CGC gets three-year extension to manage bumiputera entrepreneur scheme

The Finance Ministry has approved a three-year extension for Credit Guarantee Corporation Malaysia Bhd (CGC) to manage the Bumiputera Entrepreneur Project Fund (TPUB-i).

CGC is expected to manage the TPUB-i contract financing scheme up to June 30, 2022, MoF said in a statement.

Finance Minister Lim Guan Eng said this is in line with the government’s commitment to ensure that the country’s economic growth also creates opportunities that allow entrepreneurs and small and medium enterprises (SMEs) to flourish.

TPUB-i, a contract financing scheme funded by Bank Negara, provides working capital financing to bumiputera entrepreneurs who have been awarded contracts or projects by the government or its agencies, statutory bodies, and reputable companies.

Under this scheme, CGC has an allocation of RM300 million to facilitate bumiputera entrepreneurs who face challenges in obtaining access to financing from financial institutions.

The scheme offers a profit rate of up to five per cent per annum to first-time applicants, for funding up to RM3 million.

Since the inception of the scheme in July 2009, CGC has approved and disbursed total financing of RM1.58 billion to more than 1,900 Bumiputera entrepreneurs.

In 2018, the amount stood at RM330 million, an all-time high in terms of loan approval value in a year.

- Bernama