MULTIMEDIA DEVELOPMENT CORPORATION SDN BHD (MDEC)
MULTIMEDIA SUPER CORRIDOR RESEARCH AND DEVELOPMENT GRANT SCHEME (MGS)
1
Objective
To provide reimbursable R&D grant to assist Multimedia Super Corridor (MSC)
Malaysia-Status Companies to develop innovative multimedia technologies and
applications.
2
Maximum Tenure
1 year
3
Maximum
financing
Up to 50% of the approved total project cost or RM1.2 million whichever is
lower, subject to the merit of each case.
4
Eligibility criteria
1. Possess a valid MSC Malaysia-status certification.
2. Malaysian shareholding of at least 51%.
3. Fulfill location requirements of MSC Malaysia status.
4. Past or current recipients of any Government R&D grant are NOT eligible
under the scheme.
5
Purpose of
financing
6
Eligible activities
To provide financing for research and development projects for the development
of new products and services across the multimedia value chain and Flagship
Applications.
1. Research and development projects leading to the development of products
and services across the multimedia value chain and Flagship Applications
2. All R&D activities must be conducted in Malaysia
7
Application
procedure
Applicant is advised to have prior discussion with MGS Unit of MDeC before
submitting any application.
8
Further
MSC Malaysia Client Contact Centre (CliC)
information/Contact Multimedia Development Corporation
MSC Malaysia Headquarters
Persiaran APEC
63000 Cyberjaya
Selangor Darul Ehsan
Tel : 1-800-88-8338 (within Malaysia)
Tel : 603-8315 3000 (outside Malaysia)
Email : clic@mdec.com.my
Website : www.mdec.com.my
SOURCE:http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=432&Itemi
d=543
MALAYSIAN VENTURE CAPITAL MANAGEMENT BERHAD
(MAVCAP)
VENTURE CAPITAL FINANCING
1
Objective
To nurture and develop the technology sector and the venture capital market
in Malaysia by providing venture capital financing.
2
Minimum
Investment Limit
RM50,000.00.
3
Maximum
Investment Limit
RM40 million
4
Participating
financial
institutions /
Implementing
MAVCAP
5
Priority sectors
1. Telecommunication and networking
2. Information technology
3. Internet
4. Electronics
5. Semi-conductors
6
7
Application
procedure
Please contact MAVCAP for further details of Investment Guidelines
Application to be submitted to MAVCAP
Further
Malaysia Venture Capital Management
information/Contact Berhad (545446-U)
Level 10, Menara Bank Pembangunan
Bandar Wawasan
1016, Jalan Sultan Ismail
50300 Kuala Lumpur
Malaysia
Tel
: +603 2050 3000
Fax
: +603 2698 3800
Website : www.mavcap.com.my
SOURCE:
http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=1234&Itemid=1200
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA)
(MIDA) - INCENTIVES FOR HIGH TECHNOLOGY COMPANIES
1
Objective
&
Incentives
A high technology company is a company engaged in promoted activities or
in the production of promoted products in areas of new and emerging
technologies.
A high technology company qualifies for:
1. Pioneer Status with income tax exemption of 100% of the statutory
income for a period of five years. Unabsorbed capital allowances as
well as accumulated losses incurred during the pioneer period can
be carried forward and deducted from the post pioneer income of
the company; or
2. Investment Tax Allowance of 60% on the qualifying capital
expenditure incurred within five years from the date the first
qualifying capital expenditure is incurred. The allowance can be
utilised to offset against 100% of the statutory income for each year
of assessment. Any unutilised allowances can be carried forward to
subsequent years until fully utilised.
2
Eligibility Criteria
The high technology company must fulfill the following criteria:
1. The percentage of local R & D expenditure to gross sales should be at
least 1% on an annual basis. The company has three years from its date of
operation or commencement of business to comply with this requirement.
