Skip links

Funding Societies signs MoU with CGC Digital to empower MSMEs via first Digital Supply Chain Financing Guarantee 

KUALA LUMPUR, 3 August 2023 – Funding Societies, the largest unified SME digital finance platform in Malaysia became the first FinTech to partner with CGC Digital, the FinTech subsidiary of Credit Guarantee Corporation Malaysia Berhad (CGC). The partnership aims to provide a digital credit guarantee through a Shariah-compliant digital supply chain financing (DSCF) solution to better address the financing needs of Malaysian micro and small enterprises who are also the most underserved segments. 

The Memorandum of Understanding (MoU) that was signed shows the two parties’ commitment to collaborate on a Proof of Concept (POC) project and innovate products that could enable wider financing access for underserved and unserved MSMEs. Through the partnership, CGC Digital developed a new digital credit guarantee product for CGC that will be offered for financing up to RM4 million as a start, benefiting up to 100 creditworthy micro and small enterprises via Funding Societies’ industry leading DSCF solutions, leveraging alternative data for MSMEs’ credit risk assessment. 

Wong Kah Meng, Group Chief Operating Officer, Funding Societies | Modalku, commenting on the partnership, said, “Following our entry into the SME Portfolio guarantee program of CGC in April this year, we are fortifying this collaboration with CGC Digital. The

digital-first approach leverages alternative data, enabling MSMEs with broader and more affordable access of MSMEs to digital guarantee and transformative financing.” 

Wong added, “CGC Digital’s innovation of CGC’s credit guarantee would mitigate risk for investors and reduce cost of financing for MSMEs. Combining it with our industry playbook for fast-moving consumer goods (FMCG), agriculture, telecommunications, and wholesale & retail trade segments, we would be able to serve more micro and small enterprises that make up these industry segments.” 

 [L-R] Chief Executive Officer of CGC Digital, Yushida Husin; President & Chief Executive Officer of CGC, Datuk Mohd Zamree Mohd Ishak; Co-founder & Group Chief Executive Officer, Funding Societies | Modalku, Kelvin Teo; and Group Chief Operating Officer, Funding Societies | Modalku and Co-Founder of Funding Societies Malaysia, Wong Kah Meng 


Yushida Husin, Chief Executive Officer, CGC Digital said, “CGC Digital broke new ground in this collaboration with Funding Societies. This MoU signifies our mutual dedication to fostering innovation and co-creating value with MSMEs. CGC Digital seeks to provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up. Given this, we are committed to collaborating with like-minded strategic partners in the digital ecosystem to accelerate financial inclusion of MSMEs in Malaysia.” 

Financing for micro and small enterprises remains challenging due to the lack of credit history and the nature of the financing, which is smaller ticket size and higher volume of transactions. This presents an exciting opportunity for FinTech companies like Funding Societies and CGC Digital to step in and provide the necessary capital and CGC’s innovative credit guarantee features to meet the unique needs of these segments. By working hand in hand, Funding Societies and CGC Digital can leverage on technology and automation to risk-price more accurately and process financing efficiently, enabling right-priced trade finance products (traditionally reserved for larger businesses) for micro and small enterprises. 

The MoU was signed by Wong Kah Meng together with Yushida Husin. It was witnessed by Kelvin Teo, Group Chief Executive Officer, Funding Societies | Modalku, and Datuk Mohd Zamree Mohd Ishak, President and Chief Executive Officer of CGC. The announcement comes on the heels of Funding Societies’ MoU signing with CGC in April for a RM10 million SME Portfolio Guarantee scheme focusing on business expansion for small and medium-sized enterprises, and most recently, their launch of a comprehensive Islamic Financing solutions including Shariah-compliant micro, trade, and term financings. 

For more information on the partnership or Funding Societies’ supply chain financing facility, please visit 

About Funding Societies 

Funding Societies | Modalku is the largest unified SME digital finance platform in Southeast Asia. It is registered with the Securities Commission Malaysia (SC), as well as licensed in Singapore, Indonesia, and Thailand, and operates in Vietnam. It is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavor, SGInnovate, Qualgro, and Golden Gate Ventures amongst others. The FinTech company

provides business financing to small and medium-sized enterprises (SMEs), which are funded by individual and institutional investors. It was given the Digitalizing Services for Retail Participations award by the Securities Commission Malaysia during the INVESTSMART® FEST 2019, the Monetary Authority of Singapore (MAS) FinTech Award in 2016, the Global SME Excellence Award at the United Nations’ ITU Telecom World in 2017, KPMG Fintech100 in 2018, Brands for Good in 2019, and ASEAN Startup of the Year by Global Startup Awards in 2020. In 2021, it was honourably mentioned as Responsible Digital Innovator of the Year by the World Bank IFC SME Finance Forum and won the MAS ASEAN Fintech award for the second time. 

For more information on Funding Societies Malaysia, please visit 

About CGC Digital 

CGC Digital is a wholly owned Fintech subsidiary of CGC and was launched in July 2022 with a commitment to advancing financial sector digitalisation and providing greater access to financing through its digital platform and digital products. CGC Digital harnesses the power of digital platforms and solutions to spearhead innovation and optimise the implementation of digital initiatives to empower micro, small, and medium-sized enterprises (MSMEs) throughout their business life stages. 

CGC Digital’s vision is to pave the way for MSMEs to unleash their potential through digital means and the mission is to drive MSME’s economic growth through innovative, accessible, and efficient financial digital solutions. At CGC Digital, our core values are built upon passion, being agile, vibrant and empathy. These core principles serve as the bedrock of the organisation, shaping our actions and decisions across all aspects of our operation. 

For more information about CGC Digital, please visit