Government Guarantee Scheme

1. Who can apply for the WCGS and IRFGS?

Companies from all economic sectors, incorporated under the Companies Act 1965 with at least 51% shareholding by Malaysians, can apply for the Industry Restructuring Financing Guarantee Scheme (IRFGS).

For the Working Capital Guarantee Scheme (WCGS) companies from all economic sectors, incorporated under the Companies Act 1965 with at least 51% shareholding by Malaysians are eligible. The company's Shareholders' Fund should also not exceed RM20 million.

Terms and Conditions apply for both schemes.

2. Can companies registered as sole proprietorships or partnerships apply for the WCGS and IRFGS?

Sole proprietorships and partnerships are not eligible for the WCGS and IRFGS. However, they may apply for SME Assistance Guarantee Scheme (SAGS).

3. Where can I apply for the new schemes?

If your business is incorporated as a Sdn Bhd, you can apply through any Maybank Business Center nearest to your business premises. If your business is a sole proprietorship or a partnership, you can apply at any of your nearest Maybank Sales & Service Centers (branches).

4. How can I apply for the new schemes? Is there a form that I need to submit?

You can apply for the schemes at any Maybank Business Center or Sales & Service Center. No specific application form is needed.

5. What are the documents that I need to submit to apply for the new scheme?

You need to submit the standard documents for loan processing, which include:

• Last 3 years' audited accounts and latest management account if your financial year closing is more than 6 months ago
• Certificate of Incorporation/Business Registration Form and Operating License
• M & A / Partnership Deed
• Latest Form 24 (returns on Allotment of Shares)
• Latest Form 49 (returns of Particulars of Directors)
• Company's organizational structure
• Resume of directors, partners and key management personnel
• Income statements of directors (last 2 years)
• Other documents which may be needed for bank's credit assessment

6. What is the difference between WCGS and IRFGS?

The Working Capital Guarantee Scheme (WCGS) is for viable companies with shareholder equity below RM20 million for financing working capital requirements. The Industry Restructuring Financing Guarantee Scheme (IRFGS) meanwhile is for viable companies to finance investments in high value added activities (such as research & development and downstream agricultural activities), and to increase productivity and greater application of green technology.

7. What is the amount of financing that I can apply for under the new schemes?

The minimum amount of financing is RM50,000 for both schemes. The maximum amount meanwhile is RM10 million for the Working Capital Guarantee Scheme (WCGS) and RM50 million for the Industry Restructuring Financing Guarantee Scheme (IRFGS).

8. What are the benefits of WCGS and IRFGS?

The Government provides an 80% guarantee of the financing limit, and the schemes are available to companies from all economic sectors.

9. If I have existing facilities, can I apply for the new scheme?

Yes. However, you may apply for additional financing only. Refinancing of your existing facilities is not allowed.

10. Can I refinance my existing loan under the new scheme?

No. Refinancing of existing facilities is not allowed.

11. What is the financing tenure of the scheme?

The financing tenure for the Working Capital Guarantee Scheme (WCGS) is up to 5 years and the tenure for the Industry Restructuring Financing Guarantee Scheme (IRFGS) is up to 10 years.

12. How long will the schemes be available?

The schemes are available until 31 December 2010, or until the funds (RM5 billion for each scheme) are fully utilised, whichever comes first

13. How much is the financing guarantee cover?

For the Working Capital Guarantee Scheme (WCGS), the financing guarantee cover is 80% of the financing limit. The financing guarantee cover for the Industry Restructuring Financing Guarantee Scheme (IRFGS) meanwhile is as follows:

14. Does the Government Guarantee Scheme (GGS) offer an Islamic Financing option?

Yes, the Government Guarantee Scheme (GGS) will offer both Conventional and Islamic financing options.

15. What is the financing rate of both schemes?

Both financing schemes are funded by individual commercial banks. As such, the financing rate for conventional financing will be set at the Bank's Base Lending Rate plus a spread. For the Islamic option, the profit rate will be set at the Base Financing Rate plus a spread.

Rates for the utilisation of trade line facilities will be at the current rates approved by the Association of Banks in Malaysia.

16. Since the Government will guarantee my company's financing, does this mean that the Bank will not institute legal proceedings against my company for failure to service the financing/ loan?

No. The Borrower will at all times be held responsible for servicing the financing facility/ loan. The Bank will institute legal proceedings against the Borrower in the event of facility default.

17. Can the IRLGS be used to finance property purchase as ‘investment’?

Property purchase does not fall under the category of investment. The IRFGS is only meant for capital expenditure financing/investments for companies to invest in High Technology, High Productivity and Green Technology. It is not for working capital or refinancing of existing capital expenditure facilities.

18. Can the WCGS be utilised to finance business operations overseas?

The WCGS is for local business operations only.

19. Who can I refer to for additional information?

Please contact the following:

• Hotline 03-2074 8199 or our Customer Care hotline at 1-300-88 6688
• Maybank Business Centers or Maybank Islamic Branches nearest to you 
• Maybank websites - Maybank2u.com & Maybank2e.net

20. What is the difference between the existing Government Aided Loan Schemes (GALS) and the new WCGS and IRFGS schemes?

GALS comprises of various schemes with guarantee cover provided by the Credit Guarantee Corporation (CGC) to all SME customers. WCGS and IRFGS are schemes with guarantee cover provided by the Government made available to all Malaysian-based companies (shareholding of at least 51%) incorporated under the Companies Act 1965. All applicants must meet the eligibility criteria stipulated under each scheme. 

21. What is the difference between BNM funds (FSMI2 and NEF2) and the new WCGS and IRFG schemes?

FSMI2 and NEF2 are funded by Bank Negara Malaysia and the financing rate is determined by BNM. FSMI2 and NEF2 are strictly for SMEs. WCGS and IRFGS are funded by banks and the financing rate is determined by respective banks independently. Both schemes are open to all Malaysian-owned companies (with shareholding of at least 51%) incorporated under the Companies Act 1965.