3 SMEs Share Impact & Business Improvement Strategies With SJPP

KUALA LUMPUR, [24 Februari] – Many Small and Medium Enterprise (SME) owners have the ambition to get bigger ideas for more customers. But when it comes to funding, that’s where the real challenges begin.

Long process. High guarantee. Strict conditions.

It’s not that the business isn’t good enough — it’s that the system sometimes doesn’t match the real needs of budding entrepreneurs.

This is where the big role comes Limited Liability Company Guaranteeing Business Financing (SJPP) facilitated.

Through a financing guarantee scheme supported by the Malaysian Government, SJPP helps increase the confidence of financial institutions to provide financing to potential SMEs. This allows more entrepreneurs the opportunity to develop without excessive pressure.

The following three stories prove how this support is truly impacting local businesses.

Tonasco Sdn Bhd: Realizing the “Smart Factory” Approach.

In the precise machining industry (precision machining), technology moves fast. So to stay relevant, investing in high-value machinery and a “smart factory” approach is an important strategy, and the process is facilitated with SJPP support.

Tonasco Malaysia, which has been operating for more than two decades, is aware that it cannot rely on old methods to continue to compete. Investing in high-tech machinery and automation systems is now a necessity, no longer an option.

With guaranteed funding support from SJPP, the upgrading operational process becomes smoother and more planned.

According to Tonasco Managing Director, Lin Sheau Wei:

“Financing through the Government guarantee scheme managed by SJPP helps companies strengthen investment in high-tech machines and accelerate the direction of smart factory development. As a result, companies are able to increase competitiveness and build new capabilities in line with the upgrading agenda.”

The result? Productivity increases, operations are more organized and competitiveness is strengthened.

Molhit Pack Sdn Bhd: Double Capacity, Explore Wider Market

For printing and packaging businesses, the challenge is usually not only market demand, another factor is also the ability to complete a task more quickly, consistently and on a large scale.

Molhit Pack utilizes the financing obtained to stabilize operational costs and increase company capacity by:

• moved to a larger warehouse
• increase the workforce
• buy new machines to increase productivity.

This step apparently helps the company stabilize operational costs and opens up room for more consistent sales growth.

According to Fatin Fatinah Molhit, Managing Director of Molhit Pack Sdn Bhd:

“SJPP is an important catalyst that strengthens the trust of financial institutions, and supports the growth and development of Molhit Pack’s business in a more sustainable manner.”

Bubbles O2 : Malaysia’s Premium Natural Mineral Water Brand Challenge

Maybe many of us know this company. However, for Bubbles O2, this case is quite unique because the funding challenges are not due to problematic or weak financial records, but because financial records are “too clean”.

Even though it has been operating since 2018, the lack of previous corporate financing records makes risk assessments more stringent, and the financing process by financial institutions takes longer.

With the SJPP guarantee scheme, financial institutions’ confidence in providing financing increases and collateral pressure decreases. This allows companies to plan their workforce and company operational costs more stably.

According to Managing Director of Bubbles O2, Ain Azizah Binti Ariffin:

“SJPP plays a role as a driver of financial confidence that allows companies to grow from an operational perspective in a more planned and sustainable manner.”

As a result, within 6 to 12 months, these companies reported significant changes in terms of more organized operational cost planning, smoother cash flow, more stable supply chains, and even increased trust and credibility with suppliers and financial partners.

About SJPP

Syarikat Guarantee Financing Perniagaan Berhad (SJPP) provides support to eligible SMEs through the Malaysian Government’s business financing guarantee scheme to increase access to financing and trust in financial institutions. This initiative allows SMEs to invest in business development, improving facilities, as well as strengthening operational cost structures. SJPP is wholly owned by the Minister of Finance (Company).

Issued by: Syarikat Perniagaan Financing Berhad (SJPP)
(Fully owned by the Minister of Finance (Incorporated))

Want to apply for a Government Guarantee scheme but confused about which scheme is most suitable for your business?

Complete your documents then submit your application to the relevant bank!

Check your eligibility today