The Malaysian Government has announced a stimulus package totalling RM60 billion to prevent Malaysia from going into a recession. To ensure that the banking sector is functional and credit is available to businesses, 2 new schemes totalling RM10 billion have been introduced:
- Working Capital Guarantee Scheme (WCGS) - RM5 billion
WCGS is mainly targeted at mid-sized companies requiring working capital financing.
- Industry Restructuring Financing Guarantee Fund Scheme (IRFGS) - RM5 billion
IRLGS is generally for Malaysian Industrial Development Authority (MIDA) targeted sectors i.e. manufacturing and its related services sector.
The Malaysian Government will provide a guarantee of between 50% and 80% of the loan limit.
The schemes are available from 16 March 2009 to 31 December 2010 or until the fund has been fully utilised, whichever comes first.
SME Assistance Guarantee Scheme (SAGS)
There's also good news for SMEs, as the Malaysian Government has introduced the SME Assistance Guarantee Scheme, to ensure viable SMEs have access to financing.
The Credit Guarantee Corporation (CGC) will guarantee 80% of the loan and normal interest, up to the fund size of RM2 billion.
Click here for more information on Government Aided Loans.
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