Malaysia’s micro, small and medium enterprises (MSMEs) are set to benefit from enhanced access to financing following the introduction of the new BNM-CGC Portfolio Guarantee (PG) and Portfolio Guarantee-i (PG-i) schemes by Credit Guarantee Corporation Malaysia Berhad (CGC).
Announced on 3 June 2026, the schemes will support up to RM10 billion in guaranteed financing for MSMEs, reinforcing efforts to drive business growth, financial inclusion, productivity improvements and long-term economic resilience.
Expanding Access to Business Financing
Building on an earlier announcement by Bank Negara Malaysia (BNM), the PG and PG-i schemes are designed to widen financing access for MSMEs across strategic and growth sectors. Under the initiative, CGC will serve as the implementation and risk-sharing platform, working alongside participating financial institutions to support viable businesses.
The introduction of the schemes marks a significant shift from direct lending support towards a scalable guarantee-based financing model. This approach is intended to encourage greater lending confidence among financial institutions, particularly for underserved segments such as first-time borrowers, microenterprises, startups and businesses investing in future growth opportunities.
Supporting Growth, Sustainability and Resilience
The new schemes are structured around four key policy objectives: expanding financial inclusion, supporting climate and sustainability transitions, improving productivity, and strengthening business resilience.
These objectives translate into targeted support for businesses operating in emerging and strategic sectors, sustainability-focused enterprises, startups, and MSMEs seeking to invest in innovation, technology adoption and productivity enhancements.
According to CGC President and Chief Executive Officer Mohamed Nazri Omar, the guarantee-based model is designed to create greater financing opportunities for businesses that may have traditionally faced challenges securing funding.
He noted that the targeted risk-sharing approach aims to encourage financial institutions to reassess how they evaluate underserved market segments, ultimately contributing to a stronger and more resilient economy.
Complementing Existing Relief Measures
Unlike short-term relief facilities that focus primarily on immediate working capital requirements and cash flow challenges, the PG and PG-i schemes are geared towards supporting long-term business development and expansion.
The initiative complements BNM’s SME Stabilisation Relief Facility (SME SRF), which provides working capital support of up to RM750,000 over financing tenures of up to five years. It also works alongside the earlier RM300 million PG Relief Scheme, which offers financing between RM20,000 and RM500,000 with guarantee coverage of up to 90 per cent for eligible MSMEs.
Together, these programmes provide a comprehensive financing ecosystem that supports businesses at different stages of their growth journey, from immediate financial relief to long-term strategic development.
Key Features of the PG and PG-i Schemes
Eligible MSMEs can benefit from financing of up to RM10 million per business, supporting expansion plans and long-term investments.
The schemes also offer financing tenures of up to 10 years, providing businesses with greater repayment flexibility and improved cash flow management.
To improve financing accessibility, guarantee coverage of up to 85 per cent is available for eligible MSMEs with limited collateral, subject to credit assessments conducted by participating financial institutions. In addition, guarantee fees start from as low as 1 per cent, helping to keep financing costs affordable.
Strengthening Malaysia’s MSME Ecosystem
As Malaysia’s national guarantee institution, CGC continues to play a vital role in improving financing access for MSMEs that may lack sufficient collateral or established credit histories.
Since its establishment in 1972, CGC has facilitated more than 547,000 guarantees and financing transactions valued at over RM104 billion, supporting businesses across a wide range of sectors and contributing to the development of Malaysia’s entrepreneurial ecosystem.
The rollout of the BNM-CGC Portfolio Guarantee schemes represents another important step towards building a more inclusive, productive and resilient MSME sector capable of driving sustainable economic growth in the years ahead.
For more information on the BNM-CGC Portfolio Guarantee and Portfolio Guarantee-i schemes, businesses may visit CGC’s website or contact the CGC Client Service Centre at 03-7880 0088 or email [email protected].
