“HELPING YOUR BUSINESS GROW” · No adverse record with CGC or any other Financial Institutions...

WELCOME TO CGC BRIEFING SESSION

“HELPING YOUR BUSINESS GROW”

CORPORATE INFORMATION

�� Incorporated Incorporated –– July 5, 1972July 5, 1972

�� Authorised Capital RM3 billionAuthorised Capital RM3 billion

�� Paid Up CapitalPaid Up Capital

�� RM1,435.6 million (Ordinary Shares)RM1,435.6 million (Ordinary Shares)

�� RM200 million (Preference Shares)RM200 million (Preference Shares)

HELPING YOUR BUSINESS GROW

SHAREHOLDERS

100.0%100.0%

20.7%20.7%

79.3%79.3%

COMMERCIAL BANKS & COMMERCIAL BANKS &

FINANCE COMPANIESFINANCE COMPANIES

TOTALTOTAL

BANK NEGARA MALAYSIABANK NEGARA MALAYSIA


CGC BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Datuk Zamani Bin Abdul Ghani

DIRECTORS

Dato’ Mohd Hanif Sher Mohammad

Dato’ Tan Yew Thong

Dato’ Mohd Rosli Abdul Aziz

Dato’ Abdul Hamidy Abdul Hafiz

Datuk P. Kasi

Encik Md Yusof Hussin

Puan Zaiton Mohd Hassan

MANAGING DIRECTOR

Datuk Wan Azhar Bin Wan Ahmad


BRANCHES IN OPERATION�� Main BranchMain Branch –– operational Jul. 3, 2000operational Jul. 3, 2000

�� Alor Setar, KedahAlor Setar, Kedah –– operational Aug. 28, 2000operational Aug. 28, 2000

�� Ipoh, PerakIpoh, Perak –– operational Oct. 9, 2000operational Oct. 9, 2000

�� Johor Bahru, JohorJohor Bahru, Johor –– operational Nov. 6, 2000operational Nov. 6, 2000

�� MelakaMelaka –– operational Apr. 21, 2001operational Apr. 21, 2001

�� Kuantan, PahangKuantan, Pahang –– operational May 28, 2001operational May 28, 2001

�� Kota Bharu, KelantanKota Bharu, Kelantan –– operational June, 18 2001operational June, 18 2001

�� PraiPrai, Penang, Penang –– operational June, 25 2001operational June, 25 2001

�� Seremban, Negeri Seremban, Negeri SembilanSembilan –– operational July 23, 2001operational July 23, 2001

�� Kuala Kuala TerengganuTerengganu, , TerengganuTerengganu –– operational Nov. 26, 2001operational Nov. 26, 2001

�� Kota Kinabalu, SabahKota Kinabalu, Sabah -- operational Jan. 21, 2002operational Jan. 21, 2002

�� Kuching, SarawakKuching, Sarawak –– operational Jan. 21, 2002operational Jan. 21, 2002

�� Kuala LumpurKuala Lumpur –– operational Nov. 3, 2003operational Nov. 3, 2003

�� BatuBatu PahatPahat, , JohorJohor –– operational Nov. 3, 2003operational Nov. 3, 2003

�� SandakanSandakan, , SabahSabah –– operational Jan. 19, 2004operational Jan. 19, 2004

�� MiriMiri, , SarawakSarawak –– operational Feb. 24, 2004operational Feb. 24, 2004HELPING YOUR BUSINESS GROW

CGC OBJECTIVECGC OBJECTIVE

CGC is established with the objective

of assisting the SMEs without collateral

or with inadequate collateral and has no track record gain accessibility to

credit facilities from financial

institutions.


