MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

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MIDF GOVERNMENT FINANCIAL MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMESASSISTANCE PROGRAMMES

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DEVELOPMENT FINANCE DIVISIONDEVELOPMENT FINANCE DIVISION

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Presentation Presentation OutlineOutline

MIDF in briefMIDF in briefMIDF in briefMIDF in brief

Products & ServicesProducts & ServicesProducts & ServicesProducts & Services

Government Financial Government Financial Assistance ProgrammesAssistance ProgrammesGovernment Financial Government Financial Assistance ProgrammesAssistance Programmes

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MIDF in briefMIDF in brief

Incorporated on 30 March 1960.Incorporated on 30 March 1960.

Mandated role in helping, developing and Mandated role in helping, developing and improving the manufacturing sector in Malaysia.improving the manufacturing sector in Malaysia.

Merged with Amanah Capital Partners Berhad in Merged with Amanah Capital Partners Berhad in February 2003. February 2003.

Wholly-owned by Permodalan Nasional Berhad Wholly-owned by Permodalan Nasional Berhad (PNB) since February 2008.(PNB) since February 2008.

3 core business units:-3 core business units:-

i) Development Finance Division;i) Development Finance Division;

ii) MIDF Amanah Investment Bank Berhad; andii) MIDF Amanah Investment Bank Berhad; and

iii) MIDF Amanah Asset Management Berhad.iii) MIDF Amanah Asset Management Berhad.

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FOCUS OF MIDF FOCUS OF MIDF via Development Finance Divisionvia Development Finance Division

MIDF is one of the agencies under MITI whose MIDF is one of the agencies under MITI whose main role is to manage government scheme funds main role is to manage government scheme funds via providing financial assistances to SMEs and via providing financial assistances to SMEs and Non-SMEs.Non-SMEs.

Provides medium and long term financing for new Provides medium and long term financing for new projects, expansion, automation, modernisation projects, expansion, automation, modernisation and relocation programmes.and relocation programmes.

Provides both Conventional and Islamic financing Provides both Conventional and Islamic financing (Shariah-based) products.(Shariah-based) products.

Main focus is developing the Main focus is developing the manufacturingmanufacturing and and servicesservices sectors in Malaysia. sectors in Malaysia.

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An Integral Part Of MITIAn Integral Part Of MITI

MIDF collaborates with MITI and its Agencies as a conduit for MIDF collaborates with MITI and its Agencies as a conduit for

assisting specific sectors and/or industries in the economic assisting specific sectors and/or industries in the economic

structure targeted by the Government.structure targeted by the Government.

GOVERNMENT FINANCIAL GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMESASSISTANCE PROGRAMMES

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Roles & Functions of MIDFRoles & Functions of MIDF

Promotional/marketing activities.

Credit evaluation of financing applications.

Disbursement of approved financing facilities.

Loan collection and supervision efforts.

Loan recovery processes (if any)

To maintain close relationship with business communities and relevant government agencies through various outreach programmes & dialogues.

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MIDF Products & MIDF Products & ServicesServices

MIDF Products & MIDF Products & ServicesServices

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MIDF PRODUCTS & SERVICESMIDF PRODUCTS & SERVICES

Leasing / IHP Leasing / IHP FacilityFacility

Leasing / IHP Leasing / IHP FacilityFacility

Property Property Mortgage Mortgage FinancingFinancing

Property Property Mortgage Mortgage FinancingFinancing

Machinery Machinery / Equipment / Equipment

FinancingFinancing

Machinery Machinery / Equipment / Equipment

FinancingFinancing

ProjectProjectFinancingFinancing

ProjectProjectFinancingFinancing

Working Working CapitalCapital

FinancingFinancing

Working Working CapitalCapital

FinancingFinancing

MIDFMIDFMIDFMIDF

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MIDF PRODUCTS AND SERVICESMIDF PRODUCTS AND SERVICES

Project Financing

Purpose: Financing of industrial/commercial land, construction of building, renovation of factory/business premises and machinery & equipment.