2. Scientific and technical staff having degrees or diplomas with a minimum
of 5 years experience in related fields should comprise at least 15% of the
company's total workforce.
3
Further
MIDA Sentral
information/Contact No.5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: investmalaysia@mida.gov.my
Website : www.mida.gov.my
(MIDA) - INCENTIVES FOR SMALL AND MEDIUM ENTERPRISES - SMEs
1
Objective
Effective from the Year Assessment 2009, for the purpose of imposition of
income tax and tax incentives, the definition of SMEs is reviewed as a
company resident in Malaysia with a paid up capital of ordinary shares of
RM2.5 million or less at the beginning of the basis period of a year of
assessment whereby such company cannot be controlled by another
company with a paid up capital exceeding RM2.5 million.
SMEs are eligible for a reduced corporate tax of 20% on chargeable
incomes of up to RM500,000. The tax rate on the remaining chargeable
income is maintained at 25%.
2
Incentives
Small scale manufacturing companies incorporated in Malaysia with
shareholders' funds not exceeding RM500,000 and having at least 60%
Malaysian equity are eligible for the following incentives:
1. Pioneer Status with income tax exemption of 100% of the statutory
income for a period of five years. Unabsorbed capital allowances as
well as accumulated losses incurred during the pioneer period can
be carried forward and deducted from the post pioneer income of
the company; or
2. Investment Tax Allowance of 60% on the qualifying capital
expenditure incurred within five years. This allowance can be offset
against 100% of the statutory income for each year of assessment.
Any unutilised allowances can be carried forward to subsequent
years until fully utilised.
A sole proprietorship or partnership is eligible to apply for this incentive
provided a new private limited/limited company is formed to take over the
existing production/activities.
3
Eligibility Criteria
To qualify for the incentive, effective 2 March 2012, a small-scale company
has to comply with the following criteria:
1. The value-added must be at least 25%; and
2. The managerial, technical and supervisory (MTS) ratio must be at
least 20%
4
Further
MIDA Sentral
information/Contact No.5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: investmalaysia@mida.gov.my
Website : www.mida.gov.my
(MIDA) - INCENTIVES FOR STRATEGIC PROJECTS
1
Objective
Strategic projects involve products or activities of national importance. They
generally involve heavy capital investments with long gestation periods,
have high levels of technology, are integrated, generate extensive linkages,
and have significant impact on the economy.
2
Incentives
Such projects qualify for:
1. Pioneer Status with income tax exemption of 100% of the statutory
income for a period of 10 years; Unabsorbed capital allowances as
well as accumulated losses incurred during the pioneer period can
be carried forward and deducted from the post pioneer income of
the company; or
2. Investment Tax Allowance of 100% on the qualifying capital
expenditure incurred within five years from the date the first
qualifying capital expenditure is incurred. This allowance can be
offset against 100% of the statutory income for each year of
assessment. Any unutilised allowances can be carried forward to
subsequent years until fully utilised.
3
Eligibility Criteria
4
Further
MIDA Sentral
information/Contact No.5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: investmalaysia@mida.gov.my
Website : www.mida.gov.my
N/A
(MIDA) - INCENTIVES FOR THE MACHINERY AND EQUIPMENT INDUSTRY
1
Objective
N/A
2
Incentives
Companies undertaking activities in the production of selected machinery
and equipment are eligible for:
1. Pioneer Status with income tax exemption of 100% of the statutory
income for a period of 10 years. Unabsorbed capital allowances as well
as accumulated losses incurred during the pioneer period can be carried
forward and deducted from the post pioneer income of the company; or
2. Investment Tax Allowance of 100% on the qualifying capital expenditure
incurred within five years from the date the first qualifying capital
expenditure is incurred. This allowance can be offset against 100% of the
statutory income for each year of assessment. Any unutilised allowances
can be carried forward to subsequent years until fully utilised.
