Budget 2024 special govt guarantee schemes start receiving applications for MSMEs, first-time homebuyers without regular income

• Second Finance Minister Datuk Seri Amir Hamzah Azizan said SJPP has given approval to provide guarantees for MSME financing up to RM20 billion and is expected to guarantee up to 90% of the financing for MSMEs, particularly those involved in the green economy, advanced technology, healthcare and halal businesses.

KUALA LUMPUR (March 4): Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Syarikat Jaminan Kredit Perumahan Bhd (SJKP) have started accepting applications from financial institutions which offer special government guarantee schemes announced in Budget 2024, to assist micro, small, and medium enterprises (MSMEs) and first-time homebuyers who do not earn fixed income.

The SJPP guarantee is part of Budget 2024’s aim to provide financing worth RM44 billion to MSMEs this year.

Second Finance Minister Datuk Seri Amir Hamzah Azizan said SJPP has given approval to provide guarantees for MSME financing up to RM20 billion and is expected to guarantee up to 90% of the financing for MSMEs, particularly those involved in the green economy, advanced technology, healthcare and halal businesses.

“So far, SJPP has guaranteed more than 100,000 MSMEs with a total disbursement exceeding RM75 billion," said Amir Hamzah in his speech at the launching ceremony of SJPP and SJKP’s guarantee schemes on Monday.

Apart from MSMEs, Amir Hamzah said the government is also attentive to the challenges faced by people without a fixed income for purchasing their first home.

“Therefore, the Madani government has increased the Housing Credit Guarantee Scheme to RM10 billion for the year 2024, which will benefit more than 40,000 borrowers," he said.

Amir Hamzah said this scheme will benefit targeted groups from various backgrounds including fishermen, gig workers, and night market traders.

“Since its establishment in 2008, SJKP has managed to disburse housing loan guarantees to more than 43,000 recipients with total financing exceeding RM8.8 billion," he said.

Prokhas Sdn Bhd acting chief executive officer Juanita Rusmini Abdul Jalil said all the government guarantee schemes announced in Budget 2024 will help MSMEs and first-time homebuyers to obtain financing without the need to think about deposits or collateral.

“Through SJPP, we hope to see changes, on top of driving the MSME sector to become more sophisticated and competitive. Through SJKP, more people with or without fixed income now have the opportunity to own their first homes, improving the quality of life for their families,” she said.

Prokhas, a company that is wholly owned by the Minister of Finance Inc, is appointed to manage the day-to-day operations of SJPP and SJKP.

In a joint statement on Monday, SJPP and SJKP attributed the fruition of these guarantee schemes to collaborations and commitment from financial institutions’ active participation.

“Such cooperation is not only assisting the target groups but is also contributing to more job opportunities and to the country's economic growth rate.

“SJPP and SJKP always strive to maintain the low and competitive interest rates by working with various financial institutions for the benefit of MSMEs and first-time homebuyers who do not earn fixed income. With a guarantee exceeding 100% given by SJKP (subject to terms and eligibility criteria), first-time homebuyers no longer need to worry about providing a 10% deposit for the purchase of their homes,” the statement read.

At the launching ceremony on Monday, SJPP awarded Best Performance to five financial institutions — Maybank Group, RHB Group, CIMB Group, AmBank Group and SME Bank Bhd — for their commitment and active participation in these guarantee schemes.

SJKP, meanwhile, awarded its Best Performance award to Bank Muamalat, Maybank Group, National Savings Bank, Bank Rakyat, and RHB Islamic Bank Bhd.

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