Loan Tenure: Up to 25 years (inclusive grace period).

Margin of Financing: Up to 90% of the cost of the project.

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Property Mortgage Financing

Purpose: Financing of industrial / commercial land / construction of building / ready-built industrial and commercial premises.


Margin of Financing: Up to 90% of the cost.

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Machinery or Equipment Financing

Purpose: Purchase of Machinery or Equipment.


Margin of Financing:

Up to 90% of the cost of new Machinery or Equipment;

Up to 65% the cost of used/refurbished machinery or equipment (not more than 5 years).

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Leasing / Industrial Hire Purchase Facility

Purpose: Financing for machinery or equipment


Margin of financing: Up to 90% of the cost of new Machinery or Equipment;

Up to 65% the cost of used/refurbished machinery or equipment (not more than 5 years)

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Working Capital Financing

Sales Revolving Credit (SRC) • Financing up to 80% of sales invoices

Purchase Revolving Credit (PRC)

• Financing purchase of raw material up to 100%

Working Capital Term Loan • Financing purchase of raw material / consumables up to 90%

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Government Financial Government Financial

Assistance Programmes Assistance Programmes

Government Financial Government Financial

Assistance Programmes Assistance Programmes

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Development Finance Division (DFD)Development Finance Division (DFD)

Government Financial Assistance Programmes Government Financial Assistance Programmes managed by MIDF are:- managed by MIDF are:-

Soft Loan Scheme for Small & Medium Enterprises Soft Loan Scheme for Small & Medium Enterprises (SLSME)(SLSME)

Soft Loan Scheme for Services Sector Capacity Soft Loan Scheme for Services Sector Capacity Development (SLSCD)Development (SLSCD)

Soft Loan Scheme for Automation & Modernisation Soft Loan Scheme for Automation & Modernisation (SLSAM)(SLSAM)

Soft Loan Scheme for Services Sector (SLSSS)Soft Loan Scheme for Services Sector (SLSSS)

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Soft Loan Scheme for Small & Medium Enterprises (SLSME)Soft Loan Scheme for Small & Medium Enterprises (SLSME)

Financing existing SMEs as well as new SMEs in project, Financing existing SMEs as well as new SMEs in project, fixed assetsfixed assets

and working capital financing.and working capital financing.

Eligibility:Eligibility:

SMEs incorporated under the Companies Act 1965 or SMEs incorporated under the Companies Act 1965 or

Registration of Business Ordinance 1956;Registration of Business Ordinance 1956; at least 60% equity held by Malaysians;at least 60% equity held by Malaysians; If related to a public-listed company with shareholding If related to a public-listed company with shareholding

not exceeding 20%; andnot exceeding 20%; and Possess valid premises license.Possess valid premises license.

Sectors: Sectors: ManufacturingManufacturing Manufacturing Related ServicesManufacturing Related Services Services (excluding insurance and financial services)Services (excluding insurance and financial services)

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Financing Amount:Financing Amount:

Minimum : RM 50,000Minimum : RM 50,000

Maximum : RM 5 million Maximum : RM 5 million

Eligible expenses: Eligible expenses: Industrial/commercial land, construction of building, Industrial/commercial land, construction of building,

renovation of factory/business premises, ready-built industrial renovation of factory/business premises, ready-built industrial or commercial premises, machinery & equipment and working or commercial premises, machinery & equipment and working capital financing.capital financing.

Margin of Financing (Fixed Assets)Margin of Financing (Fixed Assets)

Up to 90% of the cost for new fixed assets; andUp to 90% of the cost for new fixed assets; and Up to 65% for used/reconditioned equipment which shall not Up to 65% for used/reconditioned equipment which shall not

be more than 5 years old. be more than 5 years old.

Margin of Financing (Working Capital)Margin of Financing (Working Capital) Up to 100% of the working capital requirements.Up to 100% of the working capital requirements.

