Efficiency Evaluation of Credit Guarantee Corporation (Malaysia) Berhad, 1974-1999
This study is conducted to evaluate the efficiency of CGC in providing guarantee coverage and direct lending to SMEs. The efficiency evaluation of CGC is conducted in three stages. First, it is conducted for single output where technical and scale efficiency evaluation are carried out for guarant...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2001
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8299/1/FEP_2001_13%20ir.pdf |
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| Summary: | This study is conducted to evaluate the efficiency of CGC in providing guarantee
coverage and direct lending to SMEs. The efficiency evaluation of CGC is
conducted in three stages. First, it is conducted for single output where technical and
scale efficiency evaluation are carried out for guarantees issued for each type of
loans categorised under general business, manufacturing and agriculture sectors.
Second, two outputs efficiency evaluation is executed for guaranteed issued for loans
categorised under general business and manufacturing sectors, general business and
agriculture sectors, as well as manufacturing and agriculture sectors. Lastly,
efficiency evaluation of three outputs, namely guarantees issued for loan categorised
under all three general business, manufacturing and agriculture sectors is conducted.Despite the fact that CGC was operating at a relatively low level of overall technical
efficiency, the results suggested that CGC is most efficient in granting credit
guarantees to three sectors of the economy than one and two sectors. By providing
credit guarantees to the three sectors, namely general business, manufacturing and
agriculture sectors, the average overall technical efficiency score was higher as
compared to single and two outputs. Though the result suggested that both pure
technical and scale inefficiency contributed to the inefficiency of CGC, pure
technical inefficiency contributed slightly more than scale inefficiency.
As such, CGC should seriously consider reallocating its existing inputs as well as to
increase the amount of credit guarantees granted to general business, manufacturing
and agriculture sectors in order to achieve a reasonable level of efficiency. |
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