Kuala lumpur: Credit Guarantee Corporation Malaysia Bhd (CGC) has announced enhancements to its BizJamin MTC and BizJamin-i MTC schemes, enabling mid-tier companies (MTCs) to secure financing between RM1 million and RM5 million. This initiative was unveiled by Sean Tan, CGC’s chief business officer, during the CGC Mid-Tier Momentum Business Forum 2025 on Tuesday.
According to BERNAMA News Agency, the enhancements align with CGC’s strategy to continuously improve its services and address feedback from banking partners. Tan highlighted that the updated financing feature aims to offer swift processing for unsecured financing, crucial for MTCs navigating global uncertainties.
The introduction of a potential 25% United States tariff on Malaysian exports, set to commence on August 1, poses challenges for sectors like electronics, machinery, rubber, and palm oil, which are vital to many MTCs. Tan noted that these tariffs diminish the competitiveness of Malaysian goods in the US market, impacting export prospects. While some trade diversion might occur due to Malaysia’s relatively lower tariffs, a global demand downturn is anticipated.
Tan expressed concerns that reduced export orders could decrease production, affecting employment, income, and household spending, particularly in export-oriented sectors. He warned that businesses might hesitate to invest amid profitability and market uncertainty concerns.
For MTCs, this translates to increased financial risk and pressure, which underscores the importance of credit guarantee schemes like BizJamin-i MTC. These schemes provide essential financial buffers to manage cash flow, bolster resilience, and explore new markets. Launched in February, the BizJamin-i MTC scheme addresses funding gaps for companies too large for traditional SME schemes but not yet qualifying for corporate banking standards.
The scheme offers up to 80% guarantee coverage, with guarantees up to RM20 million per company and a total group exposure limit of RM60 million. It supports various financing needs, including working capital, asset acquisition, operational costs, renovations, and refinancing. Since its launch, the scheme has gained traction with 28 banks participating as financial institutions, although further efforts are needed to enhance awareness and capacity within this crucial segment.
The forum also included a macroeconomic briefing by Socio-Economic Research Centre executive director Lee Heng Guie and a panel discussion on innovative financing strategies, featuring representatives from CIMB Group Holdings Bhd, Bank Islam Malaysia Bhd, the Federation of Malaysian Manufacturers, and the Malaysian Consortium of Mid-Tier Companies.