Bank Negara Malaysia (BNM) and Credit Guarantee Corporation Malaysia Berhad (CGC) have launched a RM10 billion BNM–CGC Guarantee Scheme to widen financing access for viable small and medium enterprises.
Governor Abdul Rasheed Ghaffour announced the initiative in a special address at the 31st CGC Awards in Kuala Lumpur on 11 August 2026. He said the scheme is designed to support microenterprises, start-ups and firms investing in sustainability, innovation, strategic sectors, food security and external resilience.
The Governor said SMEs account for about 40% of Malaysia’s gross domestic product and almost half of total employment. Since its establishment, CGC has facilitated more than RM103 billion in guarantees and financing for over 544,000 SMEs.
BNM considers overall financing conditions supportive, with banks, development financial institutions and CGC continuing to provide funding to viable businesses. However, many SMEs still face higher input costs, tighter margins, supply-chain disruption and slower customer payments, which have increased working-capital pressure.
The new guarantee scheme is intended to provide a more scalable, market-based approach to risk-sharing. Abdul Rasheed stressed that guarantees should help financing reach viable businesses that conventional assessments may overlook, but should not replace prudent underwriting, customer monitoring or early intervention.
He outlined three priorities for further progress: widening financing beyond familiar sectors and conventional collateral; assessing businesses using a broader range of information such as cash flow, transaction records, electronic invoices and supply-chain data; and pairing financing with capability-building in productivity, management, technology adoption and market access.
The Governor said Malaysia’s economy grew by 5.4% in the first quarter of 2026, while unemployment declined to 2.9% and headline inflation remained moderate at 1.6%. He added that the external environment remains uncertain and urged SMEs to keep investing in productivity, capability and resilience.
The full official speech is available from Bank Negara Malaysia: https://www.bnm.gov.my/-/g-spch-31st-cgc-awards