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Payback PeriodPayback Period

Land and Building - Up to 25 years including grace period;Land and Building - Up to 25 years including grace period;

Machinery and Equipment - Up to 7 years including grace period;Machinery and Equipment - Up to 7 years including grace period;

IT Equipment - Up to 4 years including grace period; IT Equipment - Up to 4 years including grace period;

Revolving Working Capital – Up to 150 days ( subject to yearly Revolving Working Capital – Up to 150 days ( subject to yearly review); andreview); and

Term Working Capital - Up to 3 years including grace period.Term Working Capital - Up to 3 years including grace period.

Interest / Profit Rate : 4% per annum.Interest / Profit Rate : 4% per annum.

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Soft Loan Scheme for Services Capacity Development Soft Loan Scheme for Services Capacity Development (SLSCD)(SLSCD)

To assist services companies and enterprises to undertake To assist services companies and enterprises to undertake upgrading and modernisation for diversifying into higher upgrading and modernisation for diversifying into higher value-added activities; andvalue-added activities; and

To improve the productivity and efficiency of service delivery To improve the productivity and efficiency of service delivery in facing liberalisation.in facing liberalisation.

Eligibility: Eligibility:

~ Companies/enterprises registered under;Companies/enterprises registered under; - the Companies Act 1965;- the Companies Act 1965; - the Registration of Businesses Act 1956;- the Registration of Businesses Act 1956; - Certificate(s) of Practise with Professional Regulatory - Certificate(s) of Practise with Professional Regulatory

Bodies.Bodies.~ At least 60% equity held by Malaysians;At least 60% equity held by Malaysians;~ Possesses a valid premises license;Possesses a valid premises license;~ In operation for at least 2 years; andIn operation for at least 2 years; and~ Annual turnover exceeding RM200,000/- and full-time Annual turnover exceeding RM200,000/- and full-time

employees exceeding 5.employees exceeding 5.

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Sector: Services (excluding financial, insurance, utility Sector: Services (excluding financial, insurance, utility and construction). and construction).

Financing Amount: Financing Amount:

− Minimum : RM50,000Minimum : RM50,000− Maximum : RM5,000,000Maximum : RM5,000,000

Eligible expenses: Expenditure to be incurred for upgrading and

modernisation including the purchase of equipment, hardware and software as well as related cost for the purposes of diversifying into higher – added activities, and improving productivity and efficiency of service delivery.

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Payback Period:Payback Period: - Up to 7 years inclusive grace period of up to 24

months.

Margin of Financing: Margin of Financing:

- - Up to 90% of eligible expenses.Up to 90% of eligible expenses.

Interest / Profit Rates:Interest / Profit Rates:

- 4.0% per annum for SMEs- 4.0% per annum for SMEs

- 5.0% per annum for non-SMEs- 5.0% per annum for non-SMEs

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Soft Loan Scheme for Automation and Modernisation Soft Loan Scheme for Automation and Modernisation (SLSAM) (SLSAM)

Sector: ManufacturingSector: Manufacturing

Eligibility: Companies incorporated under the Companies Eligibility: Companies incorporated under the Companies

Act 1965 with:-Act 1965 with:- at least 51% equity held by Malaysians;at least 51% equity held by Malaysians; possess a valid business license; andpossess a valid business license; and in operation for at least 2 years. in operation for at least 2 years.

Financing Amount: Financing Amount:

Minimum : RM50,000Minimum : RM50,000Maximum : RM10,000,000Maximum : RM10,000,000

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Margin of FinancingMargin of Financing Up to 70% for mergers and acquisitionUp to 70% for mergers and acquisition Up to 90% for financing of factory / buildingUp to 90% for financing of factory / building Up to 90% for new machinery and equipment, moulds, dies, Up to 90% for new machinery and equipment, moulds, dies,

jigs and fixturesjigs and fixtures Up to 65% for used / reconditioned machinery and Up to 65% for used / reconditioned machinery and equipmentequipment

