MIDF EXTENDS MORE FINANCING TO THE SERVICES SECTOR, PROMOTES GREATER AUTOMATION IN MANUFACTURING PROCESSES AND ASSISTS MALAYSIAN EXPORTERS’ BRANDING ACTIVITIES”
Kuala Lumpur, 9 July 2009– Malaysian Industrial Development Finance Berhad (MIDF), an agency under the Ministry of International Trade and Industry (MITI), has been mandated by the Malaysian Industrial Development Authority (MIDA) to implement the Soft Loan Scheme for Services Capacity Development (SLSCD) to provide soft loans to the services sector.
MIDA had set up the RM100 million Services Sector Capacity Development Fund for financial assistance to be extended to the services sector through soft loans and grants.
Soft loans with low interest rates totalling RM50 million are provided by MIDF under the SLSCD for the upgrading and modernising of borrowers’ operations to diversify into higher value-added activities and to improve productivity and efficiency of service delivery. Grants totalling RM50 million are provided by MIDA for training and outreach programmes, accreditations, and mergers and acquisitions to be carried out by grant recipients.
The SLSCD addresses the impact of liberalisation on local services providers by providing financial assistance to the services sector to build up its capacity in order to withstand competition due to the opening up of markets as well as to strengthen international competitiveness. The Government had recently announced the liberalisation of 27 services sub-sectors
As at 7 July 2009, MIDF has received a total of 48 applications for soft loan financing totalling RM21.7 million under the SLSCD and 24 applications had been approved for soft loans totalling RM10.7 million.
“MIDF is expediting the release of loan disbursements to borrowers and is working towards disbursing the allocated RM50 million in soft loans by September 2009 to companies and enterprises in the services sector to stimulate the economy,” MIDF’s Head of Development Finance Division, Encik Nik Izani Nik Muhammad said.
All services sub-sectors, except for the financial, insurance, utilities and construction sub-sectors are eligible to apply for the soft loans which charge an interest rate of 2 per cent for small and medium enterprises (“SMEs”) and 3 per cent for non-SMEs. The maximum loan amount is RM2 million. The margin of financing is up to 90 per cent with repayment period of up to 7 years including a grace period of up to 2 years. Purchases of equipment, hardware and software as well as related development costs are eligible to be financed.
Encik Nik Izani stated that MIDF was also encouraging more eligible companies in the manufacturing sector to apply for soft loans under the Soft Loan Scheme for Automation and Modernisation (“SLSAM”). This soft loan scheme promotes the modernisation and automation of manufacturing processes to minimise dependence on labour-intensive activities and foreign labour in addition to other objectives.
The SLSAM is administered by MITI while MIDF has been mandated to implement it.
Companies in the manufacturing sub-sectors are eligible to apply for soft loans under the SLSAM which charges an interest rate of 4 per cent. The maximum loan amount is RM5 million. The margin of financing is up to 85% for machinery and equipment. Repayment periods are up to 7 years including a grace period of up to one year.
Purchases of new or reconditioned automation-related machinery and equipment as well as software and computer peripherals to develop automation systems and costs related to the installation, commissioning and related training and maintenance of the machinery and equipment for investment in automation are eligible to be financed.
Encik Nik Izani added that as at 7 July 2009, soft loans totalling RM124.7 million had been approved to companies in the manufacturing sector under the SLSAM.
“To enhance the competitiveness of Malaysian-made or sourced products and services in international markets, MIDF is providing soft loans to companies and enterprises under the Soft Loan Scheme for International Branding (SLSIB),” Encik Nik Izani said. The activities eligible for financing under the SLSIB have to be held overseas and include branding and re-branding exercises, establishing distribution channels, participating in international trade fairs, acquiring brands and distribution networks to promote Malaysian brands, and advertisements and promotions.
The SLSIB is administered by Malaysian External Trade Development Corporation (MATRADE), a MITI agency while MIDF has been mandated to implement it.
Companies and enterprises in the manufacturing and services sectors are eligible to apply for soft loans under the SLSIB which charges an interest rate of 4 per cent. The maximum loan amount is RM5 million. The margin of financing is up to 100 per cent. Repayment periods are up to 4 years including a grace period of up to one year.
“In the current global economic slowdown brought on by the worldwide financial crisis, manufacturers and service providers can enhance or consolidate their competitiveness by using the soft loan schemes to lower the costs of doing business and to implement programmes to increase efficiency and productivity within their companies and enterprises.”
Entrepreneurs who are interested to apply for soft loans under the SLSCD, SLSAM and SLSIB should contact the Sales Department of MIDF (Development Finance Division) on Level 15, Menara MIDF, 82, Jalan Raja Chulan, 50200 Kuala Lumpur or at P.O. Box 12110, 50939 Kuala Lumpur, telephone number 03 – 21738888 and facsimile 03-27721911 or contact the MIDF Regional Offices in Pulau Pinang (tel. no. 04 – 2298434), Johor Bahru (tel. no. 07 – 2232727), Kota Bharu (tel. no. 09 – 7483546), Kuching (tel. no. 082 – 254533) and Kota Kinabalu (088 – 211633).
