|SJPP is a company wholly owned by the Minister of Finance Inc. SJPP's initial role was to administer and manage two guarantee schemes namely the Working Capital Guarantee Scheme ("WCGS") and Industry Restructuring Financing Guarantee Scheme ("IRFGS") announced by the Ministry of Finance in the Dewan Rakyat under the second stimulus package on 10th March 2009. The stimulus package amounting RM60 billion is to enhance foreign and domestic investor confidence in the Malaysian Economy.
SJPP received an overwhelming response to WCGS and IRFGS and these schemes have been closed since they have been fully utilized. Both schemes have played an important part in recovering the economy in Malaysia in 2009.
Due to the overwhelming response from the Small and Medium Enterprise (“SMEs”), under the 10th Malaysia Plan (10MP), the Government of Malaysia had allocated an additional RM3.0 billion into WCGS (“10MP WCGS”). It was the hope of the Government of Malaysia that by providing such guarantee, financial institutions will continue to provide financing facilities to companies within the targeted sectors.
The allocation of RM3.0 billion for SME companies under 10MP WCGS has also been fully closed.
Services Sector Guarantee Scheme ("SSGS") and Flood Relief Loan Guarantee Scheme ("FRLGS")
|During the Budget 2015 presentation at Dewan Rakyat on 10 October 2014 and revision of the budget on 20 January 2015, the Government had announced for the funding of two additional schemes namely the Services Sector Guarantee Scheme ("SSGS") and the Flood Relief Loan Guarantee Scheme ("FRLGS") aimed for economic growth and people's welfare. Both schemes are manage by SJPP.
SSGS was established by the Government of Malaysia to allow SMEs companies in the services sector to have access to working capital financing from financial institutions to spur economic growth.
FRLGS was established to help revive SME businesses that have been affected by the recent floods in the districts defined by Majlis Keselamatan Negara (MKN), Jabatan Perdana Menteri as flood disaster areas. This is important to ensure that the businesses in states affected by recurring floods can be restored quickly which will indirectly help the people in the flood affected areas to redevelop their economy.
FRLGS has been fully closed and for SSGS, it was opened from 1 April 2015 or upon approval of financing up to RM5.0 billion only, whichever is earlier.
Working Capital Guarantee Scheme - Extension ("WCGS-E")
|In a special announcement made by YAB Prime Minister Datuk Seri Mohd Najib Tun Abdul Razak on 14 September 2015, the Government has unveiled measures as short and medium term initiatives to keep the momentum of the economy going in the wake of a global slowdown. In this respect, the Government announced an additional RM2.0 billion for the Working Capital Guarantee Scheme (“WCGS-E”) for SMEs. This is the extension of the previous WCGS and it continue to be managed by SJPP.
Applications are opened from 1 January 2016 or upon approval of financing up to RM2.0 billion only, whichever is earlier.
With the existence of both SSGS and WCGS-E, SJPP hopes that it will help ease the burden of SME businesses and stimulate the economic growth for Malaysia.