In the dynamic business landscape, securing financing is a critical step for the growth and sustainability of Small and Medium Enterprises (SMEs) and Mid-Size Companies (MSCs). Recognizing this need, the Government Guarantee Scheme MADANI (GGSM) emerges as a beacon of support, offering a government-backed guarantee to financial institutions for loans provided to businesses across various sectors.
At SBH Financial Consultancy, we understand that every business is unique, with its own set of challenges and opportunities. Our mission is twofold: to educate our clients on the financial avenues available to them and to provide bespoke consultancy services that align with their specific needs. With a deep understanding of GGSM and a plethora of financial products at our disposal, we are well-equipped to assist businesses in leveraging these opportunities to their fullest potential.
Our approach is rooted in transparency, education, and personalized service. We believe in the power of informed decision-making and are dedicated to ensuring that all our consultations and processes are straightforward, official, and documented in black and white. By choosing SBH Financial Consultancy, you’re not just gaining access to financial resources; you’re empowering yourself with knowledge and forging a path toward financial growth and stability. Let us guide you through the benefits of the Government Guarantee Scheme MADANI and show you how our expertise can make a difference in your financial journey.
What’s the objective of GGSM?
The objective of the Government Guarantee Scheme MADANI (GGSM) is primarily to enhance access to financing for small and medium-sized enterprises (SMEs) and other eligible businesses within Malaysia. The scheme aims to support these businesses by providing government guarantees on loans, thereby reducing the risk for lenders and encouraging them to extend credit to SMEs that might otherwise be deemed too risky or lack sufficient collateral.
By mitigating the risk for financial institutions, GGSM facilitates easier and more affordable access to capital for businesses, enabling them to invest in growth, innovation, and sustainability. This, in turn, contributes to the overall economic development and stability of the country by supporting the SME sector, which is often considered the backbone of the economy due to its significant role in generating employment, fostering innovation, and driving economic growth.
Features & Benefits
In the dynamic business landscape, securing financing is a critical step for the growth and sustainability of Small and Medium Enterprises (SMEs) and Mid-Size Companies (MSCs). Recognizing this need, the Government Guarantee Scheme MADANI (GGSM) emerges as a beacon of support, offering a government-backed guarantee to financial institutions for loans provided to businesses across various sectors.
At SBH Financial Consultancy, we understand that every business is unique, with its own set of challenges and opportunities. Our mission is twofold: to educate our clients on the financial avenues available to them and to provide bespoke consultancy services that align with their specific needs. With a deep understanding of GGSM and a plethora of financial products at our disposal, we are well-equipped to assist businesses in leveraging these opportunities to their fullest potential.
Our approach is rooted in transparency, education, and personalized service. We believe in the power of informed decision-making and are dedicated to ensuring that all our consultations and processes are straightforward, official, and documented in black and white. By choosing SBH Financial Consultancy, you’re not just gaining access to financial resources; you’re empowering yourself with knowledge and forging a path toward financial growth and stability. Let us guide you through the benefits of the Government Guarantee Scheme MADANI and show you how our expertise can make a difference in your financial journey.
What’s the objective of GGSM?
The objective of the Government Guarantee Scheme MADANI (GGSM) is primarily to enhance access to financing for small and medium-sized enterprises (SMEs) and other eligible businesses within Malaysia. The scheme aims to support these businesses by providing government guarantees on loans, thereby reducing the risk for lenders and encouraging them to extend credit to SMEs that might otherwise be deemed too risky or lack sufficient collateral.
By mitigating the risk for financial institutions, GGSM facilitates easier and more affordable access to capital for businesses, enabling them to invest in growth, innovation, and sustainability. This, in turn, contributes to the overall economic development and stability of the country by supporting the SME sector, which is often considered the backbone of the economy due to its significant role in generating employment, fostering innovation, and driving economic growth.
Features & Benefits
Objective
Government Guarantee Scheme MADANI (GGSM) provides financing to eligible Malaysian SMEs and MSCs for all economic sectors with a focus on:
- High Technology;
- Agriculture;
- Manufacturing; and
- Tourism
Loan/Financing Purpose
For new loan/refinancing only:
- Working capital; or
- Capital Expenditure (CAPEX).
How GGSM Benefits You?
Financial Security
The GGSM serves as an essential safeguard for small and medium-sized enterprises (SMEs) as they navigate through the challenges of the marketplace. By providing loan guarantees, GGSM lowers the financial risks businesses face, empowering them to confidently implement growth initiatives. Its impact is evident in its contribution to decreasing the likelihood of loan defaults and in strengthening the resilience of businesses.
Access to Capital
Securing funding is a formidable challenge for many businesses, particularly startups and SMEs. GGSM facilitates access to necessary finances by supporting loan applications, thereby making it more feasible for these businesses to acquire the financial backing they need. There are numerous success stories of businesses that have thrived due to the financial boost provided by GGSM, underscoring its vital role in fostering business expansion and long-term viability.
Enhanced Credibility
Being associated with GGSM does more than just aid in obtaining finances; it also enhances a business’s standing with lenders, investors, and partners. This improved reputation can result in more advantageous borrowing conditions and a more robust position when negotiating business agreements.
GGSM cannot be used to refinance existing facilities granted by the same or other Financial Institutions.
Loan/Financing Rate
Not exceeding Base Loan Rate (BLR)/Base Financing Rate (BFR) + 2.0% per annum
Guarantee Tenure
Up to 10 years or until 31 December 2035, whichever is earlier.
Application Period
Application are open until 31 December 2024 or until full utilisation of the funds, whichever is earlier.
Loan/Financing Limit
Up to RM30 million per company for the following four (4) sectors:
- High Technology;
- Agriculture;
- Manufacturing; and
- Tourism
Up to RM20 million per company for all other sectors.
Guarantee Coverage
1. Up to 90% for the four (4) sectors (capped at RM10 million per company).
2. Up to 80% for all other sectors
Collateral
No collateral required.
The Role of SBH Financial Consultancy
Navigating the complexities of loan applications can be daunting for businesses. This is where SBH Financial Consultancy comes into play, offering a guiding hand through the entire process. From collecting detailed financing information and necessary documentation to assessing eligibility and financial health, SBH ensures that businesses are not only prepared but positioned optimally for their GGSM application. The consultancy’s role extends to devising personalized financial consolidation plans, underscoring its commitment to tailoring solutions that resonate with each business’s unique needs and objectives.
Frequently Asked Questions (FAQs)
GGSM prioritizes High Technology, Agriculture, Manufacturing, and Tourism due to their significant contribution to economic diversification and growth.
The coverage is up to 90% for the four focus sectors, capped at RM10 million per company, and up to 80% for other sectors.
Businesses must be majority-owned by Malaysian Citizens, with an annual revenue not exceeding RM500 million, and registered under Malaysian law.
No, GGSM financing is specifically intended for Working Capital and CAPEX, excluding the refinancing of existing loans.
SBH assists by collecting financial details, assessing eligibility, and providing a personalized plan to navigate the application process successfully.
The Government Guarantee Scheme MADANI (GGSM) presents a golden opportunity for SMEs and MSCs to secure the financial support necessary for growth and expansion. With the backing of SBH Financial Consultancy, businesses can navigate the application process with confidence and clarity. We invite you to leverage our expertise and personalized approach to unlock the potential benefits of GGSM for your business. Reach out to SBH Financial Consultancy today and take a significant step towards securing your business’s financial future. Together, let’s turn possibilities into realities.
