Funding Societies | Modalku (Funding Societies), the largest unified digital finance platform for SMEs in Southeast Asia, has expanded its digital guarantee products in partnership with CGC Digital, the FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad.
This expansion follows the success of the Proof of Concept programme on digital supply chain financing (DSCF) last year. The partnership’s expansion marks a significant milestone in the wake of CGC Digital’s investment in Funding Societies earlier this year.
It represents a crucial step in providing essential support to Malaysia’s micro, small, and medium-sized enterprises (MSMEs), enabling them to achieve greater success in a competitive and dynamic economy.
Funding Societies and CGC Digital have collaborated to develop two new digital credit guarantee products: Digital Term Financing and Micro Credit Line. In addition to offering micro and small enterprises access to financing, these products provide annual profit rate savings of up to 2%.
As part of their ongoing efforts to tackle the challenges faced by micro and small businesses in accessing financing, Funding Societies and CGC Digital have expanded their DSCF programme to cover a wider range of industries and suppliers, with longer tenures, alongside the introduction of Digital Term Financing and Micro Credit Line.
Since launching the two new programmes in September, the organisation has disbursed more than RM10 million, benefiting over 200 creditworthy micro and small enterprises to date.
This achievement underscores the organisation’s commitment to promoting financial inclusion and growth for Malaysia’s MSMEs while substantiating the demand for financing solutions tailored to micro and small businesses.
These initiatives align with broader goals of advancing sustainability, digital growth, and inclusivity, while improving the long-term competitiveness and resilience of MSMEs domestically and internationally.
Chai Kien Poon, the Country Head of Funding Societies Malaysia, said: “This partnership with CGC Digital is a testament to our shared commitment to empowering underserved businesses in Malaysia.
“Our mission is to create a financing ecosystem that fosters inclusivity and encourages the growth of micro and small businesses nationwide. By integrating CGC Digital’s expertise in credit enhancement with Funding Societies’ advanced digital financing platform, we are enabling business owners to access the capital they need to expand, employ, and contribute to the economy, driving financial inclusion in the process.”
Yushida Husin, the Chief Executive Officer of CGC Digital, expressed her satisfaction with the expanded partnership, stating: “This extension reflects our unwavering dedication to product innovation and financial inclusion.
“The impact we have already seen on the financial accessibility of Malaysian MSMEs is profound. I am excited about the continued growth of this collaboration as we redefine the boundaries of product innovation.
“We are not merely facilitating financing but fostering economic growth and enabling aspirations by breaking new ground. Together, we are building a future where every business has the opportunity to thrive.”
MSMEs employ a significant portion of the workforce, contribute 39% to Malaysia’s Gross Domestic Product (GDP), and account for over 97% of the country’s enterprises. However, limited financing options often constrain these businesses.
Through their partnership, Funding Societies and CGC Digital aim to strengthen the financial foundation of the Malaysian economy, promoting economic growth and resilience by improving access to capital.
