Our Operations During the Movement Control Order. 
Government Guarantee Scheme

Danajamin PRIHATIN Guarantee Scheme (DPGS)

UPDATED AS OF 11 FEB 2021
Dear Valued Clients and Business Partners,

Danajamin PRIHATIN Guarantee Scheme (“DPGS”) was first introduced by YAB Tan Sri Dato’ Haji Muhyiddin bin Haji Mohd Yassin, Prime Minister of Malaysia as part of the Economic Stimulus Package (“PRIHATIN”) following the unprecedented outbreak of COVID-19.

DPGS was launched to ensure that the Malaysian economy continues to thrive amidst the pandemic. The Government announced this guarantee scheme worth RM50 billion which covers up to 80% of the loan amount for financing working capital requirements.
  • Availability period to apply for the DPGS is extended to 31 December 2021.
  • Minimum financing amount is reduced from RM20 million to RM5 million.
  • Maximum financing amount is increased from RM500 million to RM1 billion.
  • Scope of financing is expanded to cover capital expenditure with a guarantee period of up to 10 years.
  • Collateral/security to be provided for financing application above RM50 million.
  • Companies with less than 50%+1 Malaysian shareholding operating in Malaysia are now eligible to apply provided that Malaysian employees account for at least 75 percent of their workforce.
  • RM3.0 billion has been allocated for corporate companies involved in highly skilled industries such as Oil & Gas and Aerospace.
Available for working capital financing as well as capital expenditure (capex) financing.*
Minimum financing of RM5 million.
There will be a maximum guarantee coverage of RM800 million or 80% of the financing facility. In addition, the maximum guarantee coverage of RM800 million will also be applied on an aggregate exposure basis to a group of companies.
Tenure :
Working capital : 5 years
Capex : 10 years.
Up to RM3.0 billion for companies in high-skilled industries such as oil & gas as well as aerospace.
* Terms and conditions apply. Approved financing application subject to Eligible Financial Institutions and final approval of DPGS Proposal by Danajamin.

Danajamin PRIHATIN Guarantee Scheme (DPGS)
Process Flow

Eligible Companies (EC)​

The guarantee scheme is to support medium to large local businesses (non-SME) by providing an avenue to recuperate and withstand the economic impact of COVID-19. To be eligible for DPGS, corporates and businesses must fulfil the criteria listed below before application:
  • Company is incorporated in Malaysia.
  • Business operation of the company is based in Malaysia.
  • The majority shareholding (50%+1) must be Malaysian.
  • Companies with less than 50% + 1 Malaysian shareholding are also eligible to apply provided at least 75% of the workforce are Malaysian *.
  • Company is able to generate income to service the approved working capital facility.
  • Financially viable Company that has been adversely impacted by Covid-19.
Exclusion:
  • Company under Minister of Finance (Incorporated)
  • Company who is able to obtain funding or financial assistance from its group of companies or any other stimulus programme
All EC can submit their financing application through their preferred EFI.
* Holding / parent of foreign company would be required to provide corporate guarantee on the financing obtained in Malaysia

Eligible Financial Institutions (EFI)

To get you started, here is a list of the current banks (for both Islamic and conventional facilities where applicable) that currently offers DPGS.
  • Affin Bank Bhd
  • Affin Islamic Bank Bhd
  • Affin Hwang Investment Bank Berhad
  • Alliance Bank Malaysia Berhad
  • Alliance Islamic Bank Berhad
  • AmBank (M) Berhad
  • AmBank Islamic Berhad
  • Bangkok Bank Berhad
  • CIMB Bank Berhad
  • CIMB Islamic Bank Bhd
  • Hong Leong Bank Berhad
  • Hong Leong Islamic Bank Berhad
  • Malayan Banking Bhd
  • Maybank Islamic Bhd
  • OCBC Al-Amin Bank Bhd
  • OCBC Bank (Malaysia) Bhd
  • RHB Bank Berhad
  • RHB Islamic Bank Berhad
  • United Overseas Bank (Malaysia) Bhd
This list will be updated as and when additional financial Institutions join the Scheme.

Business Enquiry

If you would like to know more about Danajamin PRIHATIN Guarantee Scheme, fill up the form below:

How to submit

Danajamin PRIHATIN Guarantee Scheme application?

