KUCHING: Affin Group and Credit Guarantee Corporation Malaysia Berhad (CGC) have signed a memorandum of understanding (MoU) to provide up to RM500 million in financial support for businesses with priority given to East Malaysia.
The MoU, inked yesterday (Aug 25), targets micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) across the country, aiming to bridge critical funding gaps through guarantee-backed facilities, start-up financing, working capital solutions, and sustainable financing initiatives.
CGC Malaysia president and CEO Datuk Mohd Zamree Mohd Ishak said the MoU reflects a strengthened partnership and a commitment to enhancing financial inclusion, particularly for entrepreneurs in East Malaysia.
“Sarawak has been at the forefront of advancing a progressive economic agenda, championing the digital economy, prioritising sustainability, and promoting renewable energy, strengthening SMEs as key drivers of Malaysia’s economy.
“And 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 at Hilton Kuching yesterday (Aug 25).
The agreement was signed by Affin Group president and CEO Datuk Wan Razly Abdullah, Affin Islamic Bank CEO Datuk Paduka Syed Mashafuddin Syed Badarudin, and CGC Malaysia president and CEO Datuk Mohd Zamree Mohd Ishak.
The ceremony was witnessed by Sarawak Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar, accompanied by key representatives from both organisations.
The five-year financing programme is structured to meet different business segments, where RM300 million will be channelled under the BizJamin scheme for MTCs and established MSMEs, RM50 million under BizDana for start-ups, RM50 million for focused sector-specific schemes, RM50 million for the Low-Carbon Transition Facility, and 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 said.
The RM500 million initiative builds on Affin and CGC’s decade-long collaboration, which has seen 12 tranches worth RM425 million rolled out since 2014.
Zamree added that the latest agreement will expand access to financing, including innovative solutions such as business credit cards and early-stage business support, particularly in underserved regions like Sabah and Sarawak.
Meanwhile, Wan Razly said the programme is expected to be dispersed within three years or sooner, depending on demand from MSMEs and MTCs in the region.
“The programme is a five-year programme. We are optimistic and we hope that the programme can be dispersed within three years or shorter, depending on the demand.
“We (both organisations) also 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,” he said.
