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Funding Societies: Navigating Uncertainty With Secured And Guaranteed Investments

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After a long period of easy monetary policy, the global interest rate hike appears to be imminent. Leading to this, are the heated concerns surrounding inflation, geopolitical conflict and rising fuel prices – all of which are connected. With inflation already high in many parts of the world, military conflict between Russia and Ukraine pushes inflation even higher as energy prices soar and more supply chains are disrupted.

In response to these developments, Bank Negara Malaysia (BNM) has increased the overnight policy rate (OPR) by a total of 50 basis points (bps) to 2.25% since May 2022, in tandem with the global monetary policy tightening cycle to combat rising inflationary pressures.

At times of heightened uncertainty, diversification is even more crucial for investors to maintain a stable portfolio. Funding Societies, the largest small and medium enterprises (SME) digital financing platform in Southeast Asia, is committed to offer a variety of lower risk investment products on the platform to help investors earn more consistent returns through its Dealer Financing and Guaranteed Investment Notes (GIN), and with more products in the pipeline.

Chai Kien Poon, Country Head of Funding Societies Malaysia

Chai Kien Poon, Country Head of Funding Societies Malaysia, said, “We constantly innovate to offer more investment products to meet the needs of most investors’ investment objectives and risk appetite across business cycles. Case in point, with the current developments of the global economy and potential spillover to local markets, our Guaranteed Investment Notes (GIN) which offer more consistent (albeit lower returns) – where the non-repayment or default risk are guaranteed by an appointed guaranteeing entity instead of the investors themselves – may appeal to investors who have a more cautious outlook in the short to medium time horizon. We introduced GIN during the height of the Covid pandemic and it was well received by investors.”

“By introducing GIN, we are able to meet our three objectives of (1) availing our investors more investment opportunities for portfolio diversification, (2) offering lower risk investment products for investors with different investment objectives and risk appetites, and (3) to continue providing more Malaysian SMEs with financing solutions to meet their business capital requirements,” added Chai.

(Guaranteed Investment Notes process flow. GIN is a collateralized investment product whereby the notes are guaranteed by an appointed guaranteeing entity, who will in turn bear the non-repayment or default risk.)

With Funding Societies’ GIN, investors have the opportunity to tap into an additional investment portfolio which preserves their capital and simultaneously provides returns on their investment. GIN investors stand to a net return of up to 6 percent per annum before fees, with a minimum investment of RM100 per note. Since its soft launch in March 2021, Funding Societies has successfully raised more than RM75 million in financing disbursement across more than 1,000 GIN notes benefiting close to 1,200 underserved SMEs.

Funding Societies is a recognised market operator registered with the Securities Commission of Malaysia with presence in several SEA countries including Singapore, Indonesia, Thailand and Vietnam. Since its inception, the digital platform has reached over RM10 billion disbursement across more than 5 million financing deals regionally.

In conjunction with the upcoming Independence Day and Malaysia Day celebrations, Funding Societies will also be running a promotional campaign for GIN. Please visit https://fundingsocieties.com.my/promotions for more information on the latest promotions. For further information on GIN, please visit https://fundingsocieties.com.my/guaranteed-investment.

About Funding Societies

Funding Societies | Modalku is the largest SME digital financing platform in Southeast Asia. It is licensed in Singapore, Indonesia, and Thailand, registered in Malaysia, 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 is funded by individual and institutional investors. In 7 years, it has helped finance over 5 million business deals with over RM10 billion in funding. It was given the Digitalizing Services for Retail Participations award by Securities Commission Malaysia during the INVESTSMART® FEST 2019, 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 honorably mentioned as Responsible Digital Innovator of the Year by 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 https://fundingsocieties.com.my/

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