Government Guarantee Scheme MADANI 2026 (GGSM4)

• Scheme Limit:
  RM30.0 billion

• Scheme Objectives:
  
  For Mid-Tier Companies (MTC)
  To provide financing assistance to MTC by extending Government guarantees to participating Financial Institutions (FIs) facilitating easier access to financing for businesses. The support focuses on sector / industry / segment:
  1. Export-Oriented MTC
     Export oriented mid-tier including those expanding into new markets.
  
  For Micro, Small and Medium Enterprises (MSME)
  To provide financing assistance to MSMEs across all economic sectors by extending Government guarantees to participating FIs, with emphasis on the following focus sectors / industries / segments:
  1. Bumiputera
  2. Halal
  3. Tourism
  4. High Growth High Value (HGHV) sectors*
  5. Other priority sectors including high-tech, manufacturing and agro-based businesses.
     
     *High Growth High Value (HGHV) Sectors
     HGHV sectors as outlined below, as well as other sectors listed under the New Industrial Master Plan 2030 (NIMP 2030), National Energy Transition Roadmap (NETR) and 13th Malaysia Plan (RMK-13):
     1. Semiconductors and Electrical & Electronics (E&E)
     2. Advanced Manufacturing
     3. Digital & Artificial Intelligence (AI)
     4. Aerospace
     5. Chemicals & Specialty Materials
     6. Green Technology & Energy Transition
     7. Medical Devices & Life Sciences

• Eligibility:
  • Open to MTC in the applicable sector / industry with annual revenue of not more than RM500 million (The definition of MTC as adopted by the Securities Commission, as outlined in the MSME and MTC 5-Year Roadmap 2024, and applied by Bank Negara Malaysia based on MATRADE’s classification), and MSME from all sectors (In reference to the guidelines for the definition of MSMEs issued by SME Corp Malaysia and certified by the National SME Development Council);
  • Sole proprietorships owned by a Malaysian Citizen;
  • Partnerships and Limited Liability Partnerships controlled and majority owned by Malaysian Citizens; or
  • Companies with at least fifty-one per cent (51%) shares held and controlled by Malaysian Citizens.
  
  Which 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.
  
  Excludes:
  • Entities that are publicly-listed (except on the ACE Market or LEAP Market of Bursa Malaysia), Government-linked companies (GLC), companies owned by Minister of Finance (Incorporated) (MoF Inc.) and State-owned enterprises,
  • Subsidiaries in which at least 51% of the shares are held by the entities referred to in item (i) above,
  • Business entities where shareholders / directors / owners are civil servants, who are currently in service, except with prior written approval obtained from the employer -Majikan / Ketua Jabatan.

• Purpose of Financing:
  • Working Capital
  • Capital Expenditure (CAPEX)
  
  Both financing purposes are strictly for new financing only. The facility shall not be used to refinance any existing facilities granted by the same or any other (FIs).

• Type of Facility:
  Term Loan / Term Financing-i, Overdraft / Cash Line-i, Revolving Credit / Revolving Facility-i, Hire Purchase / Industrial Hire Purchase and Trade / Trade-i Facility including Promissory Note / Promissory Note-i, and Bank Guarantee / Bank Guarantee-i.

• Financing Limit*:
  • Up to RM30.0 million per company for MTC.
  • Up to RM20.0 million per company for MSME.
  
  *This is subject to the aggregate group limit not exceeding RM50.0 million financing limit for all other schemes under SJPP including Danajamin Prihatin Guarantee Scheme (DPGS), Bus and Taxi Hire Purchase Rehabilitation Scheme (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:
  • MTC:
    Up to 70% guarantee coverage on approved financing from participating FIs.
  • MSME:
    
    • Focus Sectors: Up to 80% guarantee coverage on approved financing from participating FIs.
    • All Other Sectors: Up to 70% guarantee coverage on approved financing from participating FIs.

• Guarantee Fee:
  • Bank Negara Malaysia (BNM) funding rate to PFIs at 0% per annum: 0.50% per annum payable upfront.
  • HGHV and identified focus sectors / segment as outlined above for MSME only: 0.75% per annum payable upfront.
  • MTCs and Other sectors: 1.0% per annum payable upfront.

• Tenure of Guarantee:
  Up to seven (7) years

• Interest/ Profit Rate:
  Not exceeding FI’s Base Lending Rate (BLR) / Base Financing Rate (BFR) + 2.0%

• Government-Funded or Government-Incentivised Financing:
  Financing granted from funds provided (whether in the form of grants or loans) and / or subsidised by the Government of Malaysia, as well as financing that benefits from any other Government of Malaysia incentives, shall not be eligible for the guarantee.

• Availability:
  Applications are open until 30 June 2027 or until full utilisation of the scheme limit, whichever is earlier.