SMEs require adequate cash flow to compete and thrive in today’s economy.
Lack of collateral affects SMEs' access to funding from their Financial Institutions ("FIs").
SJPP allows SMEs to overcome this barrier by providing Government Guarantee
Schemes as an alternative solution to their collateral requirements.
Special Schemes for COVID-19
The Malaysian Government continues to support the SMEs that are facing adverse impact of COVID-19 outbreak. For 2021, the SME Automation and Digitalisation Facility Scheme (ADF) , Agrofood Facility Scheme (AF), PENJANA Tourism Financing (PTF), Targeted Relief and Recovery Facility (TRF) and Bus and Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) are open for applications and available from our participating Financial Institutions or Financiers.
Click each scheme for details.
The Business Loan Lifeline for SMEs in Malaysia
Now more than ever, Small and Medium Enterprises (SME) are in dire need of funding but are facing limited access to credit facilities due to the apprehension of banks and other Financial Institutions (FI) in approving SME bank loans arising from the risks and uncertainties in the repayment capabilities of the SMEs.
This is where Syarikat Jaminan Pembiayaan Perniagaan Berhad (SJPP), wholly owned by the Minister of Finance Incorporated, has stepped in to play a vital role in bridging the gap between the SMEs and the FIs to support bank loan approvals; by providing government guarantees so that businesses can survive and recover from the economic crisis and continue to grow and contribute to the Nation’s economy.
Lack of collateral will no longer be an obstacle for SMEs as their credit facilities can now be guaranteed by the government, in an effort to spur the business activities of the SME sector and increase access to obtain funding from the FIs.
SJPP also offers other government guarantee schemes to support SMEs during the COVID-19 pandemic which include PENJANA Tourism Financing Facility (PTF), Special Relief Facility Scheme (SRF), SME Automation and Digitalisation Facility Scheme (ADF), and Agrofood Facility Scheme (AF), all available at participating FIs.
SME loans in Malaysia are becoming more and more vital to SMEs whereby bank loans and other credit facilities can be perceived as a cash flow lifeline to several industries such as F&B, tourism, 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 processes. As such, government business loans and assistance are made available to enable these SMEs to sustain, adapt and grow.
In January 2021, the Malaysian government unveiled the Perlindungan Ekonomi dan Rakyat Malaysia Package also known as the PERMAI package, valued at RM15 billion to safeguard the wellbeing of the people and support the continuity of businesses. Amongst some of the assistance offered includes Bus and Taxi Hire Purchase Rehabilitation Scheme, HRDF levy exemption, Wage Subsidy Programme (WSP) and more.
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 SMEs, eligibility criteria as well as other terms and conditions may also apply.
Whether your company is looking to expand and require additional funding, hoping to improve your cash flow or recover losses - this is the solution you have been looking for.