Bank Negara Launches RM10 Billion Guarantee Scheme to Boost SME Financing

Bank Negara Malaysia (BNM) has officially launched a RM10 billion guarantee scheme designed to improve financing access for small and medium enterprises (SMEs) across the country. The initiative, developed in partnership with the Credit Guarantee Corporation Malaysia (CGC), was introduced by Governor Abdul Rasheed Ghaffour during the 31st CGC Awards ceremony.

According to the original publisher, the scheme specifically targets microenterprises and startups, alongside firms operating in key areas such as sustainability, innovation, food security, and external resilience. By providing these guarantees, the program assists viable businesses that might otherwise struggle to meet the requirements of conventional credit assessments.

This financial support is particularly aimed at supporting younger companies that possess limited credit histories, as well as asset-light firms that lack the traditional collateral typically required by financial institutions. Under this new arrangement, banks and financial institutions will share the associated risks with the CGC while continuing to uphold their standard underwriting responsibilities and credit criteria.

The introduction of this scheme builds on the long-standing role of the CGC, which has facilitated over RM103 billion in financing and guarantees for more than 544,000 SMEs since its inception. BNM is currently collaborating with both the CGC and Syarikat Jaminan Pembiayaan Perniagaan (SJPP) to further reinforce and strengthen the broader credit guarantee framework in Malaysia.

Providing a reliable path to capital is essential for local businesses, as it ensures that innovation and strategic growth are not stifled by a lack of traditional banking security. For the Malaysian economy, this structured approach to risk-sharing serves as a vital tool to maintain business momentum across diverse sectors, ultimately fostering greater economic resilience for smaller industry players.