3
Eligibility Criteria
4
Further
MIDA Sentral
information/Contact No.5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: investmalaysia@mida.gov.my
Website : www.mida.gov.my
N/A
(MIDA) - MAIN INCENTIVES FOR MANUFACTURING COMPANIES
1
Objective
The major tax incentives for companies investing in the manufacturing sector are
the Pioneer Status and the Investment Tax Allowance.
Eligibility for Pioneer Status and Investment Tax Allowance is based on certain
priorities, including the level of value-added, technology used and industrial
linkages. Eligible activities and products are termed as "promoted activities" or
"promoted products".
2
Incentive
(Pioneer Status)
A company granted Pioneer Status enjoys a five year partial exemption from the
payment of income tax. It pays tax on 30% of its statutory income*, with the
exemption period commencing from its Production Day (defined as the day its
production level reaches 30% of its capacity).
Unabsorbed capital allowances as well as accumulated losses incurred during the
pioneer period can be carried forward and deducted from the post pioneer income
of the company.
Applications for Pioneer Status should be submitted to the Malaysian Investment
Development Authority (MIDA).
* Statutory Income is derived after deducting revenue expenditure and capital
allowances from the gross income.
3
Incentive
(Investment Tax
Allowance)
As an alternative to Pioneer Status, a company may apply for Investment Tax
Allowance (ITA). A company granted ITA is entitled to an allowance of 60% on
its qualifying capital expenditure (factory, plant, machinery or other equipment
used for the approved project) incurred within five years from the date the first
qualifying capital expenditure is incurred.
The company can offset this allowance against 70% of its statutory income for
each year of assessment. Any unutilised allowance can be carried forward to
subsequent years until fully utilised. The remaining 30% of its statutory income
will be taxed at the prevailing company tax rate.
4
Further
information/Contact
MIDA Sentral
No.5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Malaysia
Tel: 603 2267 3633
Fax: 603 2274 7970
Email: investmalaysia@mida.gov.my
Website : www.mida.gov.my
SOURCE: http://www.mida.gov.my/home/incentives-in-manufacturing-sector/posts/
MALAYSIA DEBT VENTURES BERHAD (MDV)
PROGRAMMES
1
Objectives
To provide debt financing to Malaysian companies in the ICT and high
growth sectors in Asia.
2
Maximum
financing rate
Ranging from 5.5% to 6.8%
3
Maximum tenure
1 to 5 years
4
Maximum
financing
Up to 85% of the value of contract or total cost of the project, whichever is
lower
5
Participating
financial
institutions /
Implementing
Ministry / Agency
Malaysian Biotechnology Corporation (MBC)
6
Type of assistance /
Form of financing
1. Revolving Project Loans
To provide debt financing for domestic and foreign contract-backed project
to deliver ICT and high-growth solutions
2. Open -ended project loans
To finance exceptional open-ended (non contract-backed) projects such as
Build-Own-Operate, Build-Operate-Transfer and etc
3. Partner Bank Facilities
To provide financing facility, through panel banks, fully backed against
MDV's guarantees. These facilities complement the project loans provided
directly by MDV
4. Small contract financing
To provide financing facility to companies that have secured ICT contracts
and projects from the Government, multinational companies or other clients
of similar status
7
Eligible sector /
Types of financing
1. ICT
2. High growth ICT projects
8
Five-step loan
Process:
Step 1: Pre-assessment and Support
MDV’s Origination & Assessment Team will discuss your company’s and
project’s requirements and advise on the appropriate project and financing
structure prior to application. We will also inform of MDV’s financing
application and processing on requirements as outlined in Application
Checklist.
Step 2: Pre-due Diligence and Due Diligence
Upon completion and submission of Application Form, MDV may conduct
an Orientation Meeting, where you will present your company and project
to MDV’s Assessment Team and duly appointed External Consultants,
comprising technology consultants who will assess among others your
management and technical team, and legal consultants/firms who will
undertake statutory review and assessment of legal documentation of the
relevant contract/project.