CURRENT GUARANTEE SCHEME

�� Credit Enhancer Scheme (Enhancer) Credit Enhancer Scheme (Enhancer)

�� Direct Access Guarantee Scheme (DAGS/SJLT)Direct Access Guarantee Scheme (DAGS/SJLT)

�� Direct Access Guarantee Scheme ISLAMIC Direct Access Guarantee Scheme ISLAMIC

(DAGS(DAGS--i/i/SJLTSJLT--i)i)

�� Flexi Guarantee Scheme (FGS/SJA)Flexi Guarantee Scheme (FGS/SJA)

�� Islamic Banking Guarantee Scheme (IBGS/SJPI)Islamic Banking Guarantee Scheme (IBGS/SJPI)

( to be revised and known as Enhancer( to be revised and known as Enhancer--i effective 1/1/08)i effective 1/1/08)

�� Small Entrepreneur Guarantee Scheme Small Entrepreneur Guarantee Scheme

(SEGS/SJUK)(SEGS/SJUK)

�� Direct Bank Guarantee Scheme Direct Bank Guarantee Scheme

CURRENT GUARANTEE SCHEME - Cont

�� DAGS Start Up DAGS Start Up

�� iGuaranteeiGuarantee –– Delivery ChannelDelivery Channel

�� SMEsSMEs that falls within the following definition:that falls within the following definition:

Eligibility Criteria

Between 20 & 50 Between 20 & 50

employeesemployeesBetween 51 & 150 employeesBetween 51 & 150 employeesBetween 20 & 50 employeesBetween 20 & 50 employeesMediumMedium

Between 5 & 19 employeesBetween 5 & 19 employeesBetween 5 & 50 employeesBetween 5 & 50 employeesBetween 5 & 19 employeesBetween 5 & 19 employeesSmallSmall

Less than 5 employeesLess than 5 employeesLess than 5 employeesLess than 5 employeesLess than 5 employeesLess than 5 employeesMicroMicro

Services Sector (+ ICT) & Services Sector (+ ICT) &

Mining & Quarrying & Mining & Quarrying &

ConstructionsConstructions

Manufacturing (including Manufacturing (including

AgroAgro--based) & MRSbased) & MRSPrimary AgriculturePrimary AgricultureSectorSector

SizeSize

Table 2: New SME Definitions Based on Annual Sales Turnover

Between RM1 million & Between RM1 million &

RM5 millionRM5 millionBetween RM10 million & Between RM10 million &

RM25 millionRM25 millionBetween RM1 million & Between RM1 million &

RM5 millionRM5 millionMediumMedium

Between RM200,000 & less Between RM200,000 & less

than RM1 millionthan RM1 millionBetween RM250,000 & less Between RM250,000 & less

than RM10 millionthan RM10 millionBetween RM200,000 & less Between RM200,000 & less

than RM1 millionthan RM1 millionSmallSmall

Less than RM200,000Less than RM200,000Less than RM250,000Less than RM250,000Less than RM200,000Less than RM200,000MicroMicro

Services Sector (+ ICT) & Services Sector (+ ICT) &

Mining & Quarrying & Mining & Quarrying &

ConstructionsConstructions

Manufacturing (including Manufacturing (including

AgroAgro--based) & MRSbased) & MRSPrimary AgriculturePrimary Agriculture

SectorSector

SizeSize

OR

Table 1: New SME Definitions Based on Number of Full-Time Employees

GUARANTEE SCHEMES

To assist To assist SMIsSMIs obtain loans for business obtain loans for business

purposes; especially those:purposes; especially those:

��Do not have collateralDo not have collateral

��Insufficient collateralInsufficient collateral

��Do not have track recordDo not have track record

��Revamp from NPGS and incorporating new Revamp from NPGS and incorporating new

features such as unconditional guarantee features such as unconditional guarantee

and risk adjusted pricingand risk adjusted pricing

CREDIT ENHANCER SCHEME

ObjectivesObjectives

ENHANCER

Min: RM50,000Min: RM50,000

Max: RM10 millionMax: RM10 million

Loan amountLoan amount11

Secured Secured –– between 2.10% between 2.10% -- 2.70%2.70%

Unsecured Unsecured –– between 2.40% between 2.40% -- 3.00%3.00%

(Based on the Risk Adjusted Pricing)(Based on the Risk Adjusted Pricing)

Guarantee Guarantee

Fee Rate Fee Rate

StructureStructure

22

The guarantee payment must be The guarantee payment must be

made within 1 month from invoice made within 1 month from invoice

issuance dateissuance date

(On the 3(On the 3rdrd month from the issuance month from the issuance

date, guarantee cover will be date, guarantee cover will be

canceled if payment is still not canceled if payment is still not

received).received).

