will also intensify further its reach to the SME fraternity via more co-branding and collaborative efforts with the financial institutions. This will enable more SMEs to benefit from the guarantee facilities offered by CGC.

In moving forward CGC will be participating in the first SME loans securitisation in the country. In addition to enhancing the capacity of financial institutions to further lend to SMEs, the securitisation would enable SMEs to indirectly tap their funding requirements from the capital market.

CGC was established with the main aim of assisting the SMEs gain accessibility to credit facilities from financial institutions. It is one of the leading institutions in Malaysia, which provides guarantee on loans to SMEs. To date, it has cumulatively guaranteed more than 380,000 loans valued at RM33.86 billion.

End.

CGC Extends Guarantee Scheme to Professional Firms

PRESS RELEASE

CGC Extends Guarantee Scheme

To Professional Firms

Kuala Lumpur, 26th July 2005: Credit Guarantee Corporation Malaysia Berhad (CGC), Malaysiaís sole provider of guarantee for business loans, is confident of attracting more professional service providers to participate in its guarantee schemes. The availability of the Fast Track PRO-Finance, which is a joint collaboration with Bumiputra Commerce Bank (BCB), is expected to provide the impetus as it is specially designed to assist Professional Firms to get financing for their working capital and business expansion.

CGCís Managing Director Datuk Wan Azhar Wan Ahmad said the new financing package, jointly undertaken with BCB, is offered via fastrack mode and is made available for private medical and dental clinics, accounting, audit and tax consultants as well as veterinary clinics, engineering and architect firms with a maximum loan of RM100,000. This joint promotion will utilize the existing New Principal Guarantee Scheme and Small Entrepreneur Guarantee Scheme.

ìIn its continuous effort to improve services to the Small Medium Enterprises (SMEs), CGC embarked on joint programmes with local banks, one of which is this BCB Fast Track PRO-Finance. Following the overwhelming response from the BCB Fast Track Financing, a joint product tie-up launched in August 2003, todayís Memorandum Of Understanding (MoU) is an extension of that arrangement for a similar collaboration effort with BCBî, noted Datuk Wan Azhar.

The MoU signed today between BCB and the participating firms namely the Malaysian Institute of Accountants, Malaysian Dental Association, Malaysian Pharmaceutical Society, Malaysian Institute of Architects, The Institution of Engineers, The Institution of Surveyors, Malaysian Medical Association and the Small Animal Practitioners Association of Malaysia, paves the way for CGC to extend its services as the intermediary in providing access to credit for the SMEs.

According to Datuk Wan Azhar, the signing ceremony today marks yet another milestone in the annals of CGC as it stamps CGCís role as a ëCredit Enhancerí, thus evolving itself from its primary role as a credit supplementation institution to a more market driven role in assisting SMEs in the competitive economy. BCB, which was recently awarded as Top SMI Supporter for the past ten years, has committed a great deal of resources and services in financing the SMEs.

ìWe are confident that with todayís MOU, the product will create better awareness among professional firms to get financing, for both working capital and business expansion. There is a commitment now from both CGC and BCB to aggressively promote this product which has seen us approving 66 applications to the value of close to RM5 million up to July 15 this yearî, said Datuk Wan Azhar.

From January to July 15th, this year, CGC has approved a total of 4,396 applications valued at RM1.726 billion for all its five main guarantee schemes. CGC anticipates loans to be guaranteed this year to reach RM4 billion, given the rapid growth of SMEs. Of this amount, half or more will be through its own branches. As at 15 July, CGC has approved 1,722 applications for New Principal Guarantee Scheme (NPGS) amounting to RM556 million whilst for Direct Access Guarantee Scheme (DAGS) was 1,189 applications valued at RM693.7 million. CGC also has approved 614 applications amounting to RM22.1 million for Small Entrepreneur Guarantee Scheme (SEGS). CGC usually witnesses a rapid pick-up in borrowings from customers in the third and fourth quarters of the year.

About CGC
CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. As at July 15th 2005, CGC has cumulatively guaranteed 375,140 loans valued at RM31.4 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my or call our Client Service Centre at telephone number 03-788-000-88

Ends.

