Green Technology Financing Scheme (GTFS) & Green Technology Financing Scheme Islamic (GTFS - i) for Producer

Introduction

Scheme Statistics
Total Applications Approved Total Amount Approved (RM)
294 RM 3,159,342,027.00
Fund Balance:
RM 340,657,973.00
21 November 2017

The Green Technology Financing Scheme (GTFS) was established by the Government to promote investments in green technology, a sector that is envisaged to be one of the emerging drivers of economic growth for our country.

This is a national initiative aimed at achieving a sustainable environment. The Participating Financial Institutions’ (PFIs) role is critical in ensuring the success of the GTFS, which entails the financing of companies that supply and utilise green technology.

Investment Criteria

Investment in Green Technology refers to products, equipment, or systems which satisfy the following:-

  • Minimises the degradation of the environment;
  • Has zero or low green house gas (GHG) emission;
  • Safe for use and promotes healthy and improved environment for all forms of life;
  • Conserves the use of energy and natural resources; or
  • Promotes the use of renewable resources.

Description

Description Green Technology Financing Scheme (GTFS) &
Green Technology Financing Scheme Islamic (GTFS – i)
for Producer
Purpose To finance investments in the production of green technologies that meets the scheme objective
Eligibility Criteria Legally registered Malaysian-owned companies (at least 51%) in all economic sectors
Financing Limit Maximum: RM100 million (per company)
Financing Tenure Up to 15 years

Eligible Facilities

All types of financing facilities under Islamic and Conventional financing

Guarantee Fee

  • 0.5% per annum on the guarantee cover

Interest / Financing Rates

  • Determined by Participating Financial Institutions (PFIs)

Guarantee Coverage

  • 60% of approved financing amount

Government Incentives

  • 2% profit subsidy on green component financing amount and
  • 60% guarantee cover on total financing amount of green components

Participating Financial Institutions

  • All commercial and Islamic banks
  • All Development Financial Institutions (Bank Pembangunan, SME Development Bank, Agrobank, Bank Rakyat, EXIM Bank and Bank Simpanan Nasional)
  • Malaysia Debt Ventures Berhad (MDV). MDV is however limited to a maximum financing amount of RM800 million

Implementation Agency

Malaysian Green Technology Corporation and Credit Guarantee Corporation Malaysia Berhad

Application Procedure

  • Companies are to submit request for technical audit to Malaysian Green Technology Corporation. Upon passing the technical audit, companies may proceed to forward the application for financing to any PFIs.
  • Upon approval, PFIs shall apply for guarantee to CGC directly.

Application Deadline

This scheme is available from 1st January 2010 until 31st December 2017 or upon approval of financing up to RM3.5 billion, whichever is earlier.

* For technical information on GTFS, please contact:

Malaysian Green Technology Corporation (GreenTech Malaysia)
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi
Selangor Darul Ehsan

Hotline: 1 800 88 4837
Faks: 03-8921 0801/0802
E-mel: feedback@gtfs.my
Laman web: www.gtfs.my


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Flexi Guarantee Scheme (FGS)

Objective

Flexi Guarantee Scheme (FGS) provides guarantee for financing granted under BNM’s Funds for SME-All Economic Sectors (other than SMEs in the Primary Agriculture Sector and Micro Enterprises)

The funds are designed to facilitate greater access to financing for viable Malaysian Small and Medium Enterprises (SMEs).

Main Characteristic

Among the main characteristics of the FGS are:

  • Guarantee cover ranging from 30% – 80% as required by participating financial institutions.
    • Annual guarantee fee, calculated based on the guarantee cover issued and payable in advance. Fees will be borne by the participating financial institutions.
    • Secured Portion     :-Between 0.50% and 1.85% per annum.
    • Unsecured Portion :-Between 0.80% and 2.15% per annum.

i) Payment of Guarantee Fee.

