Credit Guarantee Corporation Malaysia Bhd announced two new guarantee schemes, Portfolio Guarantee and Portfolio Guarantee-i, to support up to RM10 billion in financing for micro, small and medium enterprises (SMEs) in Malaysia. The announcement was made in June 2026 as part of efforts to enhance SME access to longer-term funding[citation needed] [1, 2].
The schemes offer financing of up to RM10 million per business, with loan tenures reaching as long as 10 years. Guarantee coverage can reach 85%, subject to credit assessment by participating financial institutions. Guarantee fees start from 1%, making this an affordable risk-sharing solution for borrowers and lenders alike [1, 2].
These programmes primarily target SMEs with limited collateral, first-time borrowers, and those seeking to expand their operations. Mohamed Nazri Omar, Chief Executive of Credit Guarantee Corporation Malaysia, said the goal is to "change the way [financial institutions] evaluate these underserved market segments to create new opportunities and contribute to a stronger and resilient economy" [1].
Unlike short-term financing, the schemes aim to back longer-term business growth focused on productivity upgrading, sustainability transition, and resilience building. Credit Guarantee Corporation Malaysia remains the sole agency providing guarantee cover for SMEs nationwide, reflecting its central role in Malaysia’s SME financing ecosystem [1, 2].
These new guarantee schemes follow Bank Negara Malaysia’s earlier initiatives that provided financial assistance to SMEs affected by geopolitical tensions in the Middle East [1, 2]. The launch of these guarantees is intended to further support SME stability and expansion amid global uncertainties.
The Credit Guarantee Corporation Malaysia announced the schemes on June 3, 2026. Participating financial institutions are now prepared to extend financing backed by these guarantees, with uptake expected to grow in the coming months as SMEs apply for support [1, 2].
