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SOFT LOAN SCHEMES

BY MIDF
DEVELOPMENT FINANCE
DIVISION
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AN INTEGRAL PART OF MITI SINCE INCEPTION

MIDF collaborates with MITI and its Agencies as a conduit for assisting specific sectors
and/or industries in restructuring the economic structure targeted by the Government.

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The Enlarged Group


31 March 2008

Core
Businesses

Investment
Banking

Development
Finance

Mezzanine
Financing

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Asset
Management

Development Finance Division


Development
Finance

Extends
through
financing

fixed

interest

project,
and

rate

financing

machinery,

working

capital

factory
term

financing, Islamic industrial hire purchase


and leasing facilities and revolving credit
and factoring.

Continues to remain an important conduit


to

disburse

Government

development

funds under the various special soft loan


schemes.

We Assist Our Clients To Lower Their Cost Of Doing


Business
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SMEs Financing
10,070
financing
facilities worth
RM12.7 billion

DEVELOPMENT FINANCE

OUR FINANCIAL
FINANCIAL
OUR
PRODUCTS
PRODUCTS

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OUR PRODUCTS
No
.

Financing
Products

Percentage Financing &


Payment Period

Islamic
(Syariah-based)

1.

Factory Financing

Up to 90% of the Total Cost


of Factory, Land and
Buildings
(Up to 25 Years)

Al-Bai Bithaman Ajil


(BBA)
(Property/Factory)

2.

Machinery
Financing

Up to 90% of Cost of New


Machinery
Up to 65% of Cost of
Reconditioned/Used
Machinery (Up to 7 Years)

3.

Industrial Hire
Purchase (IHP-i)

Up to 90% of Cost of New


Machinery/Equipment/
Motor Vehicles
Up to 65% of Cost of
Reconditioned/Used
Machinery/Equipment/Motor
Vehicles (Up to 7 Years)

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BBA
(Machinery)

Al-Ijarah Thumma
Al-Bai
(AITAB)

OUR PRODUCTS
No.

Financing
Products

Percentage Financing &


Payment Period

Islamic
(Syariah-based)

4.

Leasing-i

Up to 90% of Cost of New


Machinery/Equipment/Motor
Vehicles
Up to 65% of Cost of
Reconditioned/Used
Machinery/Equipment/Motor
Vehicles (Up to 7 Years)

Al-Ijarah
(Leasing-i)

5.

Sales Revolving
Credit (SRC-i)

Up to 90% financing of sales


invoice value
(Up to 90 days with an
option to extend another 60
days)

Tawaruq

6.

Purchase
Revolving Credit
(PRC-i)

100% financing of raw


material suppliers invoice
(Up to 90 days with an
option to extend another 60
days)

Tawaruq

7.

Factoring

Up to 80% financing of sales


invoice value (180 days)

Bai Al-Dayn

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SCHEME FUNDS
FUNDS
SCHEME
MANAGED BY
BY
MANAGED
MIDF
MIDF

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Soft Loan Scheme for Automation & Modernisation
(SLSAM)
Objective:

Assists manufacturing companies to:


(i)

modernise and automate manufacturing processes;

(ii)

upgrade production capability and capacity;

(iii)

minimise dependence on labour - intensive activities and foreign


labour;

(iv)

diversify into higher value - added activities;

(v)

rationalise and streamline operations including through mergers


and acquisitions;

(vi)

tooling acquisition, development and production;

(vii)

productivity improvement; and

(viii) enhancing export performance.

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Soft Loan Scheme for Services Sector
(SLSSS)
Objective:

To provide financing assistance to new start-up companies and/or


enterprises for the creation of new services entrepreneurs.

To expand/upgrade/modernise/diversify their services into higher


value-added activities and improve productivity and efficiency in
service delivery.

Purchase of fixed assets such as land/buildings, machinery/equipment


and ICT hardware and software for the purchase or construction or
renovation of business premises and for working capital requirements.

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Funds Administered by Ministry of
International Trade And Industry (MITI)
Loan Amount

Interest
Rate

Up to RM10 million for each


application

4.0%
(SMEs)

Scheme
1.

Soft Loan Scheme for


Automation and
Modernisation (SLSAM)

5.0%
(Non-SMEs)

2.

Soft Loan Scheme for


Services Sector (SLSSS)

Up to RM5 million for each


application

4.0%
(SMEs)
5.0%
(Non-SMEs)

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Soft Loan Scheme for Services Capacity Development
(SLSCD)
Objective:

To assist companies and enterprises to undertake upgrading and


modernisation for diversifying into higher value-added activities and
improving the productivity and efficiency of service delivery.

To address the impact of liberalisation on local services providers by


providing financial assistance to the services sectors to build up its
capacity in order to withstand competition due to the opening up of
markets as well as to strengthen international competitiveness.

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Funds Administered by
Malaysian Industrial Development Authority (MIDA)
Scheme
1.

Soft Loan Scheme


for Services Capacity
Development (SLSCD)

Loan Amount
Up to RM5 million

Interest
Rate
4.0%
(SMEs)
5.0%
(NonSMEs)

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Soft Loan Scheme for Small and Medium Enterprises
(SLSME)

Objective:

To promote the development of small and medium enterprises in


Malaysia.

