SELANGOR STATE / DISTRICT CHAMBERS

BRIEFING SESSION ON "WORKING CAPITAL GAURANTEE SCHEME (WCGS)" 

A briefing session on the Working Capital Guarantee Scheme (WCGS) has been held as follows:

Date                    :     Wednesday, 27th April 2011

Time                    :     2.30 p.m.

Venue                 :     Auditorium, MPK, Klang

Speakers            :     Y. Bhg. Dato’ Kamal Mohd Ali
                                  Senior General Manager       
                                  Prokhas Sdn Bhd (471243-M)
                                  (Wholly owned by Minister of Finance Incorporated)

PROKHAS is a private limited company wholly-owned by Minister of Finance Incorporated, entrusted initially to manage the residual assets of Pengurusan Danaharta Nasional Berhad and its group of companies. Its core function has extended to that of advisory and consultancy services where they have served major public entities to adapt the best practices in the industry and mold it into their own organizational framework.

The scheme was first introduced in the second stimulus package in March 2009. It was fully utilised by year-end, despite being topped up from RM5bil to RM7bil. In the view of encouraging response to the scheme, the Government provided an additional RM3bil under the 10MP, making it total of RM10bil. However the first allocation in 2010 saw very minimum participation from Indian based companies. As such members are highly encouraged to participate in the above briefing session and learn how to take advantage of this scheme being offered by the Government.

Participating Banks

Y. Bhg. Dato’ YDP MPK gave the opening welcome speech, followed by introductory speeches by Y. Bhg. Dato Kamal Mohd Ali who is the GM of PROKHAS. This was followed by a briefing by the bank representatives namely

• Puan Eliza Dato Abdul Aziz (CIMB)
• Hamid Mohd Noor (SJPP)
• Ms Alice Wong (Maybank)

Key Points from Banks presentations

There were a number of recurring themes based on the presentations by the three banks, which can be noted as common points emphasized by them. These are listed below:-
 
First, contrary to popular perception, banks do not discriminate anyone on the basis of ethnicity or race background giving preference to one community as opposed to another.
 
Second, all the three banks emphasized the following key indicators namely

• Viability of the business
• Audited accounts
• Sources of repayment of the loans
• Repayment track record
• Financial management

Third, the banks indicated that they are pro business and want to reduce their risk of default and therefore although in the WCGS the bank risk is only 30%, the banks still want the potential borrowers to be low risk or have the ability to share the risk
 
Fourth, all three banks indicated that application process and requirements are pretty standard even in the case of WCGS using their check list of priority items. Some aspects emphasized by the banks during the dialogue are:-

• Legal registration as Sdn Bh
• Statutory documents
• Audited accounts
• Business profile
• Trade credibility
• Collateral requirement - Not required in WCGS case as Government is guaranteeing 70% but cash asserts & deposit namely business needs to come up with the 30% portion)

Fifth, all three banks said they are happy to work with the Business Associations in financial product promotion and briefing of the scheme in order to ensure access and inclusion. In addition Maybank indicated that their small and micro business development centre would be available to assist in business training and development.

Indian SMEs are requested to make use of this opportunity and participate in this briefing session. Loan facility ranging from RM50k – RM5 million are available for Sdn. Bhd. companies.

For further details or clarifications, please do not hesitate to contact En. Mohd Fharulisa at 03- 3375 7837 / 012-2692234.

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