SJPP guarantees MIDF loans to SMEs

News Strait Times

2 August 2018

SJPP guarantees MIDF loans to SMEs


MIDF head of development finance division Azizi Mustafa says Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) has agreed to guarantee RM150 million under two new schemes, namely the Automation Process Guarantee and the Intellectual Property Guarantee. (Pic from MIDF’s website)

KUALA LUMPUR: Malaysian Industrial Development Finance Bhd has disbursed RM400 million out of its RM800 million allocation, of which RM150 million is guaranteed by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP).

SJPP, which is owned by Minister of Finance Incorporated, guarantees loans given out by development banks such as MIDF to small and medium enterprises.

MIDF is wholly-owned by Permodalan Nasional Bhd, Malaysia’s largest fund manager.

“SJPP has agreed to guarantee RM150 million under two new schemes, namely the Automation Process Guarantee and the Intellectual Property Guarantee,” said MIDF head of development finance division Azizi Mustafa.

“Out of the RM800 million allocation for SMEs, we have already disbursed RM400 million,” he said.

Azizi was speaking to reporters here today after MIDF signed a master agreement with SJPP on guaranteeing loans for SMEs.

MIDF group managing director Datuk Charon Mokhzani and Azizi represented the development bank while SJPP senior general manager Chen Yin Heng and general manager Azlan Mohd Agel signed on behalf of the government.

Minister of International Trade and Industries Darell Leiking and his deputy, Dr Ong Kian Ming, witnessed the signing ceremony.

SJPP principal officer Dr Nungsari Ahmad Radhi, who was also present, said SJPP has RM5 billion in rolling balance to support SMEs.

Todate, he said, more than 13,000 SMEs had benefited from SJPP role in guaranteeing loans disbursed by development banks.

Asked on the impact of ongoing trade war between the US and China on businesses in Malaysia, Darell said: “We want to hear what is the US’ position on various matters before we announce our’s.

“Prime Minister Tun Dr Mahathir Mohamad may give his advice to (he US Secretary of State Mike) Pompeo concerning the trade war,” Darell added.

Pompeo made stopover in Kuala Lumpur today, as he plans to attend an Asean forum in Singapore this weekend.

It was reported that during his two-day stay here, Pompeo will discuss trade and security in his meetings with Malaysian ministers.

Web source: https://www.nst.com.my/business/2018/08/397266/sjpp-guarantees-midf-loans-smes