Loan guarantee schemes for SMEs – the experience in Malaysia

Government-backed loan schemes have been introduced in many countries to enable SMEs to have access to funding at a reasonable cost. This article evaluates the schemes offered in Malaysia by the Credit Guarantee Corporation (CGC).Three key areas are explored: the relationship between small firms, ba...

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Main Authors: Boocock, Grahame, Mohd Shariff, Mohd Noor
Format: Article
Published: Practical Action Publishing 1996
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Online Access:http://repo.uum.edu.my/18086/
http://doi.org/10.3362/0957-1329.1996.013
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Institution: Universiti Utara Malaysia
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spelling my.uum.repo.180862016-06-15T01:11:09Z http://repo.uum.edu.my/18086/ Loan guarantee schemes for SMEs – the experience in Malaysia Boocock, Grahame Mohd Shariff, Mohd Noor HB Economic Theory Government-backed loan schemes have been introduced in many countries to enable SMEs to have access to funding at a reasonable cost. This article evaluates the schemes offered in Malaysia by the Credit Guarantee Corporation (CGC).Three key areas are explored: the relationship between small firms, banks and the CGC; the level of finance additionality in evidence; and the level of economic additionality generated.In each of these areas, the CGC's effectiveness in meeting the needs of SMEs, banks and the wider economy appears to have been limited.A new scheme introduced by the CGC is then described and the question is asked whether this scheme will enable the CGC to achieve its objectives, notably a greater degree of financial and economic additionality. Finally, the implications of the CGC's experience for other developing countries are summarized. Practical Action Publishing 1996 Article PeerReviewed Boocock, Grahame and Mohd Shariff, Mohd Noor (1996) Loan guarantee schemes for SMEs – the experience in Malaysia. Small Enterprise Development, 7 (2). pp. 25-36. ISSN 0957-1329 http://doi.org/10.3362/0957-1329.1996.013 doi:10.3362/0957-1329.1996.013
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
topic HB Economic Theory
spellingShingle HB Economic Theory
Boocock, Grahame
Mohd Shariff, Mohd Noor
Loan guarantee schemes for SMEs – the experience in Malaysia
description Government-backed loan schemes have been introduced in many countries to enable SMEs to have access to funding at a reasonable cost. This article evaluates the schemes offered in Malaysia by the Credit Guarantee Corporation (CGC).Three key areas are explored: the relationship between small firms, banks and the CGC; the level of finance additionality in evidence; and the level of economic additionality generated.In each of these areas, the CGC's effectiveness in meeting the needs of SMEs, banks and the wider economy appears to have been limited.A new scheme introduced by the CGC is then described and the question is asked whether this scheme will enable the CGC to achieve its objectives, notably a greater degree of financial and economic additionality. Finally, the implications of the CGC's experience for other developing countries are summarized.
format Article
author Boocock, Grahame
Mohd Shariff, Mohd Noor
author_facet Boocock, Grahame
Mohd Shariff, Mohd Noor
author_sort Boocock, Grahame
title Loan guarantee schemes for SMEs – the experience in Malaysia
title_short Loan guarantee schemes for SMEs – the experience in Malaysia
title_full Loan guarantee schemes for SMEs – the experience in Malaysia
title_fullStr Loan guarantee schemes for SMEs – the experience in Malaysia
title_full_unstemmed Loan guarantee schemes for SMEs – the experience in Malaysia
title_sort loan guarantee schemes for smes – the experience in malaysia
publisher Practical Action Publishing
publishDate 1996
url http://repo.uum.edu.my/18086/
http://doi.org/10.3362/0957-1329.1996.013
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