SME Financing

Business growth is critical for the economic and social development of emerging markets such as ours. MIDF’s role within this spectrum is to assist these businesses in gaining greater access to financing by providing funding for working capital and fixed assets in fulfilling their growth ambitions.

We offer high margin of financing, at fixed profit rates free of any BLR movements, which translate into fixed financing costs for you.

Industrial Land & Factory Building

SMEs in the manufacturing sector and its related services, as well as those in the service sectors (excluding insurance and financial services), are able to expand capacity by acquiring industrial or commercial land, as well as construct their own factory or business premises.

It can also be used to acquire ready made factories or business premises, and for renovation or upgrade of business premise and retail outlets.

Commercial Shop-lots

We provide financial assistance to companies acquiring commercial space. We also provide financing for renovations and other related requirements.

Machinery

We provide financial assistance to companies in attaining machinery, which could increase productivity through automation.

Industrial Equipment

We also provide financial assistance to companies in attaining industrial equipment, in developing their capacities.

IT Equipment / Software

We provide financing assistance to new start-up companies and/or enterprises for IT hardware/software and equipment for new services entrepreneurs.

Commercial Vehicles

Islamic financing is also provided with fixed profit rate for financing commercial motor vehicles purchases.

Working Capital Financing

This facility is designed for local companies either SMEs or Non-SMEs in manufacturing and its related services, as well as those in the service sector.

It covers purchase of raw materials, consumables, expenditure on advertising and promotional costs such as media advertising, e-commerce website development and printing of promotional materials.

It also covers receivable financing i.e. Islamic sales revolving credit and factoring.

Products and Services

Soft Financing Scheme for Automation & Modernisation (SFSAM)

The SFSAM was launched in February 2007.

The fund for this Scheme is channelled by the Government of Malaysia via the Ministry of International Trade and Industry (MITI) to MIDF for the implementation of the Scheme.

Objective:

To encourage manufacturing companies to:

Modernise and automate manufacturing processes;
Upgrade production capability and capacity;
Minimise dependence on labour intensive activities and foreign labour;
Diversify into higher value-added activities;
Rationalise and streamline operations through mergers and acquisitions;
Acquire, develop and produce tooling;
Embark on productivity improvement; Enhance export performance; and
Utilise information and communications technology (ICT) as a means to improve competitiveness, efficiency and productivity as well as to enhance engineering design capabilities.

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 and the Companies Act 2016;
At least 51% equity held by Malaysians;
Possess a valid business license; and/or
In operation for at least 2 years.

2. Sectors:

Manufacturing

3. Financing Amount:

Minimum: RM50,000
Maximum: RM20 million for each application

4. Items Eligible For Financing:

i. Automation

Financing for:

Purchase of new or used/ reconditioned automation – related machinery equipment **;
Costs related to the designing, fabrication. installation, commissioning and related training as well as maintenance of the machinery and equipment for investment in automation and/or
Purchase of software and computer peripherals related to the development of the automation system.

ii. Rationalisation and/or Streaming of Operations which also includes the facilitation of the Joint – Venture/Technical Partnership and Vendors Consolidation Programme and/or Consolidation of Business Operations from Various Premises into One Premise;

Financing for:

Due diligence exercise;
Purchase of existing factory/building, machinery and equipment;
Purchase of ready built factory/building, land and construction of factory/building and renovation of factory/building/premises; and/or
Related expenses to undertake rationalisation exercise (mergers & acquisitions) such as registration fees and services undertaken by investment banks and any other related fees.

iii. Tooling Acquisition, Development & Production

Financing for:

Acquisition of moulds, dies, tooling, jigs and fixtures;
Development of prototypes and system design;
Product testing & registration;
Acquisition of new or used/reconditioned machinery/equipment **;
Initial patent and industrial design registration/patent and industrial design research;
Acquisition of factory/building and acquisition of land for construction of factory/building;
Acquisition of technology, testing of electric vehicle and development and construction of charging station under the electric vehicle test bed programme;
Development of infrastructure for hybrid, electric and energy efficient vehicles;
Adoption of other new/advanced technology; and
Working capital requirement:
- Existing machinery/equipment **
- Existing moulds, dies, jigs and fixtures **
- Factory mortgages with other financial institutions

