KUCHING: The RM500 million financing facility signed between AFFIN Bank Berhad and Credit Guarantee Corporation Malaysia Berhad (CGC) has placed focus on micro, small and medium enterprises (MSMEs) and mid-tier companies (MTC) in Sabah and Sarawak despite being national in nature.

President and Chief Executive Officer (CEO) of Affin Bank Berhad, Datuk Wan Razly Abdullah said Affin is aware of the potential in Sabah and Sarawak, given that both states have not developed as rapidly as in Peninsular Malaysia.

“From our portfolio, we are seeing strong growth, especially in Sarawak, with an average increase of around 50 per cent in business or loans year-on-year.

"We consider this as a positive sign that Sarawak is on a solid growth path, in line with the development plan implemented by the Sarawak Government.

"Sabah is also following closely through its tourism development plan and efforts to support its economic growth," he said in a press conference session after the Signing Ceremony of the Memorandum of Understanding (MoU) between AFFIN Group and CGC for RM500 Million Financing for MSMEs and MTC at a leading hotel here on Monday.

Meanwhile, CGC President and CEO, Datuk Mohd Zamree Mohd Ishak added that this initiative will continue for five years with an increase in capital if there is a strong response from the MSMEs and mid-tier companies.

He explained that CGC and Affin Bank have agreed in principle that RM300 million of this will be channeled to MTCs and established MSMEs through the BIZJamin scheme, while RM50 million each will be allocated to start-ups through the BizDana scheme, specific focus schemes, low-carbon transition facilities and the PG Visa Business Card.

"However, this allocation is only a general guideline, and will be adjusted according to the actual needs of the supported MSMEs," ​​he said.

Therefore, he called on any MSMEs and mid-tier company owners to come to Affin and CGC branches to conduct an assessment of their creditworthiness.

Earlier, the MoU was signed by the President and CEO of AFFIN Group, Datuk Wan Razly Abdullah, Chief Executive Officer of Affin Islamic Bank Berhad, Dato’ Paduka Syed Mashafuddin Syed Badarudin and Datuk Mohd Zamree Mohd Ishak.

Present to witness the meaningful ceremony were Sarawak Financial Secretary, Dato Sri Dr. Wan Lizozman Wan Omar, Affin Bank Berhad Chairman, Dato’ Agil Natt, Affin Islamic Bank Berhad Chairman, Musa Abdul Malek and CGC Malaysia Chairman, Dato’ Mohammed Hussein. -UKASnews