Govt reallocate RM2bil to working capital scheme

  • Business
  • Tuesday, 08 Sep 2009

PETALING JAYA: The Government has reallocated RM2bil to the RM5bil Working Capital Guarantee Scheme (WCGS) to further assist eligible companies to continue their operations amid the economic slowdown.

Due to overwhelming response, the Government has agreed to reallocate RM2bil from the Industry Restructuring Loan Guarantee Scheme (IRLGS) to WCGS, said Prokhas Sdn Bhd managing director Fazlur Rahman Ebrahim in a statement yesterday.

Previously, both schemes, which were established in March as part of the second economic stimulus package, had a fund size of RM5bil each. With the reallocation, the WCGS fund has been enlarged to RM7bil.

Both schemes are administered by Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), a special-purpose vehicle managed by Prokhas, which is wholly owned by Minister of Finance Inc.

In July, Prokhas deputy general manager Suhaimi Mohamad had told StarBiz that judging from the good response, especially for the WCGS, the funds might be fully utilised by end of this month, much earlier than the target period set for end of next year.

Fazlur, who is also principal officer of SJPP, said that as at yesterday, SJPP had approved a total of 3,984 applications worth RM5.37bil.

“Of the amount approved, the initial allocation of RM5bil for the WCGS scheme has been fully taken up, while only RM372mil of the RM5bil fund for the IRLGS was taken up,” Fazlur said.

To date, RM2.35bil has been disbursed to 1,853 applicants by the financial institutions under both schemes, according to Fazlur.

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