  • New Letter of Guarantee (LG) – Payable upon request for LG by Financial Institution (FI).
  • Anniversary LG – Payable on or before LG anniversary date.

ii) Refund of Guarantee Fee

  • Refund of guarantee fee will be pro-rated on a monthly basis. The utilised period is calculated from the month of LG/Anniversary LG until the month of cancellation/amendment.
  • The refund of guarantee fee on a pro-rated basis is applicable for LGs that are cancelled or amended by CGC commencing 2nd Jan 2013 onwards.

Application Procedures

The financing application is made through any participating financial institutions. Approval will be subjected to normal vetting procedures and security requirements of the participating financial institutions.

SME-All Economic Sectors

Purpose of Financing

  • Capital expenditures; or/and
  • Working capital

Financing should not be used for:

  • Purchase of shares;
  • Refinancing of existing credit/financing facilities;
  • Purchase of land/real estate investment;
  • Property development;
  • Investment by investment holding companies;
  • Activities where the stock in trade is money (including credit, leasing, factoring and insurance businesses);
  • Gambling, alcohol, tobacco or other similar type of activities and products; and
  • Non-Shari’ah-compliant business activities (applicable for Islamic financing).

Eligibility Criteria

  • Must fall within the definition of SMEs (for details, please click here)
  • Business is registered with the Companies Commission of Malaysia (SSM); or authorities/district offices in Sabah and Sarawak; or statutory bodies for professional service providers;
  • Shareholder’s fund do not exceed RM5 million;
  • Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%;
  • Malaysians residing in Malaysia hold a minimum of 51% shareholding in the SMEs.

Eligible Sectors : All economic sectors (other than SMEs in the Primary Agriculture Sector and Micro Enterprises)
Maximum Financing Rate : 6.00% to 8.00% per annum
Maximum Tenure : Up to 5 years
Minimum Financing  : No minimum amount
Maximum Financing : RM5 million

Participating Financial Institutions (PFIs)

Applicable to all PFIs defined as follows:-

  • All licensed banks under the Financial Services Act 2013 (FSA);
  • All licensed Islamic banks under the Islamic Financial Services Act 2013 (IFSA);
  • All prescribed development financial institutions under the Development Financial Institutions Act 2002 (DFIA)

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Franchise Financing Scheme (FFS)

Eligibility Criteria

All Malaysian owned and controlled companies with net assets or shareholders’ funds not exceeding RM1.5 million.

Must fall within the definition of SMEs ( for details, please click here )

The existing total credit facilities of the borrower should not exceed RM7.5 million. The borrower should not have any adverse record in respect of borrowing from any other financial institution or other agencies.

Maximum Loan Limit

RM7.5 million

Credit Facilities Covered

  • Term Loans
  • Overdrafts
  • Trade Financing
  • Any other credit facilities determined from time to time by the Corporation.

Interest Rate

The prescribed rate of interest charged by the Financial Institutions will not exceed BLR +1.5%, while the actual cost to the borrower will be reduced through payment of subsidised interest whereby Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) via CGC will pay the difference for the loan interest in the manner as follows:

Loan Duration Interest Rate Subsidised rate
Year 1 & 2 BLR + 1.5% 6%
Year 3 BLR + 1.5% 4%
Year 4 BLR + 1.5% 2%
Year 5 BLR + 1.5%

Guarantee Coverage

Percentage of Guarantee Cover
Unsecured portion will be covered 80% and 90% on the secured portion.

Guarantee Fee

Total credit facilities Unsecured Portion Secured Portion
Loans up to RM1 million 0.75% 0.50%
Loans above RM1 million 1.00% 0.50%

  1. Payment of Guarantee Fee
    • New Letter of Guarantee (LG) – Payable upon request for LG by Financial Institution (FI).
    • Anniversary LG – Payable on or before LG anniversary date.
  2. Refund of Guarantee Fee
    • Refund of guarantee fee will be pro rated on monthly basis. The utilized period is calculated from the month of LG/Anniversary LG until the month of cancellation/amendment.
    • The refund of guarantee fee on pro rated basis is applicable for LGs that are cancelled or amended by CGC commencing 2nd Jan 2013 onwards.

