FEATURES OF GTFS 4.0

Features Producers of Green Technology Users of Green Technology ESCOs Housing Developer Low Carbon Mobility Infrastructure
Purpose

To finance investment for the production of green products.

Excluding large scale solar projects and rooftop solar PV system

To finance investment or assets related to energy efficient project and/or energy performance contracting.

Excluding projects under Net Energy Metering (NEM) and Self-Consumption (SELCO)

 To finance investment or assets related to energy efficiency project and/or energy performance contracting To finance the construction of green building which focuses on residential development with the selling cost of maximum RM350,000. To finance electric vehicle charge point operator
Financing Size Maximum: RM100 million per group of company Maximum: RM50 million per group of company Maximum: RM25 million per group of company Maximum: RM100 million per group of company Maximum: RM50 million per group of company
Financing Tenure Up to 15 years Up to 10 years Up to 10 years Up to 5 years Up to 5 years
Eligibility Legally registered Malaysian companies that have at least 60% Malaysian shareholding Legally registered Malaysian companies that have at least 60% Malaysian shareholding

Legally registered Malaysian companies that have at least 60% Malaysian shareholding

Registered with Energy Commission as ESCO

 Legally registered Malaysian companies that have at least 60% Malaysian shareholding Legally registered Malaysian companies that have at least 60% Malaysian shareholding
Participating Financial Institutions (PFIs) All Commercial Financial Institutions, Islamic Financial Institutions and Development Financial Institutions or other approved Financial Institutions as per BNM.
Government Guarantee Up to maximum 60% for the green cost of the finance amount for energy, manufacturing, transport, building and water while for waste sector is up to maximum 80% for the green cost of the finance.
Government Incentives Rebate of 1.5% per annum on interest/profit rate
Period of Rebate Up to 7 years Up to 7 years Up to 7 years Up to 5 years Up to 5 years
Interest/Profit Rate Determine by Participating Financial Institutions (PFIs) for financing
Source of Fund Participating Financial Institutions (PFIs)
Implementation Agencies Ministry of Natural Resources, Energy and Climate Change (NRECC) and MGTC
Application Method All application must be submitted to MGTC for green project certification. The successful applicant then proceeds to forward application for financing to any Participating Financial Institutions (PFIs)
Application Date The Scheme will be opened until 31 December 2025 or until the allocation is fully utilised (whichever is earlier)
Processing Fee
  • 0.25% - Financing tenure of 10 years and less
  • 0.5% - Financing tenure of more than 10 years

The above processing fee is subject to green component cost apply or approved, subject to a minimum processing fee of RM8,000 (payable upfront upon submission of the application), payable to Malaysian Green Technology and Climate Change Corporation. 

  • a processing fee of RM4,000 is payable for request to extend the validity of the project certificate (for 2nd and 3rd extension). Each extension on the validity is only for a period of not more than 6 months. 
  • a processing fee of RM8,000 is payable for any request to vary the information on the certificate.  

Note:  

Processing fee paid shall be refunded should; 

  • The applicant for green project certificate are rejected by the Technical Committee.
  • The applicant company fail to secure financing under the scheme after the 3rd extension of the certificate validity.

The amount to be refunded shall be after the deduction of minimum RM8,000 processing fee and plus any other expenses incurred during the technical assessment.

 

Note *: The maximum financing size/amount shall be aggregated and limited based on Single Group Exposure Limit.  

 

Group Exposure is defined as:  

  • Companies having common directorship/management which include an individual who exercises control over a company or companies either directly or indirectly.  
  • Companies having common ownership/shareholding (i.e, shareholding of over 50%.)  
  • Subsidiary companies.  

 

Only new, retrofitting or expansion projects and energy performance contracting that incorporate Green Technology elements that have not been funded are eligible for funding under the Scheme. 

 

However, companies that have been financed under previous GTFS and have yet to fully utilized their financing are eligible to apply under this scheme.  

 

The Scheme is applicable to fund the purchase of equipment and financing can be for both new and reconditioned equipment. A list of approved Green Components shall be provided by MGTC with issuance of the Green Project Certificate.  

 

The Scheme is also available for the financing of working capital for the purchase of raw materials. The maximum financing tenure allowed for working capital is 5 years and maximum financing amount is RM5 million. 

 

Reimbursement for advance payments included as part of the financing granted by PFI is allowed under the Scheme, subject to advances made on or after the Green Project Certificate date. Any advances made before the certification date are not eligible for reimbursement under this Scheme.  

 

Applications for the following purposes are NOT eligible under this Scheme: 

  • For refinancing or restructuring of existing facilities;  
  • For financing Research and Development cost; or 
  • For projects which have already been completed and financed.