Malaysia Digital Economy Corporation (MDEC) collaborates with CGC Digital and PayNet to address a RM90 billion financing gap for MSMEs. The alliance focuses on fostering financial inclusivity through innovative alternative credit-scoring solutions, leveraging technologies such as artificial intelligence and machine learning.
19 December 2023 – In a strategic move to address the RM90 billion financing gap afflicting micro, small, and medium enterprises (MSMEs), the Malaysia Digital Economy Corporation (MDEC) has forged a collaborative alliance with CGC Digital Sdn Bhd and Payments Network Malaysia Sdn Bhd (PayNet). The agreement aims to champion financial inclusivity and empowerment among MSMEs in Malaysia through cutting-edge alternative credit-scoring solutions. CGC Digital will spearhead the initiative, exploring alternative data sources such as transaction records, utility payments, and mobile transactions, leveraging innovative technologies like artificial intelligence and machine learning.
The partnership involves CGC Digital providing the digital guarantee developed for Credit Guarantee Corporation Malaysia Bhd (CGC), MDEC fostering connections within the fintech sector and advocating relevant policies, and PayNet utilizing its robust payments data. Yushida Husin, CEO of CGC Digital, affirmed the collaborative effort’s commitment to democratizing access to credit guarantee and financial services, ultimately narrowing the financing gap for MSMEs. This initiative represents a transformative step in advancing financial inclusion by validating the effectiveness and viability of alternative credit-scoring models for businesses of all sizes.
Gary Yeoh, Chief Commercial Officer at PayNet, highlighted the potential of these solutions as complementary tools in credit assessment, suggesting a paradigm shift in the conventional financing ecosystem. The collaboration has identified promising fintech companies to embark on proof-of-concept initiatives, signaling a significant breakthrough in bridging the financing gap for MSMEs. – ref: The Edge