OCBC Malaysia, CGC Launch RM1.3 Bln Guarantee Facility To Boost SME Financing
KUALA LUMPUR, July 27 (Bernama) -- OCBC Malaysia has teamed up with Credit Guarantee Corporation Malaysia Bhd (CGC) to establish a RM1.3 billion guarantee facility aimed at improving financing access for small and medium enterprises (SMEs).
More than 3,000 businesses are expected to benefit from this initiative, said OCBC chief executive officer (CEO) Tan Chor Sen in a statement today.
He said the bank's collaboration with CGC reflects OCBC Malaysia's commitment to empowering SMEs as they navigate an increasingly dynamic business environment while preparing for future growth opportunities.
"As their needs evolve, access to the right financial support becomes critical to building resilience, enhancing competitiveness and driving long-term success.
"Through our collaboration with CGC, we can provide SMEs with greater access to flexible and responsive financing solutions that support businesses at different stages of growth, from emerging entrepreneurs to more established companies," said Tan.
OCBC said through its longstanding partnership with CGC, it has supported more than 10,000 SMEs with RM4.2 billion in CGC-backed Islamic and conventional financing, with the latest RM1.3 billion allocation raising the bank's total guarantee coverage to RM5.5 billion.
CGC president and CEO Mohamed Nazri Omar said the partnership underscores how strong institutional collaboration can create meaningful financing opportunities for commercially viable businesses whose growth is constrained by limited collateral rather than capability.
"By combining OCBC Malaysia's market reach with CGC's guarantee expertise, we are creating a stronger financing ecosystem that enables more SMEs to participate meaningfully in Malaysia's economic growth," he said.
The RM1.3 billion financing backed by the guarantee facility is available to OCBC Malaysia's new and existing customers, particularly within the Bumiputera community, and includes a scheme supporting targeted segments under Bank Negara Malaysia's SME Stabilisation Relief Facility (SRF).
-- BERNAMA