************************************************************************************

For Media Enquiries:

Puan Siti Badarny Hassan

Public Relations and Special Programmes Department

Tel ñ 03 : 78062300 Ext 231.

e-mail ñ badarny@cgc.gov.my

CGC plans expansion to reach more SMEs

CGC plans expansion to reach more SMEs

Petaling Jaya, 9th May 2005: Credit Guarantee Corporation Malaysia Berhad (CGC), Malaysiaís sole provider of guarantee for business loans, guaranteed 8,452 loans valued at RM3.01 billion last year under various schemes for the Small and Medium Enterprises (SMEs). The figures represent an increase of 4.5 percent in terms of number and 12 .1 percent in terms of value compared with the total number of 8,090 loans and value of RM2.68 billion respectively approved in 2003.

Chairman Datuk Zamani Abdul Ghani said CGCís operating revenue increased by 9.8 percent to RM148.14 million, against RM134.92 million achieved in 2003 due to higher earnings from both guarantee fees and investment.

ìThe operating environment for the year under review was indeed challenging, but with clear strategies in place, our plans were executed accordingly. As a result, CGC experienced continued demand for its various guarantee schemes enabling greater access to financing for the SMEs, thereby enhancing their capacity to expand and grow,î remarked Datuk Zamani at the 32nd Annual General Meeting of CGC held in Petaling Jaya today.

As the only credit guarantee institution for SMEs, CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment in 1972. There has been a continuing demand for its guarantees, especially the Direct Access Guarantee Scheme (DAGS) which has played an effective role in enhancing the SMEs bankability and access to financing.

ìA positive growth and commendable loan quality for DAGS is a result of adequate branch network and loan monitoring. A total of 2,076 loans valued at RM962.88 million were approved in 2004 compared with 1,904 loans valued at RM932.79 million in 2003. The New Principal Guarantee Scheme (NPGS) saw a slight decrease with 3,340 approved loans valued at RM1,061.68 million in 2004 compared with 3,657 loans valued at RM1,144.45 million in 2003,î noted Datuk Zamani.

Generally, CGCís two main schemes, namely the NPGS and DAGS, contributed significantly towards growth in loan guarantees, representing about 35.3 percent or RM1.06 billion and 32 percent or RM962.88 million respectively of the total value of loans guaranteed in 2004. In terms of sectorial distribution, 73.5 percent or RM2.2 billion of total loans were to the General Business sector.

ìSignificant progress was made last year towards improving the delivery system whereby the Client Service Centre (CSC) was launched in August to provide a ëOne-Stop Communication Centreí to the SMEs and the financial institutions. The official appointment of the Business Advisory Services Entity (BASE) in October saw six consultants being appointed to help the SMEs prepare loan applications for submission to CGC or the financial institutions,î noted Datuk Zamani.

CGCís strategy this year focuses on enhancing the SMEs access to financing. It will continue to elevate its role as a One-Stop-Centre for SMEs to gain access to financing via the Customer Service Centre and its network of 16 branches nationwide. In line with its effort to maximize its reach to more SMEs, CGC will continue with its plan of expanding the existing branches by setting up representative offices in selected locations. Focus shall be given to faster access to financing as well as the post sales service. More tie-up programmes with the financial institutions are in the pipeline to help CGC achieve its strategic goals.

About CGC
CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. To-date CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my.

