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 has announced financing facilities to support SME companies that are facing adverse impact from the COVID-19 outbreak. The Government Guarantee Scheme - Prihatin (GGS-Prihatin), PENJANA Tourism Financing (PTF), Special Relief Facility Scheme (SRF), SME Automation and Digitalisation Facility Scheme (ADF), Agrofood Facility Scheme (AF), and Targeted Relief and Recovery Facility (TRF) are available from our participating Financial Institutions.
Click each scheme for details.
The Business Loan Lifeline for SMEs in Malaysia
Now more than ever, small and medium enterprises (SME) are in dire need of funding, while ironically juxtaposed by the apprehension of banks and other Financial Institutions (FIs) in approving SME bank loans due to the risks and uncertainties in the repayment capabilities of the SMEs.
This is where Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), wholly owned by the Minister of Finance Incorporated, has stepped in to play a vital role in bridging the gap between the SMEs and the FIs to support bank loan approvals; by providing government guarantees so that businesses can survive and recover from the economic crisis and continue to grow and contribute to the Nation’s economy.
Lack of collateral will no longer be an obstacle for SMEs as their credit facilities can now be guaranteed by the government, in an effort to spur the business activities of the SME sector and increase access to obtain funding from the financial institutions.
One of the primary government guarantee schemes being offered by SJPP is GGS-Prihatin, an all-encompassing scheme to guarantee the financing facilities that are made available to the SMEs in all sectors without any restrictions towards certain targeted industries such as Oil & Gas or construction.
GGS-Prihatin is available at 21 participating FIs, where applicants can obtain credit facilities of up to RM20m with a guarantee coverage of 80% at fees of between 0.75% p.a. to 1% p.a., subject to terms and conditions.
Aside from GGS-Prihatin, SJPP also offers other government guarantee schemes to support SMEs which include PENJANA Tourism Financing Facility (PTF), Special Relief Facility Scheme (SRF), SME Automation and Digitalisation Facility Scheme (ADF), and Agrofood Facility Scheme (AF), all available at participating FIs and can be applied until 31 December 2020.
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.