The Credit Guarantee Corporation Malaysia Berhad (CGC) and Dun & Bradstreet Malaysia Sdn Bhd (D&B) announced today they have entered into a strategic alliance to establish a SME Credit Bureau.   CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs in Malaysia, a niche area in which the corporation has served for 35 years.  D & B Malaysia Sdn Bhd, is the franchisee of the New York-based Dun & Bradstreet Corporation, a global operator and provider of credit bureau and risk management solutions.

The SME Credit Bureau (the Bureau) is a central databank of credit information on SMEs and will act as a key source of information on registration details, credit track records, debt level and obligations, financial statements and trade partners of SMEs.   SMEs will be rated by the bureau based on their credit profiles. SMEs with strong credit ratings would be able to reap the benefits of lower funding costs and greater access to financing while the weak ones are expected to leverage on the informational value of their credit ratings to improve their credit standing.  Banks and other financial institutions will be able to avail themselves to a comprehensive range of information on the SMEs in the country from the central database of the Bureau.  Convenient, timely and efficient access to SME information and credit ratings is expected to assist the lending institutions to make more objective and speedier evaluation of loan applications from SMEs. 

Both CGC and D&B are confident that the establishment of the Bureau will further promote the development of a sound credit culture among financial institutions and SMEs.  The Bureau would also encourage non-financial entities, including the SMEs themselves to share information through the Bureau.  In this regard, the members of the business community could use the Bureau to decide with confidence when evaluating existing and prospective trade credit or other business deals.  The Bureau is poised to be an integral component of the developing credit information infrastructure in Malaysia. Its establishment is expected to contribute significantly towards assisting or enabling SMEs to gain access to the financial markets.  The signing of strategic alliance therefore represents a meeting of the common objective of both parties to bridge the gaps in the availability and access to SME credit information in the country. Source:  Audrey Chia | Director, Product Development & Marketing Dun & Bradstreet (Singapore) Pte Ltd – DID +65 6318 7868 | Fax +65 6318 7867 | Mobile +65 9662 1883

BIIA Newsletter July – 2007 Issue