07-Sep-2005 11:46:05 AM

Maybank, BCB, RHB and Hong Leong Bag CGC's Top SMI Supporter

Maybank, BCB, RHB and Hong Leong Bag CGC’s Top SMI Supporter Award 2004 Petaling Jaya, 9th May 2005: Credit Guarantee Corporation (CGC), Malaysiaís sole provider of guarantee for business loans, today awarded four local commercial banks the CGC Top SMI Supporter Award 2004. The award, the tenth in the series, is to acknowledge the financial institutions for their significant contribution towards the financing of Small Medium Enterprises (SMEs) and their overall participation in CGCís guarantee schemes annually.   The awards recipients were Maybank, Bumiputra-Commerce Bank, RHB Bank and Hong Leong Bank. CGCís Chairman, Datuk Zamani Abdul Ghani, who is also Bank Negara Malaysiaís (BNM) Deputy Governor, presented the awards after CGCís 32nd Annual General Meeting held in Petaling Jaya.   For Maybank and BCB, the awards this year are of special significance as it is the tenth consecutive year that they have won this award from CGC. As for Hong Leong Bank, it is their first award this year, an acknowledgement for their active participation in spurring the growth of the SMEs in the country. RHB, meanwhile, has won this award for six times.   Datuk Zamani Abdul Ghani said the CGC Top SMI Supporter Award, introduced in 1996, has grown from strength to strength as can be seen from the growing awareness among financial institutions to participate in CGCís guarantee schemes.   ìI would like to congratulate Maybank and BCB for winning this award ten years in a row which undoubtedly places them as the leading providers of financial support for SMEs. Similarly, I would also like to congratulate RHB for their achievement, winning this award for the sixth time, and welcome Hong Leong Bank into the top four ranks of this award. This inaugural achievement by Hong Leong will definitely place the bank on the same playing field with the other financial institutions,î said Datuk Zamani at the prize presentation ceremony held after the 32nd Annual General Meeting of CGC.         Meanwhile, all winners of the award have expressed their full commitment to ensure the continued growth of SMIs in the country and to work closely with CGC.   ìThe SMEs continue to be the impetus for growth and we congratulate CGC in their efforts to enhance this sector through their various loan and guarantee schemes. We have great pleasure in working with CGC in support of the SMEs and congratulate them for their various programmes in uplifting the SME sector. We are honoured by the recognition as Top Performer for 10 consecutive years and we will continue to enhance the close rapport with CGC to enable the SMEs to access the various CGC schemes,î said Datuk Amirsham A Aziz, President and Chief Executive Officer of Maybank Berhad.   Bumiputra-Commerce Bank says it is honoured with the recognition of this award by CGC as a Top SMI Supporter. As one of the largest domestic bank with a deep understanding of the needs of local enterprises, BCB notes that it has always been committed to assist SMIs advance.   ìWe aspire to be the choice bank to all businesses by providing a speedy, efficient and hassle-free process whereby businesses can seek financial assistance. As such, we commit a great deal of resources and dedicate a large team of experienced bank officers located at about 50 business centres throughout the country dedicated to financing SMIs. Our success in this mission over the last 10 years as Top SMI Supporter is due in a large part to the strong commitment and unwavering support of CGC, which has always been a most supportive and forward looking partner in our quest to help Malaysian SMIs advance. We would like to express our appreciation to CGC and restate our commitment to work closely with CGC,î said Encik Abu Bakar Buyong, Executive Vice President, Business Banking.   RHB Bank says the SMEs have been recognized as a priority business. The bank notes that they have 42 easily accessible business centres and a network of 191 branches nationwide to cater for SMEs financing needs. RHB Bank is the first commercial bank to develop and launch a program lending loan package specially tailored for the SMEs under its ëBizPowerí Brand.   ìWe are fully committed towards the development of the SMEs and have set up dedicated departments which provides advisory and product development namely the Special Funds & Schemes Department, the Bumiputera Business Development Department and the Program Lending Department. In addition, our Accounts Relationship Managers and the Commercial Sales Team will provide their professional services and also look into the SMEs financing needs. With CGC as our business partner, we will be able to provide better financial assistance to a wider SMEs market.   This is reflected in our achievement and recognition accorded by CGC as its Top SMI Supporter Award for six consecutive time,î said Mr Michael J. Barrett, Chief Executive Officer, RHB Bank Berhad.   Meanwhile, Hong Leong Bank says the bankís bedrock has always been the SMIs. According to Mr Lee Chaing Huat, Chief Operating Officer, Business Banking, they are delighted and honoured to be recognised and to receive this prestigious award from CGC.   ìWe attribute this achievement to our loyal SMI customers who have given us the opportunity and privilege to be their business partners. This award will certainly spur us to bring more value added financial services to our customers and the SMI community and to help them face the extremely challenging and competitive business environment both locally and globally,î noted Mr Lee.   The winners were selected based on various criteria set by CGC. They include the number and value of loans guaranteed, loan growth, contribution towards Bumiputera SMEs, contribution towards the manufacturing sector, rehabilitation and restructuring as well as recovery.   All winners received a special woodcarving, ëPohon Bodhií which represents the primordial tree that has stood from the beginning of time and whose branches and roots reach out into infinity. The award symbolises commitment and strong foundation.   About CGC CGC was established in 1972 to assist the SMEs/SMIs gain accessibility to credit facilities from financial institutions. It administers various guarantee schemes meant for specific target groups via its 16 branches located nationwide. To-date CGC has cumulatively guaranteed 344,567 loans valued at RM28.81 billion since its establishment. CGC is owned by Bank Negara Malaysia and the Financial Institutions. As a strong supporter of Small and Medium Entrepreneurs, it is currently under the purview of the Ministry of Entrepreneur and Cooperative Development. For further information, please visit CGCís website at www.iGuarantee.com.my. 07-Sep-2005 11:44:34 AM Terms and Conditions apply, Copyright 2003 Credit Guarantee Corporation Malaysia. IMPORTANT LEGAL NOTICE

