The Government Guarantee Scheme MADANI (GGSM) is a financing initiative introduced by the Malaysian government to support small and medium enterprises (SMEs), micro-enterprises, and informal businesses. The scheme is part of the broader MADANI framework, which focuses on fostering inclusivity, equity, and resilience in Malaysia's economic development.

Key Features of GGSM:

1. Government-backed Guarantees: The scheme provides government-backed guarantees on loans or financing extended to SMEs and micro-enterprises, reducing the financial risk for lenders.
2. Target Beneficiaries: GGSM aims to assist businesses that may face challenges in obtaining conventional financing due to lack of collateral, credit history, or other limitations.
3. Accessibility: It is designed to be accessible to businesses across various sectors, particularly those impacted by economic uncertainties or transitioning toward more sustainable practices.
4. MADANI Principles: Aligning with the principles of MADANI, the scheme focuses on empowering underrepresented and vulnerable groups, fostering economic participation, and encouraging growth in sectors aligned with Malaysia's long-term development goals.
5. Support for Transition: Businesses are encouraged to adopt sustainability practices, technological advancements, and innovation under this scheme.

Goals:

• Boost entrepreneurship and innovation.
• Enhance financial inclusion.
• Strengthen the resilience of Malaysia's SME ecosystem.
• Promote sustainable and inclusive economic growth.

How it Works:

Businesses apply for loans or financing through participating financial institutions. Under GGSM, the government acts as a guarantor for a portion of the loan, which helps reduce the burden on borrowers while encouraging lenders to extend credit more willingly.

For specific details, such as eligibility criteria, participating banks, and application processes, refer here.