By Shikin Louis
KUCHING, Aug 25: Affin Group and Credit Guarantee Corporation Malaysia Berhad (CGC) have sealed a Memorandum of Understanding (MoU) to provide up to RM500 million in financing support for micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) across Malaysia, with special attention on Sabah and Sarawak.
The MoU, signed in Kuching today, aims to bridge critical funding gaps and empower local enterprises through guarantee-backed facilities, start-up financing, working capital solutions and sustainable financing initiatives.
It was signed by Affin Group President and Group CEO Datuk Wan Razly Abdullah, Affin Islamic Bank Berhad CEO Dato’ Paduka Syed Mashafuddin Syed Badarudin, and CGC Malaysia President and CEO Datuk Mohd Zamree Mohd Ishak.
The ceremony was witnessed by Sarawak Financial Secretary Dato Sri Dr Wan Lizozman Wan Omar, together with Affin Bank Berhad chairman Dato’ Agil Natt, Affin Islamic Bank Berhad chairman Musa Abdul Malek, and CGC Malaysia chairman Dato’ Mohammed Hussein.
According to Zamree, the decision to hold the signing in Sarawak reflects the potential of East Malaysia.
“Our mandate is national where this RM500 million is open to all Malaysian MSMEs, but we also see the potential in both Sabah and Sarawak given that these states are not as developed as the Peninsula.
“We want to ensure that we provide equal, if not the same, opportunities for businesses in Sarawak and Sabah,” he said during a press conference after the signing ceremony.
Meanwhile, Wan Razly reaffirmed Affin Bank’s commitment to the region, revealing that it will open its 13th branch in Sarawak at Hikmah Exchange, Kuching, tomorrow.
“From our portfolio, we see strong growth in Sarawak with an average of about 50 per cent increase in business or loans year-on-year.
“We take that as a positive sign that Sarawak is on a strong growth path going forward with all the development plans by the Sarawak government, followed closely by Sabah as well, with its plans for tourism and to support the economic growth of Sabah,” he stated.
The five-year financing programme is designed to meet the needs of different business segments through various schemes, where RM300 million will be channelled under the BizJamin scheme for MTCs and established MSMEs, while RM50 million is set aside for start-ups under the BizDana scheme.
In addition, RM50 million will be allocated for focused sector-specific schemes, another RM50 million for the Low-Carbon Transition Facility, and the remaining RM50 million for the PG Visa Business Card facility.
“These are just broad guidelines. We will adjust accordingly to meet the needs of the SMEs that we serve,” Zamree stressed.
The RM500 million programme builds on Affin and CGC’s decade-long collaboration, which has seen 12 tranches worth RM425 million rolled out since 2014.
Both organisations assured that mechanisms are in place to ensure funds reach underserved businesses, and urged MSMEs to apply at any Affin Bank or CGC branch nationwide. – DayakDaily
