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Name of Financing 2% Interest / Profit Rate Rebate for all financing under Services Sector Guarantee Scheme (“SSGS”), Working Capital Guarantee Scheme-Extension (“WCGS-E”), Working Capital Guarantee Scheme – StartUp (“WCGS-SU”), Automation Process Guarantee Scheme ("APGS") and Intellectual Property Guarantee Scheme ("IPGS")
Objective To provide financing assistance to eligible Malaysian SMEs involved in export activities only whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing provided by Participating Financial Institutions.
Overall Financing Rebate is limited to a total accumulated funding of RM1 billion for a period of five years
Eligibility Criteria SMEs companies which are export oriented (with at least 50% of the turnover are for exports) and incorporated under the Companies Act 1965 and/or Companies Act 2016 with at least 51% shares held by Malaysian and shareholders’ fund below RM20.0 million, sole proprietorship and partnership
Eligibility Period for Interest / Profit Rate Rebate
  • Up to 5 years from the date of first disbursement or until the facility is fully repaid / terminated / recall or terminated due to non-utilization of the facilities, whichever comes first.
  • SMEs may obtain financing for a period exceeding 5 years, however there will be no payment of 2% rebate beyond the expiry of 5 years financing.
  • Financing that turns non-performing loan will not be eligible for the 2% rebate. However, the 2% rebate will be reinstated in the current month of regularisation.
Tax exemption The interest / profit rate rebate (subsidy) provided is tax exempted.
Participating Financial Institutions Open to all Commercial Banks, Islamic Banks and Development Financial Institutions under the purview of Bank Negara Malaysia that are participating in SSGS, WCGS-E, WCGS-SU, APGS and IPGS.
Mode of Rebate Payment Participating Financial Institutions will forward the reimbursement request for rebate on a monthly basis to SJPP for payment
Payment Period The interest / profit rate rebate shall be made available for payment for a period of five (5) years commencing 1 June 2017 or upon full utilisation of the rebate funding, whichever is earlier