Free Malaysia Today (English)
3 August 2022
SJPP approved RM50.31bil in financing guarantees since 2009
The Auditor-General’s Report 2021 Series 1 on the Management of Federal Government Companies was presented in Parliament today.
KUALA LUMPUR: Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) has approved a total of RM50.31 billion in financing guarantee applications by financial institutions involving 69,293 accounts, for the period from 2009 to February 2022.
According to the Auditor-General’s Report 2021 Series 1 on the Management of Federal Government Companies presented in Parliament today, a total of RM42.63 billion (84.7%) of funding had been disbursed to small- and medium-sized enterprises (SMEs) by the relevant financial institutions and the amount of guarantee by SJPP was RM31.85 billion.
“As at May 2022, SJPP has been allocated a total of RM81 billion funding limit to manage 11 government guarantee schemes for SMEs since 2009, of which eight guarantee schemes are still active while three schemes had been closed.
“The total amount of funds distributed to SMEs through financial institutions was RM79.5 billion,” said the report.
According to the report, since the establishment of SJPP in 2009 until February 2022, the net demand for financing guarantee from financial institutions amounted to RM587.02 million (1.4%) compared to a total of RM42.63 billion in financing issued to SMEs.
Overall, SJPP has achieved the objective of its establishment through the achievement of output which is the target amount of funding approved and guarantee claims paid, it said.
However, there had been delays in terms of the processing period for applications and claims due to the Covid-19 pandemic and there was also an error in the calculation of the guarantee fee which caused the guarantee fee to be over/under collected.
According to the report, in order to further improve the management of Prokhas Sdn Bhd, MoF Inc and the board of directors of SJPP need to take proactive and effective measures to address the weaknesses raised in the report.
“The parties involved also need to improve corporate governance related to the rate of payment of allowances for board of directors meetings and the involvement of the board of directors in strategic planning of SJPP,” it added.
(Web source: https://www.freemalaysiatoday.com/category/nation/2022/08/03/sjpp-approved-rm50-313bil-in-financing-guarantees-since-2009/)