1
MIDF GOVERNMENT FINANCIAL
ASSISTANCE PROGRAMMES –
“THE SOLUTION TO YOUR FINANCIAL
CHALLENGES”
BY
2
Presentation Outline
MIDF in brief
Products & Services
Government Financial
Assistance Programmes
3
MIDF in brief
Incorporated on 30 March 1960.
Mandated role in helping, developing and improving the
manufacturing sector in Malaysia.
Merged with Amanah Capital Partners Berhad in February
2003.
Wholly-owned by Permodalan Nasional Berhad (PNB)
since February 2008.
3 core business units:-
i) Development Finance Division;
ii) MIDF Amanah Investment Bank Berhad; and iii) MIDF Amanah Asset Management Berhad.
4
FOCUS OF MIDF
via Development Finance Division
MIDF is one of the agencies under MITI whose main role
is to manage government scheme funds via providing
financial assistances to SMEs and Non-SMEs.
Provides medium and long term financing for new
projects, expansion, automation, modernisation and
relocation programmes.
Provides both Conventional and Islamic financing
(Shariah-based) products.
Main focus is developing the
manufacturing
and
5
An Integral Part Of MITI
MIDF collaborates with MITI and its Agencies as a conduit for assisting specific sectors and/or industries in the economic structure targeted
by the Government.
GOVERNMENT FINANCIAL
6
Roles & 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.
7
8
MIDF PRODUCTS & SERVICES
Leasing / IHP Facility Property Mortgage Financing Machinery / Equipment Financing Project Financing Working Capital Financing
MIDF
9
MIDF PRODUCTS AND SERVICES
Project FinancingPurpose: 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.
10
MIDF PRODUCTS AND SERVICES
Property Mortgage Financing
Purpose: Financing of industrial / commercial land /
construction of building / ready-built industrial and commercial premises.
Loan Tenure: Up to 25 years (inclusive grace period).
11
MIDF PRODUCTS AND SERVICES
Machinery or Equipment Financing
Purpose: Purchase of Machinery or Equipment. Loan Tenure: Up to 7 years (inclusive grace period).
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).
12
MIDF PRODUCTS AND SERVICES
Leasing / Industrial Hire Purchase Facility
Purpose: Financing for machinery or equipment Loan Tenure: Up to 7 years (inclusive grace period).
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)
13
MIDF PRODUCTS AND SERVICES
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%
Bai’ Dayn Factoring Facility • Financing up to 80% of sales invoices
Working Capital Term Loan • Financing purchase of raw material /
14
Government Financial
15
Development Finance Division (DFD)
Government Financial Assistance Programmes managed by
MIDF are:-
Soft Loan Scheme for Small & Medium Enterprises (SLSME)
Soft Loan Scheme for Services Sector Capacity
Development (SLSCD)
Soft Loan Scheme for Services Sector (SLSSS)
Soft Loan Scheme of Automation and Modernisation
(SLSAM)
Soft Loan Scheme for Bumiputera Automotive
Entrepreneurs (SLBAE)
16
Soft Loan Scheme for Small & Medium Enterprises (SLSME)
Financing existing SMEs as well as new SMEs in project, fixed assets
and working capital financing.
Eligibility:
SMEs incorporated under the Companies Act 1965 or Registration
of Business Ordinance 1956;
at least 60% equity held by Malaysians;
If related to a public-listed company with shareholding not
exceeding 20%; and
Possess valid premises license.
Sectors:
Manufacturing
Manufacturing Related Services
Services (excluding insurance and financial services)
17
Soft Loan Scheme for Small & Medium Enterprises (SLSME)
Financing Amount: Minimum : RM 50,000 Maximum : RM 5 million Eligible expenses:
Industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises, machinery & equipment and working capital financing.
Margin of Financing (Fixed Assets)
Up to 90% of the cost for new fixed assets; and
Up to 65% for used/reconditioned equipment which shall not be more
than 5 years old.