Presentation Of Top SMI Supporter Award

Presentation Of Top SMI Supporter Award
The 31st Annual General Meeting of Credit Guarantee Corporation Malaysia Berhad (CGC), held at Bangunan CGC today, witnessed the presentation of Top SMI Supporter Awards for year 2003. The Corporationís Chairman, YBhg. Datoí Mohd Salleh Hj. Harun, presented the awards to four financial institutions; namely 3 commercial banks and 1 finance company.

The first CGC Top Supporter Award was introduced in 1996 to recognize banks and finance companies for their significant contribution in the overall achievement of the Corporationís objectives. The Top SMI Supporter Awards, the ninth in the series is traditionally presented to acknowledge the 4 most active financial institutions for their significant contribution towards the financing of SMEs and their overall participation in CGCís guarantee schemes in 2003. The top 3 commercial banks had contributed 68% and 81% in terms of number and value respectively for the Commercial Bank category while the top finance company contributed 94% in terms of both number and value for the Finance Company category in 2003.

The Corporation is pleased to announce the recipients of the 2003 Awards being as follows:

COMMERCIAL BANKS
FINANCE COMPANY
Malayan Banking Berhad

RHB Bank Berhad

Bumiputra-Commerce Bank Berhad
Mayban Finance Berhad

PERFORMANCE IN 2003

The Corporation is adamant of playing an effective role in providing greater financial accessibility to the Small and Medium Enterprises (SMEs) to enhance their capacity to expand their business ventures. As such, the demand for the CGC guarantee schemes continued to remain strong amongst the SMEs in 2003.

Despite the dynamic global economy in 2003, the Corporation remained committed in assisting the SMEs. Following that, the Special Relief Guarantee Fund (SRGF) was introduced to alleviate temporary cash-flow problems faced by those involved in industries which were affected by the Severe Acute Respiratory Syndrome (SARS). Since its implementation, SRGF has benefited 73 borrowers, involving loans valued at RM36.89 million.

The Corporationís expansion program witnessed the opening of two more branches namely in Batu Pahat, Johor and Wangsa Maju in Kuala Lumpur, bringing the total number to 14 branches altogether. In line with the Corporationís business plan, the branches continued to play a vital role in promoting the Direct Access Guarantee Scheme (DAGS.

During the period, a total of 1,904 loans valued at RM932.8 million was approved under DAGS compared to 1,052 loans valued at RM436.3 million in year 2002. Similarly, the New Principal Guarantee Scheme (NPGS) also showed an increase with 3,657 approved loans valued at RM1,144.5 million in year 2003 as compared to 3,424 loans valued at RM1,113.3 million approved in year 2002.

Overall, the total loans guaranteed for the year amounted to RM2.7 billion, surpassing the Corporationís target of RM2.4 billion. The two main schemes, namely New Principal Guarantee Scheme (NPGS) and DAGS had contributed significantly to the growth, representing about 42.6% and 34.8% respectively, of the total value of loans guaranteed in year 2003. In terms of direction of lending, 83% of total loans went to the General Business sector. The Corporation has cumulatively guaranteed 336,115 loans valued at RM25.8 billion.

The Islamic Banking Guarantee Scheme (IBGS), introduced in 1997 was revised in June 2003. The revised IBGS enabled viable businesses to obtain maximum financing of up to RM10 million at a reasonable profit rate. Under the scheme, the Corporation has approved 87 loans valued at RM46.5 million in 2003.

In 2003, a significant milestone was recorded in the strategic management with the introduction and implementation of the Balance Scorecard. It was introduced as a management tool to measure performance of the company from 2004 onwards.

The pilot implementation of Business Advisory Services Entity (BASE) had assisted SMEs towards securing loans and credit facilities via assisted preparation of business proposals. The year also saw BASE having a strong rapport with CGC branches, hence facilitating the loan application process.

