The Financing Lifeline for Malaysian Businesses in Malaysia

Limited access to funding will no longer be an obstacle for SMEs and Companies as their credit facilities can now be guaranteed with the government guarantee schemes, in an effort to spur the business activities of the Malaysian SMEs and MSCs in all industries.

One of the primary government guarantee schemes being offered by SJPP for the year 2023 is Government Guarantee Scheme MADANI (GGSM), an all-encompassing scheme for working capital and capital expenditure. It is eligible for all majority Malaysian owned companies and businesses for all economic sector particularly focusing on 4 sectors; high technology, agriculture, manufacturing, and tourism with annual revenue of not more than RM500 million.

SJPP also offers other government guarantee schemes to support Malaysian businesses, which include PENJANA Tourism Financing Facility (PTF), Working Capital Guarantee Scheme (WCGS) for Start Up, Bumiputera, Export, and Women, Automation & Digital Guarantee Scheme (ADGS), and Bus and Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) all available at participating FIs as well as non-banking FIs.

Business loans in Malaysia are becoming more and more vital to SMEs and companies whereby bank loans and other credit facilities can be perceived as a cash flow lifeline to several industries such as Food and Beverages and retail. The government recognises the need to support businesses that experience a huge drop in income and profit when Malaysia was placed under the Movement Control Order (MCO) in March 2020. SMEs have had to quickly adjust to the implications of the MCO by moving towards a new way of operating, shifting their business strategies and recognising the importance of technology adoption, digitisation and automated process. As such, government business loans and assistance are made available to enable these Malaysian businesses to sustain, adapt, and grow.

Aside from SME and private entrepreneurs, these government-guaranteed credit facilities can also be applied by start-up companies, service providers, manufacturing companies, or even franchise owners. Do take note that while these government guarantee schemes are open to all Malaysian businesses, eligibility criteria as well as other terms and conditions will apply.