MIDF’s Development Finance Division provides medium and long-term Shariah-based and conventional financing to small and medium enterprises (SMEs) and corporations for the implementation of new projects as well as expansion, modernisation, automation and relocation programmes in the manufacturing, manufacturing-related services and services sectors in Malaysia.

MIDF, being an agency under the Ministry of International Trade And Industry, is designated by the Government of Malaysia to process applications for financing under governmental financial assistance loan programmes, to disburse government-allocated funds under these programmes to approved applications and to manage these funds.

The financing being provided by MIDF to entrepreneurs and corporations is to assist in the achieving of the objectives of the Government to create a high-income economy through competitive and sustainable economic activities which are technologically and knowledge driven, and promote socio-economic inclusiveness and advancement for the people of Malaysia.

The Division offers the Soft Loan Scheme For Small And Medium Enterprises (SLSME) to promote the development of SMEs, the Soft Loan Scheme For Automation And Modernisation (SLSAM) to assist manufacturing companies to automate and modernise processes in order to minimise dependence on labour-intensive activities and foreign labour, the Soft Loan Scheme For Automotive Development (SLSAD) to assist eligible automotive parts and components vendors to rationalise operations, and in tooling acquisition, development and production, productivity improvement and enhancing export performance, and the SME Emergency Fund (SMEEF) to assist SMEs affected by natural disasters to revive their operations.

The Division provides Shariah-based financing, with fixed profit rates, in the forms of Bai Bithaman Ajil (BBA) facilities for landed properties and machinery and equipment, Al-Ijarah Thumma Al-Bai (AITAB) facilities for machinery and equipment, Ijarah facilities for motor vehicles and machinery and equipment, and Murabahah Working Capital and Bai Al-Dayn Factoring facilities for working capital requirements.

Conventional financing is provided by the Division, with fixed interest rates, through factory mortgages for the acquisition of industrial / commercial properties, machinery/term loan facilities and industrial hire purchase and leasing facilities for the acquisition of machinery/equipment, and revolving credit and factoring facilities for working capital purpose.

Applications for financing are received and processed at the head office of MIDF in Kuala Lumpur as well as at the regional and branch offices located throughout Peninsular Malaysia, Sabah and Sarawak.