Funding Societies Partners With CGC Digital to Empower Malaysian MSMEs
by Fintech News Malaysia August 3, 2023SME digital financing platform Funding Societies has partnered with CGC Digital, the fintech subsidiary of Credit Guarantee Corporation Malaysia (CGC) to empower MSMEs in the country.
Through the partnership, CGC Digital developed a new digital credit guarantee product for CGC that will be offered for financing up to RM4 million as a start.
This benefits up to 100 creditworthy micro and small enterprises (MSMEs) via Funding Societies’ digital supply chain financing solution, leveraging alternative data for MSMEs’ credit risk assessment.
The announcement comes on the heels of Funding Societies’ MoU signing with CGC in April for a RM10 million SME Portfolio Guarantee scheme focusing on business expansion for SMEs.
Wong Kah Meng
Wong Kah Meng, Group Chief Operating Officer, Funding Societies | Modalku said,
“Following our entry into the SME Portfolio guarantee program of CGC in April this year, we are fortifying this collaboration with CGC Digital. The digital-first approach leverages alternative data, enabling MSMEs with broader and more affordable access of MSMEs to digital guarantee and transformative financing.
CGC Digital’s innovation of CGC’s credit guarantee would mitigate risk for investors and reduce cost of financing for MSMEs. Combining it with our industry playbook for fast-moving consumer goods (FMCG), agriculture, telecommunications, and wholesale and retail trade segments, we would be able to serve more micro and small enterprises that make up these industry segments.”
Yushida Husin
Yushida Husin, Chief Executive Officer, CGC Digital said,
“This MoU signifies our mutual dedication to fostering innovation and co-creating value with MSMEs. CGC Digital seeks to provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up.
Given this, we are committed to collaborating with like-minded strategic partners in the digital ecosystem to accelerate financial inclusion of MSMEs in Malaysia.”
Featured image: (Left to right) President & Chief Executive Officer of CGC, Datuk Mohd Zamree Mohd Ishak; Chief Executive Officer of CGC Digital, Yushida Husin; Group Chief Operating Officer, Funding Societies | Modalku and Co-Founder of Funding Societies Malaysia, Wong Kah Meng; and Co-founder & Group Chief Executive Officer, Funding Societies | Modalku, Kelvin Teo
