CGC eyes good growth by end 2013

Credit Guarantee Corporation Malaysia Bhd (CGC) will pick up the
momentum in financing small and medium entrepreneurs (SMEs) in the
second phase after distractions in the first phase (January to April
2013) due to the 13th general election.

Managing director Datuk
Wan Azhar Wan Ahmad said although growth in the first phase was quite
slow, good growth is expected by year-end.

"Every year we expect
positive growth. However, we assume this year as an exceptional year
because a GE only happens every five years," he told reporters at a
media briefing.

Wan Azhar said that as at April 2013, CGC had
approved 71 applications worth nearly RM900 million under the Green
Technology Financing Scheme.

In 2012 there was a significant
increase in the quality of loans based on its provision for claims on
loans guaranteed in 2012, he said.

"This is primarily due to
improved management of our loan quality which included several proactive
and preemptive measures to address potentially delinquent loans," he
added.

Five banks -- Standard Chartered, Public Bank, OCBC Bank,
RHB Bank and Alliance Bank -- are active participants in CGC's portfolio
guarantee scheme.

Wan Azhar said CGC has forged new alliances
with banking partners to offer innovative financing options and delivery
channels to enhance SMEs' access to financing, and has been
instrumental in the establishment of more than 420,000
SMEs, guaranteeing close to RM51.4 billion.-- Bernama