In July BIIA reported the creation of SME Credit Bureau in Malaysia. It is a joint venture between the Credit Guarantee Corporation Malaysia Berhad (CGC) and Dun & Bradstreet Malaysia Sdn Bhd (D&B). The credit bureau has become active and is encouraging SMEs and financial institutions and suppliers to register with the credit bureau.
The Government and Bank Negara Malaysia are supportive of the initiative by the Credit Guarantee Corporation to establish a credit bureau focused exclusively on SMEs. The SME Credit Bureau would synthesize the data it receives from all parties and provide credit ratings of the SMEs reported in the database. The Government recognizes the fact that SMEs, particularly the smaller ones, face constraints relating to their perceived creditworthiness due to a lack of easily available information on them.
Small and medium enterprises (SMEs) are a significant component of the Malaysian economy, accounting for 99.2 percent of business enterprises and provide employment to more than 5.6 million people in Malaysia. SMEs represent a heterogeneous segment of the economy, ranging from micro businesses to medium scale enterprises with the potential for public listing on the stock exchange and are found in almost all economic sectors. Their financial requirements are therefore also diverse and for most, it is recognized that access to financing, a prerequisite for growth and development, could be an inhibiting factor. Given that access to the capital market can be further improved via greater transparency and readily available information on such SMEs, it is imperative that SMEs with viable businesses have convenient and timely access to the credit markets provided by financial institutions and suppliers. Source: Asian Banker and SME Credit Bureau Website