Frequently Asked Questions
Frequently Asked Questions on the Green Technology Financing Scheme (GTFS)
The government continues to support the development of green businesses with the reinstatement of the GTFS 4.0 up to RM1.0 billion for the period until 31 December 2025. The financing scheme will continue its support to six (6) key sectors which include Energy, Manufacturing, Transport, Building, Waste and Water.
GTFS 4.0 will also continue to provide the 60% to 80% government guarantee on the green component cost financed by Participating Financial Institutions (PFIs) as well as the rebate of 1.5% per annum on interest/profit rate. One of the main enhancements of GTFS 4.0 is the inclusion of Housing Developer and Low Carbon Mobility Infrastructure to be eligible for financing investments related to Building and Transportation projects. The Housing Developer and Low Carbon Mobility Infrastructure is eligible to obtain a maximum financing of RM100 million and RM50 million respectively. The financing scheme continues supports other categories such as Producer, User and ESCOs which have been introduced in the scheme previously.
The implementation of GTFS 4.0 is important to ensure green technology-based projects continue to receive support, which will directly contribute to the growth and development of the green technology industry and also catalyst to the Climate Change policy.
GTFS is a soft loan supported by the government; the treatment of the loan is similar to that of normal loans, where the borrower must repay the loan to the bank throughout the tenure period.
> 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 MGTC.
> 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;
1. the application for green project certificate rejected by the Technical Committee.
2. 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 deduction of minimum RM8,000 processing fee and plus any other expenses incurred during the technical assessment.
The GT policy has clearly defined that any product, equipment or system which satisfies the following criteria is categorized as GT;
i. Minimises the degradation of the environment
ii. Reduces greenhouse gas emissions
iii. Safe for use and promotes a healthy and improved environment for all forms of life
iv. Conserves the use of energy and natural resources and;
v. Promotes the use of renewable resources
For further detailed information on the project criteria please refer to GTFS guideline.
The four key sectors are:
i. Producer
ii. User
iii. Energy Services Company (ESCOs)
iv. Housing Developer
v. Low Carbon Mobility Infrastructure
Yes, they can. However, it cannot be for the same project, it has to be either for an expansion or a new project but limited to the maximum amount determined.
The Scheme is applicable to fund the purchase of equipment and financing can be for both new and re-conditioned equipment. A list of approved Green Components shall be provided by MGTC with the issuance of the Green Project Certificate.
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 is not eligible for reimbursement under the Scheme.
Working capital are supported under the GTFS 4.0. However, it is limited to the purchase of raw materials and the limit is up to a maximum of RM5.0 million only for each company. The RM5.0 million limits are part of the maximum financing limit for each category.
Subject to the PFI's approval, the maximum financing tenure allowed for working capital is 5 years.
This scheme is not eligible for refinancing and/or restructuring of existing facilities and for projects which have already been completed and financed.
No, GTFS 4.0 is not applicable for R & D projects
No, the Certificate cannot be transferred to any other company. The new company have to reapply to MGTC should they be interested to continue with the GT project.
The types of projects eligible for GTFS can include (but is not limited to) the following:
a. Energy
i. Energy supply sector
Application of green technology to improve efficient supply of energy & in the energy supply side management, including co-generation by the industrial and commercial sectors.
ii. Energy utilization sector
Application of green technology in all energy utilization sectors & in demand side management programmes
b. Manufacturing
A manufacturer company that practices sustainable methods/activities with the goal for a better environment and economy
c. Transportation
Incorporation of green technology in the transportation infrastructure and vehicles, in particular, bio-fuels and public road transport and to encourage the use of energy efficient vehicle for private and public sector.
d. Buildings
Adoption of GT in the construction, management, maintenance and demolition of buildings.
e. Waste Sector
Technology in the management & utilization of wastewater treatment, solid waste and sanitary landfill.
f. Water
Technology in the management and utilization of water resources and water treatment.
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 are yet to fully utilized their financing are eligible to apply under this scheme.
The maximum financing size/amount shall be aggregated and limited based on Single Group Exposure Limit.
1. Producer of Green Technology is eligible to receive a maximum of RM100 million per group of company.
2. User of Green Technology is eligible to receive a maximum of RM 50 million per group of company.
3. ESCOs is eligible to receive a maximum of RM 25 million per group of company.
4. Green Building Developer is eligible to receive up to RM 100 million per group of company.
5. Low Carbon Mobility Infrastructure is eligible to receive up to RM 50 million per group of company.
No, because the scheme comes in a package. Without the guarantee the project risk will be too high, which may result in the financial institution (FI) rejecting the loan application.
