2% Interest / Profit Rate Rebate - Terms
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Name of Financing:2% Interest/ Profit Rate Rebate for all financing under Working Capital Guarantee Scheme (WCGS), Working Capital Guarantee Scheme – Start Up (WCGS-SU), Working Capital Guarantee Scheme – Bumiputera (WCGS-B), Working Capital Guarantee Scheme – Export (WCGS-X), Working Capital Guarantee Scheme – Women (WCGS-W), Automation & Digital Guarantee Scheme (ADGS), and Government Guarantee Scheme Prihatin (GGS Prihatin)
- 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 institution
- Overall Financing:
Rebate is limited to a total accumulated funding of RM1 billion for a period of five years
- Eligibility Criteria:
Open to all SME* companies which are:
- Export-oriented (with at least 50% of the turnover are for exports);
- Incorporated under the Registration of Business Act 1956, Companies Act 1965 and/or Companies Act 2016, Limited Liability Partnership Act 2012, Sabah and Sarawak local authorities and district offices, or respective Statutory Bodies for professional service providers
- With at least 51% shares held by Malaysian
- 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-utilisation 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 WCGS, WCGS-SU, WCGS-B, WCGS-X, WCGS-W, ADGS and GGS Prihatin
- 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