In line with the Corporationís effort to provide better quality services to the SMEs, the BCB Fast Track was launched sometime in October 2003. It was a joint effort between the Corporation and the Bumiputra – Commerce Bank Berhad (BCBB) to avail credit facilities faster. Under this arrangement, applications for credit guarantee under SEGS, availing loans not exceeding RM50,000 were processed within 3 working days while those under NPGS with loan amount above RM50,000 took no longer than 7 working days. As at December 2003, the Corporation had cumulatively approved 369 loans amounting to RM20.7 million under the scheme.
OUTLOOK
Todayís occasion is very significant as CGC introduces its newly enhanced iGuarantee website. Leveraging on Information Technology, iGuarantee, is an innovative channel which acts as a virtual market place for online business loans applications. The iGuarantee has been improved with features that are more informative, interactive and user-friendly. It has also been given a new look and feel to accommodate comprehensive information on CGCís schemes, business-related articles as well as promoting a community-type environment for SMEs to interact.

The essence iGuarantee enhancement incorporates the ë3Csí, namely Content, Commerce and Community.

The new features of the enhanced iGuarantee are :

i) Content

ÿ iGuarantee Ideas ñ articles closely related to SMIs which are produced by professional independent copywriters. The section is divided into 2, namely for those who are new in business and existing entrepreneurs.

ÿ The Right Scheme For You ñ it is a Scheme Wizard designed to assist SMIs to select the most suitable guarantee scheme based on 3 simple questions.

ÿ Identifying the Right Scheme ñ provides a quick summary and comparison of the various schemes offered by CGC.

ÿ Newsfeed ñ Latest business news provided by Bernama

ii) Commerce

ÿ Business Opportunity ñ entrepreneurs are able to share their business proposition, seek new business partners, provide special promotions, etc. under this column.

iii) Community

ÿ Share Your Ideas ñ a forum for visitors to exchange their views and ideas.

ÿ Newsletter ñ for registered members providing them with the latest updates on CGC and interesting, relevant articles.[CGC1]

The Corporationís Business Plan for Financial Year 2004 focused on evolving CGCís role from Credit Supplementation to that of a Credit Enhancer ñ in order to assist SMEs to become more bankable and thus able to sustain their business.

Several strategies have been designed to fulfil this new role. The Corporation is targeted to launch its Client Service Centre (CSC) before the third quarter of 2004. The objective of having the CSC is to improve its service level to the SMEs and FIs, ie. by having a more personalized and dedicated service and a 2-way communication channel for transparency.

In 2004, Business Advisory Services Entity (BASE) shall be expanded: to increase the number of panel consultants, integrate to the Client Service Centre for service-related matters and other follow-up / monitoring process for the SMEsí benefit.

With the recent opening of four branches in Batu Pahat and Kuala Lumpur in November 2003 and Sandakan and Miri early this year, the Corporation has a total of 16 branches operational nationwide. Generally, this is vital towards promoting the Direct Access Guarantee Scheme (DAGS).

As the premier guarantee provider and a key engine for SME growth, CGC is well poised to meet challenges which lies ahead and it shall pursue to develop its key resources and competencies, whilst keeping abreast with the technological advancement to promote efficiency.

ìCGC ñ HELPING YOUR BUSINESS GROWî

CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD

APRIL 5, 2004.
——————————————————————————–

[CGC1]

LAUNCHING OF THE FINANCIAL SECTOR MASTER PLAN (FSMP)

LAUNCHING OF THE FINANCIAL SECTOR MASTER PLAN (FSMP)
STATEMENT BY WAN AZHAR WAN AHMAD CHIEF EXECUTIVE OFFICER, CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD (CGC)

As mentioned in the FSMP, one of the primary objective of the FSMP is meeting the socioeconomic objectives of Malaysia, particularly with regards to access of funding by priority sectors in the economy such as the SMIs and Bumiputera entrepreneurs.

Priority sectors such as the SMIs are essential sub-sectors of the economy that require financing. SMIs contribute significantly to the economic growth of the country. Over time, SMIs will be increasingly more significant such that it will become a vital foundation of the economy. It is therefore important to ensure adequate financing to these sectors and such provision of financing should be continuous.