Kuala Lumpur, 9 July 2009– Malaysian Industrial Development Finance Berhad (MIDF), an agency under the Ministry of International Trade and Industry (MITI), has been mandated by the Malaysian Industrial Development Authority (MIDA) to implement the Soft Loan Scheme for Services Capacity Development (SLSCD) to provide soft loans to the services sector.
MIDA had set up the RM100 million Services Sector Capacity Development Fund for financial assistance to be extended to the services sector through soft loans and grants.
Soft loans with low interest rates totalling RM50 million are provided by MIDF under the SLSCD for the upgrading and modernising of borrowers’ operations to diversify into higher value-added activities and to improve productivity and efficiency of service delivery. Grants totalling RM50 million are provided by MIDA for training and outreach programmes, accreditations, and mergers and acquisitions to be carried out by grant recipients.
The SLSCD addresses the impact of liberalisation on local services providers by providing financial assistance to the services sector to build up its capacity in order to withstand competition due to the opening up of markets as well as to strengthen international competitiveness. The Government had recently announced the liberalisation of 27 services sub-sectors
As at 7 July 2009, MIDF has received a total of 48 applications for soft loan financing totalling RM21.7 million under the SLSCD and 24 applications had been approved for soft loans totalling RM10.7 million.
“MIDF is expediting the release of loan disbursements to borrowers and is working towards disbursing the allocated RM50 million in soft loans by September 2009 to companies and enterprises in the services sector to stimulate the economy,” MIDF’s Head of Development Finance Division, Encik Nik Izani Nik Muhammad said.
All services sub-sectors, except for the financial, insurance, utilities and construction sub-sectors are eligible to apply for the soft loans which charge an interest rate of 2 per cent for small and medium enterprises (“SMEs”) and 3 per cent for non-SMEs. The maximum loan amount is RM2 million. The margin of financing is up to 90 per cent with repayment period of up to 7 years including a grace period of up to 2 years. Purchases of equipment, hardware and software as well as related development costs are eligible to be financed.
Encik Nik Izani stated that MIDF was also encouraging more eligible companies in the manufacturing sector to apply for soft loans under the Soft Loan Scheme for Automation and Modernisation (“SLSAM”). This soft loan scheme promotes the modernisation and automation of manufacturing processes to minimise dependence on labour-intensive activities and foreign labour in addition to other objectives.
The SLSAM is administered by MITI while MIDF has been mandated to implement it.
Companies in the manufacturing sub-sectors are eligible to apply for soft loans under the SLSAM which charges an interest rate of 4 per cent. The maximum loan amount is RM5 million. The margin of financing is up to 85% for machinery and equipment. Repayment periods are up to 7 years including a grace period of up to one year.
Purchases of new or reconditioned automation-related machinery and equipment as well as software and computer peripherals to develop automation systems and costs related to the installation, commissioning and related training and maintenance of the machinery and equipment for investment in automation are eligible to be financed.
Encik Nik Izani added that as at 7 July 2009, soft loans totalling RM124.7 million had been approved to companies in the manufacturing sector under the SLSAM.
“To enhance the competitiveness of Malaysian-made or sourced products and services in international markets, MIDF is providing soft loans to companies and enterprises under the Soft Loan Scheme for International Branding (SLSIB),” Encik Nik Izani said. The activities eligible for financing under the SLSIB have to be held overseas and include branding and re-branding exercises, establishing distribution channels, participating in international trade fairs, acquiring brands and distribution networks to promote Malaysian brands, and advertisements and promotions.
The SLSIB is administered by Malaysian External Trade Development Corporation (MATRADE), a MITI agency while MIDF has been mandated to implement it.
Companies and enterprises in the manufacturing and services sectors are eligible to apply for soft loans under the SLSIB which charges an interest rate of 4 per cent. The maximum loan amount is RM5 million. The margin of financing is up to 100 per cent. Repayment periods are up to 4 years including a grace period of up to one year.
“In the current global economic slowdown brought on by the worldwide financial crisis, manufacturers and service providers can enhance or consolidate their competitiveness by using the soft loan schemes to lower the costs of doing business and to implement programmes to increase efficiency and productivity within their companies and enterprises.”
Entrepreneurs who are interested to apply for soft loans under the SLSCD, SLSAM and SLSIB should contact the Sales Department of MIDF (Development Finance Division) on Level 15, Menara MIDF, 82, Jalan Raja Chulan, 50200 Kuala Lumpur or at P.O. Box 12110, 50939 Kuala Lumpur, telephone number 03 – 21738888 and facsimile 03-27721911 or contact the MIDF Regional Offices in Pulau Pinang (tel. no. 04 – 2298434), Johor Bahru (tel. no. 07 – 2232727), Kota Bharu (tel. no. 09 – 7483546), Kuching (tel. no. 082 – 254533) and Kota Kinabalu (088 – 211633).