Participating Institutions

  • Maybank
  • CIMB Bank

Application Procedures

  • The Franchisor must be registered with MDTCC before the Franchisees can apply through this scheme.
  • MDTCC will ensure the validity of the franschisor and legal relationship between franchisor and franchisee.
  • MDTCC will compile the complete loan application together with working paper and forward it to financial institution to proceed.
  • Upon receipt of the guarantee application from financial institution, CGC will process and issue the guarantee letter accordingly.

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Green Technology Financing Scheme (GTFS) & Green Technology Financing Scheme Islamic (GTFS - i) for User

Introduction

Scheme Statistics
Total Applications Approved Total Amount Approved (RM)
294 RM 3,159,342,027.00
Fund Balance:
RM 340,657,973.00
21 November 2017

The Green Technology Financing Scheme (GTFS) was established by the Government to promote investments in green technology, a sector that is envisaged to be one of the emerging drivers of economic growth for our country..

This is a national initiative aimed at achieving a sustainable environment. The Participating Financial Institutions’ (PFIs) role is critical in ensuring the success of the GTFS, which entails the financing of companies that supply and utilise green technology.

Investment Criteria

Investment in Green Technology refers to products, equipment, or systems which satisfy the following:-

  • Minimises the degradation of the environment
  • Has zero or low green house gas (GHG) emission;
  • Safe for use and promotes healthy and improved environment for all forms of life;
  • Conserves the use of energy and natural resources; or
  • Promotes the use of renewable resources.

Description

Description Green Technology Financing Scheme (GTFS) &
Green Technology Financing Scheme Islamic (GTFS – i)
for User
Purpose To finance investments in the utilisation of green technologies that meets the scheme objective
Eligibility Criteria Legally registered Malaysian-owned companies (at least 70%) in all economic sectors.
Financing Limit Maximum: RM10 million (per company)
Financing Tenure Up to 10 years

Eligible Facilities

All types of financing facilities under Islamic and Conventional financing

Guarantee Fee

  • 0.5% per annum on the guarantee cover.

Interest / Financing Rates

  • Determined by Participating Financial Institutions (PFIs)

Government Incentives

  • 2% profit subsidy on green component financing amount and
  • 60% guarantee cover on total financing amount of green components

Participating Financial Institutions

  • All commercial and Islamic banks
  • All Development Financial Institutions (Bank Pembangunan, SME Bank, Agrobank, Bank Rakyat, EXIM Bank and Bank Simpanan Nasional)
  • Malaysia Debt Venture Berhad (MDV). MDV is however limited to a maximum financing amount of RM200 million.

Implementation Agency

Malaysian Green Technology Corporation and Credit Guarantee Corporation Malaysia Berhad.

Application Procedure

  • Companies are to submit request for technical audit to Malaysian Green Technology Corporation. Upon passing the technical audit, companies may proceed to forward the application for financing to any PFIs.
  • Upon approval, PFIs shall apply for guarantee to CGC directly.

Application Deadline

This scheme is available from 1st January 2010 until 31st December 2017 or upon approval of financing up to RM3.5 billion, whichever is earlier.

* For technical information on GTFS, please contact:

Malaysian Green Technology Corporation (GreenTech Malaysia)
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi
Selangor Darul Ehsan

Hotline: 1 800 88 4837
Faks: 03-8921 0801/0802
E-mel: feedback@gtfs.my
Laman web: www.gtfs.my


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Intellectual Property Financing Scheme (IPFS) & Intellectual Property Financing Scheme (IPFS-i)

Introduction

The Intellectual Property Financing Scheme (IPFS) is a Government backed scheme aims to inculcate innovation and increase productivity by availing financing to companies that own legal and beneficial Intellectual Property Right (“IPR”). This Scheme will enable the companies with IPR to use their IPR as an additional source of collateral to obtain funding and spur more investments with high technology capabilities.

Eligibility Criteria

  • Private Limited Company (Sdn Bhd) or Public Company (Bhd) duly incorporated in Malaysia and registered with Companies Commission of Malaysia
  • The Companies shall have minimum principal local equity participation of 51%
  • The Companies must have the legal and beneficial IPR, where the IPR shall be registered, or notified for Copyrights, with the Perbadanan Harta Intelek Malaysia (MyIPO).

