Increases Working Guarantee Scheme allocation to RM7 billion

SJPP

7 September 2009

SYARIKAT JAMINAN PEMBIAYAAN PERNIAGAAN BERHAD INCREASES WORKING CAPITAL GUARANTEE SCHEME ALLOCATION TO RM7 BILLION

The reallocation from IRFGS to WCGS is due to the overwhelming response by customers

KUALA LUMPUR: Monday [7 September, 2009] – Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), a wholly owned subsidiary of Minister of Finance Incorporated is pleased to announce that the Government has decided to reallocate RM2 billion from the Industry Restructuring Financing Guarantee Scheme (IRFGS) to the Working Capital Guarantee Scheme (WCGS).

On 10 March 2009, the Government announced the establishment of IRFGS and WCGS guarantee schemes as part of the Second Stimulus Package where the Government has agreed to guarantee RM5 billion financing for each scheme. Both schemes, are administered by SJPP, a special purpose vehicle managed by Prokhas Sdn Bhd. Both SJPP and Prokhas are a wholly owned company of Minister of Finance Incorporated.

Prokhas Managing Director cum Principal Officer of SJPP, Fazlur Rahman Ebrahim said, "With this reallocation, the amount of the Second Stimulus Package remains the same at RM10 billion but the allocation of WCGS is now RM7 billion and IRFGS is RM3 billion, instead of RM5 billion each as announced earlier".

As at 7 September 2009, SJPP has approved a total of 3,984 applications worth RM5.37 billion. Of the amount approved, the initial allocation of RM5 billion for the WCGS scheme has been fully taken up, while only RM372 million of the RM5 billion for IRFGS has been taken up. To date, RM2.35 billion to 1,853 applicants has been disbursed by the financial institutions under both schemes. Due to the overwhelming response for the WCGS scheme as compared to the IRFGS scheme, the Government has agreed to reallocate RM2 billion from IRFGS to the WCGS.

Fazlur also mentioned that SJPP is not expecting further transfer from IRFGS to the WCGS in the future as to give more time for the IRFGS scheme to grow. All other terms for the WCGS and IRFGS remain unchanged. With this new increment of WCGS allocation, SJPP will accept new applications for WCGS with immediate effect.