**The age of used/reconditioned machinery/ equipment/ etc. shall not be more than 5 years old.

iv. Productivity Improvement

Financing for:

Training expenses for TS 16949, ISO 14001 and other related certifications in relation to automotive industries;
Training expenses for Improvement of Quality Management System, Operational Management System, Business Management System and Testing capabilities and capacities and Productivity Improvement Programmes;
Licensing and technical fees for engineering process improvement;
Machinery/equipment testing and calibration;
Manufacturing process layout; and/or
Any other training required by the company for its business operations related to automation and modernisation

v. Export Enhancement Programme

Financing for:

Participation in trade exhibitions and missions and other export promotion programmes and related activities approved by MATRADE/ MAI;
Expenses for overseas sample testing for international standards conformance;
Market surveys and feasibility studies; and
Setting-up of distribution infrastructure network overseas

vi. Purchase ICT related equipment i.e. engineering design software or Enterprise Resource Planning (ERP) software or any other similar software and/or together with related computer hardware, peripheral and networking equipment and implementation charges including system study, customisation and training programmes.

vii. Others *

Legal fees for legal documentation prepared for financing facilities provided by MIDF excluding stamping fees, disbursement fees, adjudication fees and other costs.
Consultancy fees for projects undertaken by companies for the purpose of business operations related to automation (reimbursable upon automation & modernisation being undertaken within specific time – from the report of the agreement date).

*Applicable to SMEs only

5. Percentage Financing:

Up to 100% for financing existing loan principal amount with other financial institutions (existing factory building/machinery/ equipment/moulds /dies/jigs/fixtures);
Up to 90% for other eligible expenses
Up to 65% for used/reconditioned machinery and equipment
Working Capital Financing:
- Up to 100% for Purchase Revolving Credit
- Up to 90% for Sales Revolving Credit
- Up to 90% for Term Working Capital Financing
- Up to 80% for Factoring

6. Repayment:

Factory/Building
Up to 25 years including grace period of up to 2 years
Machinery and Equipment and other eligible expenses
Up to 10 years including grace period of up to 3 years
Revolving Credit
Up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days
Factoring
Up to 180 days for each drawdown
Working Capital Term Financing
Up to 3 years including a grace of up to 6 months

7. Interest / Profit Rate:

4.0% per annum on yearly rest (SMEs)
5.0% per annum on yearly rest. (Non-SMEs)

Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

Manufacturing:
Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.

Soft Financing Scheme for Small & Medium Enterprises (SFSME)

The SFSME was launched in December 2001 to promote the development of small and medium enterprises in Malaysia. This Scheme assists existing as well as newly start-up enterprises in project, fixed assets and working capital financing.

The fund for this Scheme is channelled by the Government of Malaysia via SME Corporation Malaysia to MIDF for the implementation of the Scheme.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
At least 60% equity held by Malaysians;
Possesses a valid premises licence ; and,
SMEs with shareholdings not exceeding 20% held by public-listed companies (only if applicable).

2. Sectors:

Manufacturing.
Manufacturing-related services.
Services (excluding insurance and financial services).

3. Financing Amount:

Minimum: RM50,000.
Project Financing - Maximum RM5 million. Fixed Assets Financing - Maximum RM5 million.
Working Capital Financing - Maximum RM3 million. IT Hardware/Software - Maximum RM500,000.

4. Items Eligible For Financing:

Industrial/Commercial land and factory/business premises construction, ready-built factories/business premises, plant and machinery/equipment, and IT hardware/software.
Costs incurred for initial store renovation and upgrade of store display for retail trade.
Working capital.

5. Percentage Financing:

Fixed Assets/IT Hardware/Software:-

Up to 90% of the cost of new assets.
Up to 65% for used/reconditioned machinery/equipment which are not more than 5 years old.

Working Capital:-

Up to 100% for Purchase Revolving Credit.
Up to 80% for Sales Revolving Credit.
Up to 90% for Term Financing.
Up to 80% for Factoring.

6. Repayment:

Fixed Assets/IT Hardware/Software:-

Land & building – up to 25 years including grace period of up to 2 years.
Plant & machinery & equipment – up to 7 years including grace period of up to 1 year.
IT hardware/software – up to 4 years including grace period of up to 1 year.

