The Securities Commission Malaysia (SC) said Wednesday it has recently signed a memorandum of understanding (MoU) with Credit Guarantee Corporation Malaysia Berhad (CGC Group) and CGC Digital Sdn. Bhd. to enhance access for Malaysian micro, small and medium enterprises (MSME) and mid-tier companies (MTC) to capital market financing solutions in Malaysia.

The three-year MoU aligns with the SC’s 5-Year Roadmap to catalyze MSME and MTC access to the capital market (2024-2028), SC said in a statement on Wednesday.

By collaborating with CGC Group, this initiative leverages CGC Group’s expertise in financing guarantees and its established network in the MSME sector.

Key focuses of the collaboration include enhancing MSME and MTC access to capital market financing solutions via CGC’s imSME platform.

The platform matches MSMEs and MTCs with peer-to-peer financing (P2P) operators.

The MoU aims to further expand this access by onboarding more P2P operators.

Currently the platform offers products from six P2P operators.

The collaboration also focuses to supporting MSME and MTCs’ de-risking of investments by providing credit guarantees, and extending credit guarantees to additional capital market solutions.

Since its inception in 1972, CGC has provided guarantee and financing worth over MYR 98.31 billion (), benefiting over 538,000 MSMEs.

The SC Chairman Mohammad Faiz Azmi emphasized that the collaboration aims to connect MSMEs and MTCs with capital market solutions designed to meet their financing needs.

“By leveraging CGC Group’s credit guarantees, we can instill greater investor confidence, which in turn improves access to funding for these businesses,” he said.

President and Chief Executive Officer (PCEO) of CGC Group Mohd Zamree Mohd Ishak said the signing of the MoU is a very important milestone in advancing capital market access for Malaysian businesses, reflecting CGC Group’s unwavering commitment to promote the growth and development of Malaysian businesses.

“By forging alliances with a distinguished and highly reputable institution such as the SC, this collaboration seeks to unlock transformative growth trajectories while addressing barriers faced by unserved and underserved Malaysian businesses,” he added.

Chief Executive Officer of CGC Digital Yushida Husin also stated this collaboration represents a pivotal step in enhancing imSME as Malaysia’s leading referral platform, transforming the digital funding ecosystem and driving greater accessibility for businesses nationwide.

The SC is the sole regulatory agency for the regulation and development of capital markets in Malaysia.

The agency has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007.

Established in 1972, CGC is 78.65 percent owned by Malaysian Central Bank and 21.35 percent by the commercial banks in Malaysia.

The firm aims to assist small, and medium-sized enterprises (SMEs) with inadequate or without collateral and track records to obtain credit facilities from financial institutions by providing guarantee cover on such facilities.

As of October 2024, CGC has availed over 538,162 guarantees and financing to MSMEs valued at over MYR 98.31 billion ($22.21 billion) since its establishment.

CGC Digital is a FinTech company, established as the digital arm of CGC.

Registered in July 2022, the firm’s primary goal is to empower MSMEs by creating a simpler and more seamless financing experience in the digital ecosystem.

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