Guarantee Guarantee

Fee PaymentFee Payment33

EnhancerEnhancerDescriptionDescriptionNoNo

ENHANCER…cont.

�� It will be multiples of 5% between the It will be multiples of 5% between the

range of 30% to 90% i.e 45%, 65%, range of 30% to 90% i.e 45%, 65%,

80%.80%.

�� Maximum cover of up to RM3.0 mil for Maximum cover of up to RM3.0 mil for

unsecured portion and no capping unsecured portion and no capping

imposed on the secured portionimposed on the secured portion

�� Secured Secured –– 30% 30% -- 90%90%

�� Unsecured Unsecured –– 30% 30% -- 80%80%

Guarantee CoverGuarantee Cover55

FI is free to quote their interest rate under FI is free to quote their interest rate under

this schemethis schemeInterest RateInterest Rate66


The computation of claim payment is based The computation of claim payment is based

on outstanding principal plus normal on outstanding principal plus normal

interest until NPL date.interest until NPL date.

Guarantee Guarantee

amount or amount or

computation of computation of

claim paymentclaim payment

99

FI can submit claim anytime after NPLFI can submit claim anytime after NPLClaimsClaims88


ENHANCER…cont.

DIRECT ACCESS GUARANTEE SCHEME (DAGS)

Direct Access Guarantee Scheme Direct Access Guarantee Scheme

shall provide direct access to SMIs shall provide direct access to SMIs

whereby they could approach CGC whereby they could approach CGC

directly in obtaining guarantee and directly in obtaining guarantee and

subsequently the required financingsubsequently the required financing

Objective


Eligible borrowerEligible borrower

�� In line with the new SME definition In line with the new SME definition

�� Malaysian owned and controlled Malaysian owned and controlled companies companies

�� Viable business Viable business

�� No adverse record with CGC or any other No adverse record with CGC or any other Financial InstitutionsFinancial Institutions

�� A startA start--up company may apply by up company may apply by providing a satisfactory and reasonable providing a satisfactory and reasonable cash flow indicating repayment capacity cash flow indicating repayment capacity of at least 1.5 timesof at least 1.5 times


RM50,000 to RM3 million* per customerRM50,000 to RM3 million* per customer

Credit Limit

Type of Facilities

� Fixed/Term Loan

� Overdraft

� Tradelines

� Any other credit facilities determined from time to time by the Corporation

* Subject to terms & conditions


30% to 100% CGC Guarantee30% to 100% CGC Guarantee

Guarantee Cover

* Processing fee for successful application is RM300.00


Guarantee Fees

�Secured: 0.50% to 3.00%

�Unsecured: 0.75 to 3.50%

� per annum based on the guarantee coverage to be charged to the borrower


Eligible borrowerEligible borrower

�� As per the new SME definitionAs per the new SME definition

�� Malaysian owned and controlled companies Malaysian owned and controlled companies

�� Viable business Viable business

�� No adverse record with CGC or any other No adverse record with CGC or any other

Financial Institutions Financial Institutions

�� A startA start--up company may apply by providing a up company may apply by providing a

satisfactory and reasonable cash flow satisfactory and reasonable cash flow

indicating repayment capacity of at least 1.5 indicating repayment capacity of at least 1.5

timestimes

DIRECT ACCESS GUARANTEE SCHEME ISLAMIC (DAGS-i)

RM50,000 to RM3 million* per customerRM50,000 to RM3 million* per customer

Financing Limit

Type of Facilities

– Fixed/Term Loan-i

– Overdraft-i

– Tradelines-i

– Any other credit facilities determined from time to time by the Corporation

* Subject to terms & conditions

DIRECT ACCESS GUARANTEE SCHEME ISLAMIC (DAGS-i)

DIRECT ACCESS GUARANTEE DIRECT ACCESS GUARANTEE SCHEME ISLAMIC (DAGSSCHEME ISLAMIC (DAGS--i)i)

Maximum Tenure

Profit Rate

Guarantee Fee

Processing Fee

Renewal Fee

Up to 5 years.Up to 5 years.

Between 1.00% to 1.75% per annum above the BLR.(benchmark)Between 1.00% to 1.75% per annum above the BLR.(benchmark)

Secured: 0.50% to 3.00%

Unsecured: 0.75 to 3.50%

Processing fee for successful application is RM300.00

RM 150.00 for yearly renewal fee

FLEXI GUARANTEE SCHEME (FGS)

�� Fund for Small & Medium Industries 2 Fund for Small & Medium Industries 2 (FSMI 2)(FSMI 2)

�� Rehabilitation Fund For Small Business Rehabilitation Fund For Small Business

(RFSB)(RFSB)

�� New Entrepreneurs Fund 2 (NEF 2)New Entrepreneurs Fund 2 (NEF 2)

Loan Funds Eligible for Guarantee

�� For RFSB, aggregate outstanding NPL of For RFSB, aggregate outstanding NPL of

not more than RM3 million with not more than RM3 million with FIsFIs & &

applicants must have on going business.applicants must have on going business.

�� Not more than 20% of the equity is owned Not more than 20% of the equity is owned

by public listed companies and by public listed companies and

Government Linked Companies. Government Linked Companies.

�� ShareholdersShareholders’’ funds not exceeding RM2.0 funds not exceeding RM2.0

million;million;

�� SMEsSMEs with track record with not more with track record with not more

than7 years. However, than7 years. However, SMEsSMEs that have that have

more than 7 years track record can be more than 7 years track record can be

considered subject to average net profit considered subject to average net profit

must be less than 5% for the last three must be less than 5% for the last three

years. years.


�� Owned by a Malaysian residing in Owned by a Malaysian residing in

Malaysia and owned minimum 51% Malaysia and owned minimum 51%

shareholding incorporated under the shareholding incorporated under the

Companies Act 1965, the CoCompanies Act 1965, the Co--operative operative

Societies Act 1966, registered with the Societies Act 1966, registered with the

Companies Commission of Malaysia or Companies Commission of Malaysia or

any other authoritative bodiesany other authoritative bodies

Additional Eligibility Criteria For FSMI2


�� RM1.5 million RM1.5 million …… RFSBRFSB

�� RM5.0 million RM5.0 million …… FSMI 2FSMI 2

�� RM5.0 million RM5.0 million …… NEF 2NEF 2

�� 5.0% p.a 5.0% p.a -- RFSB RFSB

�� 4.0% to 6.0% 4.0% to 6.0% --NEF2 & FSMI2NEF2 & FSMI2

Maximum Loan Limit

Interest Rates


�� The annual guarantee fee is to be The annual guarantee fee is to be borne by borne by the lending institutionthe lending institution and is calculated and is calculated based on the guarantee cover issued.based on the guarantee cover issued.

�� Ranging from 0.8% to 2.15% per annum Ranging from 0.8% to 2.15% per annum for unsecured portion and 0.5% to 1.85% for unsecured portion and 0.5% to 1.85% per annum for secured portion per annum for secured portion

Guarantee Fee


�� According to participating financial institutions for According to participating financial institutions for

the FSMI 2, RFSB and NEF 2 respectively.the FSMI 2, RFSB and NEF 2 respectively.

� All Commercial banks

� All Local Islamic banks

� SME Bank Malaysia Bhd

�Malaysian Industrial Development Finance Bhd

� Bank Pertanian Malaysia


Participating Financial Institutions

PFI’s Eligible for CGC’s Guarantee

To assist small entrepreneurs who To assist small entrepreneurs who

have viable projects to obtain have viable projects to obtain

financing at reasonable cost from financing at reasonable cost from

participating financial institutionsparticipating financial institutions

SMALL ENTREPRENEUR GUARANTEE SCHEME (SEGS)

Objective

�� MalaysianMalaysian--owned companies registered owned companies registered

under the Companies Act 1965, the Counder the Companies Act 1965, the Co--

operative Societies Act 1993 and operative Societies Act 1993 and

entrepreneurs registered with the entrepreneurs registered with the

Companies Commission of MalaysiaCompanies Commission of Malaysia

�� One loan under CGC at any timeOne loan under CGC at any time

�� No adverse records in respect of No adverse records in respect of

borrowing from any government borrowing from any government

agencies or agencies or FIsFIs

Eligibility


FeaturesFeatures

Loans RM10,000 to RM50,000Loans RM10,000 to RM50,000

�� Maximum cover Maximum cover –– 80% of the facility (up to 80% of the facility (up to

100% for 100% for BumiputeraBumiputera –– All anchor banks)All anchor banks)

�� Facility Facility -- Term Loans and OverdraftsTerm Loans and Overdrafts

�� Maximum guarantee period Maximum guarantee period –– 5 years5 years

�� Guarantee FeeGuarantee Fee –– Secured 3.0% per annumSecured 3.0% per annum–– Unsecured 3.5% per annumUnsecured 3.5% per annum

�� Lending rate Lending rate –– BLR + 1.5%BLR + 1.5%

�� Purpose Purpose –– working capital & asset acquisitionworking capital & asset acquisition


�� Product specifically tailored for SMEs with Product specifically tailored for SMEs with

government or government linked agencies government or government linked agencies

contracts who require Bank Guarantee but do not contracts who require Bank Guarantee but do not

have sufficient security.have sufficient security.

Objective Objective

DIRECT BANK GUARANTEE DIRECT BANK GUARANTEE SCHEMESCHEME

Applicants should fulfill the following requirements:Applicants should fulfill the following requirements:

�� Company owned and controlled by Malaysian and Company owned and controlled by Malaysian and

registered under the Companies Act 1965, Soleregistered under the Companies Act 1965, Sole--

proprietorship or Partnership.proprietorship or Partnership.

�� Annual sales turnover not exceeding RM25million Annual sales turnover not exceeding RM25million

or full time workers of 150 or less.or full time workers of 150 or less.

�� Professional bodies must be registered members Professional bodies must be registered members

of their respective bodies and are not blacklisted of their respective bodies and are not blacklisted

from practicingfrom practicing

EligibilityEligibility Criteria Criteria


�� Facility amount Facility amount : : Between RM 50,000.000 to RM3* Between RM 50,000.000 to RM3* million/per customer million/per customer

�� Type of FacilitiesType of Facilities : : Bank Guarantee (BG) is issued for the Bank Guarantee (BG) is issued for the purpose of specific tender/performance purpose of specific tender/performance bonds for Government and Government bonds for Government and Government linked Corporations (GLCs) contracts/jobs linked Corporations (GLCs) contracts/jobs onlyonly

�� Commission Charged : 0.6% per annum subject to a minimum Commission Charged : 0.6% per annum subject to a minimum of RM50.00 per issuanceof RM50.00 per issuance

* Subject to terms & Conditions.* Subject to terms & Conditions.


�� Guarantee FeeGuarantee Fee : : Between 0.5% Between 0.5% --3.5% per annum based 3.5% per annum based

on risk profile of the SMEs.on risk profile of the SMEs.

�� Guarantee CoverageGuarantee Coverage : : Max cover of up to 100% of BG limitMax cover of up to 100% of BG limit

�� Duration CoverageDuration Coverage : : Same as the tenure of the specific BG Same as the tenure of the specific BG

to be issuedto be issued

�� Processing Fee Processing Fee : : RM300 for each successful RM300 for each successful applicationapplication


�� Allow SMEs who are less than 1 year in operation Allow SMEs who are less than 1 year in operation

to secure the required financing with CGC to secure the required financing with CGC

support.support.

�� Provide financial support that suits the needs and Provide financial support that suits the needs and

requirement of the Start up SMEs.requirement of the Start up SMEs.

Objective Objective

DAGS START UPDAGS START UP

Applicants should fulfill the following requirements:Applicants should fulfill the following requirements:

�� Company owned and controlled by Malaysian and Company owned and controlled by Malaysian and

registered under the Companies Act 1965, Soleregistered under the Companies Act 1965, Sole--

proprietorship or Partnership.proprietorship or Partnership.

