CGC targets RM15 million credit for Bumi business in Miri

MIRI: Credit Guarantee Corporation Malaysia Berhad (CGC) is targeting a RM15-million credit line this year under its Bumiputera Entrepreneur project Fund (TPUM-i) out of the RM35-million portfolio for the Miri Division.

The RM15-million target is three times more compared to RM4-million achieved last year from small and medium enterprises (SME) borrowers in Miri.

President and chief executive officer of CGC, Mohd Zamree Mohd Ishak, is optimistic that Miri can achieve the target because SMEs here have great advantages in all aspects especially in development.

Miri is known for its oil and gas industry and those Bumiputera getting contracts from GLC (government-linked companies) can come to us for the financing.

Similarly, those obtaining contracts for the Pan Borneo Highway can also apply for loans, he said when interviewed yesterday at the Miri CGC branch office.

Also present were CGC executive vice president, Kristine Ng and assistant vice president (corporate communications) V. Kumaran.

Mohd Zamree added TPUM-I is among the financing schemes that SMEs here could take advantage of apart from
green technology financing scheme.

Being a new scheme given by commercial bank, the government gives 60 per cent guarantee cover, meaning should the project fail, the government will pay as high as 60 per cent of the outstanding loan and also give 2 per cent rebate in interest. This is to reduce the financial burden of borrowers, he said.

The scheme is open to any company with green certification and so far Miri has one successful borrower.

Mohd Zamree thus urged SMEs in Miri and in Sarawak in general to take advantage of the various financing schemes of CGC either to set up new ventures or for expansion.

He added that among other benefits of a CGC loan was that borrowers having good credit behaviour or payment of loans will be given rebate as high as 30 per cent.

CGC currently is the only SME financing which gives rebate to borrowers who have good credit conduct, with the ultimate aim to encourage them to be financially independent.