Funding Societies, a digital finance platform for MSMEs in Southeast Asia, has strengthened its collaboration with CGC Digital, a subsidiary of Credit Guarantee Corporation Malaysia.
The partnership builds on CGC Digital’s investment in Funding Societies earlier this year.
This expanded partnership introduces two new financing products: Digital Term Financing and Micro Credit Line.
The move follows the success of their earlier Proof of Concept programme on digital supply chain financing (DSCF).
The enhanced offerings aim to improve financing options for Malaysian MSMEs, which form over 97% of the country’s businesses.
The new products provide broader access to capital and profit rate savings of up to 2% per annum, helping MSMEs overcome financing challenges.
Additionally, the DSCF programme now includes a wider range of industries and longer tenors, further addressing the diverse needs of small enterprises.
Since the launch of these initiatives in September, more than RM10 million has been disbursed to over 200 micro and small businesses.
Chai Kien Poon, Country Head of Funding Societies Malaysia, said,
“We are committed to creating a more inclusive financing ecosystem that supports the growth of micro and small businesses across Malaysia.
By combining CGC Digital’s extensive expertise in credit enhancement with Funding Societies’ state-of-the-art digital financing platform, our digital financing solutions allow business owners to access the capital they need to expand, employ, and contribute to the economy enabling improved access to capital and fostering financial inclusion.”
Yushida Husin, Chief Executive Officer, CGC Digital said,
“This extension is a testament to our unwavering dedication to financial inclusion and product innovation. Furthermore, I am also excited for the expansion of our partnership, where we continue to push boundaries through product innovation.
By breaking new ground, we are not just providing access to financing; we are enabling dreams and driving economic growth. Our joint efforts are paving the way for a future where every business has the opportunity to succeed and thrive”
