KUALA LUMPUR, 26 June 2024 – In a significant move to empower Malaysian SMEs, Funding Societies, the largest unified SME digital finance platform in Malaysia and Southeast Asia, has extended its partnership with Credit Guarantee Corporation Malaysia Berhad (CGC). Together, they are launching a RM30 million Islamic SME Portfolio Guarantee (SME PG-i) Scheme, aimed at facilitating easier access to financing for SMEs and fostering business growth.
This enhanced partnership builds upon the initial RM10 million Portfolio Guarantee programme introduced in April last year. The new SME PG-i scheme not only offers a higher allocation but also expands its reach to provide working capital financing to a broader segment of underserved SMEs through Funding Societies’ leading Islamic digital financing solutions. Eligible SMEs will benefit from longer-term financing and preferential interest rates, which are the lowest within Funding Societies’ existing portfolio.
Kelvin Teo, Co-founder & Group Chief Executive Officer of Funding Societies | Modalku, emphasized the importance of collaboration in bridging the MSME financing gap, which has widened to RM290 billion in 2022, according to the Securities Commission’s 5-Year Roadmap. He stated, “It is imperative that stakeholders within the ecosystem collaborate to offer innovative solutions that can better complement traditional financing sources. On this front, we are delighted to further strengthen our partnership with CGC with this additional tranche.”
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Teo added, “The Islamic SME Portfolio Guarantee Scheme is a continuation of Funding Societies’ product roadmaps to scale our Shariah-compliant proposition to support creditworthy Malaysian SMEs of all sizes to thrive, contributing to Malaysia’s leadership in Islamic finance and ambition to be a global leader in Islamic Fintech.”
CGC’s President & Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak, echoed this sentiment, highlighting the success of the initial RM10 million tranche launched in April 2023. He mentioned, “Given the success of the first tranche, I am pleased that CGC launched a second tranche of RM30 million Islamic PG with Funding Societies. This initiative is in line with CGC’s 5-Year Strategic Plan 2021-2025 and meets our objectives to partner MSMEs through life stages by providing E2E financial offerings and become a digitally savvy organisation to propel scale and speed of MSMEs’ impact.”
The SME PG agreement was signed by Wong Kah Meng, Group Chief Operating Officer, Funding Societies | Modalku and Co-Founder of Funding Societies Malaysia, together with Sean Tan, CGC’s Chief Business Officer. It was witnessed by Kelvin Teo and Datuk Mohd Zamree.
For more information on the SME Portfolio Guarantee or Funding Societies’ Business Term Financing facility, please visit Funding Societies Malaysia.
About Funding Societies
Funding Societies | Modalku is the largest unified SME digital finance platform in Southeast Asia. Registered with the Securities Commission Malaysia (SC) and licensed in Singapore, Indonesia, and Thailand, Funding Societies operates across Southeast Asia. Backed by prominent investors including Khazanah Nasional and SoftBank Vision Fund 2, the FinTech company provides business financing to MSMEs, supported by individual and institutional investors.
About CGC
Established in 1972, Credit Guarantee Corporation Malaysia Berhad (CGC) bridges the gap between financial institutions and MSMEs by guaranteeing financing for underserved entrepreneurs. With over 51 years of experience, CGC has transformed into a financially sustainable institution, supporting MSMEs with innovative financing solutions.
For more information, visit CGC Malaysia.
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