A CELEBRATION of financial backing and business grit culminated at Credit Guarantee Corporation Malaysia’s (CGC) 29th FI/DFI & SME Awards 2023 held at InterContinental Kuala Lumpur on July 18.
More than 300 key players gathered including industry leaders, chief executive officers from financial institutions (FIs), development financial institutions (DFIs) and non-FI partners, winning micro, small, and medium enterprises (MSMEs) and representatives from trade chambers as well as related agencies.
At the prestigious event officiated by Deputy Finance Minister Lim Hui Ying, CGC recognised its FIs, DFIs and non-FI partners for their commitment and support in providing MSMEs with better access to financing, assisting them in their business recovery by way of enabling these businesses to be more resilient.
CGC MSME customers with exemplary records in meeting their financial obligations and business development were also commended for their achievements.
Lim bestowed the awards across three categories for leading FIs and DFIs, non-FI partners, and MSMEs to 16 recipients witnessed by CGC chairman Datuk Mohammed Hussein, and CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak.
These awards highlighted how collaboration strengthens businesses, especially during recovery.
Crucial role of MSMEs
In his opening address, Mohammed said: “The focus of CGC for the past two years has been on three parallel tracks, namely; providing countercyclical assistance by supporting MSMEs in navigating economic challenges, ensuring MSMEs’ resilience and continuity; enhancing the corporation’s internal readiness by optimising internal processes to align seamlessly with the evolving needs of MSMEs, fostering agility and responsiveness; and providing sectoral support, extending our reach to emerging economic sectors, including the sharing/gig economy, ESG-linked guarantees, agro-industry, and microfinancing for previously neglected segments.”
He said the sustainability of Malaysia’s MSME financing ecosystem is a shared responsibility among financial institutions, development financial institutions and CGC, as they play critical roles as authorisers, enforcers, and catalysts.
Enabling success to flourish
In her keynote address, Lim said since its inception on July 5, 1972, CGC has provided over RM95.4bil in financing to over 380,000 MSMEs; this demonstrates CGC’s unwavering commitment through its sustainable initiatives in providing customised financial solutions and strategic guidance, ensuring the success of Malaysian MSMEs.
“As digitalisation continues to advance, we must foster innovation and nurture local solutions and startups.
“Malaysia’s transition into the digital world could potentially position us as a leading player on the global stage. I commend CGC for its unwavering commitment to meeting the financing needs of MSMEs,” she said.
She said MSMEs serve as the backbone of economies worldwide, employing over two-thirds of the global workforce and significantly contributing to GDP growth, adding that In Malaysia, MSMEs account for approximately 38.4% of the GDP and 48.2% of total employment in 2022.
“MSMEs constitute a staggering 97.4% of all business enterprises in the country, underscoring the critical importance of MSME development.
“However, our MSMEs continue to rely on traditional sources of funding from the banking sector, yet there remains an estimated RM290bil financing gap for MSMEs alone, indicating the limited access to funding for smaller-scale businesses.”
Helping MSMEs modernise
In this era of digitalisation, Lim said two non-negotiable focus points emerge: Artificial Intelligence (AI) for business growth, and environmental, social, and governance (ESG).
“MSMEs must embrace AI as a transformative tool.
“It streamlines processes, reduces operational inefficiencies, enhances output quality, and maximises profitability, while business models must align with sustainability goals to remain relevant in global value and supply chains,” she added.
Speaking to the media, Mohd Zamree said CGC offers an average of between RM1.8bil to RM2bil worth of guarantee financing per year.
But during post-Covid, to help MSMEs recover from 2020 until 2023, he said the number tripled, where per annum their guarantee scheme was raised between RM5bil to RM6bil a year.
“Our commitment to adding value within the MSME ecosystem is unwavering, ensuring that all stakeholders reap the benefits of our efforts.
This led to the establishment of CGC Digital Sdn Bhd in 2022, which is our hub of digital innovation to prioritise MSME needs with cutting-edge platforms and solutions.”
Recognising excellence
For 2023, CGC recognised OCBC Bank (Malaysia) Berhad as the Best Financial Partner and Top Commercial FI Partner including OCBC Al-Amin Bank Berhad as Top Islamic FI Partner; CIMB Islamic Bank Berhad as Top Bumiputera FI Partner and Top Islamic FI Partner; Alliance Bank Malaysia Berhad
and Standard Chartered Bank Malaysia Berhad as Top Commercial FI Partner; and Funding Societies (Modalku Ventures Sdn Bhd) as Top Non-FI Partner – imSME.
Maybank Islamic Berhad received the Top SME Partnership award while Bank Simpanan Nasional received the Top FI Partner – imSME.
OCBC Bank Malaysia chief executive officer Tan Chor Sen thanked CGC for recognising them and bestowing the various awards.
“This win means alot to us, especially my colleagues. It shows we are on the right path to support SMEs in Malaysia. It also spurs us to have more innovative products to support the growth of SMEs,” he said.
CIMB Bank Berhad co-chief executive officer for group commercial and transaction banking Ahmad Shazli Kamarulzaman said CIMB’s success at the awards ceremony reinforced them as a supportive partner to all SMEs in Malaysia.
“This win shows we are committed to grow with them, and during the pandemic, a lot of them had it tough, but a lot survived and thrived with us. This award also reflects the support that CGC has given us,” added Ahmad Shazli.
CGC is fully committed to be an effective financial institution dedicated to promoting the growth and development of competitive and dynamic MSMEs.
It will continue to support the availability of targeted assistance including financing and non-financial assistance for MSMEs, realising aspirations to be the partner for MSME’s growth across life stages.
