General Information about 10MP WCGS
1. What is 10MP WCGS?A Guarantee Scheme by the Malaysian Government amounting to RM3.0 billion to help small and medium ("SME") companies gain access to financing facilities from Financial Institutions. The Malaysian Government will guarantee 70% on financing facility granted by the participating Financial Institutions.
2. When will the 10MP WCGS be made available?The allocation for Bumiputera and Non Bumiputera companies of RM3.0 billion is now closed.
3. Who is eligible for 10MP WCGS?
The criteria for eligible companies are as follows:
i. Viable Bumiputera and Non Bumiputera SME companies (application for Non Bumiputera SME companies has since been closed);
ii. Incorporated under the Companies Act 1965;
iii. At least 51% of shares held by Malaysian Citizen in the duration of 10MP WCGS;
iv. Total equity shareholding not exceeding RM20 million based on the latest audited accounts, which is not more than 18 months from the date of application.
4. What is SME companies?
As per the new SME definition by SME Corp i.e.
• Manufacturing sector, sales turnover not exceeding RM50 million or full time employees not exceeding 200 workers.
• Services and other sectors, sales turnover not exceeding RM20 million or full time employees not exceeding 75 workers.
5. Where 10MP WCGS can be applied?All participating commercial banks, Islamic banks and development Financing Institutions of the Bank Negara Malaysia.
6. Is the guarantee binding on the Malaysian Government?Yes. Under Section 14 of the Financial Procedure Act 1957 (Act 61).
7. Are companies which has or is currently benefitting from other SJPP Guarantee Schemes from the same or different financial institutions can apply for 10MP WCGS?Yes. Subject to the approval of the Financial Institutions and SJPP. The aggregate amount of current financing under the SJPP Guarantee Scheme must not exceed RM5.0 million.
8. Can a company apply directly to SJPP for financing under this 10MP WCGS?No. Applications must be submitted through the participating Financial Institutions.
9. Can the Financial Institutions refuse the company's application for financing under 10MP WCGS?Yes. Subject to the approval of the Financial Institutions or other terms imposed by the Financial Institutions from time to time.
10. Can SJPP decline the guarantee application by Financial Institutions for financing which has been approved for the company under 10MP WCGS?Yes. Subject to the approval of SJPP or other terms imposed by SJPP from time to time.
11. Can a company apply for financing under 10MP WCGS to purchase property, vehicles or company shares (company takeover)?No. The 10MP WCGS guarantee is solely for working capital and asset acquisition, which includes buying of machineries for business purpose only.