CGC CALLS FOR MECHANISM TO SUBSIDISE COST OF CREDIT RATING FOR SMES

PETALING JAYA (Selangor, Malaysia), Oct 5 (Bernama) -- Credit Guarantee
Corporation (CGC) Malaysia Bhd hopes the government will introduce a mechanism
in the upcoming 2012 Budget to subsidise the cost of Small and Medium
Enterprises (SMEs) getting a credit rating.

Managing Director Wan Azhar Wan Ahmad said the government had made great
strides in enhancing the competitiveness and credibility of SMEs.

"However, many SMEs are unaware of or ignorant of credit ratings due to the
cost and an inefficient procedure," he said after a signing ceremony between
CGC and RHB Bank Bhd here on Wednesday.

Wan Azhar said the core issue must be addressed, which is the credit
standing of SMEs in getting loans.

"When the SMEs do not get a loan, they tend to blame the banking
institutions.

"But the actual problem is that, banks are afraid of taking a higher risk by
providing loans for SMEs, without proper credit ratings," he added.
-- BERNAMA