MIDF allocates RM150m to SMEs under guarantee schemes

Malay Mail

2 August 2018

MIDF allocates RM150m to SMEs under guarantee schemes

KUALA LUMPUR, Aug 2 — Malaysian Industrial Development Finance Berhad (MIDF) has set aside RM150 million loan allocations in collaboration with Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to provide financing to the businesses under two new government guarantee schemes.

MIDF head of development finance division Azizi Mustafa said the development finance institution has disbursed RM400 million out of RM800 million allocations this year to eligible small and medium enterprises (SMEs).

He said SJPP is a company wholly owned by the Minister of Finance Incorporated that administers and manages various government guarantee schemes.

“SJCC has agreed to guarantee RM150 million under these two new schemes dubbed as Automation Process Guarantee Scheme and the Intellectual Property Guarantee Scheme,” he said.

He was speaking during the master agreement with SJPP today.

The amount RM150 million set aside is to be allocated within five months towards end of this year.

He said the under these schemes, MIDF will provide the loan to eligible SMEs while SJPP will manage, administer, and monitor the guarantee schemes on behalf of the government.

Azizi said through this collaboration, MIDF is committed to improving the access to funding for SME entrepreneurs, especially in industries promoted by the government, among them being aerospace, electrical and electronics, medical equipment, and petrochemicals.

SJPP principal officer Nungsari Ahmad Radhi said the government is committed to support the SMEs and has been providing continuous effort in developing SMEs through various initiatives, products and services, including the various government guarantee schemes managed by SJPP.

“To date, more than 13,000 SMEs have benefited from the various schemes under us,” he said.

He said SJPP will encourage any collaboration with financial institutions and other parties that can fit its mandate to assist and reach out to as many SMEs as possible since SMEs are targeted to contribute 41 per cent towards the economy by 2020 as stated in the SME Masterplan.

Since it was established in 1960, MIDF through its development finance division has provided financing of over RM 14.3 billion to more than 10,700 companies.

Web source: https://www.malaymail.com/s/1658594/midf-allocates-rm150m-to-smes-under-guarantee-schemes