Government Guarantee Scheme MADANI (GGSM)

  • Scheme Objective:
    To provide financing assistance to Small and Medium Enterprises (SMEs) and Mid-Size Companies (MSCs) by providing Government guarantees to the participating Financial Institutions (FIs) for the financing provided for all economic sectors particularly focusing on four (4) sectors:
    • High Technology
    • Agriculture
    • Manufacturing
    • Tourism
  • Tenure of Guarantee:
    Up to 10 years or until 31st December 2035, whichever is earlier
  • Eligibility:
    Open to all entities (SMEs and MSCs) in all industries 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

    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

    • Entities that are public-listed on the main board, Government-linked companies (GLCs), Syarikat Menteri Kewangan Di Perbadankan (MKDs), and State-owned enterprises
    • Subsidiaries with at least 51% shares of the entities, mentioned in No. i above
    • Civil servants, who are currently in service, except with prior written approval from the employer – Majikan/ Ketua Jabatan
  • Application Period:
    Applications are open until 31 December 2024
  • Purpose of Financing:
    • Working Capital
    • Capital Expenditure (CAPEX)

    Both for New Financing.
    The facility cannot be used to refinance existing facility granted by the same or other FIs.
  • Type of Facility:
    Term Loan/ Term Financing-i, Overdraft/ Cash Line-i, Revolving Credit/ Revolving Facility-i and Trade/ Trade-i Facility
  • Financing Limit:
    Up to RM30.0 million per company for the 4 sectors below:
    • High Technology
    • Agriculture
    • Manufacturing
    • Tourism

    Up to RM20 million per company for all other sectors.
    *This is subject to the aggregate Group Limit not exceeding RM50 million financing limit for all other schemes under SJPP including this scheme.
  • Guarantee Coverage:
    • Up to 90% guarantee of the financing obtained from the participating FIs(including principal and interest/ profit) for the 4 focus sectors. The financing limit eligible for the 90% guarantee coverage shall be capped at RM10.0 million per company.
    • Up to 80% for all other sectors.
  • Guarantee Fee:
    • BNM funding schemes: 0.5% per annum payable upfront
    • 4 focus sectors: 0.75 per annum payable upfront
    • Other sectors: 1.0% payable upfront
  • Interest/ Profit Rate:
    Not exceeding FI’s BLR/BFR + 2%