Applicants interested in obtaining financing from MIDF are required to provide detailed information to prove the feasibility and viability of their projects, and that the implementation of the project will be under competent management.
Each application will be considered strictly on its merits through careful evaluation of the project. MIDF personnel will conduct inspection of premises, assess machinery/equipment and appraise the overall existing, as well as proposed operations, including the production layout, technology, turnover of stocks and plant/machinery utilisation. Credit checking is conducted on the applicant and proposed guarantors of the financing applied for.
The following information is required to be submitted:
1. Applicant’s Background
Company’s information including the name, business and registered addresses, Memorandum and Articles of Association, legal status, history and nature of the organisation, and equity structure.
2. Corporate and Management Information
Details of the corporate structure and managerial set-up of the company, principal shareholders, directors, key managers and other relevant personnel. Latest Forms 24 and 49 submitted to the Companies Commission of Malaysia.
3. Project Description
Description of the project to be financed including land-type status, location, relevant authority approvals, types of buildings, all existing and proposed production plants, machinery and equipment, production processes, and other production-related facilities and their capacities, availability of utilities, labour, raw materials supply and other inputs.
A project implementation schedule, wherever applicable, outlining expected commencement and completion of land acquisition, civil works, building construction, order/delivery/ installation of machinery, trial runs, commissioning and commercial production.
4. Cost of Project and Funding Requirements
An estimate of the total costs of the project with a breakdown of major items such as land, building, civil works, machinery, ancillary installations, preliminary and pre-operation expenses and working capital, together with the proposed means of financing.
5. Market Study
A study of the market for the proposed and existing products or services including an assessment of present and future demand and supply, prices, competition, average credit periods extended to customers, a description of the existing and/or proposed selling arrangements, distribution channels, and marketing strategies.
6. Operation Plans, Financial Statements and Financial Projections.
Information on the proposed operations, financial accounts for the last 5 years, (if the company has been operating for more than 5 years), and latest management accounts, and financial projections for estimated profitability including anticipated sales, selling prices, margins, manufacturing costs and overheads.
7. Other Information
Documents such as business and manufacturing licences, relevant approvals from Government authorities, joint-venture/ technical assistance/ royalty agreements, etc.
The processing of an application can be expedited if the applicant furnishes full and complete information for MIDF to form a considered judgement of the feasibility and viability of the project and its suitability for MIDF’s assistance. Applicants are advised to consult with MIDF personnel should clarification or assistance be required to comply with the application procedures. All financing proposals received by MIDF are treated in the strictest of confidence.