Up to 90% for other eligible expensesUp to 90% for other eligible expenses Up to 100% for financing existing loan principal amount with Up to 100% for financing existing loan principal amount with

other financial institutions (existing factory building other financial institutions (existing factory building /machinery/ /machinery/

equipment / moulds / dies / jigs / fixtures)equipment / moulds / dies / jigs / fixtures)Working Capital Financing:Working Capital Financing:Up to 100% for Purchase Revolving CreditUp to 100% for Purchase Revolving CreditUp to 90% for Sales Revolving CreditUp to 90% for Sales Revolving CreditUp to 90% for Term Working Capital FinancingUp to 90% for Term Working Capital Financing

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Payback Period Factory / Building

– Up to 25 years including grace period of up to 2 years Machinery and Equipment

– Up to 7 years including grace period of up to 1 year Revolving Credit

– Up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days Term Working Capital Financing and other eligible expenses – Up to 3 years including a grace period of up to 6 months IT hardware / software financing – Up to 4 years including grace period of up to 1 year


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Interest / Profit Rate:Interest / Profit Rate: - 4% per annum (SMEs) - 4% per annum (SMEs) - 5% per annum (Non-SMEs)- 5% per annum (Non-SMEs)

Eligible expenses: Eligible expenses:

i.i.AutomationAutomationii.ii.Rationalisation of Operations which also includes the facilitation Rationalisation of Operations which also includes the facilitation of the Joint-Venture / Technical Partnership and equipmentof the Joint-Venture / Technical Partnership and equipmentiii.iii.Tooling Acquisition, Development & ProductionTooling Acquisition, Development & Productioniv.iv.Productivity ImprovementProductivity Improvementv.v.Export Enhancement ProgrammeExport Enhancement Programme

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Financing assistance for:

Services-based companies / business entities to own commercial or industrial properties.

Eligibility Criteria:

Companies incorporated under the Companies Act 1965 or enterprises registered under the registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice by any Professional Regulatory Bodies.

At least 60% equity held by Malaysians. Possesses a valid premises licence. To be occupied by services providers to conduct their

businesses. (Acquisition of properties for speculative investment purposes

will not be eligible for financing)

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Sector: Services (excluding financial, insurance, utilities and construction sectors)

Financing Amount: Up to a maximum of RM5 million.

Eligible Items:

Commercial and industrial land & buildings / ready-built or to-be constructed premises.

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Percentage of financing: Up to a maximum of 100%

Tenure of Financing: Up to 15 years including a grace period of up to 2 years.

Interest / Profit Rates: 4.0% per annum for SME 5.0% per annum for non-SME

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Low Interest/Profit Rates (as low as 4% per Low Interest/Profit Rates (as low as 4% per

annum) annum)

Fixed Interest/Profit Rates Fixed Interest/Profit Rates

Grace Period Grace Period

Available also for Start-Up CompaniesAvailable also for Start-Up Companies

Capacity building purposes.Capacity building purposes.

Advantages of MIDF’s Government Financial Assistance Advantages of MIDF’s Government Financial Assistance ProgrammesProgrammes

Why MIDF???Why MIDF???

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How To Contact MIDFHow To Contact MIDF

Main Office Development Finance Division

Level 15, Menara MIDF82, Jalan Raja Chulan50200 Kuala Lumpur

Tel : 03 - 2173 8888Fax No : 03 - 2772 1911E-mail : [email protected]: http://www.midf.com.my

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1. Northern Region Branch, Georgetown, Pulau Pinang. Tel : 04-2298434/435/436

2. Southern Region Branch, Johore Bahru Tel : 07-2232727, 07-2243046

3. Eastern Region Branch, Kota Bharu Tel : 09-7483546, 09-7461679

4. Sabah Branch, Kota Kinabalu Tel : 088-211633, 088-211523

5. Sarawak Branch , Kuching Tel : 082-254533, 082-254203

MIDF Regional Offices MIDF Regional Offices

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THANK YOU

MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

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