KUALA LUMPUR (June 3): Credit Guarantee Corporation Malaysia Bhd is rolling out two guarantee schemes that could support up to RM10 billion in financing for micro, small and medium enterprises.

The Portfolio Guarantee and Portfolio Guarantee-i are aimed at helping eligible firms, especially businesses with limited collateral, first-time borrowers, and companies looking to expand, to obtain loans from financial institutions, according to a statement on Wednesday.

The new schemes could provide financing of up to RM10 million per business with tenures of up to 10 years. The schemes also provide guarantee coverage of up to 85%, subject to credit assessment by participating financial institutions, while guarantee fees start from 1%.

The schemes follow Bank Negara Malaysia’s earlier initiative that provides financial assistance to small and medium businesses affected by disruption linked to the geopolitical conflict in the Middle East.

The Credit Guarantee Corporation, an agency providing guarantee cover to small and medium enterprises, will implement the latest Portfolio Guarantee and Portfolio Guarantee-i initiatives together with participating financial institutions.

Unlike short-term facilities that mainly address immediate cash flow and working capital pressures, the schemes are designed to support a company’s longer-term growth through “productivity upgrading, sustainability transition and resilience-building", the agency said.

“Through our targeted risk-sharing approach with participating financial institutions, we want to change the way they evaluate these underserved market segments to create new opportunities and contribute to a stronger and resilient economy,” Mohamed Nazri Omar, the agency’s chief executive, added in the statement.