Gtfs

Topics: Waste, Water supply, Biodegradable waste Pages: 11 (2936 words) Published: August 18, 2013
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Table of Contents
Contents
1.0 Introduction2
1.1 The details of GTFS3
1.1.1 Eligible for registers Malaysian companies3
1.1.2 Guarantee Fee, Guarantee Coverage & Interest / Financing Rates3
1.1.3 Refund policy4
1.1.4 Implementation Agency4
1.1.5 Application Procedure and Application Date4
1.2 The formation of GTFS4
2.0 Objective5
3.0 Green Project Financing5
3.1 The Involved Financial Institutions6
3.2 The Sectors targeted in Green Technology (GT)7
3.2.1 Energy8
3.2.2 Building8
3.2.3 Water and waste management9
3.2.4 Transportation10
3.3 The impact of GTFS to Malaysian Economy10
4.0 Conclusion11
5.0 References11
6.0 Appendix12

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1.0 Introduction
Malaysia has recognised green technology as one of the key drivers of national economic growth. To achieve this, the Government is currently reorienting its policies to promote and develop green production. (Matrade, 2011) In order to enhance the growth of green technology of national economy, Green Technology Financing Scheme (GTFS) are formed.

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. GTFS established by the Government to promote investments in green technology, a sector that is envisaged to be one of the emerging drivers of economic growth for our country.

This is a national initiative aimed at achieving a sustainable environment. The Participating Financial Institutions’ (PFIs) role is critical in ensuring the success of the GTFS, which entails the financing of companies that supply and utilise green technology. Investment in Green Technology refers to products, equipment, or systems which satisfy the following requirements, such as stated as below: 1. Minimises the degradation of the environment;

2. Has zero or low green house gas (GHG) emission;
3. Safe for use and promotes healthy and improved environment for all forms of life; 4. Conserves the use of energy and natural resources; or
5. Promotes the use of renewable resources.
The company that interested to apply GTFS, their projects must be located within Malaysia, utilising local and imported technology.

1.1 The details of GTFS
GTFS provided 2 types of loan for different purpose of the company, which are GTFS producer and GRFS user. GTFS producer means the project is in purpose of financing investment in production of green technology. Meanwhile, GTFS user means the project is in purpose of financing investment in utilisation of green technologies. The table below shows the details of both GTFS producer and GTFS user:

Table 1.0 The details of GTFS-Producer & GTFS-User
Description| GTFS-Producer| GTFS-User|
Purpose| To finance investments in the production of green technologies that meets the scheme objective.| To finance investments in the utilisation of green technologies that meets the scheme objective.| Eligibility Criteria| Legally registered Malaysian-owned companies (at least 51%) in all economic sectors.| Legally registered Malaysian-owned companies (at least 70%) in all economic sectors.| Financing Limit| Maximum: RM50 million (per company)| Maximum: RM10 million (per company)| Financing Tenure| Up to 15 years| Up to 10 years|

Source: SME Corp Malaysia (2011)

1.1.1 Eligible for registers Malaysian companies
Producer of Green Technology with at least 51% Malaysian owned. User of Green Technology with at least 71% Malaysian owned. On the other words, no foreign company are allowed to apply GTFS.

1.1.2 Guarantee Fee, Guarantee Coverage & Interest / Financing Rates Guarantee fee of 0.5% per annum payable up-front to be borne by borrower and 60% guarantee cover by Credit Guarantee Corporation (CGC). The loans of GTFS are determined by Participating Financial...

References: Ahmad Z. I. (2011), Promoting green Technology Commercialisation Via Green Technnology Financing Scheme. Kementrian Technologi Hijau dan Air .
Green Tech Malaysia (2012), The Involved Financial Institutions. Retrieved on 13 march 2013, from http://www.gtfs.my.
Haslenda Hashim (2011), Renewable energy policies and initiatives for a sustainable energy future in Malaysia. Renewable and Sustainable Energy Reviews. 15(9), 4780-4787.
KeTTHA (n.d.), The national Green Technology Policy.
Matrade (2011), Green Technology. Retrieved on 12 March 2013, from http://www.matrade.gov.my/en/foriegn-buyers-section/70-industry-write-up-- services/555-green-technology-services.
Nazily M. N. (2011), Green Technology Future Opportunities in Malaysia. Kementrian Technologi Hijau dan Air .
Pusat Tenaga Malaysia (2012). Green Technology Financing Scheme. Retrieved on 12 March 2013, from http://www.ptm.org.my/index.php/component/content/article/34/81- gtfsgreen- technology-financing-scheme.html.
SME Corp Malaysia (2011), Green Technology Financing Scheme. Retrieved on 13 March 2013, from http://www.smecorp.gov.my/v4/node/137.
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6.0 Appendix
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