RM7 Billion Working Capital Guarantee Scheme Fully Utilised

Bernama

27 October 2009

RM7 BILLION WORKING CAPITAL GUARANTEE SCHEME ALLOCATION IS FULLY UTILIZED

KUALA LUMPUR, Oct 27 (Bernama) -- Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), a wholly-owned subsidiary of Minister of Finance Incorporated, announced on Tuesday the RM7 billion allocation under the Working Capital Guarantee Scheme (WGGS) has been fully utilised.

As of Monday, it has approved 5,329 applications worth RM7 billion.

As for the Industry Restructuring Financing Guarantee Scheme, only RM541.2 million of the RM3 billion has been taken up, it said.

Todate, RM3.8 billion has been disbursed to 2,903 applicants by financial institutions under the two schemes.

Prokhas Managing Director-cum-Principal Officer of SJPP Fazlur Rahman Ebrahim said overwhelming response from customers for the WGGS showed the participating financial institutions are active in their financing activities to assist local companies, especially small and medium entrepreneurs, expand their business.

"With this scenario, I believe the Government's initiative has contributed significantly for the people's benefit and Malaysia's economic growth.

"SJPP is also looking into other initiatives to market the Industry Restructuring Financing Guarantee Scheme to eligible clients in the industry," he said.

On March 10, the Government announced the setting up of the WCGS and the Industry Restructuring Financing Guarantee Scheme as part of the Second Stimulus Package, with the Government agreeing to guarantee RM5 billion financing for each scheme.

Both schemes are managed by SJPP, a special-purpose vehicle managed by Prokhas Sdn Bhd. Both SJPP and Prokhas are wholly-owned companies of the Minister of Finance Incorporated.

On Sept 7, the Government raised WCGS' initial RM5 billion allocation to RM7 billion due to high demand from clients. The RM2 billion was re-allocated from the Industry Restructuring Financing Guarantee Scheme.--Bernama