WELCOME TO CGC BRIEFING SESSION

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WELCOME TO CGC BRIEFING SESSION
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CORPORATE INFORMATION

• Incorporated July 5, 1972
• Authorised Capital RM3 billion
• Paid Up Capital
• RM1,435.6 million (Ordinary Shares)
• RM200 million (Preference Shares)

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SHAREHOLDERS
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CGC BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD Dato Mohd Salleh Bin Hj.
Harun DIRECTORS Datuk Amirsham Bin A. Aziz Dr.
Rozali Bin Mohamed Ali Encik Mohamed Azmi Bin
Mahmood Encik Mohd Shah Bin Dato Abu Bakar Encik
Wong Yew Sen MANAGING DIRECTOR Datuk Wan Azhar
Bin Wan Ahmad SECRETARY Cik Gayah Binti Hj Mohd
Nordin
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BRANCHES IN OPERATION

• Main Branch operational Jul. 3, 2000
• Alor Setar, Kedah operational Aug. 28, 2000
• Ipoh, Perak operational Oct. 9, 2000
• Johor Bahru, Johor operational Nov. 6, 2000
• Melaka operational Apr. 21, 2001
• Kuantan, Pahang operational May 28, 2001
• Kota Bharu, Kelantan operational June, 18 2001
• Prai, Penang operational June, 25 2001
• Seremban, Negeri Sembilan operational July 23,
  2001
• Kuala Terengganu, Terengganu operational Nov.
  26, 2001
• Kota Kinabalu, Sabah - operational Jan. 21, 2002
• Kuching, Sarawak operational Jan. 21, 2002
• Kuala Lumpur operational Nov. 3, 2003
• Batu Pahat, Johor operational Nov. 3, 2003
• Sandakan, Sabah operational Jan. 19, 2004
• Miri, Sarawak operational Feb. 24, 2004

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CGC OBJECTIVE
CGC is established with the objective of
assisting the SMIs without collateral or with
inadequate collateral and has no track record
gain accessibility to credit facilities from
financial institutions
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CURRENT GUARANTEE SCHEME

• New Principal Guarantee Scheme (NPGS/SJUB)
• Direct Access Guarantee Scheme (DAGS/SJLT)
• Flexi Guarantee Scheme (FGS/SJA)
• Islamic Banking Guarantee Scheme(IBGS/SPI)
• Franchise Financing Scheme (FFS/SPF)
• Small Entrepreneur Guarantee Scheme (SEGS/SJUK)
• iGuarantee

DELIVERY CHANNEL
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NEW PRINCIPAL GUARANTEE SCHEME (NPGS)

• Introduced in February 1994 (Revised in Nov. 1,
  2002)
• To assist SMIs obtain loans for business
  purposes especially those
• Do not have collateral
• Insufficient collateral
• Do not have track record

Objective
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NEW PRINCIPAL GUARANTEE SCHEME (NPGS)
Principles

• Flexible
• User friendly
• Simple and convenient
• Match needs of lenders borrowers

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NPGS FEATURES

• A company with annual sales turnover of RM25
  million or less or
• Full time workers of 150 or less
• Loan amount of up to RM10 million
• Lenders are free to quote their finance margin

Eligible Borrower
Credit Facilities
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NPGS FEATURES
Maximum Guarantee Cover

• Maximum cover of up to RM 2.5 million on the
  unsecured portion
• There is no capping imposed on the secured
  portion
• Ranging between 30 to 90 subject to the
  following
• Unsecured portion up to 80
• Secured portion up to 90
• Secured portion 1.00
• Unsecured portion 1.25

Guarantee Fees
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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Objective

• Direct Access Guarantee Scheme shall provide
  direct access to SMIs whereby they could approach
  CGC directly in obtaining guarantee and
  subsequently the required financing

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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Eligibility Criteria

• Eligible borrower
• Paid-up capital/shareholders fund RM50,000 to
  RM10 million ( for manufacturing sector) and up
  to RM5 million (for other sector)
• Malaysian owned and controlled companies
• Viable business
• No adverse record with CGC or any other Financial
  Institutions or listed under Central Banks Biro
  Maklumat Cek (BMC)
• A start-up company may apply by providing a
  satisfactory and reasonable cash flow indicating
  repayment capacity of at least 1.5 times

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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Credit Limit

• RM50,000 to RM1 million per customer

Type of Facilities

• Fixed/Term Loan
• Overdraft
• Tradelines
• Any other credit facilities determined from time
  to time by the Corporation

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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Guarantee Cover
30 to 100 CGC Guarantee
Interest Rate
Between 1.00 to 1.75
Guarantee Fee
Between 0.75 to 1.5
Processing Fee
Processing fee for successful application is
RM200.00
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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Documents to Support Loan Guarantee Application

• Memorandum and Articles of Association
• Form 24 and Form 49
• Certificate of Incorporation
• Latest annual return
• Company and management profile
• Latest 3 years audited accounts
• Latest 6 months bank statements (all accounts)
• Latest Management (or draft) Account
• Letter of offer for all existing credit
  facilities
• Brief information on 3 largest customer (buyers)
  credit terms given

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DIRECT ACCESS GUARANTEE SCHEME (DAGS)
Documents to Support Loan Guarantee Application

• Brief information on 3 largest suppliers credit
  terms given
• Latest debtor and creditor ageing report
• Letter of award for completed and current
  projects
• List of existing and completed projects
• NRIC and latest 2 years Form J of all directors
• Product(s) or service(s) brochures
• Cash flow projection
• Market or industry profile/study
• Title deeds/valuation reports (if secured by
  property)

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FLEXI GUARANTEE SCHEME (FGS)
Loan Funds eligible for Guarantee

• Fund for Small Medium Industries 2 (FSMI 2)
• Rehabilitation Fund for Small Businesses (RFSB)
• New Entrepreneurs Fund 2 (NEF 2)

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FLEXI GUARANTEE SCHEME (FGS)
Eligibility Criteria

• Based on the individual eligibility criteria of
  the FSMI 2, RFSB and NEF 2
• Malaysian owned or Malaysian controlled (majority
  of shareholding/interest is Malaysian) with net
  assets or shareholders funds not exceeding RM10
  million for FSMI 2 and RFSB.
• Except for RFSB, borrower must have good credit
  record and is not listed under BMC.
• For RFSB, aggregate outstanding NPL of not more
  than RM3 mil. With FIs applicant must have an
  on-going business.

