SME: Green Technology Financing Scheme (GTFS)
A: The Green Technology Financing Scheme (GTFS) is a special financing scheme introduced by the government to support the development of Green Technology (GT) in Malaysia. It was proposed by the Prime Minister during the tabling of the 2010 Budget with a total financing amount of RM1.5 billion.
Q: Is the GTFS a grant or loan?
A: 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.
Q: What are the criteria for a Green Technology (GT) project?
A: 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 more information on criteria, please visit the GTFS website here.
Q: What are the sectors targeted in GT?
A: The four key sectors are:
ii. Water and waste management
Q: What projects are eligible for the GTFS?
A: The types of projects eligible for GTFS can include (but is not limited to) the following:
a. Energy sector
i. Energy supply sector
Power generation and energy supply side management including co-generation by the industrial and commercial sectors
ii. Energy utilization sector
Energy utilization sector and demand side management programmes
b. Building sector
Construction, management, maintenance and demolition of building
c. Water and waste management sector
Management and utilization of water resources, wastewater treatment, solid wastes and sanitary landfills
d. Transportation sector
Public transportation infrastructure, “green” vehicles, and biofuels.
For further information on the type of projects please refer to GTFS operational & guidelines.
Q: Who can apply for GTFS?
A: All companies (either users or producers) interested in developing GT projects are welcomed.
Q: How does one obtain the GTFS application form?
A: The GTFS operates via e-application. Applicants have to apply online at www.gtfs.my
Q: Is there a guideline or handbook that a project developer can refer to?
A: Yes, the guidelines or handbook of the GTFS are accessible at www.gtfs.my.
Q: What are the steps involved in the GTFS application?
A: The application process is as follows:
A. Project Certification (Technical)
All applications shall be submitted to GreenTech Malaysia. GreenTech Malaysia will screen and evaluate all complete and valid applications. Should the GTFS team require clarification on any issue or matter during the evaluation period, applicants must furnish the information within 3 working days from the date of notification. Applicants will be invited for a Business Review Presentation meeting to present the viability of their business models, product market, potential project financial performance, company management and the company’s exit strategy. The project will be tabled at the GTFS Committee (GC) meeting for final approval. GreenTech Malaysia will issue a notification letter to successful and non-successful applicants. A successful applicant will be issued with a Green Project Certificate.
B. Financing Application
A successful applicant can apply for financing under the GTFS with the Green Project Certificate and all necessary documentation to any participating FI. Applicants should follow and comply with the procedures and guidelines of the selected FI. FI will issue a Letter of Offer (LO) to a successful applicant. The government will bear 2% of the total interest rate or profit.
C. Guarantee Approval
Credit Guarantee Corporation Malaysia Berhad (CGC) will provide a guarantee of 60% on the financing amount offered by the FI (GT value only). Upon guarantee approval, CGC will issue a Letter of Guarantee to the Applicant and charge a guarantee fee of 0.5% per annum on the amount. Copy of the letter will be sent to the respective FIs and GreenTech Malaysia.
D. Financing Execution
i. Agreement and Documentation
Upon receipt of the Letter of Guarantee from CGC, the FI will proceed with financing agreement.
E. Fund Disbursement
Fund disbursement will be in accordance to the selected FI’s procedures.
F. Project Outcome
i. Project Monitoring and Verification
Applicant shall submit a monthly Project Progress Report to GreenTech Malaysia during project implementation. Upon commissioning, the applicant shall submit a Project Outcome Report every six months to GreenTech Malaysia. The format and period shall be specified by GreenTech Malaysia.
G. Project Impact
Upon completion of Project Monitoring and Verification, an applicant shall submit a project Impact study in accordance to the format specified by GreenTech Malaysia.
For further detailed information please refer to GTFS operational & guidelines.
Q: How do I contact GTFS?
A: You can contact GTFS at
Malaysian Green Technology Corporation
No. 2, Jalan 9/10,
Persiaran Usahawan, Seksyen 9,
43650 Bandar Baru Bangi,
Selangor Darul Ehsan