AmBank Islamic and CGC signs Portfolio Guarantee


KUALA LUMPUR, Monday, 8 August 2016: AmBank Islamic and Credit Guarantee Corporation Malaysia Berhad (CGC) signed a Portfolio Guarantee (PG) agreement today to further enhance Small Medium Enterprise (SME) financing in Malaysia.

Through this partnership, both CGC and AmBank Group, which AmBank Islamic is part of, have committed to extend another RM300 million of accessible working capital financing to qualified SME customers which lack collateral.

This is a continuation of the Portfolio Guarantee Scheme which was launched in January 2015 where a sum of RM300 million was allocated and fully subscribed by September 2015.

“We are pleased to partner CGC in this Portfolio Guarantee collaboration once again in which AmBank Islamic will provide accessible working capital financing to qualified SMEs. We have allocated a further sum of RM300 million to support our existing customers in their expansion phase and reach out to new SME customers throughout the country.

The SME segment is one of our key growth areas and this CGC tie up is timely for AmBank Group to increase our market share and contribute to economic growth in the country,” said Pushpa Rajadurai, Managing Director, Wholesale Banking, AmBank Group at the PG signing ceremony where Eqhwan Mokhzanee, Chief Executive Officer, AmBank Islamic signed the documents together with Mohd Zamree Mohd Ishak, President and Chief Executive Officer, CGC, witnessed by Tan Sri Azman Hashim, Chairman, AmBank Group, Dato’ Agil Natt, Chairman CGC and Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group.

"With the success of the first tranche of RM300 million which we inked with Ambank Berhad in April 2015, we are pleased with the renewed interest on CGC's innovative financing product-the PG scheme, hence leading to the signing of the PG agreement today to avail another RM300 million of financing to SMEs through AmBank Islamic," said CGC's President / Chief Executive Officer, Mohd Zamree Mohd Ishak.

“The PG scheme has proven to be a success, not only in serving our business partner's needs, but also for SMEs with certainty in approval which is almost 100% due to the efficiency of the process flow as well as hassle-free online application submission," added Zamree.

"This is our 2nd collaboration and I look forward to many more opportunities for both parties to further widen our SME outreach in the country through our products and services whilst at the same time enable us to play our part in supporting Malaysia’s SME Masterplan for SMEs to be a significant contributor to the country’s economic growth," said Zamree.

Zamree further explained that it is imperative for CGC to continuously explore new avenues to drive access to financing for SMEs by providing impactful guarantee and financing products that suits their partners’ business needs.

At the same event, AmBank also launched two financing packages, AmBank BizSolutions Kontrak and the enhancement of the current financing package, AmBank BizSolutions 2Trad3 which offers financing products and solutions tailored for Commercial and SME customers.

AmBank BizSolutions Kontrak offers contract financing facilities which are specifically tailored for a specific project or contract. The finance package varies in accordance to the type of contracts, such as construction, supply and services, among others.

On the other hand, enhanced AmBank BizSolutions 2Trad3 extends necessary financial assistance to fund import and export transactions for Autoparts and Food industries respectively. The Autoparts Imports Industry has an estimated over 500 players in the industry with more than RM1 billion in sales comprising of local and import trade while the local Food Exports Industry is expected to grow as the world needs additional 50% food and energy by year 2030.

“With SMEs being the driving force of the Malaysian economy, this financing solution can be tailored from the simplest asset financing to general working capital, to specific financing for projects. The AmBank BizSolutions will provide solutions for your cash flow management and also for managing your payables and receivables,” added Pushpa.