Danajamin guarantee raised to RM1 bln, foreign-owned companies allowed to tap into it - PM

KUALA LUMPUR: The government is allowing foreign-owned companies operating in Malaysia to also obtain the Danajamin Guarantee Scheme (SJPD) guarantee provided that Malaysian employees account for at least 75 per cent of their workforce.

Under the PENJANA package, the government had announced the Danajamin Guarantee Scheme, or SJPD, amounting to RM50 billion, to support the private sector’s growth and boost the country’s economy.

In the latest announcement, Prime Minister Tan Sri Muhyiddin Yassin said as part of the enhanced measure, the government will increase the maximum financing from RM500 million to RM1 billion.

He said this entails expanding the scope of financing to cover working capital with a guarantee period of up to 10 years and allowing foreign-owned companies operating in Malaysia to also obtain the SJPD guarantee provided that Malaysian employees account for at least 75 per cent of their workforce.

The government hopes that the improved SJPD will help promote growth of the private sector and retain Malaysia's position as an investment destination of choice, he said when announcing the Malaysian Economic and Rakyat’s Protection (PERMAI) assistance package valued at RM15 billion here today.

In general, the PERMAI assistance package improves on the on-going initiatives and also accelerates the implementation of related initiatives.

A total of 22 initiatives will be implemented under PERMAI.

-- BERNAMA