Credit Guarantee Corporation Malaysia Bhd (CGC) and Affin Group have entered into a strategic partnership to deliver up to RM500 million in financing support for micro, small, and medium enterprises (MSMEs) as well as mid-tier companies (MTCs) across Malaysia.

The collaboration was formalised through a memorandum of understanding (MoU), with both organisations committing to develop and implement structured guarantee schemes that will improve access to credit.

Supporting Financial Inclusion and Sustainable Growth

The initiative is designed to address funding gaps faced by MSMEs and MTCs, while equipping them with the capacity to expand, innovate, and contribute to the nation’s economy. In line with financial inclusion, the programme also aims to reach underserved and underbanked business segments.

A key focus of the partnership is sustainable financing, ensuring that businesses can secure support while contributing to Malaysia’s long-term transition towards a low-carbon economy.

Financing Solutions Under the MoU

Affin and CGC will introduce a broader range of financing solutions under the collaboration. These include guarantee-backed facilities for established enterprises, tailored financing for startups, and working capital solutions to ease cash flow challenges.

Specialised facilities will also be made available for businesses investing in sustainability initiatives, supporting responsible growth in line with Malaysia’s environmental commitments.

Allocation of Financing Facilities

CGC president and CEO Datuk Mohd Zamree explained that the RM500 million allocation is available to all Malaysian MSMEs, with a strong emphasis on businesses in Sarawak and Sabah.

He noted that RM300 million of the total will be channelled to MTCs and MSMEs through the BizJamin scheme, while RM50 million will support startups under BizDana [PDF]. A further RM50 million each will be allocated for additional initiatives, including a low-carbon transition facility.

“These allocations are broad guidelines. We will adjust them to meet the needs of the SMEs we serve, and the financing size may be increased as demand grows,” he said.

Focus on East Malaysia’s Business Potential

Although CGC’s mandate is nationwide, Mohd Zamree highlighted the significance of hosting the MoU signing in Kuching. He stated that Sarawak and Sabah have strong growth potential, and this collaboration ensures that entrepreneurs in East Malaysia receive the same opportunities as their counterparts in Peninsular Malaysia.

A Five-Year Programme with Flexible Rollout

Affin Group president and CEO Datuk Wan Razly Abdullah said the initiative is structured as a five-year programme. However, he added that the financing could be disbursed in as little as three years depending on demand from MSMEs and MTCs.

“We are optimistic that the programme can be rolled out sooner if businesses come forward to take up the facilities,” he said.

For business owners exploring financing options beyond this collaboration, you can also view a full range of SME business loans available on RinggitPlus

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• TAGS:
• Affin Group
• BizDana
• CGC
• Credit Guarantee Corporation Malaysia Bhd
• Mohd Zamree