The Working Capital Guarantee Scheme (WCGS) is established by the Malaysian Government to enable Small and Medium Enterprise (SMEs) companies in all sectors to continue gaining access to working capital financing facilities from financial institutions ("FI") to spur further economic growth for the country.

WCGS Scheme amounting to RM2 billion is an extension of the previous WCGS where the tenure of guarantee had expired on 31 December 2015. 


The purpose of the financing is for working capital and capital expenses (CAPEX) purposes only and should not be applied for the purposes of refinancing of existing facilities granted by the same or other participating FIs.


WCGS provides working capital financing to viable SME companies with shareholders equity less than RM20.0 million and incorporated under the Companies Act 1965 with at least 51% shares held by Malaysian.

The FI will provide the financing facilities and the Malaysian Government will provide a 70% guarantee of the said financing facilities. It is strictly for local operations only.

The maximum financing limit per company is RM5.0 million whereas the minimum financing limit is RM100,000. The financing tenure is five (5) years or until 31 December 2020, whichever is earlier.


The application for SSGS will commence from 1 January 2016 until 31 December 2018 or until the allocated RM2 billion is fully utilised, whichever is earlier.

The guarantee fee of 1.0% per annum is payable upfront upon approval. The interest rate will be determined by the FIs that provide the financing.

The Syarikat Jaminaan Pembiayaan Perniagaan (SJPP) will issue the guarantee cover within 10 business days from receipt of the guarantee application from the participating FIs. 

SJPP is a company wholly owned by the Minister of Finance Inc. SJPP's role is to administer and manage two guarantee schemes namely the Working Capital Guarantee Scheme ("WCGS") and Industry Restructuring Financing Guarantee Scheme ("IRFGS"). The IRFGS application has been closed as the approval has reached the RM3 billion threshold.

However, for WCGS application, there were only 288 approved cases amounted to RM4 million as at 20 November 2016. There are still RM16 million allocation available for application.

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