�� Annual sales turnover not exceeding RM25million Annual sales turnover not exceeding RM25million

or full time workers of 150 or less.or full time workers of 150 or less.

Eligibility CriteriaEligibility Criteria


�� Max. Loan Amount Max. Loan Amount : : RM2 million RM2 million

�� Min. Loan AmountMin. Loan Amount : : RM50,000.00RM50,000.00

�� Type of FacilitiesType of Facilities : : Term Loan, Overdraft and any other Term Loan, Overdraft and any other credit facilities determined from credit facilities determined from time to time by the Corporationtime to time by the Corporation

�� Interest RateInterest Rate : : Between 1.0% to 1.75% per Between 1.0% to 1.75% per annum above the Base Lending annum above the Base Lending Rate (BLR) of the lending Rate (BLR) of the lending institutionsinstitutions


�� Guarantee FeeGuarantee Fee : : Between 0.5% Between 0.5% --3.5% per annum based 3.5% per annum based

on risk profile of the SMEs. on risk profile of the SMEs.

�� Guarantee CoverageGuarantee Coverage : : Up to 100% guaranteeUp to 100% guarantee

�� Maximum TenureMaximum Tenure : : 5 years (for loans to acquire assets, 5 years (for loans to acquire assets,

the tenure is up to 8 years)the tenure is up to 8 years)

Up to 15 years (applicable for terms Up to 15 years (applicable for terms loan financing for the purchase of loan financing for the purchase of completed commercial properties or completed commercial properties or

factories)factories)


�� Processing Fee Processing Fee : : RM300 for each successful applicationRM300 for each successful application

�� Annual Review FeeAnnual Review Fee : : RM150 per annumRM150 per annum


�� Launch on Launch on :: To be Launched on 1To be Launched on 1thth January 2008January 2008

�� Maximum LoanMaximum Loan : Up to RM10 million: Up to RM10 million

�� Avails a comprehensive range of banking products and Avails a comprehensive range of banking products and servicesservices

�� Available via all major bank branches nationwideAvailable via all major bank branches nationwide

ENHANCERENHANCER--ii

Guarantee Cover ranges from 30% to 90% : Guarantee Cover ranges from 30% to 90% : --

Secured portion Secured portion –– up to 90%up to 90%

(No capping on loan amount)(No capping on loan amount)

�� Unsecured portion Unsecured portion –– up to 80%up to 80%

(max. cover of up to RM3.0 mil)(max. cover of up to RM3.0 mil)


Guarantee FeeGuarantee Fee

Secured Portion Secured Portion

Between 1.00% to 2.45% of guarantee cover.Between 1.00% to 2.45% of guarantee cover.

UUnsecured Portion nsecured Portion

Between 1.50% to 3.00% of guarantee cover.Between 1.50% to 3.00% of guarantee cover.

Profit RateProfit Rate

Determined by participating financial institutionsDetermined by participating financial institutions


iGuarantee

• This innovative tool provides SMIs wishing to apply for a loan, the ability to reach every Financial Institution (FI) in Malaysia by completing only one application form via the Internet. This service reduces the hassle of the conventional way of applying for loans.

• Register as a member in our SMI Directory which enables you to promote your products and services

• Share your ideas in our forum• Read interesting articles from professional business

writers.

Visit us today at www.iGuarantee.com.mywww.iGuarantee.com.my


1. SMIs may access the loan application online in either one of two ways, either by completing and submitting the online form, or by downloading and completing an offline form, at a convenient time.

2. Once the application is submitted, a CGC credit officer will assess the information and then invite the FIs in Malaysia to bid on the application, in an auction.

3. The FIs will contact the applicant for any additional information or verification before submitting their bids to CGC.

4. Once the bids are assessed, the FI whose bid is the best match for the applicant will be awarded the auction. All parties will be notified and the process is completed.

iGuarantee


Client Service Centre Client Service Centre

(CSC) (CSC)

03 03 –– 7 88 000 887 88 000 88

THANK YOU

“HELPING YOUR BUSINESS GROW” · No adverse record with CGC or any other Financial Institutions...

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Transcript of “HELPING YOUR BUSINESS GROW” · No adverse record with CGC or any other Financial Institutions...