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MIDF in brief
Products & Services
Government Financial
Assistance Programmes

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 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.

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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
and
sectors in Malaysia.

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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.

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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.

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MIDF PRODUCTS & SERVICES
Working
Capital
Financing
Leasing / IHP
Facility
MIDF
Property
Mortgage
Financing
Project
Financing
Machinery
/ Equipment
Financing

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MIDF PRODUCTS AND SERVICES
Project Financing
Purpose:
Loan Tenure:
Financing of industrial/commercial land, construction of building, renovation of factory/business premises and machinery & equipment.
Up to 25 years (inclusive grace period).
Margin of Financing: Up to 90% of the cost of the project.

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MIDF PRODUCTS AND SERVICES
Property Mortgage Financing
Purpose: Financing of industrial / commercial land / construction of building / ready-built industrial and commercial premises.
Loan Tenure:
Margin of Financing:
Up to 25 years (inclusive grace period).
Up to 90% of the cost.

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MIDF PRODUCTS AND SERVICES
Machinery or Equipment Financing
Purpose:
Loan Tenure:
Purchase of Machinery or Equipment.
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).

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MIDF PRODUCTS AND SERVICES
Leasing / Industrial Hire Purchase Facility
Purpose:
Loan Tenure:
Financing for machinery or equipment
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)

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

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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 Automation & Modernisation
(SLSAM)

Soft Loan Scheme for Services Sector (SLSSS)

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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)

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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.

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

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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.
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Eligibility:
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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.

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Soft Loan Scheme for Services Capacity Development (SLSCD)
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Sector: Services (excluding financial, insurance, utility and construction).
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Financing Amount:
−
−
Minimum : RM50,000
Maximum : RM5,000,000
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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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Soft Loan Scheme for Services Capacity Development (SLSCD)

Payback Period:
Up to 7 years inclusive grace period of up to 24 months.
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Margin of Financing:
Up to 90% of eligible expenses.
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Interest / Profit Rates:
- 4.0% per annum for SMEs
- 5.0% per annum for non-SMEs

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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
Maximum : RM10,000,000

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Soft Loan Scheme for Automation and Modernisation (SLSAM)
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Margin of Financing
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Up to 70% for mergers and acquisition
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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
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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
Up to 90% for Term Working Capital Financing

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Soft Loan Scheme for Automation and Modernisation (SLSAM)

Payback Period

Factory / Building

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– 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
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 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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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

Soft Loan Scheme for Services Sector (SLSSS)
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Financing assistance for:

Services-based companies / business entities to own commercial or industrial properties.
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Eligibility Criteria:
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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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Soft Loan Scheme for Services Sector (SLSSS)
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Sector: Services (excluding financial, insurance, utilities and construction sectors)
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Financing Amount: Up to a maximum of RM5 million.
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Eligible Items:

Commercial and industrial land & buildings / ready-built or to-be constructed premises.

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Soft Loan Scheme for Services Sector (SLSSS)
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Percentage of financing: Up to a maximum of 100%
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Tenure of Financing: Up to 15 years including a grace period of up to 2 years.
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Interest / Profit Rates:

4.0% per annum for SME

5.0% per annum for non-SME

Advantages of MIDF’s Government Financial Assistance Programmes
 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.
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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

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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

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