ESP17. Working Capital Guarantee Scheme

• SMEs comprise
• 99% of registered business in Malaysia
• 56% of employement
• 32% of GDP
• Currently CGC under Bank Negara provides Skim Jaminan Usahawan Kecil to fund working capital of SMEs with shareholder equity of less than RM3M
• Establish a Working Capital Guarantee Scheme for medium sized (shareholder fund less than RM20M) Companies to gain access to working capital financing
• Fund size - RM5B
• Guarantee Ratio: Government 80: Financial Institution 20
• Guarantee fee: 0.5% on outstanding amount
• Interest rate: determine by financial institution
• Eligibility:mid sized Malaysian owned company (not subsidiary of company with shareholder fund more than RM20M)
• Maximum loan tenure: 5 years
• Availability: Until 31.12.2010 or upon full utilisation
• Participating bank
• all commercial bank
• all islamic bank
• Bank Pembangunan Malaysia Bhd
• SME Bank
• Exim Bank
• Bank Simpanan Nasional