Purpose of Financing

  • Working capital;
  • Asset acquisition; or
  • Expansion or upgrading of business

Financing Tenure

Up to 5 years

*A moratorium may be granted up to 12 months and must be within the 5 years, where the companies will service the profit/interest

Financing Amount

Up to RM10 million or 80% of the IPR collateral value, whichever is lower (based on company)

Guarantee Cover

50% on the approved financing

Administration Fee

0.5% on the guarantee cover

Interest/Financing Rate

Determine by Financing Provider

Financing Provider

Malaysia Debt Ventures Berhad

Application Procedures

  • Companies are to submit their applications to Financing Provider after securing a valuation for its IPR or concurrently with the submission for valuation for its IPR.
  • Upon approval, financing provider shall apply for guarantee to CGC.

Application Deadline

This scheme is available from 1st January 2013 and shall end on 31st December 2017 or upon reaching the maximum financing amount of RM200 million, whichever is earlier.


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Green Technology Financing Scheme (GTFS) & Green Technology Financing Scheme Islamic (GTFS - i) for User

Introduction

Scheme Statistics
Total Applications Approved Total Amount Approved (RM)
294 RM 3,159,342,027.00
Fund Balance:
RM 340,657,973.00
21 November 2017

The Green Technology Financing Scheme (GTFS) was established by the Government to promote investments in green technology, a sector that is envisaged to be one of the emerging drivers of economic growth for our country.

This is a national initiative aimed at achieving a sustainable environment. The Participating Financial Institutions’ (PFIs) role is critical in ensuring the success of the GTFS, which entails the financing of companies that supply and utilise green technology.

Investment Criteria

Investment in Green Technology refers to products, equipment, or systems which satisfy the following:-

  • Minimises the degradation of the environment
  • Has zero or low green house gas (GHG) emission;
  • Safe for use and promotes healthy and improved environment for all forms of life;
  • Conserves the use of energy and natural resources; or
  • Promotes the use of renewable resources.

Description

Description Green Technology Financing Scheme (GTFS) &
Green Technology Financing Scheme Islamic (GTFS – i)
for User
Purpose To finance investments in the utilisation of green technologies that meets the scheme objective
Eligibility Criteria Legally registered Malaysian-owned companies (at least 70%) in all economic sectors.
Financing Limit Maximum: RM10 million (per company)
Financing Tenure Up to 10 years

Eligible Facilities

All types of financing facilities under Islamic and Conventional financing

Guarantee Fee

  • 0.5% per annum on the guarantee cover.

Interest / Financing Rates

  • Determined by Participating Financial Institutions (PFIs)

Government Incentives

  • 2% profit subsidy on green component financing amount and
  • 60% guarantee cover on total financing amount of green components

Participating Financial Institutions

  • All commercial and Islamic banks
  • All Development Financial Institutions (Bank Pembangunan, SME Bank, Agrobank, Bank Rakyat, EXIM Bank and Bank Simpanan Nasional)
  • Malaysia Debt Venture Berhad (MDV). MDV is however limited to a maximum financing amount of RM200 million.

Implementation Agency

Malaysian Green Technology Corporation and Credit Guarantee Corporation Malaysia Berhad.

Application Procedure

  • Companies are to submit request for technical audit to Malaysian Green Technology Corporation. Upon passing the technical audit, companies may proceed to forward the application for financing to any PFIs.
  • Upon approval, PFIs shall apply for guarantee to CGC directly.

Application Deadline

This scheme is available from 1st January 2010 until 31st December 2017 or upon approval of financing up to RM3.5 billion, whichever is earlier.

* For technical information on GTFS, please contact:

Malaysian Green Technology Corporation (GreenTech Malaysia)
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9
43650 Bandar Baru Bangi
Selangor Darul Ehsan

Hotline: 1 800 88 4837
Faks: 03-8921 0801/0802
E-mel: feedback@gtfs.my
Laman web: www.gtfs.my


Leave your contact details here and we will get back to you.

Your Name:

Email:

Contact Number:

Enquiry: