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.
* 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)
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 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)
How to submit
Danajamin PRIHATIN Guarantee Scheme application?
What to do
after your applicationis approved.
Up to 80% Guarantee on Financing Facilities to Assist Companies Affected by COVID-19
Why is the Danajamin PRIHATIN Guarantee Scheme only limited to companies adversely affected by COVID-19?
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.
- Firstly, EFIs will ascertain whether the Company is eligible for financing and there is a requirement for the guarantee.
- Secondly, Danajamin will undertake an assessment on the DPGS proposal as to whether the DPGS can be used to support the financing requirement.
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.
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.
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.