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MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION. Presentation Outline. MIDF in brief. Products & Services. Government Financial Assistance Programmes. MIDF in brief. Incorporated on 30 March 1960.

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MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

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  1. MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

  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 PermodalanNasionalBerhad (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 services sectors in Malaysia.

  5. An Integral Part Of MITI GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES • 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.

  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. MIDF Products & Services

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

  9. MIDF PRODUCTS AND SERVICES

  10. MIDF PRODUCTS AND SERVICES

  11. MIDF PRODUCTS AND SERVICES

  12. MIDF PRODUCTS AND SERVICES

  13. MIDF PRODUCTS AND SERVICES

  14. Government Financial Assistance Programmes

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

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

  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 - 5.0% per annum for non-SMEs

  22. 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

  23. 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 • Up to 90% for Term Working Capital Financing

  24. Soft Loan Scheme for Automation and Modernisation (SLSAM) • 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

  25. Soft Loan Scheme for Automation and Modernisation (SLSAM) • Interest / Profit Rate: • - 4% per annum (SMEs) • - 5% per annum (Non-SMEs) • Eligible expenses: • Automation • Rationalisation of Operations which also includes the facilitation of the Joint-Venture / Technical Partnership and equipment • Tooling Acquisition, Development & Production • Productivity Improvement • Export Enhancement Programme

  26. Soft Loan Scheme for Services Sector (SLSSS) • 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)

  27. Soft Loan Scheme for Services Sector (SLSSS) • 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.

  28. Soft Loan Scheme for Services Sector (SLSSS) • 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

  29. Advantages of MIDF’s Government Financial Assistance Programmes Why MIDF??? • 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.

  30. 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

  31. MIDF Regional Offices

  32. THANK YOU

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