KUALA LUMPUR: Bank Muamalat Malaysia Bhd has partnered with Credit Guarantee Corporation Malaysia Bhd (CGC) to launch the first Halal Portfolio Guarantee-i Scheme.
The initiative, with a fund of RM70 million, is designed to promote Shariah-compliant financing solutions and stimulate economic growth within the halal industry.
"The Halal Portfolio Guarantee-i Scheme will offer guarantees for financing facilities extended to small and medium enterprises (SMEs) engaged in halal-related businesses.
"This partnership reflects a commitment to supporting the growth of the halal economy, which is increasingly recognized as a vital sector contributing to Malaysia's economic development," the bank said in a statement.
Bank Muamalat president and chief executive officer Khairul Kamarudin said the scheme reflects its commitment to empowering small and micro businesses in Malaysia.
"By collaborating with CGC, we aim to increase access to financing and provide businesses with the opportunity to grow while adhering to the principles of Islamic finance.
"This programme is part of our broader strategy to support the national economy and contribute to sustainable business development," said Khairul.
CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said by providing comprehensive financing solutions for operational expenses, capital investments and halal certification costs, Bank Muamalat and CGC can significantly promote the growth and development of competitive and dynamic Malaysian MSMEs involved in halal businesses.
"This very important strategic partnership is well aligned with the national agenda to strengthen Malaysia's position in the global halal market," Mohd Zamree added.
The scheme is open to a wide range of industries, including manufacturing, retail, services, and halal-related sectors.
The financing terms are designed to be flexible, with maximum tenures of up to seven years for SMEs and three years for micro SMEs.