The PEMULIH Government Guarantee Scheme (PGGS) is a government guarantee scheme to provide financing assistance to Malaysian SMEs and Mid-Size Companies (MSC) via:

• New Financing (especially to large SMEs and MSC); and
• Restructuring of current financing facilities with moratorium and extension of tenure, as well as further funding of working capital to revitalise their business, if necessary

Applications are open until full utilisation of the scheme limit of up to RM30 billion only.

PGGS is open to all entities (SMEs and Mid Size Companies (MSC)) in all industries with annual revenue of not more than RM500 million based on their audited accounts (or relevant income tax returns where applicable) for any of the financial year ending 2019 or later:

1. Sole proprietorships owned by a Malaysian citizen; or
2. Partnerships, and Limited Liability Partnerships controlled and majority owned by Malaysian Citizens; or
3. Companies with at least 51% shares held and controlled by Malaysian citizens.

The Customer must be incorporated under:

1. Registration of Business Act 1956;
2. Companies Act 1965 or 2016;
3. Limited Liability Partnership Act 2012;
4. Sabah and Sarawak local authorities and district offices; or
5. Respective Statutory Bodies for professional service providers.

Other criteria may apply, depending on the company’s profile and credit assessment by the FI and SJPP.

Yes, the revenue criteria refer to revenue of not more than RM500 million in any financial year ending 2019 or later. You will have to provide the audited accounts (or income tax return for sole proprietors or partnerships) as supporting documents.

PGGS can be used for:

• New financing for Working Capital and Capital Expenditure; and/or
• Restructuring of existing financing facilities with a 12-month moratorium and extension of tenure; and/ or
• Additional Working Capital (companies with financing facilities rescheduled and/or restructured that was approved on 1 March 2020 onwards are eligible). The facility cannot be used to refinance existing facility granted by the same or other participating FIs

The type of facilities are Term loan/ Term Financing-i, Overdraft/ Cash Line-i, Revolving Credit/ Revolving Facility-i and Trade/ Trade-i Facility.

• For new financing - the financing limit is up to RM20 million
• For restructured financing facility; and/ or additional working capital, group exposure up to RM50 million

Limits are subject to the aggregate group (including Related Parties) limit not exceeding RM50 million financing limit for all other schemes under SJPP including Danajamin Prihatin Guarantee Scheme, Bus and Taxi Hire Purchase Rehabilitation Scheme and PGGS.

The aggregate group limit including related parties must not exceed RM50 million financing limit for all other schemes under SJPP. If you have not reached this limit, then you would still be eligible to apply.

A) For new financing:

The guarantee coverage is 80% and the guarantee fee rates are:

• 1% per annum payable upfront

Example A: Syarikat Masam Manis Sdn Bhd has been affected by the lockdown and requires funding urgently. They are applying for a new financing facility of RM5 million with a tenure of 5 years. A new application is made for PGGS and the guarantee fee per annum is calculated by Financing Amount x Guarantee Coverage x Guarantee Fee Rate.

Guarantee Fee per annum: RM5,000,000 X 80% X 1% = RM40,000 p.a.

B) For the restructuring of existing financing facilities:

The guarantee coverage is 80%, and a guarantee fee rate of 0.75% is applied to the guarantee coverage.

The following formula is used to determine the Guarantee Coverage:

Guarantee Coverage = A x B x C where
A = 80%
B = 36 months (3 years)
C = Average monthly instalment for Year 2 and Year 3 of the restructured facility

Example B: Syarikat Koo Seafood Sdn Bhd would like to apply for restructuring of their current term loan. The restructured financing facility with the extended tenure inclusive of moratorium of 12 months is RM6.0 million, with an average monthly instalment of RM62,500. If approved, the applicable guarantee fee would be:

80% x 36 months x 62,500 x 0.75% = RM13,500 per annum.

C) For additional working capital:

The coverage is up to 80%, an a guarantee fee rate of 0.75% is applied to the guarantee coverage.

For new financing:
The tenure of guarantee for new financing facilities is up to 10 years.

For the restructuring of existing financing facilities:
3 years, inclusive of a 12-months moratorium.

For additional working capital:
The tenure of guarantee for additional working capital facilities is up to 10 years.

For new financing:
The interest/ profit rate should not exceed the FI’s BLR/ BFR + 2%

For the restructuring of existing financing facilities:
All interest/ profit rates charged on the restructured facility shall not be higher than that of the existing facility, prior to the restructuring.

For additional working capital:
The interest/ profit rate should not exceed the FI’s BLR/ BFR + 2%

You can discuss your requirements whether it is for new financing or to restructure your existing credit facilities with the Financial Institutions (FI). For a list of our participating FIs, please refer to our website www.sjpp.com.my. Subject to the FI’s assessment, the FIs will submit the guarantee application to SJPP.

For more information, please contact us at 03-2096 5000 or submit your query through Inquiry Form.