CREDIT Guarantee Corporation Malaysia Berhad (CGC) recognised 27 awards recipients in its 28th FI/DFI & SME Awards 2022 ceremony, held at the Grand Hyatt Kuala Lumpur yesterday.
The event was officiated by Ministry of Investment, Trade and Industry (MITI) Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
It was attended by chairmen and chief executive officers of leading financial institutions (FIs), development financial institutions (DFIs), non-financial institutions (Non-FIs), winning small and medium enterprises (SME) as well as representatives from the trade chambers, related agencies and the media.
During the ceremony, CGC awarded its SME customers with excellent exemplary records for meeting their financial obligations and their achievements in developing their businesses.
The awards ceremony was also a platform for CGC to acknowledge its FIs, DFIs and Non-FI partners for their commitment and support in providing SMEs with better access to financing and assisting their business recovery by enabling these businesses to be more resilient.
Third from left, CGC Board Member Datuk Ong Eng Bin, Maybank Group president and CEO Datuk Khairussaleh Ramli, Tengku Zafrul, Mohd Zamree together with all the winners from FI, DFI, Non-FI Partners and SMEs.
Tengku Zafrul presented awards for 13 categories, consisting of seven leading FIs and DFIs, one Non-FI partner and five SMEs.
The ceremony was also witnessed by CGC chairman Datuk Mohammed Hussein, board member Datuk Ong Eng Bin, as well as president and chief executive officer Datuk Mohd Zamree Mohd Ishak.
In his welcome remarks Hussein said, “After the stressful period of two years of little cash flow, it would be naive for us to expect the business sector [to] just turn the crankshaft and the engine, which had been idle for two years, [and] start roaring again.”
He said that some SMEs faltered while others had to close their businesses. He added that although many banks have reviewed their processes and credit policies to deal with the issues arising from the pandemic, many SMEs still face problems.
“For those whose businesses are still viable, we need to ask ourselves whether we are doing enough to assist rehabilitation and venturing into new areas, whether there is still room to do more as part of our developmental role to hasten both the rehabilitation and the venturing into the new business opportunities post-pandemic, especially the gig business.”
Hussein also mentioned that it is the collective responsibility of the government and FIs to facilitate businesses and respond efficiently to SMEs, as they are a major segment of the economy, accounting for 97% of total business establishments and 47% of employment.
He highlighted that the SMEs’ failure to grow will impact many businesses in the economic supply chain and therefore jobs and jobs creation.
“We should embrace this as part of ESG, which is not about climate control and the environment alone, but also the ‘S’ and ‘G’ components, which are social and governance [respectively].
“In the current context, it is about sustainability and financial well-being.”
Datuk Mohd Zamree echoed this sentiment in his press meet, where he highlighted that ESG is important for the SMEs’ sustainability.
He assured that CGC will continue implementing initiatives via its Guarantee Schemes and Developmental Programme, which will create ESG awareness and support SMEs in their sustainability journey.
In his keynote address, Tengku Zafrul said, “CGC and the financial sector’s support is crucial to ensure the success of the New Industrial Master Plan 2030, to help the country reform our manufacturing industry, which by extension, will also transform our investment and export sectors for our nation’s more sustainable socio-economic growth.”
He said that SMEs in key manufacturing and export sectors, in particular, must be financially supported to develop resilient supply chains; strengthen industrial clusters and generate broad-based growth in the effort to safeguard Malaysia’s future economic security and inclusivity.
For 2022, CGC recognised Maybank Islamic as the Best Financial Partner, Top Bumiputera FI Partner and Top FI Partner - Islamic Bank, while Malayan Banking Berhad was awarded Top FI Partner - Commercial Bank. Maybank group president and CEO Datuk Khairussaleh Ramli said that the awards “showcase our unwavering commitment to support the nation’s economic growth especially through our efforts in uplifting the SME segment.
“Through Maybank’s full suite of solutions, from providing access to financing and right up to empowering our customers with innovative digital solutions, we are pleased to witness that businesses have thrived.
“Our role in enhancing the Islamic banking value proposition has also been a key differentiating factor for us, further strengthening our position as a leading financial institution in the region.”
CGC strives to provide vital financial assistance to micro and SMEs that are unserved and underserved.
Its objective is to play a critical role in promoting economic growth, development, employment opportunities and poverty reduction in the nation.