As outlined under the FSMP, the lending to SMIs will be facilitated through a more efficient and expanded credit guarantee system. The CGC will play a larger role in guaranteeing the priority sectors, especially the SMIs. Besides introducing more attractive financing schemes, CGC has taken a number of steps recently to improve its operations, including the scheduled opening of new branches all over the country as well as strengthening its funding structure. At present, CGC has four branches operating in Kedah, Perak, Selangor and Johor. CGC will ultimately be operating in all states by end of this year. This infrastructure will prepare CGC for the enhanced role in the expanded guarantee scheme.

In the new framework announced under the masterplan, CGC is expected to expedite application and the approval process by the setting up of a portal whereby SMIs can apply for loans with CGC guarantee directly. Under such arrangement, the CGC would then solicit from banking institutions their proposed lending rates and guarantee requirements for the loan. Among the prospective lenders, CGC would then select the best offer, which is the one with the lowest price as well as lowest guarantee requirement. This scheme, targeted to be fully operational by this year would require full participation from the banking institutions.

Under the FSMP, CGC is expected to play a larger role in guaranteeing the SMIs. Through the guarantee mechanism the banking institutions will develop the ability to support these priority sectors, which will then assure Bank Negara Malaysia that these sectors will continue to have access to financing.
20-Feb-2004 14:07:19 PM

CGC LAUNCHES REVISED ISLAMIC BANKING GUARANTEE SCHEME

CGC LAUNCHES REVISED ISLAMIC BANKING GUARANTEE SCHEME
FOR PUBLICATION OR BROADCAST

ON JUNE 2nd 2003

Credit Guarantee Corporation Malaysia Berhad (CGC) today officially announced the revision to its Islamic Banking Guarantee Scheme (IBGS). Datuk Wan Azhar Wan Ahmad, the Managing Director and Chief Executive of CGC says that the revision follows the enhancement to its New Principal Guarantee Scheme (NPGS) which caters for conventional business loans. It is hoped that with the revised IBGS, participating financial institutions will be further encouraged to provide the necessary Islamic Banking financing to Small and Medium scale Enterprises (SMEs) thereby further expanding the overall scope and portfolio of such facilities that are available in the country.

The IBGS, which was first introduced in 1997, is aimed at assisting SMEs that have viable projects but lack the collateral to obtain the required financing from participating financial institutions. The revised IBGS now enables viable businesses to obtain maximum financing of up to RM10 million at a reasonable profit rate imposed by the financier. Eligible businesses are those with an annual sales turnover not exceeding RM25 million or with not more than 150 full time workers.

The IBGS seeks to address the needs of both SMEs and financial institutions with the following features:

A maximum guarantee cover of up to RM2.5 million for the unsecured portion of the financing, applicable to ALL sectors (previously the maximum of RM2.5 million was applicable to the manufacturing sector only). There is no capping imposed on the secured portion.
The guarantee cover is now liberalized and ranges up to 80% for the unsecured portion and 90% for the secured portion and is now applicable to ALL sectors, compared to a fixed guarantee cover structure depending on the sector previously.
The guarantee fee chargeable is only 1.00% (secured portion) and 1.25% (unsecured portion), and is to be paid annually in advance.

The revised IBGS is designed to cater the current needs of SMEs. It is available at all commercial banks and finance companies that have Islamic Banking products. Since its implementation and up to May 24, 2003, the IBGS has benefited 247 borrowers involving loans valued at RM RM153.5 million.

The Corporation is also pleased to announce the achievements of the other guarantee schemes currently in implementation (Cumulative Approved Loans as at May 24, 2003) as follows: -.
CURRENT SCHEMES LOANS APPROVED

NO AMOUNT
(RM million)
New Principal Guarantee Scheme(NGPS) 54,394 16,354.7
Islamic Banking Guarantee Scheme(IBGS) 247 153.5
Direct Access Guarantee Scheme(DAGS) 2,021 844.4
Small Entrepreneur Guarantee Scheme(SEDS) 5,834 205.7
Franchise Financing Scheme(FFS) 102 26.2
Flexi Guarantee Scheme(FGS) 3,770 1,236.4
Other Schemes 271,046 5,079.4.7
TOTAL 337,414 23,900.1

The Corporation in its the role as a “Credit Enhancer” for SMEs is confident that with the revised IBGS, SMEs that prefer Islamic Banking will now be able avail themselves of the necessary financing even though they may have inadequate collateral or track record. CGC will continuously monitor and review its existing products to ensure that Malaysian SMEs continue to have access to the financial support required to further grow and develop their businesses and contribute towards the overall economy.

