Afternoon Highlight (08/05/13/78/776) CGC expects growth to pick up after slow start

CGC expects growth to pick up after slow start


KUALA LUMPUR: Credit Guarantee Corp Malaysia Bhd (CGC) will pick up the momentum in financing small and medium entreprises (SMEs) in the second phase after distractions in the first phase (January to April 2013) due to the 13th general election (GE).

Managing director Datuk Wan Azhar Wan Ahmad said although growth in the first phase was quite slow, good growth was expected by year-end.

“Every year, we expect positive growth. However, we assume this year to be an exceptional year because a GE only happens every five years,” he told a media briefing.

Wan Azhar said that as at April 2013, CGC had approved 71 applications worth nearly RM900mil under the Green Technology Financing Scheme.

In 2012, there was a significant increase in the quality of loans based on its provision for claims on loans guaranteed in 2012, he said. “This is primarily due to improved management of our loan quality, which included several proactive and preemptive measures to address potentially delinquent loans.”

Five banks – Standard Chartered Bank (M) Bhd, Public Bank Bhd, OCBC Bank (M) Bhd, RHB Bank Bhd and Alliance Bank (M) Bhd – are active participants in CGC’s portfolio guarantee scheme.

Wan Azhar said CGC had forged new alliances with banking partners to offer innovative financing options and delivery channels to enhance SMEs’ access to financing, and had been instrumental in the establishment of more than 420,000 SMEs, guaranteeing close to RM51.4bil. – Bernama

Source : New Straits Times
Date : 8 May 2013
Afternoon Highlight (08/05/13/78/776)