Government Guarantee Scheme MADANI 3 (GGSM3)

Scheme Objective:
To provide financing assistance to Small and Medium Enterprises (SMEs) by providing Government guarantees to the participating Financial Institutions (FIs) for the financing provided for all economic sectors particularly focusing on four (4) sectors:
- Bumiputera
- High Technology
- Halal
- Tourism

Tenure of Guarantee:
Up to seven (7) years or until 31st December 2032, whichever is earlier

Eligibility:
Open to SME companies from all sectors:
- Sole proprietorships owned by a Malaysian Citizen;
- Partnerships, and Limited Liability Partnerships controlled and majority owned by Malaysian Citizens; or
- Companies with at least 51% shares held and controlled by Malaysian Citizens
Which are duly registered with:
- Companies Commission of Malaysia either under the Registration of Business Act (1956) or the Companies Act (1965/ 2016) or Limited Liability Partnership Act (2012); or
- Respective authorities or district offices in Sabah and Sarawak; or
- Respective statutory bodies for professional services providers
Excluding:
- Entities that are public-listed on the main board, Government-linked companies (GLCs), Syarikat Menteri Kewangan Di Perbadankan (MKDs), and State-owned enterprises
- Subsidiaries with at least 51% shares of the entities, mentioned in No. i above
- Business entities where shareholders/ directors/ owners are civil servants, who are currently in service, except with prior written approval from the employer – Majikan/ Ketua Jabatan

Application Period:
Applications are open until 31 December 2026 or until full utilisation of the scheme limit, whichever is earlier

Purpose of Financing:
- Working Capital
- Capital Expenditure (CAPEX)
Both for New Financing.
The facility cannot be used to refinance existing facility granted by the same or other FIs.

Type of Facility:
Term Loan/ Term Financing-i, Overdraft/ Cash Line-i, Revolving Credit/ Revolving Facility-i, Hire Purchase/ Industrial Hire Purchase and Trade/ Trade-i Facility

Financing Limit:
Up to RM10 million per company for all sectors.
*This is subject to the aggregate group limit not exceeding RM50 million financing limit for all other schemes under SJPP including DPGS, BTHPRS and this scheme. Group is defined as companies under the same group by way of shareholding (holding 50% or more), directors (providing guarantees), related guarantors, and including Related Parties.

Guarantee Coverage:
- Focus Sectors: up to 80% guarantee on approved financing from participating financial institutions (FIs).
- Other Sectors
  Financing ≤ RM3 million per customer: Up to 70% guarantee on approved financing from participating FIs.
  Financing > RM3 million per customer: Up to 50% guarantee on approved financing from participating FIs.

Guarantee Fee:
Focus sectors: 0.75% per annum payable upfront
Other sectors: Up to 1.0% per annum payable upfront

Funding:
Financing granted from funds provided (grant and loan) and/or subsidised by the Government of Malaysia will not be eligible for the guarantee