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FLEXI GUARANTEE SCHEME (FGS)
Maximum Loan Limit

• RM1.5 million RFSB
• RM5.0 million NEF 2
• RM3.0 million FSMI 2
• 5.0 p.a. RFSB
• 5.0 p.a. NEF 2
• 5.0 p.a. FSMI 2

Interest Rates
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FLEXI GUARANTEE SCHEME (FGS)

• The annual guarantee fee is to be borne by the
  lending institution and is calculated based on
  the guarantee cover issued.
• Ranging from 0.75 to 1.5 per annum for
  unsecured portion and 0.5 to 1.25 per annum for
  secured portion.

Guarantee Fee
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FLEXI GUARANTEE SCHEME (FGS)

• Participating Financial Institutions
• According to participating financial institutions
  for the FSMI 2, RFSB and NEF 2 respectively.

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ISLAMIC BANKING GUARANTEE SCHEME (IBGS)

• Maximum funding up to RM10.0 million
• CGCs guarantee cover is between 30 - 90
• Guarantee Fee is between 1.00 to 1.25
• Islamic Banking concept
• The Financial Institution is free to quote their
  profit rate under this scheme
• Revised as at June 1, 2003

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SMALL ENTREPRENEUR GUARANTEE SCHEME (SEGS)
Objective

• To assist small entrepreneurs who have viable
  projects to obtain financing at reasonable cost
  from participating financial institutions

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SMALL ENTREPRENEUR GUARANTEE SCHEME (SEGS)
Eligibility

• Malaysian-owned companies registered under the
  Companies Act 1965, the Co-operative Societies
  Act 1993 and entrepreneurs registered with the
  Companies Commission of Malaysia or any other
  authoritative bodies
• One loan under CGC at any time
• No adverse records in respect of borrowing from
  any government agencies or FIs

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SMALL ENTREPRENEUR GUARANTEE SCHEME (SEGS)

• Features

• Loans amount between RM10,000 to RM50,000
• Maximum cover - 80 of the facility (up to 100
  for Bumiputera selected FIs)
• Term Loans and Overdrafts
• Maximum guarantee period 5 years
• Guarantee Fee 1.25 per annum
• Lending rate BLR 1.5
• Purpose working capital asset acquisition

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iGuarantee

• This innovative tool provides SMIs wishing to
  apply for a loan, the ability to reach every
  Financial Institution (FI) in Malaysia by
  completing only one application form via the
  Internet. This service reduces the hassle of the
  conventional way of applying for loans.
• Register as a member in our SMI Directory which
  enables you to promote your products and services
• Share your ideas in our forum
• Read interesting articles from professional
  business writers.
• Visit us today at www.iGuarantee.com.my

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iGuarantee

• SMIs may access the loan application online in
  either one of two ways, either by completing and
  submitting the online form, or by downloading and
  completing an offline form, at a convenient time.
  
• Once the application is submitted, a CGC credit
  officer will assess the information and then
  invite the FIs in Malaysia to bid on the
  application, in an auction.
• The FIs will contact the applicant for any
  additional information or verification before
  submitting their bids to CGC.
• Once the bids are assessed, the FI whose bid is
  the best match for the applicant will be awarded
  the auction. All parties will be notified and the
  process is completed.

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GUIDE TO APPLY FOR A LOAN

• Firstly you need to be mentally and physical
  prepared
• Inner strength to face challenges
• In-depth knowledge about your company and the
  industry
• Ensure you indicate the right facilities when
  submitting your applications
• Be prepared to convince the FIs in terms of your
  repayment capacity
• Ensure you prepare all relevant document and is
  made available upon FIs request

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HOW TO PREPARE A FINANCIAL PROPOSAL

• Companys Profile
• Principle Activity
• Date commencement of the business
• The ways business is conducted
• Staff strength
• Background of the management team
• Including the personal financial background
• The designation and responsibilities of the
  management team
• Previous and current achievement

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HOW TO PREPARE A FINANCIAL PROPOSAL
Information about the company History
Financial Status ( previous, current and
forecast) Fixed expenses Contract or Job
(previous, current and expected) Management of
financials (loans/bank statement) Information
on the product and market Viability
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HOW TO PREPARE A FINANCIAL PROPOSAL
Facilities applied The objective of the
facilities required The amount required Type
of facilities proposed Repayment
period Repayment capability is convincing and
satisfactory The collateral proposed Land,
Fixed Deposit and guarantor Preparation of your
cash flow/financials
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THE IMPORTANCE OF REPAYMENT

• The payment must be in line with the term and
  condition made in the agreement
• Reasons repayment is important
• SMIs are able to obtained loan from other FIs
• To avoid being blacklisted in CGC and FIs
  database
• To build up good rapport with CGC and FIs
• To maintain a good rapport with friends as a
  guarantor
• To allow other SMIs to enjoy the same benefits

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THANK YOU