KUALA LUMPUR: CN Asia Corp Bhd has proposed to ratify the diversification of the business of the group to include moneylending business.

       The board proposes to seek approval for the proposed ratification from the shareholders at an extraordinary general meeting of the company to be convened.

       “Currently, the group derives most of its revenue from the manufacturing business. To mitigate the group’s over-reliance on one single industry, the group is constantly looking for business opportunities to diversify its business by venturing into other revenue-generating businesses,” CN Asia said in a filing with Bursa Malaysia.

       The group believes its moneylending business can facilitate and bridge the financing needs for both SMEs and non-SMEs in Malaysia.

       “Further, the long processing periods and strict lending requirements of the banks as well as the economic growth of Malaysia, the board believes that the moneylending business in Malaysia could be a viable business for CN Asia to venture into as there is demand by both individuals and corporations for financing from non-bank financial service providers (such as licensed moneylenders) for various reasons such as personal financing, business start-up and expansion, project financing and others,” it said.