The Role of CGC in
Enhancing Access to Financing
&
Helping Business Grow
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1.0 About CGC
Objective & Primary Role
Objective
• Provide guarantee to
SMEs that do not have
adequate collateral or
track record.
Primary
Role
• Bridge the gap
between businesses
requiring financing &
banks requiring security.
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1.0 About CGC
CGC Performance
CGC has guaranteed more than 420,000 loans
(RM51.3b) since 1972
Cumulative Value of Loans Guaranteed
60
RM (Billion)
50
40
38.8
41.8
47.4
44.9
50.3
51.3
2011
2012
30
20
10
0
2007
2008
2009
2010
Year
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1.0 About CGC
CGC Networks
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Alor Star
28/08/2000
Kota Bharu
18/06/2001
Kuala Terengganu
26/11/2001
Prai
25/06/2001
Ipoh
9/10/2000
CGC works closely with FIs and their
branches (estimated at 3000 nationwide)
Kuantan
28/05/2001
Main Branch
3/07/2000
Kuala Lumpur
3/11/2003
Seremban
23/07/2001
Melaka
21/04/2001
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Batu Pahat
3/11/2003
Johor Bahru
6/11/2000
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Kota Kinabalu
21/01/2002
Sandakan
19/01/2004
Miri
24/02/2004
Kuching
21/01/2002
CGC works closely with FIs and their
branches (estimated at 3,000 nationwide)
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2.0 Challenges Faced by SMEs
UNAVAILABILITY OF
COLLATERAL &
TRACK RECORD
HIGH COST OF
FINANCING
CHALLENGES
SMEs
FLEXIBILITY OF TERMS
TIMELY DELIVERY
OF SERVICES
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3.0 CGC’s Role in Bridging the GAPS
Challenges
SMEs
Solutions
FIs
SMEs
FIs
CGC
i.
CGC will continue to enhance its developmental role
 Provide greater comfort to FIs to continue lending to viable
SMEs
 Higher Guarantee Cover for strategic products
 Simplified Claims Processing
 Faster Claims Pay-out
 New Products
 Start-Ups
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 New Growth Areas
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3.0 CGC Roles in Bridging the GAPS
Challenges
SMEs
Solutions
FIs
SMEs
FIs
CGC
ii.
To review overall financing cost to SMEs
 Review guarantee fee pricing structure for more competitive
pricing e.g. incentive/ rebate for good borrowers
 On going discussion with banks to lower interest / profit rate
(Phase 1 : blended rate completed)
(Phase 2 : consider BLR or lower)
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4.0 Guarantee Schemes Available
Current Schemes
Loan Applications via
CGC Branches
Loan Applications via
Financial Institutions
Enhancer /Enhancer-i
Direct Access
Guarantee Scheme
Enhancer Bumi
Enhancer Excel
GTFS /GTFS-i
Tabung Projek
Usahawan
Bumiputera-i (TPUB-i)
Enhancer Express
Flexi Guarantee Scheme
Franchise Financing
Scheme
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Small Biz Express /i
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4.0 Guarantee Schemes Available
Benefits of Enhancer Excel
Up to 100% guarantee cover - No upfront security to be
pledged.
Shorter turnaround time – only 1 month from the date
completed
application
disbursement.
is
received
until
loan
Annual review allows for lower fees if there is
improvement in the credit risk rating.
Lower cost of borrowing – BLR + 0% with guarantee fee
as low as 0.75%.
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4.0 Guarantee Schemes Available
Benefits of TPUB-i
Help small-timer contractors to fund for short
contract awarded by Government agencies.
It is collateral free. No security to be pledged.
Enjoy a low flat rate of 5.00% pa for 1st timer.
Consideration for borrowers with NPL status
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4.0 Guarantee Schemes Available
Benefits of Enhancer / Enhancer-i
No restriction to new operations with viable business
Higher financing amount of RM10 million and
guarantee
coverage of up to 80% - adequately
address working capital requirements
Control on maximum interest rate chargeable by the
banks. Relatively cheaper than commercial “clean
loans”
Vast range of facilities for different business needs
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4.0 Guarantee Schemes Available
Bumi-i
Benefits of Enhancer Bumi /Enhancer
Product specifically introduced
assists Bumiputera SMEs.
for
to
Guarantee
coverage of up to 90% adequately
address
working
capital
requirements.
Lower guarantee fee by between 2% 10% compared to actual rating.
Consideration for borrowers with NPL
status
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If you do not have sufficient
collaterals, ask to be
guaranteed by CGC to :1) Obtain approval
2) Reduce cost of borrowing
CGC works closely with FIs and their
branches (estimated at 3000 nationwide)
Melaka Sales Office
111, Ground Floor,
Jalan TMR 24,
Taman Melaka Raya,
75000 Melaka.
Phone : 06-2844300
Batu Pahat Sales
Office
Johor Bahru Sales
Office
No.20 Jln Maju, Tmn
Maju, Bukit Pasir
83000 Batu Pahat
No 46, Jln Sulam,
Taman Sentosa,
80150 Johor Bahru,
Johor
Phone : 07-4322633
Phone : 07-3382788
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Contact Us :-
1. Johor Bahru Branch
En Farul Azhan Mohamed Taufek
07-3382788 [email protected]
2. Batu Pahat Branch
En Khairunizan Mohamed Taufek
07-4322633 [email protected]
3. Melaka Branch
En Haniza Mohd Jaapar
06-2844300 [email protected]
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Thank You
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