For any inquiries please contact the Public Relations and Special Programmes Department at 03-7806 2300 ext. 130 or 131.

10-Sep-2009 17:25:56 PM

29th ANNUAL GENERAL MEETING 2001

29th ANNUAL GENERAL MEETING 2001 CREDIT GUARANTEE CORPORATION MALAYSIA BERHAD For Publication or Broadcast After 1600 hours June 06, 2002 PRESENTATION OF CGC TOP SUPPORTER AWARDS The 29th Annual General Meeting of Credit Guarantee Corporation Malaysia Berhad (CGC) held at Bangunan CGC today, witnessed the presentation of CGC Top Supporters Awards for year 2001. Tan Sri Dato’ Dr. Zeti Akhtar Aziz, the Corporation’s Chairman, presented the Award to four financial institutions; namely 3 commercial banks and 1 finance company. The CGC Top Supporter Awards, seventh in the series is traditionally presented to acknowledge the 4 most active financial institutions for their significant contribution towards the financing of SMEs and their overall participation in CGC’s guarantee schemes in 2001. These 3 commercial banks contributed 79.1% of a total 6,352 loans, valued at RM1,133.9 million while the finance company contributed 59.2% of a total 485 loans amounting RM27.4 million in the year 2001. The Corporation is pleased to announce that the recipients of the 2001 awards are: COMMERCIAL BANKS FINANCE COMPANY Malayan Banking Berhad Mayban Finance Berhad RHB Bank Berhad Bumiputra-Commerce Bank Berhad     PERFORMANCE IN 2001 The year under review saw the Corporation moving ahead with its expansion programme even in a period of global economic slowdown. The Corporation was able to continue implementing its programme towards realising its mission of becoming the One-Stop Financial Centre for Small and Medium Enterprises (SMEs) in the country. Six more branches were set up in Melaka, Kuantan, Kota Bharu, Prai, Seremban and Kuala Terengganu by end 2001. With additional two branches opened in Kota Kinabalu and Kuching in January 2002, the number of branches in operation now total 12 altogether. Consistent with the Corporation’s enhanced role, the CGC branches will be responsible to promote the Direct Access Guarantee Scheme (DAGS), as well as to maintain close working relationships with the local business community and financial institutions. During the year 2001, CGC through its branches approved a total of 436 loans valued at RM160.4 million. This is an encouraging development as DAGS, which was introduced in July 2000, managed to record only 22 loans valued at RM 8.6 million in the initial year. During the same period; the Corporation, with continuous support from all participating financial institutions, approved a total of 7,486 new loans valued at RM 1.9 billion. Of the total amount, 6,329 loans valued at RM 1,451.9 million were approved under the Main Schemes, which comprised the New Principal Guarantee Scheme (NPGS), Small Entrepreneur Guarantee Scheme (SEGS), Islamic Banking Guarantee Scheme (IBGS) and Direct Access Guarantee Scheme (DAGS). Apart from the Main Schemes, the Programmed Lending Schemes contributed a number of 508 loans worth RM 135.6 million. In addition, the Fund for Small and Medium Industries 2 (FSMI2) and the New Entrepreneur Fund 2 (NEF2), currently managed by the Corporation, recorded 369 loans valued at RM197.9 million and 280 loans worth RM154.5 million respectively. The decrease in terms of the number of loans guaranteed is mainly due to the termination of the micro credit scheme, the Tabung Usahawan Kecil (TUK). At the same time the global economic slowdown contributed the overall decline in loan approvals by the banking sector. In terms of the performance of guarantee schemes in year 2001, the NPGS continued to be the Corporation’s main contributor in terms of overall number and value of loans guaranteed with 51.7% and 74.0% respectively. CGC’s ongoing efforts to further integrate its services continued to leverage on the benefits offered by Information Technology (IT). On July 9, 2001, CGC launched iGuarantee, a web service portal that enables on-line loan applications via Internet at the SMEs’ convenience. The portal creates a conducive “market place” to bring together potential SMEs borrowers and financiers while allowing CGC to provide the much-needed guarantee at the same time. To date, CGC has received a total of 406 applications via iGuarantee since its introduction. Realising that one of the primary objective of the Financial Sector Master Plan (FSMP) is to develop Bumiputera entrepreneurs in Malaysia, CGC has also been channeling the NEF 2 through several versions of DAGS-NEF 2, DAGS-Franchise-NEF 2 and DAGS-PROSPER-NEF 2, both under conventional and Islamic banking facilities. The implementation of these new schemes is expected to benefit more Bumiputera SMEs and effectively contribute towards the economic growth of the country.   OUTLOOK In line with the 2002 National Budget strategy, CGC will ensure adequate financing to SMIs as it continues to play a larger role in guaranteeing loans granted to the sector. It is expected that in the year 2002, the global economic recovery will continue to strengthen and contribute to the growth and development of Malaysian SMEs. The Corporation will ensure that access to credit for SMIs would continue to be made available. The Corporation’s projection for loan growth remains positive with a target of RM2.0 billion loan guarantees for year 2002. “The Smart Partnership” concept together with the new set up Marketing and Business Development department in the Corporation is hoped to foster the Corporation’s image as well as to create a better rapport with financial institutions and other agencies. It is the Corporation’s objective to also create greater market awareness as well as to offer better service to SMEs’ financing needs. CGC will ensure that the capacity for loan guarantees for SMEs would continue to grow whilst continuously maintaining asset quality and ensuring that non-performing loans (NPLs) is maintained at prudent levels. Following the success of administering the Fund for Small and Medium Industries 2 (FSMI 2) and the New Entrepreneur Fund 2 (NEF 2) from Bank Negara Malaysia, CGC is also being considered by the Ministry of Finance to be appointed as the administrator of various other funds for SMIs. It is hoped that CGC will continue to play an effective and prominent role in assisting the development of SMIs, hence contributing positively towards the economic growth in the country. 20-Feb-2004 13:53:44 PM

