Green Technology Financing Scheme (GTFS) & Green Technology Financing Scheme Islamic (GTFS – i) 4.0

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