OCBC Bank (Malaysia) Berhad and Credit Guarantee Corporation Malaysia Berhad (CGC) have reached a significant milestone, surpassing the RM1 billion mark in Portfolio Guarantee (PG) schemes following their latest collaboration. This strategic alliance aims to provide up to RM100 million in PG this year, enhancing financial support for micro, small, and medium-sized enterprises (MSMEs).
The new PG tranches, each worth RM50 million (USD1 = MYR4.7220), are split evenly between conventional and Islamic banking through OCBC's Islamic banking subsidiary, OCBC Al-Amin. These facilities are designed to be digitally accessible to MSMEs via the BizFinancing and BizFinancing-i platforms, streamlining the application process and increasing accessibility.
The innovative scheme offers MSMEs up to RM600,000 in financing without requiring collateral, as CGC guarantees 70% of the facility amount for a tenure of up to five years. This initiative is seen as a pivotal step in aiding the recovery of MSMEs from the pandemic's economic impact.
Datuk Mohd Zamree Mohd Ishak, President & CEO of CGC, praised the initiative as a "groundbreaking accomplishment" for bolstering MSME recovery. Echoing this sentiment, Mr. Tan Chor Sen, CEO of OCBC Bank, reaffirmed the bank's commitment to fulfilling the working capital needs of OCBC Al-Amin MSME customers. He also emphasized the importance of enhancing convenience for MSMEs through digital solutions like the OCBC Al-Amin Business Cash-i (BC-i).
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