Working Capital:-

Purchase Revolving Credit & Sales Revolving Credit – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible borrowers.
Term Financing - up to 3 years including grace period of up to 6 months.
Factoring - up to 180 days for each drawndown.

7. Interest / Profit Rate:

4% per annum on yearly rest.

Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

Manufacturing :	Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.
Services and Other Sectors :	Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.

SME Emergency Fund (SMEEF)

The SMEEF was established to assist small and medium enterprises (SMEs) which had their business adversely affected by natural disasters. This Fund provides soft loan financing for purchases of machinery and equipment, refurbishment of premises, and working capital requirements such as purchases of raw materials and consumables.

The Fund is channeled by the Government of Malaysia via SME Corporation Malaysia to MIDF for its implementation.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
Possesses a valid premises licence issued by the municipal council (pihak berkuasa tempatan);
Provides proof of evidence of natural disaster through a letter issued by the district office or a copy of a police report; and,
Operates in the area declared as a disaster area by Majlis Keselamatan Negara or district offices.

2. Types of Natural Disasters:

Flood;
Storm;
Drought;
Beach erosion; or,
Landslide.

3. Sectors:

All economic sectors.

4. Financing Amount:

Minimum: RM50,000.
Maximum: RM100,000.

5. Items Eligible For Financing:

Machinery and equipment.
Refurbishment of business premises.
Working capital such as for purchases of raw materials and consumables.

6. Percentage Financing:

Machinery / Equipment

Up to 90% of the cost of new machinery / equipment.
Up to 65% of the cost of used / reconditioned machinery / equipment which are not more than 5 years old.

Refurbishment of Business Premises

Up to 90% of the cost.

Working Capital

Up to 90% of the working capital requirements.

7. Repayment:

Up to 5 years excluding a grace period of up to 6 months.

8. Interest / Profit Rate:

3% per annum on yearly rest.

Definition of SMEs As Endorsed By NSDC:-

Manufacturing:	Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.
Services and Other Sectors:	Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.

Soft Financing Scheme For Services Sector (SFSSS)

The SFSSS was established and funded by the Government of Malaysia to provide financing assistance to companies and enterprises in the services sector.

The objectives of the Scheme are:-

to provide financing assistance to new start-up companies and/or enterprises for the creation of new services entrepreneurs; and,
to provide financing assistance to the services sector to expand/upgrade/modernise/diversify their services into higher value-added activities and improve productivity and efficiency in service delivery.

The Scheme provides financing to companies and enterprises for the 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.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade And Industry (MITI).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice any Professional Regulatory Bodies;
At least 60% equity held by Malaysians; and,
Possesses a valid premises licence.

2. Sectors:

Services (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

Minimum: RM100,000.
Maximum: RM5 million.

4. Items Eligible For Financing:

Fixed Assets

Land & buildings / ready-built premises (including renovation).
Machinery / equipment / motor vehicles / hardware & software and other fixed assets.

Working Capital

Working capital such as for purchases of raw materials and consumables.
Working capital for advertising and promotional costs such as media advertising, e-commerce website development and printing of promotional materials.

5. Percentage Financing:

Fixed Assets

Land & buildings - up to 100% of the costs of land/building construction/ready-built premises and renovation.
Machinery / equipment / motor vehicles / hardware & software and other fixed assets - up to 80% of the costs of new fixed assets.
Machinery / equipment / motor vehicles which are not more than 5 years old - up to 60% of the costs of used/reconditioned fixed assets.

Working Capital

Up to 100% for Purchase Revolving Credit.
Up to 80% for Sales Revolving Credit.
Up to 50% of advertising and promotional costs.

6. Repayment:

Fixed Assets

Land & buildings - up to 15 years including grace period of up to 2 years.
Machinery / equipment / motor vehicles / other fixed assets - up to 6 years including grace period of up to 1 year.
Hardware & software - up to 4 years including grace period of up to 1 year.

Working Capital

Purchase Revolving Credit & Sales Revolving Credit - up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible borrowers.
Advertising and promotional costs - up to 3 years including grace period of up to 1 year.

