RM1.5 Billion Green Technology Financing Scheme (GTFS)
Y.A.B. Prime Minister, Dato’ Sri Mohd Najib Tun Haji Abdul Razak launched the Green Technology Financing Scheme (GTFS) on 26 January 2010 to further promote the development of green technology activities in Malaysia.
The objective of GTFS, with an initial fund of RM1.5 billion, is to promote investments in green technology products, equipment or systems that meet the following criteria:
• minimises degradation of the environment;
• zero or low green house gas (GHG) emission;
• safe for use and promotes healthy and improved environment;
• conserves the use of energy and natural resources; or
• promotes the use of renewable resources.
GTFS will benefit companies that are producers or users of green technology. The maximum financing for producers and suppliers is RM50 million and RM 10 million for consumer companies. The Government will bear 2% of the total interest rate. In addition, the Government will also provide a guarantee of 60% on the financing amount via Credit Guarantee Corporation Malaysia Berhad (CGC), with the remaining 40% financing risk to be borne by participating financial institutions (PFIs). Tenure of financing is up to 15 years for producer and 10 years for user of green technology.
| Producer of Green Technology |
User of Green Technology |
|
| Financing Size |
Maximum: RM50 million per company |
Maximum: RM10 million per company |
| Financing tenure |
Up to 15 years |
Up to 10 years |
| Purpose of financing |
To finance investment in production of green technologies that meet the Scheme objective. |
To finance investment in utilisation of green technologies that meet the Scheme objective |
| Eligibility criteria |
Legally registered Malaysia – owned companies (at least 51%) in all economic sectors. |
Legally registered Malaysia – owned companies (at least 70%) in all economic sectors. |
| Participating financial institutions (PFIs) | All commercial and Islamic Banks Development financial institutions |
All commercial and Islamic Banks Development financial institutionss |
| Government incentive | Interest incentive of 2% p.a. Government guarantee – 60% of financing approved. |
|
| Guarantee fee | 0.5% p.a. | |
| Interest/financing rates | Determined by participating financial institutions | |
| Source of funds | Participating financial institutions | |
| Implementation agency | Pusat Teknologi Hijau Malaysia and Credit Guarantee Corporation Malaysia Bhd | |
| Application method | Companies are required to submit request for technical audit to Pusat Teknologi Hijau Malaysia. Upon passing the technical audit, companies may proceed to forward application for financing to any participating financial institution. | |
| Application dates | Applications are open from 1 January 2010 for a period of 3 years or upon approval of financing up to RM1.5 billion, whichever is earlier. | |
In moving towards the green technology applications, the private sector is encouraged to apply for GTFS. Information on GTFS can be found at www.gtfs.my. Loan application and the eligibility criteria can be obtained from:
National Green Technology Centre
No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9,
43650 Bandar Baru Bangi,
Selangor Darul Ehsan.
Tel : 03 – 8921 0800
Fax : 03 – 8921 0801
Hotline : 1-800-88-4837
Source: Miti Weekly Bulletin