CGC Enhances Financing Features Under BizJamin MTC, BizJamin-i MTC Schemes To Support MTCs

KUALA LUMPUR, July 23 (Bernama) --  Credit Guarantee Corporation Malaysia Bhd (CGC) has enhanced its financing feature under the BizJamin MTC and BizJamin-i MTC schemes, now allowing mid-tier companies (MTCs) to apply for financing amounts between RM1 million and RM5 million.

Its chief business officer Sean Tan, in his welcoming remarks at the CGC Mid-Tier Momentum Business Forum 2025 on Tuesday, said the enhancement was in line with CGC’s commitment to continuing improvement and responding to the invaluable feedback from the banking partners.

“This enhancement aims to provide short-term financing with fast processing for securing their unsecured financing facilities,” he said.

Tan said the new feature comes at a timely moment as MTCs face increasing global uncertainties.

With the potential 25 per cent United States (US) tariff on Malaysian exports expected to begin on Aug 1, affected sectors such as electronics, machinery, rubber and palm oil are key areas for many MTCs.

He said these tariffs reduce the competitiveness of Malaysian products in the US market, dampening export potential.

“While Malaysia may benefit from some trade diversion due to relatively lower tariffs compared to other countries, global demand is expected to soften.

“Lower export orders could translate into reduced production, affecting jobs, incomes, and household spending, particularly in export-driven sectors,” he said.

He stressed that firms might also hold back on investments amid concerns over profitability and market uncertainty.

Tan said that for MTCs, this means heightened financial risk and pressure on business communities; hence, the reason credit guarantee schemes like BizJamin-i MTC were not only timely but also essential, providing the financial buffer needed to manage cash flow, build resilience, and pivot to new markets.

Launched in February this year, the BizJamin-i MTC scheme is designed to address the structural financing gaps faced by MTCs -- companies that are too large for traditional small and medium enterprise schemes but not yet eligible for corporate banking thresholds.

He said the scheme offers up to 80 per cent guarantee coverage, with a guarantee on up to RM20 million per company with a total group exposure limit of up to RM60 million.

“It also provides guarantee cover for up to 15 years and accommodates various financing needs, including working capital, asset acquisition, operational costs, renovations, and refinancing.

“The scheme has recorded encouraging momentum since its launch, with 28 banks signed on as participating financial institutions, but we recognise there is still more work to be done to increase awareness and build capacity to serve this crucial segment even better,” he added.

The forum also featured a macroeconomic briefing by Socio-Economic Research Centre executive director Lee Heng Guie and a panel discussion on innovative financing strategies, joined by representatives from CIMB Group Holdings Bhd, Bank Islam Malaysia Bhd, the Federation of Malaysian Manufacturers, and the Malaysian Consortium of Mid-Tier Companies. 

-- BERNAMA