KUCHING, Aug 25 (Bernama) — Affin Group and Credit Guarantee Corporation Malaysia Bhd (CGC Malaysia) have signed a Memorandum of Understanding (MoU) to provide RM500 million in financing to support micro, small and medium enterprises (MSMEs) and mid-tier companies (MTCs) across Malaysia.
The MoU marks a significant milestone in the companies’ shared commitment to expand financing access for MSMEs and MTCs nationwide.
Anchored on the principles of financial inclusion and sustainable business growth, the collaboration targets up to RM500 million in financing support, aimed at addressing critical funding gaps faced by these enterprises while strengthening their capacity to scale, innovate, and contribute to Malaysia’s economic growth.
Under the MoU, Affin and CGC will roll out a wider range of financing solutions, including guarantee-backed facilities for established enterprises, tailored financing for start-ups and early-stage ventures, and inclusive credit products such as working capital solutions to improve cash flow.
In a joint statement, the companies said the partnership also aligns with national priorities by facilitating sustainable financing to support Malaysia’s transition towards a low-carbon economy. Notably, the initiative seeks to enhance access for underserved and underbanked business segments, ensuring inclusivity across the entrepreneurial landscape.
Affin Group president and group chief executive officer (CEO) Datuk Wan Razly Abdullah said the collaboration reflects the company’s ongoing commitment to champion financial inclusion and sustainable growth while contributing to nation building.
“By combining our strengths, we are not only expanding access to financing but also equipping MSMEs and MTCs with innovative solutions that enable them to scale, compete, and thrive. This MoU reflects our commitment to empowering the backbone of Malaysia’s economy with opportunities that create long-term value for businesses, communities, and the nation,” he said in the statement.
Meanwhile, speaking at a press conference, Wan Razly said the RM500 million allocation is a starting point to support Malaysia’s fast-growing MSME sector, with room for expansion should demand warrant it.
“We don’t want to commit to a figure just because it looks good on paper. What matters is that it’s achievable,” he said, adding that the allocation could be increased if there is strong demand.
He noted that although the programme is structured as a five-year initiative, there is optimism it could be fully disbursed within just three years.
Meanwhile, CGC Malaysia president and group CEO Datuk Mohd Zamree Mohd Ishak emphasised the importance of broadening financing access across the country, with a particular focus on Sarawak and Sabah.
“While our mandate is national, signing this agreement in Kuching reflects the tremendous potential we see in Sarawak and Sabah, where we are committed to expanding access to financing and strengthening the sustainability and resilience of local enterprises,” he said.
The MoU was signed by Wan Razly, Affin Islamic Bank Bhd CEO Datuk Syed Mashafuddin Syed Badarudin, and Mohd Zamree, and witnessed by Sarawak Financial Secretary Datuk Seri Dr Wan Lizozman Wan Omar.
— BERNAMA
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