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SJPP approved RM50.313 bln in financing guarantees for 2009-February 2022 - Auditor-General's Report

05/08/2022 01:33 PM

KUALA LUMPUR, Aug 5 (Bernama) -- Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) has approved a total of RM50.313 billion in financing guarantee applications by financial institutions involving 69,293 accounts, for the period from 2009 to February 2022.

According to the Auditor General's Report 2021 Series 1 on the Management of Federal Government Companies presented in Parliament today, a total of RM42.628 billion (84.7 per cent) of funding has been disbursed to small and medium enterprises (SMEs) by the relevant financial institutions and the amount of guarantee by SJPP was RM31.846 billion.

“As of May 2022, SJPP has been allocated a total of RM81 billion funding limit to manage 11 government guarantee schemes for SMEs since 2009, of which eight guarantee schemes are still active while three schemes had been closed.

“The total amount of funds distributed to SMEs through financial institutions was RM79.500 billion," said the report.

According to the report, since the establishment of SJPP in 2009 until February 2022, the net demand for financing guarantee from financial institutions amounted to RM587.02 million (1.4 per cent) compared to a total of RM42.628 billion in financing issued to SMEs.

Overall, SJPP has achieved the objective of its establishment through the achievement of output which is the target amount of funding approved and guarantee claims paid, it said.

“The achievement of results shows the positive impact of the government's guarantee scheme through SJPP which is the contribution of SMEs to the country's gross domestic product (GDP) at a rate of 38.9 per cent (year 2019) and 38.2 per cent (year 2020).

“The increase in the collection of financing guarantee scheme fees contributed to the company’s strong financial position and enabled the payment of dividends to Minister of Finance (Incorporated) (MoF Inc) as well as having surplus funds to channel for guarantee claims,” ​​the report added.

However, the management of financing guarantee activities from the aspect of the processing period applications and claims are experiencing delays as a result of the COVID-19 pandemic and there is an error in the calculation of the guarantee fee which causes the guarantee fee to be over/under collected.

According to the report, in order to further improve the achievement of the objectives of the establishment of SJPP, the management of Prokhas Sdn Bhd, MoF Inc and the board of directors of SJPP need to take proactive and effective measures to address the weaknesses raised in this report.

“Accordingly, the parties involved need to give consideration by utilising excess funds from the company to accommodate the requirements of the guarantee scheme in the future and ensure a thorough review and verification of the guarantee fee to avoid mistakes.

“The parties involved also need to improve corporate governance related to the rate of payment of allowances for board of directors meetings and the involvement of the board of directors in strategic planning of SJPP," it added.


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