Govt increases loan guarantee by RM10bln


7 November 2020

Govt increases loan guarantee by RM10 bln

KUALA LUMPUR, Nov 6 -- The government has increased loan guarantees by up to another RM10 billion with RM2 billion reserved specifically for Bumiputera entrepreneurs.

To-date, a total of RM25 billion has been given under the Syarikat Jaminan Pembiayaan Perniagaan.

For corporate companies involved in high-skilled industries such as oil and gas and aerospace, the government has allocated guarantees of RM3 billion under the Danajamin Prihatin Guarantee Scheme that will be extended until 2021, with improved terms and conditions, said Finance Minister Tengku Datuk Seri Zafrul Aziz when tabling Budget 2021 in Parliament here today.

He added that to encourage standardised credit lending activities and increase consumer protection, the government will introduce the Consumer Credit Act.

The Act provides a regulatory framework for activities related to the issuance of consumer credit and strengthens supervision of non-bank and non-supervised credit providers.

Bank Negara and the Securities Commission will lead the effort to formulate consumer credit providers regulation, he said.-- BERNAMA