CGC to manage financing scheme for Bumi SMEs until June 2020

TPUB-i , which is funded by Bank Negara Malaysia, provides working capital financing to Bumiputera entrepreneurs who have been awarded contracts or projects by the government or its agencies, statutory bodies, and reputable companies.

KUALA LUMPUR: The Ministry of Finance approved a three-year extension to Credit Guarantee Corporation Malaysia Bhd (CGC) to manage the revolving Tabung Projek Usahawan Bumiputera-i (TPUB-i) contract financing scheme up to June 30, 2022. 

Finance Minister Lim Guan Eng said on Friday the extension reflected the government's commitment that Malaysia's economic growth also creates opportunities that allow entrepreneurs and small medium enterprises (SMEs) to flourish. 

TPUB-i , which is funded by Bank Negara Malaysia, provides working capital financing to Bumiputera entrepreneurs who have been awarded contracts or projects by the government or its agencies, statutory bodies, and reputable companies.
 
CGC has an allocation of RM300mil to assist Bumiputera entrepreneurs who face challenges in obtaining access to financing from financial institutions. 

Lim said the sheme is applicable to all economic sectors including construction and supply, manufacturing, and services. 

The scheme offers a profit rate of up to 5% per annum to first time applicants, for funding up to RM3mil. Profit rate for subsequent financing of up to RM 5mil will be offered at competitive rates. 

He said since the scheme was started in July 2009, CGC has approved and disbursed RM1.58 bil to more than 1,900 Bumiputera entrepreneurs. 

In 2018, the amount was RM330mil, an all-time high in terms of loan approval value in a year. 

Lim said interested Bumiputera entrepreneurs were encouraged to apply for the TPUB-i contract financing scheme via www.imsme.com.my, Malaysia’s first MSME financing / loan referral platform. 

They can also visit the nearest CGC branch or call [phone] for any queries and to find out further information. 

Since its inception in 1972, CGC has granted over 460,000 guarantees and RM70bil in financing to both bumiputera and non-bumiputera micro, small and medium-sized enterprises in Malaysia.