Funding Societies | Modalku, a Singapore-based unified digital finance platform for micro, small and medium enterprises (MSMEs), has expanded its digital guarantee products in partnership with CGC Digital, the FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad, to provide Malaysian micro and small businesses with broader and more affordable access to financing.

Funding Societies said in a statement on Monday that the expansion of the partnership marks a key milestone following CGC Digital’s investment in Funding Societies earlier this year.

It said it represents a major step forward in providing critical support to Malaysia’s MSMEs, positioning them for greater success amidst a competitive and dynamic economy.

According to the statement, MSMEs make up more than 97 percent of businesses in Malaysia, contribute 39 percent to Malaysia’s gross domestic product (GDP) and employ a substantial portion of the workforce.

However, these businesses are often constrained by limited access to financing options.

By joining forces, Funding Societies and CGC Digital aim to strengthen the financial backbone of the Malaysian economy, fostering resilience and economic growth through improved access to capital.

It is noted that Funding Societies together with CGC Digital have developed two new digital credit guarantee products: digital term financing and micro credit line.

These products not only provide access to financing but also offer micro and small businesses profit rate savings of up to 2 percent per annum, according to the statement.

In addition to digital term financing and micro credit line, Funding Societies and CGC Digital have expanded its digital supply chain financing (DSCF) program to include a broader range of industries and suppliers with longer tenors, as part of the joint continuous effort to bridge the gap and address the challenges in micro and small businesses in accessing financing.

The move is following the success of last year’s proof of concept program on DSCF.

As at publication, since the launch of the two new programs in September, more than MYR 10 million ($2.24 million) has been disbursed, benefiting over 200 creditworthy micro and small enterprises.

This further underscore both organization’s commitment to fostering financial inclusion and growth for Malaysia’s MSMEs and validates the demand for such financing solutions among micro and small businesses.

These initiatives align with the broader goal of focusing on inclusivity, digital growth, and sustainability, as well as enhancing MSMEs’ long-term resilience and competitiveness both domestically and internationally, said the statement.

“This partnership with CGC Digital represents a shared vision of empowering underserved businesses in Malaysia,

“We are committed to creating a more inclusive financing ecosystem that supports the growth of micro and small businesses across Malaysia,” said Chai Kien Poon, Country Head of Funding Societies Malaysia.

“By combining CGC Digital’s extensive expertise in credit enhancement with Funding Societies’ state-of-the-art digital financing platform, our digital financing solutions allow business owners to access the capital they need to expand, employ, and contribute to the economy enabling improved access to capital and fostering financial inclusion,” he added.

Yushida Husin, Chief Executive Officer, CGC Digital, said the extended partnership has already made a profound impact on the financial accessibility for Malaysian MSMEs.

“This extension is a testament to our unwavering dedication to financial inclusion and product innovation,” he said.

He noted the expansion of the partnership allow them to continue to push boundaries through product innovation.

“By breaking new ground, we are not just providing access to financing; we are enabling dreams and driving economic growth,

“Our joint efforts are paving the way for a future where every business has the opportunity to succeed and thrive,” she added.

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