CGC sees steady growth for SMEs with OPR cut

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KUALA LUMPUR: Credit Guarantee Corporation Malaysia Bhd (CGC) expects continued steady growth for Malaysian Small and Medium Enterprises (SMEs), saying the recent Overnight Policy Rate (OPR) cut will positively impact business sentiment as it will reduce their financing cost.

President and chief executive officer Mohd Zamree Mohd Ishak said the corporation would continue to provide competitive financing at a reasonable cost for Malaysian SMEs.

“Some of our customers are even granted rebates for satisfactory conduct of their accounts,” Zamree told Bernama.

Following the central bank’s decision to cut the OPR by 25 basis points (bps) earlier this month, he said CGC has reduced the financing cost for its ‘BizMula-I’ and ‘BizWanita-I’ direct financing products by 20 bps.

Through its Tabung Projek Usahawan Bumiputera-i (TPUB-i), CGC has been providing financing to contractors who have secured contracts from the government and government-linked companies.

“Notable infrastructure projects include the Mass Rapid Transit (MRT) Line One where we were the preferred financier and this will continue for the MRT Line Two.

“We are currently finalising our collaboration with various agencies to provide financing for contractors involved in the Pan Borneo Highway Project,” said Zamree.

The corporation is also supporting Malaysian SMEs in the Pengerang Integrated Petroleum Complex, he said, citing the MoU signed with Johor Petroleum Development Corporation (JPDC) last month.

“Given the current challenging economic conditions, there are mixed views on the 2016 GDP growth. Nevertheless, CGC is cautiously optimistic that our RM4 billion 2016 outreach target will be achieved.

“With the implementation of our 2016-2020 five-year strategic plan, we are confident of meeting all our six headline targets which include achieving a graduation rate of 50.0 per cent,” he added. — Bernama