Financing of RM30 billion made available via SJPP’s schemes since 2009

KUALA LUMPUR: The Finance Ministry’s wholly-owned company, Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), has partnered various financial institutions to make available financing of about RM30 billion through various schemes, since inception in 2009.

Finance Minister, Lim Guan Eng said of the RM30 billion, RM12.9 billion had already been disbursed and RM9.4 billion of this amount was guaranteed through SJPP.

SJPP is an administrator and manager of credit guarantee schemes under the Finance Ministry.

“This is a cheap method for the government to help Small and Medium Entrepreneurs (SMEs) and supports economic growth with the government spending only RM290 million since 2009 to support SJPP guarantees.

“Non-performing loans relative to the RM 12.9 billion total disbursement so far has been low at 2.3 per cent and at the same time, selected guarantee schemes provided by SJPP can have a multiplier rate as high as 32.8 times direct government spending,” he added.

Lim said this in his speech at the signing ceremony of a memorandum of understanding (MoU) between SJPP and United Overseas Bank (Malaysia) Bhd.

He said SJPP had been able to manage these guarantees at the low guarantee fee rates of between 0.5 per cent and one per cent, which kept the cost of financing down for the SMEs.

Following the signing of the MoU, SMEs can obtain collateralfree loans of up to RM1 million through the SJPP-UOB BizMoney financial solution, with SJPP guaranteeing up to 70 per cent of the loan through its Working Capital Guarantee Scheme and Services Sector Guarantee Scheme.

The SJPP- UOB BizMoney financial solution provides flexible repayment tenures of 18, 24, 36, 48 or 60 months, with interest rates starting from 0.54 per cent per month. — Bernama