  1. Eligible Companies should approach your preferred EFI to obtain the relevant financing.
  2. If your EFI approves to proceed with your application, your EFI will then submit a DPGS proposal application to SJPP and Danajamin.
  3. The EFI should then submit the DPGS proposal application together with all supporting documents as per the DPGS Master Agreement to both email addresses below:
  4. When submitting your DPGS proposal application to SJPP and Danajamin, the EFI should ensure a full and complete deck is submitted for each eligible company, which includes:

Guarantee Notification Request

Duly completed Guarantee Notification Request* on the Financial Institution’ Letterhead signed by the Bank’s Designated Personnel.

Financing Evaluation Papers

Relevant financing evaluation papers as approved and endorsed by the relevant approving authority of the Bank.

Principal Terms and Condition of the Financing Facility

Approved principal terms and conditions of the Financing Facility proposed to be granted by the Bank to the Customer (PTC).

Checklist Submission

Completed checklist submission which includes:
• The signed submission Checklist form* (click to view check list)
• The EFI’s Full Credit Proposal Paper
• The EFI’s Credit Risk comments
• The EFI’s Final Approval Terms
• The EFI’s approved terms and conditions for the eligible company.
Note: The above is not an exhaustive list and Danajamin reserves the right to request for additional information and documents. Evaluation of the application will not commence until Danajamin is satisfied with the completeness of the information provided.

Letter of Consent to Disclosure of Information

Letter of Consent to Disclosure of Information* – This document is to be signed on Original Eligible Company's Letterhead (EFIs are required to obtain eligible company's sign off on this document prior to submission of DPGS proposal).

Authorised Bank’s Designated Personnel

A list of the authorised Bank’s Designated Personnel* (max. of 5 personnel) who will be signing all documents from the EFI.
Note: (*) These refer to documentation in the Master Agreement.

What to do

after your​ application is approved

What should the EFI do after receiving the approval letter from Danajamin?

Within 14 days business days from the date of the Approval Letter issued by Danajamin, the EFI should accept the Approval Letter and return the accepted Approval Letter to Danajamin.
Note: If the Approval Letter is not accepted and returned within this time the Approval shall lapse and be revoked.

Once the EFI has accepted the Approval Letter, the EFI must send both the Hard Copy and the Scanned Soft Copy as follows:
• Hard Copy: The accepted Approval Letter to Danajamin should be addressed to Head, Credit Administration.
• Scanned Soft Copy: The soft copy of the accepted Approval Letter can be concurrently emailed to djadmin_dpgs@danajamin.com.
Note: After the EFI has accepted the Danajamin’s Approval Letter, the EFI is expected to then issue the EFI’s Letter of Offer to the Eligible Customer in respect of the Approved Financing Facility.

What should the EFI do before drawdown of Approved Financing Facility to Eligible Customer?

At least twelve (12) business Days before the Approved Financing Facility is made available to the Customer, the EFI must submit the complete set of all the following documents to Danajamin:
• EFI’s confirmation to Danajamin (to be submitted in hardcopy addressed to Head, Credit Administration); and
• Scanned softcopies of all executed, stamped and where applicable, registered copies of all financing documents entered into in relation to the Approved Financing Facility including:
- Accepted Bank’s Letter of Offer* and the Financing Documents* as required under the Bank’s Letter of Offer,
- Copy of confirmation letter from the Bank’s solicitors* that all conditions precedent has been fulfilled,

- Copy of legal opinion* from the Bank’s solicitors confirming the legality, validity and enforceability of the Financing Documents*.
• The secure soft copies should be emailed to djadmin_dpgs@danajamin.comNote: The EFI must ensure the conditions precedent under the Approved Financing Facility have been fully complied with (and not waived) before submitting this confirmation. All the scanned copies must be clear and legible.

What are the fees to be paid by the EFI?

• For SJPP’s Guarantee Fee (and inform SJPP via email to DPGS_Admin@sjpp.com.my); and
• For Danajamin’s Annual Service Fee (and inform Danajamin via email to djadmin_dpgs@danajamin.com)

When should be the Notice of Utilisation be issued by the EFI?