THE IMPLEMENTATION OF NEW ENTREPRENEURS FUND 2 (NEF 2)

THE IMPLEMENTATION OF NEW ENTREPRENEURS FUND 2 (NEF 2)
PRESS RELEASE BY
WAN AZHAR WAN AHMAD
CHIEF EXECUTIVE / MANAGING DIRECTOR

ON THE IMPLEMENTATION OF
NEW ENTREPRENEURS FUND 2 (NEF 2)
(16th July 2001)

1. We are pleased to announce that effective from July 16, 2001, Bank Negara Malaysia has appointed Credit Guarantee Corporation Malaysia Berhad (CGC) as administrator of the New Entrepreneurs Fund (NEF 2) with an allocation of RM250 million.

2. The NEF 2 will be channeled to eligible Small and Medium Entreprises (SMEs) through the following participating financial institutions :-

a) All commercial banks

b) All finance companies

c) 3 development financial institutions;

Bank Industri & Teknologi Malaysia Berhad
Bank Pembangunan & Infrastruktur Malaysia Berhad
Malaysia Industrial Development Finance Berhad

Bumiputera entrepreneurs eligible for NEF 2 must have the following criteria: –

a) Companies with shareholders? fund of not exceeding RM10.0 million.
b) Must be wholly-owned Bumiputera enterprises/companies/ institutions registered under the Companies Act 1965, the Co-operative Societies Act 1996 or Bumiputera citizens residing in Malaysia and Bumiputera entrepreneurs registered under Registrar of Business or any other authoritive body;
or
Bumiputera SMEs under the vendor development programmes of the Ministry of Entrepreneur Development or Ministry of Finance with at least 70% Bumiputera equity and management control.
3. The maximum loan limit per borrower will be RM5 million and the purpose of the loan will be for expansion in productive capacity, working capital or both. The fund covers all types of credit facilities with maximum lending rate of 5.5% per annum, whilst the maximum loan tenure will be for 8 years.
4. The appointment of CGC as the administrator of NEF 2 is consistent with the objective of making CGC a ?one stop center? for SMI funds. At present, CGC is already managing the Fund For Small and Medium Industry 2 (FSMI 2) totaling RM200 million.
5. To date, CGC has guaranteed 760 loans valued at RM300 million under NEF and has availed to SMIs, 353 loans valued at RM177.1 million under FSMI 2.

Credit Guarantee Corporation Malaysia Berhad
July 16, 2001
20-Feb-2004 14:02:59 PM