In the budget speech for 2010, Dato’ Seri Najib Tun Abdul Razak, the Prime Minister of Malaysia announced the establishment of Green Technology Financing Scheme amounting to RM1.5 billion as an effort to improve the supply and utilization of Green Technology. The scheme could benefit companies who are producers and users of green technology.
As a sign of commitment, the Government will bear 2% of the total interest/profit rate. In addition, the Government will 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).
The Prime Minister also appoint the GreenTech Malaysia as the conduit for the Green Technology Financing Scheme (GTFS) application. The scheme is expected to provide benefits to more than 140 companies of which the application will be open starting from 1st January 2010.