No later than six (6) business Days before the Approved Financing Facility is made available to the Eligible Customer, the EFI must send the Form of Notice of Utilisation both in Hard Copy and a Scanned Soft Copy as follows:
• Hard Copy: To SJPP
• Scanned Soft Copy: To Danajamin addressed to djadmin_dpgs@danajamin.com
Note: The scanned soft copies must be clear and legible.

When will be the Guarantee Certificate be issued?

No later than three (3) Business Days before the Approved Financing Facility is made available to the Eligible Customer, SJPP will issue a Guarantee Certificate to the EFI.
Note: SJPP will only issue the Guarantee Certificate once Danajamin is satisfied that all the Minimum Guarantee Scheme Conditions and all other conditions in the accepted Approval Letter have been fully complied. The Guarantee will only take effect on the Guarantee Commencement Date stated in the Guarantee Certificate.
Note: (*) These refer to documentation in the Master Agreement.

If you are not eligible for this Scheme

We understand that continuity is important in every single phase of your business and we are always ready to help you go through this difficult time. If you feel that you are not eligible for this Scheme, you may want to explore further the websites below.

Frequently Asked Questions

Up to 80% Guarantee on Financing Facilities to Assist Companies Affected by COVID-19

Does Danajamin provide financing?

No, Danajamin does not provide any financing or credit facilities. Companies are advised to get in touch with their respective Eligible Financial Institutions (“EFIs”) for any financing or credit facilities matters.

Why is the Danajamin PRIHATIN Guarantee Scheme​ only limited to companies adversely affected by COVID-19?

The Danajamin PRIHATIN Guarantee Scheme​ is aimed to provide immediate and targeted working capital support to companies that are adversely impacted by the COVID-19 outbreak to sustain their business operations and safeguard jobs. Companies affected by the Movement Control Order (MCO) are also eligible to apply for the Danajamin PRIHATIN Guarantee Scheme​ given that the MCO was introduced by the Government to contain the outbreak of COVID-19. For non-affected companies that also require financing and financial guarantee, they may apply as per Danajamin’s business-as-usual products subject to each facility and Danajamin’s eligibility criteria.

Why is the Danajamin PRIHATIN Guarantee Scheme​ only limited to companies who wish to raise a minimum of RM5 million?

The Danajamin PRIHATIN Guarantee Scheme is aimed to provide immediate and targeted working capital support to mid to large sized companies that are adversely impacted by the COVID-19 outbreak to sustain their business operations and safeguard jobs. Companies who are looking to raise less than RM5 million may refer to Bank Negara Malaysia’s Special Relief Fund, Credit Guarantee Corporation and Syarikat Jaminan Pembiayaan Perniagaan.

What is the process of application for the Danajamin PRIHATIN Guarantee Scheme?

There are 2 levels of process to apply for Danajamin PRIHATIN Guarantee Scheme​:
1. Firstly, EFIs will ascertain whether the Company is eligible for financing and there is a requirement for the guarantee.
2. Secondly, Danajamin will undertake an assessment on the DPGS proposal as to whether the DPGS can be used to support the financing requirement.
Please refer to the Danajamin PRIHATIN Guarantee Scheme process flow chart above.

Is the Danajamin PRIHATIN Guarantee Scheme​ open to existing customers of the EFIs only?

No. The Danajamin PRIHATIN Guarantee Scheme​ is open to all new and existing customers of the EFIs.

Can companies obtain the Danajamin PRIHATIN Guarantee Scheme​ for other financing other than working capital?

The Danajamin PRIHATIN Guarantee Scheme​ can be applied to a term loan facility for working capital purposes or short-term trade facility such as Letter of Credit (LC), Bankers Acceptance (BA), and Trust Receipts (TR) only. Specific terms and conditions shall apply to different facilities. Please refer to your EFI for more information

Can companies apply to the Danajamin PRIHATIN Guarantee Scheme​ for new loans?

Yes. The Danajamin PRIHATIN Guarantee Scheme​ can be used to apply for new working capital credit/financing facilities or short-term trade facilities.

Do companies need to provide collateral to obtain financing under the Danajamin PRIHATIN Guarantee Scheme​?

This will be subject to the assessment of the EFIs and Danajamin.

When will the financing related to the Danajamin PRIHATIN Guarantee Scheme​ be disbursed?

The financing will be disbursed by the EFI to the customer once Danajamin has issued an approval letter to the EFI which may be subject to the fulfilment of any additional terms and conditions.
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