CapBay and CGC Digital have entered a strategic partnership to introduce a Digital Guarantee Scheme aimed at supporting underserved MSMEs in Malaysia.
The scheme combines CGC Digital’s credit guarantee capabilities with CapBay’s supply chain finance and P2P platform.
The guarantees function as a risk-sharing mechanism, enabling lenders to offer more competitive financing terms while supporting businesses that lack traditional collateral.
CapBay’s AI-driven credit assessment system is intended to shorten evaluation timelines and expedite access to funding.
The programme includes both Islamic and conventional financing options, marking its first dual-facility rollout.
It targets MSMEs with at least 51% Malaysian ownership, offering financing between RM50,000 and RM500,000, with tenures of up to 60 months.
CapBay has facilitated over RM5.4 billion in financing to more than 2,500 SMEs to date.
Under this collaboration, CGC Digital’s guarantee improves the credit profile of participating businesses and encourages broader participation from institutional and retail investors on CapBay’s platform.
The structure also supports a lower interest rate ceiling.
Ang Xing Xian, Co-founder and Group CEO of CapBay, said:
“We are proud to partner with CGC Digital to make capital widely accessible to SMEs hindered by the lengthy approval processes of traditional avenues. By leveraging CapBay’s AI-driven credit assessment, we can offer seamless, rapid digital financing to serve the ‘missing middle’.”
Yushida Husin, CEO of CGC Digital, said:
“Our collaboration with CapBay enables us to leverage data-driven insights to more effectively bridge the financing gap for MSMEs. By offering a guarantee scheme that accommodates both Shariah-compliant and conventional needs, we are providing a safety net for financiers while expanding access for small businesses.”
The initiative aligns with broader national efforts to improve financial inclusion and support MSME growth.
Featured image credit: CapBay press release
