A CEREMONY for the signing of a Memorandum of Understanding (MOU) between Malaysia Rapid Transit Corporation Sdn Bhd (MRT Corp) and Credit Guarantee Corporation Malaysia Berhad (CGC) was signed at Lanai Kijang, Kuala Lumpur on 12 August 2016.

This MOU was to establish a mutual understanding on the cooperation relationship between MRT Corp and CGC for the assistance and providing available financing to eligible Bumiputera sub-contractors who have been awarded contracts with regard to the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line.

The MOU was signed by MRT Corp Chief Executive Officer Dato’ Sri Shahril Mokthar and CGC President/ Chief Executive Officer Encik Mohd Zamree Mohd Ishak.

Witnesses of this signing ceremony were Minister of International Trade and Industry YB Dato’ Sri Mustapha Mohamed and CGC Chairman Dato’ Agil Natt.

Collaboration between MRT Corp and CGC will pave the way for Bumiputera sub-contractors to secure financing to undertake contract works for the SSP Line.

This collaboration is the second collaboration that MRT Corp has had with CGC, as it previously was involved in the MRT Sungai Buloh-Kajang (SBK) Line. For the SBK Line, CGC was the preferred partner for their G1 to G4 Bumiputera contractors.

Through the first collaboration, the number of Bumiputera contractors surpassed the 43% target set by the Government in that 50% of all contracts were awarded.

For the SSP Line, MRT Corp has screened close to 1,000 companies but only 700 Grade G1 to G6 companies may be eligible to obtain financing from the contract amount of RM900 million.

Shahril said that CGC’s financing product for Bumiputera contractors is extremely important towards ensuring the success of MRT Corp’s Bumiputera Agenda participation for SME contractors for Grades G1 to G6.

The Bumiputera Entrepreneur Project Fund (Tabung Project Usahawan Bumiputera – i) (TPUB-i) that CGC has, is a pivotal fund that ensures financing to Bumiputera contractors who were awarded contracts by the Government and Government-linked companies.

A press conference session was then held after the MOU and lunch was served for the guests.