SJPP Unlocks Nearly RM100 Bln In SME Financing Through 80 Pct Risk Guarantees

KUALA LUMPUR, Oct 13 (Bernama) -- Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) has unlocked nearly RM100 billion in financing for small and medium enterprises (SMEs) by guaranteeing up to 80 per cent of the risks that banks are unwilling to bear.

SJPP, wholly owned by the Minister of Finance (Incorporated), manages and administers various government guarantee schemes to bridge the financing gap faced by SMEs, particularly those lacking sufficient collateral or track records to obtain bank loans.

“SJPP does not lend funds directly. Instead, it gives banks the confidence to say ‘yes’ by guaranteeing part of the risk, providing additional assurance that allows financing to be approved.

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"This simple mechanism has facilitated billions in financing since 2009, benefiting more than 100,000 SMEs; driving business growth, job creation, and supporting Malaysia closer to a high-income economy,” SJPP said in a statement today.

In February of this year, Finance Minister II Datuk Seri Amir Hamzah Azizah announced that the government had allocated RM20 billion in guarantees through the SJPP for financing SMEs. This funding primarily targets sectors such as halal, high technology, environmental, social, and governance (ESG), as well as tourism.

He said that of the total, RM5 billion is specifically set aside for Bumiputera businesses to ensure fairer and more equitable growth opportunities.

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The model mirrors global practices in countries such as Germany, South Korea and Japan, where government-backed guarantees play a crucial role in supporting SME financing and business growth.

Operating under the oversight of the Ministry of Finance and regulated by Bank Negara Malaysia, SJPP said it continues to play a vital role in strengthening Malaysia’s SME ecosystem, particularly amid economic challenges such as the recent United States tariffs on Malaysian imports, Sales and Service Tax expansion, electricity tariff adjustments and fuel subsidy rationalisation.

“With SJPP’s guarantee, Malaysia’s SMEs continue to thrive, proving that behind every successful business, there is government support through various guarantee schemes,” it said.

-- BERNAMA