Margin of Financing (Working Capital)
Up to 100% of the working capital requirements.
18
Soft Loan Scheme for Small & Medium Enterprises (SLSME)
Payback Period
Land and Building - Up to 25 years including grace period;
Machinery and Equipment - Up to 7 years including grace period; IT Equipment - Up to 4 years including grace period;
Revolving Working Capital – Up to 150 days ( subject to yearly review);
and
Term Working Capital - Up to 3 years including grace period.
19
Soft Loan Scheme for Services Capacity Development (SLSCD)
To assist services companies and enterprises to undertake upgrading
and modernisation for diversifying into higher value-added activities; and
To improve the productivity and efficiency of service delivery in facing
liberalisation.
Eligibility:
~ Companies/enterprises registered under; - the Companies Act 1965;
- the Registration of Businesses Act 1956;
- Certificate(s) of Practise with Professional Regulatory Bodies. ~ At least 60% equity held by Malaysians;
~ Possesses a valid premises license; ~ In operation for at least 2 years; and
~ Annual turnover exceeding RM200,000/- and full-time employees exceeding 5.
20
Soft Loan Scheme for Services Capacity Development (SLSCD)
Sector: Services (excluding financial, insurance, utility and
construction).
Financing Amount:
−
Minimum : RM50,000
−Maximum : 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.
21
Soft Loan Scheme for Services Capacity Development (SLSCD)
Payback Period:
-
Up to 7 years inclusive grace period of up to 24 months.
Margin of Financing:
-
Up to 90% of eligible expenses.
Interest / Profit Rates:
- 4.0% per annum for SMEs
22
Soft Loan Scheme for Services Sector (SLSSS)
Financing assistance for:
New start-up companies / enterprises – creation of new services
entrepreneurs.
Expansion/upgrading/modernisation/diversification for existing
services providers into higher value-added activities and improving productivity and efficiency in service delivery.
Eligible Sector:
Services (excluding financial, insurance, utilities and construction
23
Soft Loan Scheme for Services Sector (SLSSS)
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.
24
Soft Loan Scheme for Services Sector (SLSSS)
Eligible Items:
A. Fixed Assets:
Land & Buildings/ready-built premises (including renovation);
Machinery/equipment/motor vehicles/hardwares & softwares; and Other fixed assets.
B. Working Capital:
Purchase Revolving Credit; and Sales Revolving Credit.
C. Working Capital:
Advertising and Promotional costs such as media advertising,
e-commerce website development and printing of promotional materials.
25
Soft Loan Scheme for Services Sector (SLSSS)
Financing Amount
Minimum: RM100,000
Maximum: RM5.0 million per application
Percentage of financing:
A. Fixed Assets:
Land & Buildings/ready-built premises
– up to 100% of the costs of land/building construction/ready-built building and renovation.
Machinery/equipment/motor vehicles/hardwares & softwares and
other fixed assets
- up to 80% of the costs of new machinery/equipment/motor vehicles/hardwares & softwares and other fixed assets
- up to 60% of the costs of used / reconditioned machinery/equipment/motor vehicles which are not more than 5 years old.
26
Soft Loan Scheme for Services Sector (SLSSS)
B. Working Capital:
Up to 100% for Purchase Revolving Credit.
Up to 80% for Sales Revolving Credit
C. Working Capital:
Up to 50% of Advertising and Promotional costs.
Tenure of Financing
Land & buildings / ready-built premises – up to 15 years including grace
period of up to 2 years.
Machinery/equipment/motor vehicles/other fixed assets – up to 6 years
including grace period of up to 1 year.
Hardwares & softwares – up to 4 years including grace period of up to 1
year.
Advertising and promotional – up to 3 years including grace period of up to 1
year.
Working Capital:
27
Soft Loan Scheme for Services Sector (SLSSS)
Interest / Profit Rates:
4.0% per annum for SME
28
Soft Loan Scheme for Automation and Modernisation (SLSAM)
Sector: Manufacturing
Eligibility: Companies incorporated under the Companies Act
1965 with:-
at least 51% equity held by Malaysians;
possess a valid business license; and
in operation for at least 2 years.
