SJPP launches RM2 billion special govt guarantee scheme for SMEs
KUALA LUMPUR: Syarikat Jaminan Pembiayaan Perniagaan Bhd ( SJPP) yesterday launched RM2 billion special government guarantee scheme to help the small and medium enterprises (SMEs) leap towards Industry 4.0.
Finance Minister Lim Guan Eng said the RM2 billion was part of a total of RM6.5 billion guarantees allocated in the 2019 budget designed to increase access to financing for the local SMEs for Industry 4.0.
He added that without SMEs which are familiar with Industry 4.0 technology, Malaysia would not be able to move forward and would not become the prime investment destination for high technology manufacturing and high valueadded services.
“The RM2 billion guarantee scheme provided by SJPP is designed having in mind that SMEs contributed 37 per cent of the Malaysian gross domestic product last year. That contribution is expected to rise to 41 per cent by 2020,” said Lim in his speech at the launch yesterday.
Under the RM2 billion guarantee scheme, up to 70 per cent of borrowings made by SMEs would be guaranteed by SJPP.
“This programme together with the other RM4.5 billion as announced in the 2019 Budget will improve SMEs access to financing as it encourages banks to take risk. This is important as we find banks are very risk- adverse and generally prefer to lend to large companies as well as those who do not actually need any financing. Through SJPP, we hope to change this and help spur the SMEs sector forward,” he added.
Since its inception in 2009, SJPP had made available a total of RM35 billion guarantees of which RM18 billion has been used up and benefitted 14,000 SMEs nationwide.
“Provision under such guarantees is a cheap method to encourage SME growth. This is especially so when non-performing loan is 0.9 per cent across all SJPP schemes,” said Lim.
He added that currently, 13 banks were actively working to promote guarantee schemes by SJPP. Speaking to reporters later, Lim also said updates on Samurai Bond would be announced next month.
Meanwhile SJPP principle officer Chen Yin Heng said the new government guarantee scheme would also target the bumiputera segment, where 60 per cent of the micro enterprises came from.
“What we want to do is that, now SJPP will open the radar to capture this micro enterprises so that more bumiputera traders will benefit from this SJPP government guarantee scheme,” he added. — Bernama