Application form can be downloaded here
Yes, the guidelines of the GTFS can be accessed here
MGTC will monitor all related projects as it is the focal point for GT projects.
Application Process:
1. GTFS Application
All applications shall be made online via e-mail submission. Any supporting documents that are deemed necessary to support the application shall also be included along with the application form submission. MGTC will screen all applications to ensure it meet the GTFS criteria, application form dully filled and all supporting documents (soft copies) well documented and provided. Any additional document requested by MGTC shall be submitted with five (5) working days. Upon completion of screening process, MGTC will issue notification to relevant applicant whether their application will be considered for further process or rejected.
2. Technical Evaluation & Risk Assessment
The Technical Evaluation team will evaluate the application in accordance to the procedures and standards of each project category. Applicants may be asked to provide additional information/data/drawing/report that deemed necessary for technical evaluation purpose. All additional information must be delivered within five (5) working days or any duration as agreed by MGTC on special case. Technical Evaluation team will submit and present the GTFS project to the GTFS Technical Committee (GTC) for their consideration and approval. All applicants will be officially notified on their approval status. Subsequently, a Green Project Certificate will be issued to the successful applicants and is valid for six (6) months from the issuance date. The Green Project Certificate are used only for the purpose of loan application to Financial Institutions and it must not be used for any other purpose. MGTC reserved the right to recall the Green Project Certificate if evident was found and proven that the said certificate was wrongly used.
3. Submission to Financial Institutions for Financing/Loan
Successful applicant shall be able to submit their financing application together with Green Project Certificate and other relevant documents to any participating financial institutions of their choice. All applications shall comply with the procedures and guidelines of the respective Financial Institutions. Each Financial Institution will evaluate the loan application and issue a Letter of Offer (LO) to successful applicant. The government will bare 1.5% of the total interest rate or profit charged by PFIs.
4. Guarantee Approval
Credit Guarantee Corporation Malaysia Berhad (CGC) will provide a guarantee of 60%-80% according to the sectors on the approved financing amount. Upon guarantee approval, CGC will issue a Letter of Guarantee (LG). A guarantee fee of 0.5% per annum on the total guarantee amount will be charged to the borrower. Copy of the LG will be sent to the respective PFIs ,applicant and MGTC.
5. Financing Execution
Upon receipt of the Letter of Guarantee (LG) by the CGC, the respective PFIs shall proceed with the financing agreement. Fund disbursement shall follow the respective PFIs procedures.
6. Project Monitoring and Verification
GTFS recipients are required to submit GTFS Quarterly Report until project commissioning and continue with submission of GTFS M&V Audit Report six (6) months after commissioning. M&V Audit will be conducted by MGTC annually throughout their financing tenure.
Interest subsidies of 1.5% from the total interest rate charged and government guarantee of 60-80% on the total approved loan.
The Scheme will be available until 31st December 2025 or until the allocations is fully utilized (whichever is earlier)
The technical evaluation process takes approximately 21 working days commencing from the day complete and valid application is received by MGTC until the issuance of the letter of Project Certificate by MGTC. While the financing process typically (financing and guarantee) takes approximately 30-60 working days.
The margin of financing will be decided by the participating FIs, however the maximum financing amount that can be offered to producer companies is RM 100 million and RM 50 million for user companies. For ESCOs, the maximum is RM 25 million, Housing Developer is at RM 100 million and Low Carbon Mobility Infrastructure is at RM 50 million maximum.
The security and collateral of the financing depends on the requirement of the participating FIs.
Should you require further information, please contact:
1. Pn. Siti Fatimah - 03 8921 0994
2. Cik Adriana - 03 8921 0906
GTFS 4.0 provide two financing options to the Green Project Certificate holders under both the conventional financing and/or Islamic financing by Participating Financial Institutions (PFIs)
No. However, the following are eligible:
1. Producer of GT: Legally registered Malaysian companies that have at least 60% Malaysian shareholding
2. User of GT: Legally registered Malaysian companies that have at least 60% of Malaysian shareholding
3. ESCOs: Legally registered Malaysian companies that have at least 60% of Malaysian shareholding and registered with Energy Commission as ESCO
4. Housing Developer: Legally registered Malaysian companies that have at least 60% of Malaysian shareholding
5. Low Carbon Mobility Operator: Legally registered Malaysian companies that have at least 60% of Malaysian shareholding
For Producers of Green Technology : Up to 15 years
For Users of Green Technology : Up to 10 years
For ESCOs : Up to 10 years
For Housing Developer : Up to 5 years
For Low Carbon Mobility Infrastructure : Up to 5 years
