Shariah-compliant SME Financing Scheme (SSFS)

Shariah-compliant SME Financing Scheme (SSFS)

Objective

To provide financing assistance to eligible Malaysian SMEs whereby the Government of Malaysia has agreed to pay 2% (percentage point) of the profit rate charged on the financing provided by Participating Financial Institutions.

Overall financing

Maximum of RM2 billion for financing applications approved in 2012 and 2013, or upon full utilisation of the RM 2 billion limit, whichever comes first.
Approved facilities to be registered with SME Corp. Malaysia on first come first serve basis.
Existing SMEs that comply with the eligibility criteria and currently having Syariah-compliant facilities (performing) approved in 2012 but yet to undergo SCORE / MCORE are eligible to apply.
No subsidy if prescribed rate fall below 2% rebate.

Purpose of financing

All ringgit-denominated Syariah-compliant financing for all purposes including but not limited to:

working capital,
asset acquisition and
upgrading of businesses
excluding non-funded facilities (e.g. bank guarantee and letter of credit) and acquisition of other business and companies.
Does not include refinancing or restructuring of existing facilities. However, accounts that have been restructured before turning non-performing (NPF) in 2012-2013 are eligible under the scheme.

List of Participating Financial Institutions

Affin Islamic Bank Berhad
Alliance Islamic Bank Bhd
AmIslamic Bank Berhad
Bank Islam Malaysia Berhad
Bank Kerjasama Rakyat Malaysia Berhad
Bank Muamalat Malaysia Berhad
CIMB Islamic Bank Berhad
Hong Leong Islamic Bank Berhad
Kuwait Finance House (Malaysia) Berhad
Maybank Islamic Berhad
Public Islamic Bank Berhad
RHB Islamic Bank Berhad
HSBC Amanah Malaysia Berhad

* Application can be made direct with the 13 participating Islamic Banks

Eligibility criteria

Subject to the respective Participating Financial Institutions credit assessment, own criteria and respective limit of Participating Financial Institutions : AND
Comply with SME definition: AND
At least 60% Malaysian owned SME: AND
Comply to one or more of the following at the point of application:

SME rated with at least 2 stars under SCORE (The highest is 5 star. Currently there are 5,560 companies rated 2 – 5 stars)
Microenterprise (ME) rated with at least Level 1 under MCORE (The highest is Level 3. Currently there are 492 companies/firms rated Level 1 – Level 3)
Certified under 1-InnoCERT
Certified under National Mark of Malaysian Brand
Accorded the MSC status by MDeC
Accorded the Bio-Nexus status by Malaysian Biotechnology Corporation
Certified under the Green Tech Cert under Malaysian Green Technology Corporation
TeraS selected SMEs under TERAJU

Eligible sector / coverage

SMEs undertaking Syariah-compliant business activities in all sectors excluding financial product and services for which the activities are regulated under, among others, the various banking, insurance, takaful and unit trust laws and regulations.
Shareholding by government development agencies such as PNS, PUNB, MARA, Cradle Fund Sdn Bhd and state development agencies are eligible
SMEs approved for Syariah-compliant microfinancing are also eligible.

Exclude those SMEs having ANY shareholding by:

Government-linked corporations (GLC).
Public listed companies (PLC)
Multinational Corporations (MNC)

Eligibility Period for Profit Rebate

Up to 5 years from the date of first disbursement (i.e. and/or until 31st December 2017) or until the facility is fully repaid / terminated / recall or terminated due to non-utilization of the facilities, whichever comes first.

SMEs may obtain financing for a period exceeding 5 years, however there will be no payment of 2% rebate beyond 2017.

Financing that turns non-performing financing (NPF) will not be eligible for the 2% rebate. However, the 2% rebate will be reinstated in the current month of regularisation.
Maximum amount eligible

Up to RM5 million per SME based on: the approved amount aggregated based on all financing provided under this scheme from all Participating Financial Institutions; and
common controlling shareholders and/or directors except for nominee directors appointed by VCs.
SMEs may obtain financing above RM5 million, however only the first RM5 million will be eligible for the 2% profit rebate.

Tax exemption

The profit rebate (subsidy) provided is tax exempted for the customer as per P.U. (A) 33 Paragraph 2(1)(a) dated 30 January 2003.

http://www.smecorp.gov.my

CAPITAL.MY