We map the key financing routes for 2025 so you can pursue credit with confidence. SJPP, owned by the Ministry of Finance Incorporated, offers government guarantee schemes that reduce collateral barriers and ease lender concerns.
Our focus is practical. We show how GGSM2, PENJANA Tourism Financing (PTF), and the Bus and Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) fit different business needs. These programs work through participating financial institutions and credit leasing companies.
This section highlights where each pathway helps — from working capital to equipment and recovery in tourism and transport. We explain how a guarantee bridges gaps when lenders hesitate due to limited collateral or thin credit history.
For direct queries, SJPP can be reached at +603 2096 5000 or via their corporate address at Level 12, Bangunan Setia 1, 15 Lorong Dungun, Bukit Damansara, 50490 Kuala Lumpur. Visit www.sjpp.com.my to start your application process.
Key Takeaways
- We identify GGSM2, PTF, and BTHPRS as priority financing channels for 2025.
- SJPP guarantees reduce collateral needs and improve approval odds for companies and smes.
- Guarantees help secure credit for working capital, equipment, and sector recovery.
- Applications flow through participating banks and credit leasing firms for faster processing.
- Prepare strong documents and projections to align with guarantee assessment criteria.
Government-backed financing in 2025: What Malaysian SMEs need to know today
We map the key guarantee routes that reduce lender risk and unlock financing for growing firms.
Why guarantees matter when collateral and credit are a challenge
A guarantee shifts part of lender loss exposure, making approvals possible even with thin credit histories.
This risk-sharing lets businesses secure working capital and capital purchases while preserving cash. Lenders evaluate guarantee percentages alongside your financials and sector dynamics to set the right tenor and pricing.
Key 2025 programs at a glance
SJPP highlights three priority tracks open via participating Financial Institutions and Credit Leasing Companies.
- GGSM2 — broad, all-sectors coverage for working capital and capex.
- PENJANA Tourism Financing (PTF) — targeted assistance for tourism-linked enterprises.
- BTHPRS — structured rehabilitation for bus and taxi operators.
| Program | Focus | Use |
|---|---|---|
| GGSM2 | All sectors | Working capital & capital expenditure |
| PTF | Tourism | Recovery and sector-specific capex |
| BTHPRS | Transport (bus/taxi) | Vehicle rehabilitation and structured repayment |
Apply through participating banks or leasing firms; SJPP provides the guarantee layer rather than direct lending. A focused application with clear cash-flow narratives and accurate financials speeds decisions and improves pricing.
Outcome: These guarantee schemes catalyze business and job creation in 2025 by unlocking deferred investment and stabilizing operations under tighter credit conditions.
sme loan malaysia government: schemes, limits, coverage, and fees
This section breaks down scheme limits and pricing so you can size financing with confidence.
SJPP as your bridge to banks
We act as a conduit to participating banks and credit leasing firms, providing a guarantee layer that unlocks working capital and capital expenditure financing when collateral is thin.
Key schemes, limits and coverage
GGSM2 offers all-sectors cover for working capital and capital spending. The WCGS suite targets profiles: Start Up, Bumiputera, Export and Women with limit ranges and higher coverage where appropriate.
ADGS supports technology adoption and digitization with limits up to RM10.0 million and 80% coverage. PEMULIH supports new financing up to RM5 million with tenures to 10 years.
| Scheme | Amount (RM) | Coverage |
|---|---|---|
| WCGS (general) | 100,000–10,000,000 | 70% (fee 1.0% p.a.) |
| WCGS-Start Up | 50,000–500,000 | 70% (fee 0.75% p.a.) |
| WCGS-Bumiputera / Export / Women / ADGS | 100,000–10,000,000* | 80% (fee 0.75% p.a.) |
| PEMULIH | Up to 5,000,000 | 80% new financing (upfront fee 1.0% p.a.) |
Fee update for 2025: most schemes now charge 0.75% p.a. (1.0% for general WCGS). The prior 2% interest/profit rebate has been discontinued—factor this into your cost planning.
Facilities supported include term financing, overdraft/cashline and trade facilities via participating institutions to match your working and capital needs.
Eligibility, application flow, and partnering banks: Your fastest path to approval
We simplify eligibility and the application flow so approvals happen faster and with less friction.
Who can apply
Eligible applicants include SMEs and mid-sized companies with majority local ownership. For PEMULIH, businesses must have ≥51% Malaysian ownership and revenue ≤ RM500 million (FY2019 or later).
Tenure, amount, and collateral
Tenures vary by program: up to 10 years for new PEMULIH financing and a minimum 3 years for restructuring with a 12‑month moratorium. Typical bank facilities offer shorter terms; for example, RHB BizPower provides up to 7 years.
Banks accept property or fixed deposits as collateral and often layer a guarantee to improve credit metrics and pricing.
How to apply
You apply through SJPP’s participating banks or credit leasing companies. The lender underwrites your file and requests the appropriate guarantee to strengthen the credit case.
Bank example and checklist
| Program / Bank | Max Amount | Tenure | Accepted Collateral |
|---|---|---|---|
| PEMULIH | Up to RM5,000,000 | Up to 10 years (new) | Property, FD, other |
| RHB BizPower | Up to RM5,000,000 | Up to 7 years | Property, FD; accepts guarantee |
| Guarantee-backed facility | Varies by scheme | Varies | Reduced collateral need with guarantee |
Application checklist: company registration, latest 3 years audited accounts or tax returns, 6–12 months bank statements, cash‑flow forecast (12–24 months), contracts/POs, valuation/title documents, and ownership confirmations.
