2% Interest / Profit Rate Rebate - Terms
  • Name of Financing:
    2% Interest/ Profit Rate Rebate for all financing under Working Capital Guarantee Scheme (WCGS), Working Capital Guarantee Scheme – Start Up (WCGS-SU), Working Capital Guarantee Scheme – Bumiputera (WCGS-B), Working Capital Guarantee Scheme – Export (WCGS-X), Working Capital Guarantee Scheme – Women (WCGS-W) and Automation & Digital Guarantee Scheme (ADGS)
  • Objective:
    To provide financing assistance to eligible Malaysian SMEs involved in export activities only whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing provided by participating financial institution
  • Overall Financing:
    Rebate is limited to a total accumulated funding of RM1 billion for a period of five years
  • Eligibility Criteria:
    Open to all SMEs companies which are export-oriented (with at least 50% of the turnover are for exports) and incorporated under the Registration of Business Act 1956, Companies Act 1965 and/or Companies Act 2016, Limited Liability Partnership Act 2012, Sabah and Sarawak local authorities and district offices and Statutory Bodies that provide professional services with at least 51% shares held by Malaysian

    (As per Guideline for SME Definition issued by SME Corp. Malaysia and endorsed by the National SME Development Council, SMEs are companies with sales turnover not exceeding RM20.0 million (non-manufacturing)/ RM 50.0 million (manufacturing) OR full-time employees not exceeding 75 workers (non-manufacturing)/ 200 workers (manufacturing)
  • Eligibility Period for Interest/ Profit Rate Rebate:
    • Up to 5 years from the date of first disbursement or until the facility is fully repaid/ terminated/ recall or terminated due to non-utilisation of the facilities, whichever comes first
    • SMEs may obtain financing for a period exceeding 5 years, however there will be no payment of 2% rebate beyond the expiry of 5 years financing
    • Financing that turns non-performing loan will not be eligible for the 2% rebate. However, the 2% rebate will be reinstated in the current month of regularisation
  • Tax exemption:
    The interest/ profit rate rebate (subsidy) provided is tax exempted
  • Participating Financial Institutions:
    Open to all Commercial Banks, Islamic Banks and Development Financial Institutions under the purview of Bank Negara Malaysia that are participating in WCGS, WCGS-SU, WCGS-B, WCGS-X, WCGS-W and ADGS
  • Mode of Rebate Payment:
    Participating Financial Institutions will forward the reimbursement request for rebate on a monthly basis to SJPP for payment
  • Payment Period:
    The interest/ profit rate rebate shall be made available for payment for a period of five (5) years commencing 1 June 2017 or upon full utilisation of the rebate funding, whichever is earlier