KUALA LUMPUR, 16 December 2024 – Funding Societies | Modalku (Funding Societies), the
largest unified digital finance platform for micro, small and medium enterprises (MSMEs) in
Southeast Asia, has expanded its digital guarantee products in partnership with CGC Digital, the
FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad, following the success of
last year’s Proof of Concept programme on digital supply chain financing (DSCF).
The expansion of the partnership marks a key milestone following CGC Digital’s investment in
Funding Societies earlier this year. It represents a major step forward in providing critical support
to Malaysia’s MSMEs, positioning them for greater success amidst a competitive and dynamic
economy. Funding Societies together with CGC Digital have developed two new digital credit
guarantee products: Digital Term Financing and Micro Credit Line. These products not only
provide access to financing but also offer micro and small businesses profit rate savings of up to
2% per annum.
In addition to Digital Term Financing and Micro Credit Line, Funding Societies and CGC Digital
have expanded its DSCF programme to include a broader range of industries and suppliers with
longer tenors, as part of the joint continuous effort to bridge the gap and address the challenges
in micro and small businesses in accessing financing.
As at publication, since the launch of the two new programmes in September, more than RM10
million has been disbursed, benefiting over 200 creditworthy micro and small enterprises. This
further underscore both organisation’s commitment to fostering financial inclusion and growth for
Malaysia’s MSMEs and validates the demand for such financing solutions among micro and small
businesses.
These initiatives align with the broader goal of focusing on inclusivity, digital growth, and
sustainability, as well as enhancing MSMEs’ long-term resilience and competitiveness both
domestically and internationally.
Chai Kien Poon, Country Head of Funding Societies Malaysia, remarked, “This partnership
with CGC Digital represents a shared vision of empowering underserved businesses in Malaysia.
We are committed to creating a more inclusive financing ecosystem that supports the growth of
micro and small businesses across Malaysia. By combining CGC Digital’s extensive expertise in
credit enhancement with Funding Societies’ state-of-the-art digital financing platform, our digital
financing solutions allow business owners to access the capital they need to expand, employ, and
contribute to the economy enabling improved access to capital and fostering financial inclusion.”
Yushida Husin, Chief Executive Officer, CGC Digital said, “I am delighted with the extended
partnership, which has already made a profound impact on the financial accessibility for
Malaysian MSMEs. This extension is a testament to our unwavering dedication to financial
inclusion and product innovation. Furthermore, I am also excited for the expansion of our
partnership, where we continue to push boundaries through product innovation. By breaking new
ground, we are not just providing access to financing; we are enabling dreams and driving
economic growth. Our joint efforts are paving the way for a future where every business has the
opportunity to succeed and thrive”
MSMEs make up more than 97% of businesses in Malaysia, contribute 39% to Malaysia’s Gross
Domestic Product (GDP) and employ a substantial portion of the workforce. However, these
businesses are often constrained by limited access to financing options. By joining forces,
Funding Societies and CGC Digital aim to strengthen the financial backbone of the Malaysian
economy, fostering resilience and economic growth through improved access to capital.
About Funding Societies | Modalku
Funding Societies | Modalku is the largest unified SME digital finance platform in Southeast Asia. It is
licensed in Singapore, Indonesia, Thailand, registered in Malaysia, and operates in Vietnam. The FinTech
company provides US$1 billion annually of business financing to small and medium-sized enterprises
(SMEs). In recent years, it has made strategic milestones including its acquisition of regional digital
payments platform CardUp and co-investment into Bank Index in Indonesia.
Funding Societies | Modalku is backed by SoftBank Vision Fund 2, Maybank, Khazanah Nasional Berhad,
CGC Digital (the digital arm of the Credit Guarantee Corporation Malaysia Berhad), SBVA (previously
SoftBank Ventures Asia), Peak XV Partners (previously Sequoia Capital India), Alpha JWC Ventures,
SMBC Bank, BRI Ventures, VNG Corporation, Rapyd Ventures, Endeavor, EBDI, SGInnovative, Qualgro,
and Golden Gate Ventures among others.
It has received accolades through the years including: Brands for Good (2019, 2023), Global SME
Excellence Award, Global SME Finance Awards by IFC (2021-2023) Global Startup Awards (2020), MAS
FinTech Award (2016, 2021), Singapore’s Fastest-Growing Companies 2024 (a list of 100 companies
compiled by The Straits Times and Statista), High-Growth Companies in Asia-Pacific 2024 (a list of 500
companies compiled by the Financial Times and Statista) .
For more information, please visit: www.fundingsocieties.com
About CGC Digital
CGC Digital is a FinTech company, established as the digital arm of Credit Guarantee Corporation
Malaysia Berhad. Registered in July 2022, our primary goal is to empower Micro, Small, and Medium
Enterprises (MSMEs) by creating a simpler and more seamless financing experience in the digital
ecosystem.
For more information about CGC Digital, please visit www.cgcdigital.com.my.
Media Contact
Syarina Hyzah Zakaria
Senior Manager, Partnerships & Communications
[email protected]
+60122883801
Chin Sze Yuen
Head of Growth & Partnerships
[email protected]