Conclusion
Here is a concise roadmap to match your cash needs with the right guarantee-backed facility.
Shortlist the scheme that fits your objective: stabilise working capital, fund capital expenditure, or restructure for liquidity. Align tenor and amount with your cash-flow forecast and expected receipts over the next years.
Leverage a guarantee where available to improve pricing and approval odds, and engage a bank that accepts applicable coverage—for example, RHB BizPower. Package collateral, including property where relevant, to make the facility bankable.
Confirm all scheme details—limits, coverage, fees, and the discontinued rebate—before committing. Prepare a lender-ready application with airtight financials, credible forecasts, and a clear use-of-proceeds narrative.
We stand ready to help you select the right pathway, prepare your file, and coordinate with your preferred bank to secure timely financing and protect your business growth and creation plans.
FAQ
What government-backed programs are available in 2025 to help businesses access working capital and capital expenditure?
The main programs include the Government Guarantee Scheme MADANI 2 (GGSM2) for broad sector coverage, the Working Capital Guarantee Scheme (WCGS) suite for targeted groups such as Start Ups and Bumiputera firms, the Automation & Digital Guarantee Scheme (ADGS) for technology adoption, PENJANA Tourism Financing and the Bus & Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) for sector relief, plus PEMULIH support for recovery financing. These schemes work with participating banks and credit leasing companies to provide term financing, overdraft/cashline, and trade facilities.
How do government guarantees help when collateral or credit history is limited?
A government guarantee reduces the lender’s credit risk by covering a percentage of the outstanding facility in case of default. That allows banks to approve working capital and capex facilities with lower collateral requirements or for companies with limited credit history. Guarantees typically cover 70–80% of the financed amount, improving access to credit and often enabling longer tenures and larger approved limits.
What are typical financing limits and guarantee coverage ranges for these schemes?
Financing limits vary by scheme, from as little as RM50,000 up to RM10 million for larger capex needs. Guarantee coverage commonly ranges from 70% to 80% depending on the program and borrower profile. Specific caps and percentage coverage depend on the scheme rules and whether the facility is for working capital, trade, or fixed-asset purchase.
What guarantee fees and charges should businesses expect in 2025?
Guarantee fees for most schemes in 2025 generally fall between 0.75% and 1.0% per annum on the guaranteed portion. Prior interest or profit rebate schemes have been discontinued, so businesses should account for the guarantee fee plus the financing margin set by the participating Financial Institution.
Who is eligible to apply for government-guaranteed facilities?
Eligible applicants are businesses and mid-sized companies with majority Malaysian ownership across most sectors. Each scheme may have specific criteria—such as turnover caps, sector focus, or target beneficiary groups (e.g., women entrepreneurs, exporters, or Bumiputera businesses)—so check scheme guidelines and participating bank requirements before applying.
What documents do we need to prepare for an application through participating banks or SJPP?
The typical application checklist includes company registration documents, identity of directors and major shareholders, recent audited financial statements or tax returns, management accounts, a business plan or project proposal for capex or digitalisation, and sector-specific permits where applicable. Banks may request additional forms required by SJPP for guarantee processing.
How long are typical tenures, and is collateral still required for guaranteed facilities?
Tenures depend on facility type—working capital facilities often have shorter tenures, while term financing or asset purchase loans can extend up to 7–10 years, and PEMULIH may allow up to 10 years for larger facilities. Collateral requirements are reduced but not always eliminated; some facilities still require security, while guarantees can substitute for part of collateral depending on lender policy.
Can these guarantee schemes support digital transformation or automation projects?
Yes. The Automation & Digital Guarantee Scheme (ADGS) specifically supports technology adoption and process digitization. It helps businesses obtain financing for software, hardware, implementation services, and related capex by providing guarantees that make banks more willing to fund such projects.
Are there sector-specific schemes for tourism and transport operators?
There are targeted initiatives: PENJANA Tourism Financing focuses on tourism-sector recovery, while the Bus & Taxi Hire Purchase Rehabilitation Scheme (BTHPRS) assists transport operators with restructuring and rehabilitating hire-purchase obligations. These programs tailor limits and tenures to sector needs and often include concessional features to ease repayment pressures.
Which banks participate and can you give a practical example of a banking product that accepts guarantees?
Multiple local banks and credit leasing companies participate through SJPP. For example, RHB’s BizPower SME Business Loan offers financing up to RM5 million with tenures up to seven years and accepts government guarantees to support approval and more favorable terms. Check with your chosen bank for exact product features and eligibility.
How do we apply and what is the usual application flow with SJPP involvement?
Apply through a participating Financial Institution or authorised credit leasing company. The bank assesses creditworthiness and submits guarantee applications to SJPP where required. SJPP evaluates the guarantee request and, if approved, issues the guarantee certificate. Once the guarantee is in place, the bank disburses the facility according to the approved terms. Timelines vary but preparing complete documentation speeds up approval.
Are there fees or upfront costs beyond the guarantee fee that we should budget for?
Budget for application processing fees, legal and valuation fees for secured facilities, early settlement penalties (if applicable), and the lender’s financing margin. Some schemes may also require administrative fees for SJPP processing. Confirm all charges with your participating Financial Institution before signing.
