Budget 2024 Initiatives: Government Guarantees Propel MSMEs and Homebuyers without Fixed Income in Malaysia

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“Discover Malaysia’s Budget 2024 initiatives, supporting MSMEs and homebuyers without fixed income. Government guarantees unlock opportunities.”

KUALA LUMPUR, 5th Feb 2024 – Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Syarikat Jaminan Kredit Perumahan Bhd (SJKP) have commenced receiving applications from financial institutions participating in the government guarantee schemes outlined in Budget 2024. These initiatives aim to support micro, small, and medium enterprises (MSMEs) and first-time homebuyers without fixed income.

The SJPP guarantee is a component of Budget 2024’s objective to extend financing totaling RM44 billion to MSMEs in the current year.

Second Finance Minister Datuk Seri Amir Hamzah Azizan mentioned that SJPP has received authorization to offer guarantees for MSME financing up to RM20 billion. It anticipates guaranteeing up to 90% of the financing for MSMEs, with a focus on those engaged in the green economy, advanced technology, healthcare, and halal businesses.

“SJPP has provided guarantees for over 100,000 MSMEs, with a total disbursement exceeding RM75 billion,” stated Amir Hamzah during the launch of SJPP and SJKP’s guarantee schemes on Monday.

In addition to supporting MSMEs, Amir Hamzah highlighted the government’s commitment to addressing the hurdles encountered by individuals without a stable income in acquiring their first homes. He mentioned that the Madani government has raised the Housing Credit Guarantee Scheme to RM10 billion for 2024, aiming to benefit over 40,000 borrowers.

Amir Hamzah emphasized that the enhanced scheme will provide advantages to specific demographics, encompassing individuals such as fishermen, gig workers, and night market traders. He highlighted that since its inception in 2008, SJKP has successfully granted housing loan guarantees to over 43,000 recipients, amounting to a total financing surpassing RM8.8 billion.

Juanita Rusmini Abdul Jalil, the CEO of Prokhas Sdn Bhd, stated that the government guarantee schemes outlined in Budget 2024 are designed to facilitate MSMEs and first-time homebuyers in securing financing without the concern of having to provide deposits or collateral.

“We anticipate positive transformations through SJPP, enhancing the sophistication and competitiveness of the MSME sector. With SJKP, individuals, regardless of fixed income, can now realize their dream of homeownership, elevating their families’ quality of life,” she remarked. Prokhas, wholly owned by the Minister of Finance Inc, is entrusted with overseeing the daily functions of SJPP and SJKP. In a collective statement, SJPP and SJKP acknowledged the success of these guarantee schemes to collaborative efforts and the dedicated involvement of financial institutions.

“The collaboration not only aids specific groups but also fosters job creation and boosts the nation’s economic growth. SJPP and SJKP consistently work towards maintaining competitive interest rates through partnerships with diverse financial institutions. This benefits MSMEs and individuals seeking their first homes without fixed income. SJKP, providing guarantees surpassing 100% (subject to terms and eligibility), alleviates concerns for first-time homebuyers regarding a 10% deposit requirement,” the statement outlined.

During the launch event on Monday, SJPP recognized the outstanding performance of five financial institutions – Maybank Group, RHB Group, CIMB Group, AmBank Group, and SME Bank Bhd – for their dedication and active involvement in the guarantee schemes.

On the other hand, SJKP presented its Best Performance award to Bank Muamalat, Maybank Group, National Savings Bank, Bank Rakyat, and RHB Islamic Bank Bhd.

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