PETALING JAYA: Funding Societies, the largest unified SME digital finance platform in Malaysia, is partnering with CGC Digital to provide credit guarantee through a shariah-compliant digital supply chain financing (DSCF) solution to better address the financing needs of micro and small enterprises.
CGC Digital is the fintech subsidiary of Credit Guarantee Corporation Malaysia Bhd (CGC),
The two parties signed a memorandum of understanding to collaborate on a proof of concept (POC) project and innovate products that could enable wider financing access for underserved and unserved MSMEs.
CGC Digital developed a new digital credit guarantee product for CGC that will be offered for financing up to RM4 million as a start, benefiting up to 100 micro and small enterprises via Funding Societies’ industry leading DSCF solutions.
Funding Societies/Modalku Group COO Wong Kah Meng said: “Following our entry into the SME Portfolio guarantee programme of CGC in April this year, we are fortifying this collaboration with CGC Digital. The digital-first approach leverages alternative data, enabling MSMEs with broader and more affordable access of MSMEs to digital guarantee and transformative financing.”
He added the CGC Digital’s innovation of CGC’s credit guarantee will mitigate risks for investors and reduce cost of financing for MSMEs.
CGC Digital CEO Yushida Husin said: “CGC Digital broke new ground in this collaboration with Funding Societies. This MoU signifies our mutual dedication to fostering innovation and co-creating value with MSMEs. CGC Digital seeks to provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up. Given this, we are committed to collaborating with like-minded strategic partners in the digital ecosystem to accelerate financial inclusion of MSMEs in Malaysia.”
The announcement comes on the heels of Funding Societies’ MoU with CGC in April for a RM10 million SME Portfolio Guarantee Scheme focusing on business expansion for small and medium-sized enterprises, and most recently, their launch of a comprehensive Islamic Financing solutions including shariah-compliant micro, trade and term financings.
