Government-Funded Schemes

Objective

Flexi Guarantee Scheme (FGS) provides guarantee for financing granted under BNM’s Funds for SME-All Economic Sectors Facility.

The funds are designed to facilitate greater access to financing for viable Malaysian Small and Medium Enterprises (SMEs).

Main Characteristic

Among the main characteristics of the FGS are:

• Guarantee cover ranging from 30% – 80% as required by participating financial institutions.
  • Annual guarantee fee, calculated based on the guarantee cover issued and payable in advance. Fees will be borne by the participating financial institutions.
  • Secured Portion     :-Between 0.50% and 1.85% per annum.
  • Unsecured Portion:-Between 0.80% and 2.15% per annum.

1. i) Payment of Guarantee Fee.

• New Letter of Guarantee (LG) – Payable upon request for LG by Financial Institution (FI).
• Anniversary LG – Payable on or before LG anniversary date.

1. ii) Refund of Guarantee Fee

• Refund of guarantee fee will be pro-rated on a monthly basis. The utilised period is calculated from the month of LG/Anniversary LG until the month of cancellation/amendment.
• The refund of guarantee fee on a pro-rated basis is applicable for LGs that are cancelled or amended by CGC commencing 2nd Jan 2013 onwards.

Application Procedures

The financing application is made through any participating financial institutions. Approval will be subjected to normal vetting procedures and security requirements of the participating financial institutions.

All Economic Sectors Facility

Purpose of Financing

• Capital expenditures; or/and
• Working capital

Financing should not be used for:

• Purchase of shares;
• Refinancing of existing credit/financing facilities;
• Purchase of land/real estate investment;
• Property development;
• Investment by investment holding companies;
• Activities where the stock in trade is money (including credit, leasing, factoring and insurance businesses);
• Gambling, alcohol, tobacco or other similar type of activities and products; and
• Non-Shariah compliant business activities (applicable for Islamic financing).

Eligibility Criteria

• Meet the SME Corporation Malaysia’s definition of an SME (for details, please click here)
• Business is registered with the Companies Commission of Malaysia (SSM); or authorities/district offices in Sabah and Sarawak; or statutory bodies for professional service providers;
• Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%;
• Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

Maximum Financing Rate : 5.00% to 7.00% per annum
Maximum Tenure : Up to 5 years
Minimum Financing  : No minimum amount
Maximum Financing : RM5 million per SME. Related SMEs with common shareholder(s) to have separate limits on the maximum amount of financing under BNM’s Fund for SMEs, subject to each SME having separate workforces.

Participating Financial Institutions (PFIs)

Applicable to all PFIs defined as follows:-

• All licensed banks under the Financial Services Act 2013 (FSA);
• All licensed Islamic banks under the Islamic Financial Services Act 2013 (IFSA);
• All prescribed development financial institutions under the Development Financial Institutions Act 2002 (DFIA)

---

Leave your contact details here and we will get back to you.

Objective

Green Technology has been envisaged as one of the emerging drivers of economic growth for Malaysia. GTFS/GTFS-i 4.0 was established by the Government aimed to encourage local companies and entrepreneurs to be involved in green technology-based projects to support the national green technology agenda.

Purpose of Financing

• Producer of Green Technology – To finance investment for the production of green products (excluding large-scale solar projects and rooftop solar photovoltaic systems).
• User of Green Technology – To finance investment for the utilisation of green technology projects [excluding projects under the Net Energy Metering (NEM) Scheme and Self-Consumption (SELCO)].
• Energy Services Company (ESCO) – To finance investment or assets related to energy efficient projects and/ or energy performance contracting.
• Housing Developer – To finance the construction of green buildings that focus on residential development with a selling cost of a maximum RM350,000.
• Low Carbon Mobility Infrastructure – To finance Electric Vehicle (EV) charge point operators.

The Scheme is applicable for the financing of:

1. Capital Expenditure
   For purchase of equipment; for both new and re-conditioned equipment.
2. Working Capital
   The maximum loan/ financing facility amount allowed for working capital is up to RM5 million

The following purposes are not eligible under the Scheme:

• For refinancing or restructuring of existing loan / financing facilities
• For financing of Research and Development cost
• For projects which have already been completed and financed

Eligibility Criteria

• The scheme shall only be available to the following categories:
  i. Producer of Green Technology
  ii. User of Green Technology
  iii. Energy Services Company (ESCO) (must be registered with the Energy Commission)
  iv. Housing Developer
  v. Low Carbon Mobility Infrastructure
• Company must be legally registered in Malaysia and Malaysian-owned with at least 60% shareholding
• Sectors eligible are as follows:
  i. Energy
  ii. Manufacturing
  iii. Transportation
  iv. Building
  v. Waste
  vi. Water
• Company with valid Green Project Certificate issued by Malaysian Green Technology and Climate Change Corporation (MGTC)

Maximum Loan/ Financing Limit

• Producer of Green Technology: RM100 million
• User of Green Technology: RM50 million
• Energy Services Company (ESCO): RM25 million
• Housing Developer: RM100 million
• Low Carbon Mobility Infrastructure: RM50 million

Maximum Loan/ Financing Tenure

• Producer of Green Technology: Up to 15 years
• User of Green Technology: Up to 10 years
• Energy Services Company (ESCO): Up to 10 years
• Housing Developer: Up to 5 years
• Low Carbon Mobility Infrastructure: Up to 5 years

Type of Loan/ Financing facilities

• All types of facilities for both Conventional loan and Islamic financing

Guarantee Cover

The Government through CGC, will provide guarantee coverage for the approved loan/ financing facility under the Scheme which shall be confined only to the value stated in the Green Project Certificate issued by MGTC. The guarantee cover percentages, depending on the sectors, are as follows:

• Energy, Manufacturing, Transportation, Building or Water: 60% guarantee cover
• Waste: 80% guarantee cover

Participating Financial Institutions

• All commercial and Islamic banks, and Development Financial Institutions (DFIs) licensed by Bank Negara Malaysia
• Other participating institutions duly approved by the Ministry of Finance

Interest/ Profit Rate

• To be determined by the Participating Financial Institutions

Government Incentive

• • 1.5% per annum interest/ profit rate reimbursement for the first *seven (7)/ five (5) years (depending on category) of the loan/ financing based on the Letter of Confirmation issuance date

*Producer, User and ESCO: First seven (7) years
Housing Developer, Low Carbon Mobility Infrastructure: First five (5) years

Application Procedures

• Applicants are to submit application to Malaysian Green Technology and Climate Change Corporation at www.gtfs.my for green project certification
• Successful applicants then proceed to forward the application for financing to any Participating Financial Institutions

Application Period

• The scheme is made available until 31st December 2025 or upon approval of loan/ financing up to RM1 billion, whichever is earlier or any subsequent extension on the availability date.

• The available balance for the scheme is as follows:
  

  Available balance (RM) (as of 31st October 2024)

  900,108,250*

  *Note: excluding cancelled due to unmaterialised applications

---

Leave your contact details here and we will get back to you.