Credit Guarantee Corporation Malaysia Berhad (CGC) has reaffirmed its commitment to supporting Malaysian small and medium enterprises (SMEs) through participation in Bank Negara Malaysia’s newly introduced SME Stabilisation Relief Facility (SME SRF).
The initiative is aimed at helping SMEs and microenterprises facing short-term cash flow challenges arising from external economic pressures linked to the ongoing West Asia conflict. Through the facility, eligible businesses can access working capital financing designed to help sustain operations, preserve jobs, and manage financial uncertainty during a volatile economic period.
Accessible Financing for SMEs Facing Cash Flow Challenges
Under the SME SRF, eligible SMEs may obtain financing of up to RM750,000 with a repayment tenure of up to five years. The financing rate has been capped at 3.75 per cent per annum, inclusive of a guarantee fee of 0.5 per cent per annum, ensuring the facility remains accessible to businesses requiring immediate financial support.
The facility will be distributed through participating financial institutions (PFIs), with CGC playing a key role in supporting financing accessibility by sharing credit risk with banks and financial institutions.
According to CGC Chairman Dato’ Mohammed Hussein, the initiative demonstrates the strong coordination between Malaysia’s financial institutions and government agencies in responding quickly to emerging economic challenges.
“The SME SRF is precisely the kind of counter-cyclical intervention CGC is mandated to perform,” he said, adding that the facility reflects the financial sector’s responsiveness in supporting viable businesses during periods of economic stress.
Helping SMEs Sustain Operations and Safeguard Jobs
CGC President and Chief Executive Officer Mohamed Nazri Omar said the corporation’s role is to ensure viable SMEs are not held back by temporary liquidity constraints.
By assuming a substantial share of the credit risk through its guarantee support, CGC enables participating financial institutions to provide working capital financing more efficiently and at concessionary rates. This approach is intended to help businesses continue operations with minimal disruption while protecting employment and maintaining business continuity.
The organisation also stated that it has streamlined its approval and application processes while strengthening collaboration with participating financial institutions to ensure assistance reaches affected SMEs as quickly as possible.
Broad Eligibility Across Malaysian Businesses
The SME SRF is available to a broad range of locally incorporated business entities with at least 51 per cent Malaysian ownership. Eligible entities include sole proprietorships, partnerships, limited liability partnerships, private limited companies, and professional practices.
CGC is encouraging SMEs that anticipate financial pressure or are already experiencing operational difficulties to engage early with their financial institutions to explore available assistance options under the facility.
The initiative reflects Malaysia’s continued focus on strengthening SME resilience, particularly as global geopolitical tensions and external economic uncertainties continue to impact supply chains, operating costs, and business confidence.
For further information, SMEs may contact CGC’s Client Service Centre at 03-7880 0088 or email [email protected], or reach out to any of CGC’s branches nationwide.
