BUSINESSES IN SABAH USING MIDF SOFT LOANS TO REDUCE COSTS OF DOING BUSINESS ”
Kota kinabalu, 4 August 2009– Malaysian Industrial Development Finance Berhad (MIDF), an agency under the Ministry of International Trade and Industry (MITI), is assisting the business community in Sabah to reduce their costs of doing business by the various soft loan schemes that it offers.
Group Managing Director of MIDF, Encik Mohd. Najib Hj. Abdullah, on his visit to Kota Kinabalu, Sabah to meet government officials, customers and business partners said that MIDF continues to raise awareness amongst the business community in Sabah of the benefits of its various soft loan schemes to assist businesses to reduce their costs of doing business, especially during the current economic slowdown brought on by the global financial crisis.
These schemes have assisted borrowers in reducing their financial charges due to their competitive interest rates as well as position and prepare businesses to take advantage of the next upturn in the economy.
MIDF have garnered nearly 50 years experience of extending financing to Malaysian companies. The soft loans available from MIDF enable borrowers to upgrade or modernise their operations, improve productivity, enhance efficiency of service delivery, automate production processes to reduce dependence on foreign labour and achieve higher value addition by diversifying the production of goods and the provision of services.
MIDF has a well-established track record of assisting businesses in Sabah since 1970. As at 31 July 2009, MIDF has approved a total of 582 loans for companies operating in Sabah amounting to RM583.1 million since its inception. MIDF is thus ready to help strengthen SMEs’ and non - SMEs’ capabilities and capacities to reap benefits from the growing state economy.
“In support of the Government’s drive to develop the services sector as a more significant contributor to the national economy, MIDF had launched the Soft Loan Scheme For Services Capacity Development (SLSCD) to assist services providers to address the impact of global trade liberalisation by building up their capacities in order to withstand competition due to the opening up of markets and to strengthen competitiveness” Encik Mohd. Najib said. The Government had allocated RM50 million to fund soft loans under the SLSCD.
Services providers in various services sub-sectors, except for the financial, insurance, utilities and construction sub-sectors, are encouraged to apply for soft loans under the SLSCD from MIDF to finance their purchases of equipment, hardware and software as well as related development costs. The maximum loan amount is RM2 million. The margin of financing is up to 90 per cent with repayment periods of up to 7 years including a grace period of up to 2 years. Interest of 2 per cent per annum is charged for SMEs and 3 per cent for non - SMEs.
As at 21 July 2009, MIDF has approved 36 applications under the SLSCD for soft loans totalling RM21.2 million.
More entrepreneurs in Sabah are also encouraged to apply to MIDF for the Soft Loan Scheme for Automation and Modernisation (SLSAM) and the Soft Loan Scheme for International Branding (SLSIB). The SLSAM is available to eligible companies in the manufacturing sector to modernise and automate manufacturing processes to minimise dependence on labour-intensive activities and foreign labour in addition to other objectives. The maximum loan amount is RM5 million. Interest is charged at 4 per cent per annum. Encik Mohd. Najib informed that, as at 21 July 2009, response received for the SLSAM had been encouraging with 55 applications for soft loans totalling RM131.7 million already approved under this scheme since its launch in February 2007. The Government is emphasising on the labour-saving objective of the SLSAM and wishes to see more applications for financing being submitted to MIDF which are in line with this objective.
The SLSIB is available to eligible companies and enterprises in the manufacturing and the services sectors to undertake overseas activities to implement branding exercises, establish distribution channels, participate in international trade fairs, acquire brands and distribution networks to promote Malaysian brands, and execute advertisements and promotions. The key objective of these activities is to enhance the competitiveness of Malaysian-made or sourced products and services in international markets. The maximum loan amount is RM5 million. Interest is charged at 4 per cent per annum.
Encik Mohd. Najib hoped that with more information on the MIDF soft loan schemes being made available now to the SMEs and also non – SMEs in Sabah through the media and seminars as well as direct contacts with local entrepreneurs, more applications for financing under the SLSCD, SLSAM and SLSIB will be received by the MIDF Regional Office in Kota Kinabalu for processing. “Once entrepreneurs are aware of these soft loan schemes, they should make an effort to see how they can best take advantage of them to improve their businesses. Utilising soft loan financing is an important means towards competitiveness. We have maintained relationships with our customers, which stretch back more than 20 years and had partnered them through their phases of growth and challenges. These customers appreciate the benefits of soft loan financing.
Entrepreneurs are welcome to contact the MIDF offices to discuss eligibility for financing,” he advised.
MIDF was established in 1960, and in the nearly five decades of contributing to the growth and development of the Malaysian industrial sector, MIDF has assisted Malaysian companies to grow by leaps and bounds. MIDF’s aim is to position itself as a diversified financial institution that develops strategic relationships as trusted partners with clients. MIDF will focus on a “Cradle to Maturity” approach, whereby clients are able to grow with MIDF. “Our core solutions follow through our clients’ lifecycle – Development Finance as they start off, Investment Banking when they grow and Asset Management once they mature”, he added.
In closing, Encik Najib states “As we go through a company’s life cycle together, we will become their trusted advisor. This entails being passionate about the companies that are our clients. It is about building relationships and not about building market share and league table position”.
Eligible entrepreneurs based in Sabah can apply for soft loans under the SLSCD, SLSAM and SLSIB through the MIDF Sabah Regional Office at 3rd. Floor, Bangunan Bank Negara, Jalan Tun Razak, Sinsuran 88000 Kota Kinabalu, Sabah which can be contacted at telephone 088-211633 / 523 and facsimile 088-211940. Further details on MIDF, the SLSCD, SLSAM and SLSIB can also be obtained from the MIDF website, www.midf.com.my.
