SMEs require adequate cash flow to compete and thrive in today’s economy.
Lack of collateral affects SMEs' access to funding from their Financial Institutions ("FIs").
SJPP allows SMEs to overcome this barrier by providing Government Guarantee
Schemes as an alternative solution to their collateral requirements.
Special Schemes for COVID-19
The Malaysian Government continues to support the SMEs that are facing adverse impact of COVID-19 outbreak. For 2022, the PEMULIH Government Guarantee Scheme (PGGS), PENJANA Tourism Financing (PTF), Targeted Relief and Recovery Facility (TRRF) and Bus and Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) are open for applications and available from our participating Financial Institutions or Financiers.
Click each scheme for details.
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PEMULIH Government Guarantee Scheme (PGGS) - The Financing Lifeline for SMEs and MSCs in Malaysia
Now more than ever, small and medium enterprises (SME) and Mid-Size Companies (MSC) are in dire need of funding, while ironically juxtaposed by the apprehension of banks and other Financial Institutions (FIs) in approving bank loans due to the risks and uncertainties in the repayment capabilities of the SMEs and Companies.
This is where Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), owned by the Ministry of Finance Incorporated. They have stepped in to play a vital role in bridging the gap between the SMEs, MSCs, and the FIs to support business loans in Malaysia; by providing government guarantee schemes, so that businesses can survive and recover from the Covid-19 pandemic and continue to grow and contribute to the Nation’s economy.
Limited access to funding will no longer be an obstacle for SMEs and Companies as their credit facilities can now be guaranteed with the government guarantee schemes, in an effort to spur the business activities of the Malaysian SMEs and MSCs in all industries.
One of the primary government guarantee schemes being offered by SJPP for the year 2022 is PEMULIH Government Guarantee Scheme (PGGS), an all-encompassing scheme for new financing, additional working capital and for the restructuring of existing financing facilities. It is eligible for all majority Malaysian owned SMEs and Companies in all industries, such as tourism and its related sectors with annual revenue of not more than RM500 million.
SJPP also offers other government guarantee schemes to support SMEs, which include PENJANA Tourism Financing Facility (PTF), Working Capital Guarantee Scheme (WCGS) for Start Up, Bumiputera, Export, and Women, Automation & Digital Guarantee Scheme (ADGS), Targeted Relief and Recovery Facility (TRRF Loan Malaysia), and Bus and Taxi Hire Purchase Rehabilitation Scheme (BTHPRS), all available at participating FIs.
SME loans in Malaysia are becoming more and more vital to SMEs whereby bank loans and other credit facilities can be perceived as a cash flow lifeline to several industries such as F&B and retail. The government recognises the need to support businesses that experience a huge drop in income and profit when Malaysia was placed under Movement Control Order (MCO) in March 2020. SMEs have had to quickly adjust to the implications of the MCO by moving towards a new way of operating, shifting their business strategies and recognising the importance of technology adoption, digitisation and automated process. As such, government business loans and assistance are made available to enable these SMEs to sustain, adapt, and grow.
Aside from SME and private entrepreneurs, these government-guaranteed credit facilities can also be applied by start-up companies, service providers, manufacturing companies, or even franchise owners. Do take note that while these government guarantee schemes are open to all Malaysian SMEs, eligibility criteria as well as other terms and conditions will apply.
Whether your company is looking to expand and require additional funding, hoping to improve your cash flow or recover losses - this is the solution you have been looking for.
Kindly be informed that 2% interest / profit rate rebate for all financing under Working Capital Guarantee Scheme (WCGS), Working Capital Guarantee Scheme – Start Up (WCGS-SU), Working Capital Guarantee Scheme – Bumiputera (WCGS-B), Working Capital Guarantee Scheme – Export (WCGS-X), Working Capital Guarantee Scheme – Women (WCGS-W), Automation & Digital Guarantee Scheme (ADGS), and Government Guarantee Scheme Prihatin (GGS Prihatin) is no longer available.