Financing Amount:
Minimum : RM50,000
29
Soft Loan Scheme for Automation and Modernisation (SLSAM)
Margin of Financing
Up to 70% for mergers and acquisition
Up to 90% for financing of factory / building
Up to 90% for new machinery and equipment, moulds, dies,
jigs and fixtures
Up to 65% for used / reconditioned machinery and equipment Up to 90% for other eligible expenses
Up to 100% for financing existing loan principal amount with
other financial institutions (existing factory building /machinery/ equipment / moulds / dies / jigs / fixtures)
Working Capital Financing:
Up to 100% for Purchase Revolving Credit Up to 90% for Sales Revolving Credit
30
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
31
Soft Loan Scheme for Automation and Modernisation (SLSAM)
Interest / Profit Rate:
- 4% per annum (SMEs)
- 5% per annum (Non-SMEs)
Eligible expenses:
i. Automation
ii. Rationalisation of Operations which also includes the facilitation of the
Joint-Venture / Technical Partnership and equipment
iii.Tooling Acquisition, Development & Production iv.Productivity Improvement
v. Export Enhancement Programme
32
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)
Financing assistance for:
Open Approved Permit (AP) Holders to expand and diversify into
other automotive-related business; and
Sustain and enhance Bumiputera participation in the automotive
industry.
Eligibility:
Companies incorporated under the Companies Act 1965 with:
Open AP Holders or joint venture companies with at least 30%
equity held by Open AP Holders and as reflected in their Board of Directors and managerial, technical and supervisory aspects; and
33
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)
Eligible items:
i. Purchase of land & construction of buildings and purchase of ready-built buildings;
ii. Renovation / upgrade of service centres;
iii. Purchase of new / used / reconditioned plant & machinery / equipment *;
iv. Purchase of other fixed assets related to automotive industries;
v. Costs incurred / to be incurred in securing automotive distributorships / dealerships from existing franchise holders; and
34
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)
Eligible items:
vi. Working capital in the form of:-
(a) Purchase Revolving Credit:-
Working capital requirement for the purchase of raw materials / stocks / consumables / spare parts / services supplied by suppliers / sub-contractors used in the business operations;
(b) Sales Revolving Credit:-
Working capital requirement in relation to the sales and / or supply or provision of the goods and / or parts, products or services; or
(c) Term Loan
Working capital requirement for the purchase of raw materials / stocks / consumables / spare parts supplied by suppliers / sub-contractors used in the business operations.
* for used / reconditioned machinery and equipment, the age shall not be more than 5 years old.
35
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)
Financing Amount:
Minimum: RM 100,000 Maximum: RM5,000,000
Margin of Financing:
Up to 90% of the costs of land / building construction / ready-built
buildings or renovation / upgrade of service centres or new plant & machinery / equipment and / or related fixed assets;
Up to 65% of the costs of used / reconditioned plant & machinery /
equipment which are not more than 5 years old;
Up to 80% of the costs incurred / to be incurred in securing
automotive distributorships / dealerships from existing franchise holders;
36
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)
Margin of Financing:
Working Capital:
(a) Up to 100% for Purchase Revolving Credit; (b) Up to 80% for Sales Revolving Credit; and (c) Up to 80% for Term Loan.
37
Low Interest/Profit Rates (as low as 4% per annum)
Fixed Interest/Profit Rates
Grace Period
Available also for Start-Up Companies
Capacity building purposes.
Advantages of MIDF’s Government Financial Assistance Programmes
38
How To Contact MIDF
Main Office
Development Finance Division
Level 15, Menara MIDF 82, Jalan Raja Chulan 50200 Kuala Lumpur
Tel : 03 - 2173 8888 Fax No : 03 - 2772 1911
E-mail : inquiry-feedback@midf.com.my Website: http://www.midf.com.my
39
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
40