To assist existing as well as newly start-up enterprises in project, fixed


assets and working capital financing.

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
Funds Administered by SME Corp Malaysia
(SME Corp)
Scheme
1.

Soft Loan Scheme for


Small and Medium
Enterprises (SLSME)

Loan Amount
Project: Up to RM5.0 million
Fixed Assets: Up to RM5.0
million
Working Capital: Up to
RM3.0 million
IT Hardware/Software: Up to
RM500,000/-

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Interes
t Rate
4.0%

NEW FUNDS
FUNDS
NEW
UNDER RMK
RMK 11
11
UNDER

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MIDF Government Financial Assistance


Programme

Soft Loan Scheme for Service Export


(SLSSE)

Financingto
todefray
defraythe
thecost
costrelated
relatedto
tothe
theissuance
issuanceof
ofaaBank
BankGuarantee
Guaranteeoo
Financing
PerformanceBond
Bondfor
forproject
projectexecution
executionexcluding
excludingthe
theprincipal
principalvalue
valueof
ofthe
the
Performance
BankGuarantee
Guaranteeor
orPerformance
PerformanceBond
Bondof
ofup
upto
tomaximum
maximumof
ofRM5
RM5million
millionper
per
Bank
company.
company.

Financingto
toassist
assistMSPs
MSPsin
inproposing
proposingand
andplanning
planningfor
foroverseas
overseasproject
project
Financing
negotiationsof
ofup
upto
tomaximum
maximumof
ofRM2
RM2million
millionper
percompany.
company.
negotiations
Exampleof
ofeligible
eligibleactivities
activitiesare:
are:
Example
Preparationof
ofmaster
masterplan;
plan;
Preparation
architecturaldesigns;
designs;
architectural
preparationof
ofblueprint;
blueprint;
preparation
engineeringdesigns
designsfor
forprojects;
projects;
engineering
projectmanagement;
management;
project
ICand
andsoftware
softwaredesign;
design;and
and
IC
IPregistration
registrationof
ofdesigns
designsand
andpatents.
patents.
IP

Features

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MIDF Government Financial Assistance


Programme

Soft Loan Scheme for Service Export


(SLSSE)

Features

aymentperiod
periodof
ofup
upto
to22years
yearsincluding
including66months
monthsgrace
grace
PPayment

period.
period.

Fixedprofit
profitrate
rateof
of2%
2%per
perannum.
annum.
Fixed
Marginof
offinancing
financingof
ofup
upto
to90%.
90%.
Margin
Maximumfinancing
financingup
upto
toRM5.0
RM5.0million
million
Maximum

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MIDF Government Financial Assistance


Programme

Soft Loan Scheme for Service Export


(SLSSE)

Eligibility

Registeredwith
withMATRADE
MATRADE(MER);
(MER);
Registered
Firmsincorporated
incorporatedunder
underthe
theCompanies
CompaniesAct
Act1965;
1965;OR
OR
Firms
Soleproprietors,
proprietors,professionals
professionalsand
andpartnerships
partnershipsregistered
registeredwith
with
Sole
respectiveprofessional
professionalauthorities
authoritiesin
inMalaysia;
Malaysia;
respective
havingat
atleast
least60%
60%equity
equityowned
ownedby
byMalaysian;
Malaysian;
having
NotaaGovernment
GovernmentLinked
LinkedCompany
Company(GLCs)
(GLCs)and
andCompany
Companythat
thathave
hav
Not
Government(Federal
(Federal//State
StateGovernment)
Government)Equity;
Equity;
Government
Companymust
mustbe
becurrently
currentlyactive
activein
inbusiness
businessand
andin
inoperation
operationfor
fo
Company
atleast
least11year;
year;
at
ExportingMalaysian
Malaysianservices
servicesor
orproduct
productmade
madein
inMalaysia.
Malaysia.
Exporting

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MIDF FINANCIAL ASSISTANCE


PROGRAMMES
ADVANTAGES

Low Fixed Profit Rates (2%, 4% & 5% per annum)

Great savings on costs of financing

Fixed Profit Rates

No volatility on financial commitment

Grace Period (up to 2 years) - only servicing profit

Eases cash flow

Available For Start-Up Companies


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REGIONAL OFFICES
Eastern Region
Kota Bharu, Kelantan

Sabah Branch
Kota Kinabalu,
Sabah

Northern Region
Penang

Central
Kuala Lumpur, WP
Sarawak Branch
Kuching, Sarawak

Southern Region
Johor Bharu, Johor
Northern Region Branch, Georgetown, Penang
Telephone No.: 04-2298434/435/436
Email: penang@midf.com.my
Southern Region Branch, Johor Bahru, Johor
Telephone No.: 07-2232727, 07-2243046
Email: johor@midf.com.my
Eastern Region Branch, Kota Bharu, Kelantan
Telephone No.: 09-7483546, 09-7461679
Email: kotabharu@midf.com.my
Sabah Branch, Kota Kinabalu, Sabah
Telephone No.: 088-211633, 088-211523
Email: sabah@midf.com.my
Sarawak Branch, Kuching, Sarawak
Telephone No. : 082-254533, 082-254203
Email: sarawak@midf.com.my

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THANK YOU
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