MDV’s due diligence processes may also include interviews and site visits
to contract awarder/sponsor and/or suppliers.
Step 3: Decision
The due diligence results and assessment will be compiled and presented to
an independent financing committee for decision. Within three (3) working
days of the presentation, MDV will issue letter of offer for approved
financing applications. You will then have two (2) weeks to accept the
terms and conditions.
Step 4: Documentation
Upon acceptance of the letter of offer, you will then execute the necessary
legal documentation for the financing, including facilities agreement and
security documentation. A Pre-Disbursement Briefing will then be
conducted to explain MDV’s requirements with respect to drawdown of the
facility granted.
Step 5: First Drawdown and Disbursement
You will be required to fulfill all conditions precedent and disbursement
conditions prior to any disbursement. The solicitors appointed will then
issue a release letter confirming that all conditions have been met. The
necessary documents will then be required to support any drawdown
requested.
9
Eligibility Criteria
1. Public or private limited company incorporated in Malaysia with a
minimum paid-up capital of RM100,000
2. Minimum of five full-time employees
3. Main product or activity of the company exclude textile manufacturing,
metal molding, agriculture activities or food production and/or processing
10
11
Application
procedure
Further
information/Contact
Applications to be submitted to MDV
MALAYSIA DEBT VENTURES BERHAD (MDV)
Level 5, Menara Bank Pembangunan
1016, Jalan Sultan Ismail
50250 Kuala Lumpur
Malaysia
Tel : 03-2617 2888
Email: info@debtventures.com
Website: www.debtventures.com
SOURCE:
http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=1229&Itemid=1195
MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE BERHAD
(MIDF)
(MIDF) - SOFT LOAN FOR FACTORY RELOCATION
1
Objective
Provides assistance for SMEs, including graduates of rehabilitation and
incubation to open / relocate / expand their business through acquisition of
factory / business premises.
2
Maximum
financing rate
2% per annum
3
Maximum tenure
Up to 15 years including up to 2 years period
4
Minimum financing
RM50,000
5
Maximum
financing
RM1.5 million or 85% of the cost of the project (90% for Bumiputera)
6
Participating
financial
institutions /
Implementing
Ministry / Agency
Malaysian Industrial Development Finance Berhad (MIDF)
7
Eligibility criteria
1. SMEs incorporated under the Companies Act 1965 or Registration of
Business Ordinance 1956
2. At least 60% equity held by Malaysians
3. Subsidiaries of public-listed companies with shareholding not exceeding
20%
4. Companies to be located at approved location without having to close
down the existing operation/premises
8
Purpose of
financing
1. Purchase of ready made factories or/and business premises
2. Purchase of factory lots and construction of factories including related
infrastructure
3. Cost of purchase of related machinery and equipment arising from
relocation.
9
Eligible sector /
Types of financing
1. Manufacturing
2. Manufacturing Related Services
3. Services (excluding insurance and financial services)
10
Eligible expenses
1. Purchase of ready-made factories/business premises;
2. Purchase of factory lot and construction of factories including related
infrastructure; and
3. Purchase of related machinery and equipment due to relocation/expansion
Applications to be submitted to MIDF
11
Application
procedure
12
Further
information/Contact Assistant Vice President and Head
Group Corporate Communications,
Malaysian Industrial Development Finance Berhad (3755-M),
Level 19, Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur
Tel : (603) 2173 8888
Fax : (603) 2173 8877
E-mail: inquiry@midf.com.my
Website : www.midf.com.my
SOURCE: http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=612:softloan-scheme-for-factory-relocation&catid=81:financial-assistancesoft-loan&Itemid=127
(MIDF) - SOFT LOAN FOR ICT ADOPTION
1
Objective
To assist the small and medium enterprises by providing soft loan to
enhance their competitiveness, efficiency and productivity through the
adoption of ICT in their business management and operation
2
Maximum financing
rate
2% per annum
3
Maximum tenure
Up to 5 ½ years including maximum 6 months grace period
4
Minimum financing
RM20,000
5
Maximum financing
RM500,000
6
Participating
financial institutions /
Implementing
Ministry / Agency
Malaysian Industrial Development Finance Berhad (MIDF)
7
Eligibility criteria
1. SMEs incorporated under the Companies Act 1965 or Registration of
Business Ordinance 1956;
2.At least 60% equity held by Malaysians;
3. Subsidiaries of public listed companies (not exceeding 20%
shareholding); and
4. Possess valid premises license
8
Purpose of financing
To purchase software and hardware items to upgrade business efficiency
and operation.
