Review of Credit Guarantee Corporation Malaysia (CGCM) Initiatives to Enhance Small and Medium Enterprises Performance

The prime focus of this study is to review the initiatives by CGC to enhance Small and Medium Size Enterprise (SMEs) which will benefit both the government and the SMEs traders. A review of the literature shows that small firms experience difficulties in accessing the credit market due to informational asymmetries. In this paper, we establish that even small firms may improve their access to finance with the help of government agencies such as the Credit Guarantee Corporation (CGC). CGC works closely with Bank Negara Malaysia (BNM) in terms of its operations and progress. Hence, the government can develop more packages of service which enables SMEs to have more options to access financing, financial restructuring ,advisory services, information, training and marketing coordination Moreover with the availability of such services, the SMEs have the advantage as the Credit Guarantee Corporation (CGC) will facilitate their business growth. This article explores the variables affecting the performance of the entrepreneurs and to ascertain how SME businesses can achieve high growth. It further provides evidence on how Credit Guarantee Corporation (CGC) has helped SMEs in Malaysia.