PEMULIH Government Guarantee Scheme (PGGS)

What You Should Know About PEMULIH Government Guarantee Scheme (PGGS)

• Scheme Limit:
  RM30 billion

• Availability/ Application Period:
  Open until full utilisation of the scheme limit of up to RM30 billion only

• Purpose of Financing:
• For New Financing;
• For the restructuring of existing financing facilities; and/ or additional working capital

• Type of Facility:
  Term Loan/ Term Financing-i, Overdraft/ Cash Line-i, Revolving Credit/ Revolving Facility-i and Trade/ Trade-i Facility

• Tenure of Guarantee:
  • For New Financing: Up to 10 years
  • For the restructuring of existing financing facilities: 3 years, including a 12-months moratorium
  • For additional working capital: Up to 10 years

• Eligibility:
  Open to all entities (SMEs and Mid Size Companies (MSC)) in all industries such as tourism and its related sectors with annual revenue of not more than RM500 million based on their audited accounts (or relevant income tax returns where applicable) for any of the financial year ending 2019 or later:
  • Sole proprietorships owned by a Malaysian Citizen;
  • Partnerships, and Limited Liability Partnerships controlled and majority owned by Malaysian Citizens; or
  • Companies with at least 51% shares held and controlled by Malaysian Citizens
  
  And are duly registered with:
  • Companies Commission of Malaysia either under the Registration of Business Act (1956) or the Companies Act (1965/ 2016) or Limited Liability Partnership Act (2012); or
  • Respective authorities or district offices in Sabah and Sarawak; or
  • Respective statutory bodies for professional services providers
  
  Excluding:
  • Entities that are public-listed on the main board; and
  • Subsidiaries of:
    • Public-listed companies on the main board;
    • Government-linked companies (GLCs);
    • Syarikat Menteri Kewangan Diperbadankan (MKDs); and
    • State-owned enterprises

• Financing Limit*:
  • For New Financing: Up to RM20 million per company
  • For the restructuring of existing financing facilities and/ or additional working capital (up to RM20 million). Group Exposure of up to RM50 million
  
  *This is subject to the aggregate group limit not exceeding RM50 million financing limit for all other schemes under SJPP including DPGS, BTHPRS and this scheme. Group is defined as companies under the same group by way of shareholding (holding 50% or more), directors (providing guarantees), related guarantors, and including Related Parties.

• Guarantee Coverage:
  • For New Financing: Up to 80% of the financing obtained from the participating Financial Institutions (including principal and interest/ profit) by the Government of Malaysia
  • For the restructuring of existing financing facilities:
    
    1. Guarantee coverage is determined as below:
       • Guarantee Coverage = A X B X C, where:
         A = 80%
         B = 36 months (3 years)
         C = Average monthly instalment for Year 2 and Year 3 of the restructured facility
  • For additional working capital: Up to 80% of the financing obtained from the participating Financial Institutions (including principal and interest/ profit) by the Government of Malaysia

• Guarantee Fee:
  • For New Financing: 1% per annum payable upfront
  • For the restructuring of existing financing facilities and/ or additional working capital: 0.75% per annum payable upfront

• Source of Funds/ Financing Facility:
  From the participating Financial Institutions

• Interest/ Profit Rate:
  • For New Financing: Not exceeding FI’s BLR/BFR + 2%
  • For the restructuring of existing financing facilities: Shall not be higher than the existing facility, prior to the restructuring
  • For additional working capital: Not exceeding FI’s BLR/BFR + 2%

Note:

• Other Terms and Conditions may apply subject to FI or SJPP’s assessment
• Exemption on Stamp Duty on restructuring and/ or rescheduling documentation, only up to 31 December 2022