9
Sector coverage
1. Manufacturing
2. Manufacturing Related Services
3. Services (excluding insurance and financial services)
10
Eligible assistance
Purchase of the following:
1. Software for upgrading engineering design capabilitis;
2. ERP softwareor other similar software;
3. Software such as Point of Sales System, Tracking System, Automated
Store Management System and Inventory Management System;
4. Supporting software for specific industry such as animation, aviation,
web hosting and others;
5. Related hardware, equipment and training costs.
11
Application
Procedure
Applications to be submitted to MIDF
12
Further
information/Contact
Assistant Vice President and Head
Group Corporate Communications,
Malaysian Industrial Development Finance Berhad (3755-M),
Level 19, Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur
Tel : (603) 2173 8888
Fax : (603) 2173 8877
E-mail: inquiry@midf.com.my
Website : www.midf.com.my
SOURCE: http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=609:softloan-for-ict-adoption&catid=81:financial-assistancesoft-loan&Itemid=129
(MIDF) - SOFT LOAN PACKAGE FOR SMALL AND MEDIUM ENTERPRISES
1
Objective
To provide financing to SMEs, including new start-up business for working
capital requirements and expansion in productive capacity
2
Maximum
financing rate
2% per annum
3
Maximum tenure
1. Land and Building : up to 15 years including grace period of up to 2
years;
2. IT Equipment : Up to 4 years including grace period of up to 1 year;
3. Revolving Working Capital - Subject to annual review
4. Machinery and Equipment : Up to 6 years including grace period of up to
1 year
5. Term Working Capital : Up to 3 1/2 years including grace period of up to
6 months
4
Minimum financing
RM50,000
5
Maximum
financing
1. Project Financing : RM 1.5 million
2. Fixed Assets Financing : RM 1 million
3. Working Capital Financing : RM 1 million
6
Participating
financial
institutions /
Implementing
Ministry / Agency
Malaysian Industrial Development Finance Berhad (MIDF)
7
Eligibility criteria
1. SMEs incorporated under the Companies Act 1965 or Registration of
Business Ordinance 1956;
2. At least 60% equity held by Malaysians;
3. Subsidiaries of public listed companies (not exceeding 20%
shareholding); and
4. Possess valid premises license
8
Purpose of
financing
9
Eligible sector /
Types of financing
Project, fixed asset and working capital financing
1. Manufacturing
2. Manufacturing Rrelated Services
3. Services (excluding insurance and financial services)
10
Eligible expenses
1. Project, fixed assets and working capital financing;
2. Costs incurred for initial store renovation and upgrade of store display for
retail trade
3. Working capital for companies with confirmed contract from GLCs,
MNCs, and the government including its agencies
Applications to be submitted to MIDF
11
Application
procedure
12
Assistant Vice President and Head
Further
information/Contact Group Corporate Communications,
Malaysian Industrial Development Finance Berhad (3755-M),
Level 19, Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur
Tel : (603) 2173 8888
Fax : (603) 2173 8877
E-mail: inquiry@midf.com.my
Website : www.midf.com.my
SOURCE: http://www.smeinfo.com.my/index.php?option=com_content&view=article&id=610:softloan-for-smes&catid=81:financial-assistancesoft-loan&Itemid=130