Kota kinabalu, 4 August 2009– Malaysian Industrial Development Finance Berhad (MIDF), an agency under the Ministry of International Trade and Industry (MITI), is assisting the business community in Sabah to reduce their costs of doing business by the various soft loan schemes that it offers.
Group Managing Director of MIDF, Encik Mohd. Najib Hj. Abdullah, on his visit to Kota Kinabalu, Sabah to meet government officials, customers and business partners said that MIDF continues to raise awareness amongst the business community in Sabah of the benefits of its various soft loan schemes to assist businesses to reduce their costs of doing business, especially during the current economic slowdown brought on by the global financial crisis.
These schemes have assisted borrowers in reducing their financial charges due to their competitive interest rates as well as position and prepare businesses to take advantage of the next upturn in the economy.
MIDF have garnered nearly 50 years experience of extending financing to Malaysian companies. The soft loans available from MIDF enable borrowers to upgrade or modernise their operations, improve productivity, enhance efficiency of service delivery, automate production processes to reduce dependence on foreign labour and achieve higher value addition by diversifying the production of goods and the provision of services.
MIDF has a well-established track record of assisting businesses in Sabah since 1970. As at 31 July 2009, MIDF has approved a total of 582 loans for companies operating in Sabah amounting to RM583.1 million since its inception. MIDF is thus ready to help strengthen SMEs’ and non - SMEs’ capabilities and capacities to reap benefits from the growing state economy.
“In support of the Government’s drive to develop the services sector as a more significant contributor to the national economy, MIDF had launched the Soft Loan Scheme For Services Capacity Development (SLSCD) to assist services providers to address the impact of global trade liberalisation by building up their capacities in order to withstand competition due to the opening up of markets and to strengthen competitiveness” Encik Mohd. Najib said. The Government had allocated RM50 million to fund soft loans under the SLSCD.
Services providers in various services sub-sectors, except for the financial, insurance, utilities and construction sub-sectors, are encouraged to apply for soft loans under the SLSCD from MIDF to finance their purchases of equipment, hardware and software as well as related development costs. The maximum loan amount is RM2 million. The margin of financing is up to 90 per cent with repayment periods of up to 7 years including a grace period of up to 2 years. Interest of 2 per cent per annum is charged for SMEs and 3 per cent for non - SMEs.
As at 21 July 2009, MIDF has approved 36 applications under the SLSCD for soft loans totalling RM21.2 million.
More entrepreneurs in Sabah are also encouraged to apply to MIDF for the Soft Loan Scheme for Automation and Modernisation (SLSAM) and the Soft Loan Scheme for International Branding (SLSIB). The SLSAM is available to eligible companies in the manufacturing sector to modernise and automate manufacturing processes to minimise dependence on labour-intensive activities and foreign labour in addition to other objectives. The maximum loan amount is RM5 million. Interest is charged at 4 per cent per annum. Encik Mohd. Najib informed that, as at 21 July 2009, response received for the SLSAM had been encouraging with 55 applications for soft loans totalling RM131.7 million already approved under this scheme since its launch in February 2007. The Government is emphasising on the labour-saving objective of the SLSAM and wishes to see more applications for financing being submitted to MIDF which are in line with this objective.
The SLSIB is available to eligible companies and enterprises in the manufacturing and the services sectors to undertake overseas activities to implement branding exercises, establish distribution channels, participate in international trade fairs, acquire brands and distribution networks to promote Malaysian brands, and execute advertisements and promotions. The key objective of these activities is to enhance the competitiveness of Malaysian-made or sourced products and services in international markets. The maximum loan amount is RM5 million. Interest is charged at 4 per cent per annum.
Encik Mohd. Najib hoped that with more information on the MIDF soft loan schemes being made available now to the SMEs and also non – SMEs in Sabah through the media and seminars as well as direct contacts with local entrepreneurs, more applications for financing under the SLSCD, SLSAM and SLSIB will be received by the MIDF Regional Office in Kota Kinabalu for processing. “Once entrepreneurs are aware of these soft loan schemes, they should make an effort to see how they can best take advantage of them to improve their businesses. Utilising soft loan financing is an important means towards competitiveness. We have maintained relationships with our customers, which stretch back more than 20 years and had partnered them through their phases of growth and challenges. These customers appreciate the benefits of soft loan financing.
Entrepreneurs are welcome to contact the MIDF offices to discuss eligibility for financing,” he advised.
MIDF was established in 1960, and in the nearly five decades of contributing to the growth and development of the Malaysian industrial sector, MIDF has assisted Malaysian companies to grow by leaps and bounds. MIDF’s aim is to position itself as a diversified financial institution that develops strategic relationships as trusted partners with clients. MIDF will focus on a “Cradle to Maturity” approach, whereby clients are able to grow with MIDF. “Our core solutions follow through our clients’ lifecycle – Development Finance as they start off, Investment Banking when they grow and Asset Management once they mature”, he added.
In closing, Encik Najib states “As we go through a company’s life cycle together, we will become their trusted advisor. This entails being passionate about the companies that are our clients. It is about building relationships and not about building market share and league table position”.
Eligible entrepreneurs based in Sabah can apply for soft loans under the SLSCD, SLSAM and SLSIB through the MIDF Sabah Regional Office at 3rd. Floor, Bangunan Bank Negara, Jalan Tun Razak, Sinsuran 88000 Kota Kinabalu, Sabah which can be contacted at telephone 088-211633 / 523 and facsimile 088-211940. Further details on MIDF, the SLSCD, SLSAM and SLSIB can also be obtained from the MIDF website, www.midf.com.my.