7. Interest / Profit Rate:

4.0% per annum on yearly rest for SME.
5.0% per annum on yearly rest for non-SME.

Definition of SMEs in Services Sector As Endorsed By National SME Development Council (NSDC) :-

Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.

Soft Financing Scheme For Bumiputera Automotive Entrepreneurs (SFBAE)

The SFBAE was established and funded by the Government of Malaysia to facilitate and assist Open Approved Permit (AP) holders to expand and diversify into other automotive-related businesses and to sustain and enhance Bumiputera participation in the automobile industry.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade and Industry (MITI).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 and Companies Act 2016 with:

Open AP Holders for passenger vehicles (excluding motorcycles);
Open AP Holders for motorcycles that are registered members of Persatuan Pengimpot Dan Peniaga Kenderaan Melayu Malaysia (PEKEMA);
A Joint venture company with controlling equity stake held by Open AP Holders;
A company with controlling stakes are owned by Director(s) or shareholder(s) of the Open AP holders and the controlling aspects are reflected in the equity stake, members of the company’s Board of Directors, managerial, technical and supervisory;
A joint venture company with shares are owned by Open AP Holders and Director(s) or shareholder(s) of the Open AP holders with controlling equity stake; and
Possess a valid premises licence.

2. Sectors:

Manufacturing
Services excluding financial and insurance services; and
Non-automotive related business activities as approved by the Jawatankuasa Kumpulan Wang established under the Surat Ikatan Amanah Bagi Kumpulan Wang Amanah Dana Automotif Bumiputera Kementerian Perdagangan dan Industri dated 23 October 2015

3. Financing Amount:

Minimum: RM100,000
Maximum: RM5,000,000

4. Items Eligible For Financing:

Purchase of land & construction of buildings and/or purchase of ready-built buildings;
Renovation/upgrade of service centres;
Purchase of new / used / reconditioned plant & machinery / equipment;
Purchase of other fixed assets related to automotive industries;
Costs incurred / to be incurred in securing automotive distributorships / dealerships from existing franchise holders; and
Working Capital in the form of:-
- Purchase Revolving Credit -
  Working capital requirement for the purchase of raw materials/stocks/consumables/spare parts/services supplied by suppliers/sub-contractors used in the business operations;
- Sales Revolving Credit -
  Working capital requirement in relation to the sales and/or supply or provision of the goods and/or parts, products or services; or
- Term Loan* -
  Working capital requirement for the purchase of raw materials/stocks/consumables/spare parts supplied by suppliers/sub-contractors used in the business operations;
- Factoring -
  Working capital requirement for the purchase of receivables or credit sales invoices
  * for used/reconditioned machinery and equipment, the age shall not be more than 5 years old

5. Margin of Financing:

Up to 100% of the costs of land / building construction / ready-built buildings or renovation / upgrade of service centres or new plant & machinery / equipment and / or related fixed assets;
Up to 65% of the costs of used / reconditioned plant & machinery / equipment which are not more than 5 years old;
Up to 80% of the costs incurred / to be incurred in securing automotive distributorships / dealerships from sold;
Existing franchise holders; or
Working Capital:-
- Up to 100% for Purchase Revolving Credit;
- Up to 80% for Sales Revolving Credit;
- Up to 80% for Term Loan; and
- Up to 80% for Factoring.

6. Repayment:

Land & Building – up to 25 years including grace period of up to 2 years;
Plant/Machinery/Equipment/Related Fixed Assets – up to 6 years including grace period of up to 1 year;
IT Equipment – up to 4 years including grace period of up to 1 year;
Securing automotive distributorships/dealerships – up to 3 years including grace period of up to 1 year; and,
Working Capital
- Sales Revolving Credit & Purchase Revolving Credit
  – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible Customer(s);
- Term Loan – up to 3 years including grace period of up to 1 year; and
- Factoring – up to 180 days for each drawdown.

7. Interest / Profit Rate:

3.5% per annum on yearly rest.

2. Sectors:

Manufacturing
Services excluding financial and insurance services

3. Financing Amount:

Minimum: RM100,000.
Maximum: RM5,000,000

4. Items Eligible For Financing:

Purchase of land & construction of buildings and purchase of ready-built buildings;
Renovation/upgrade of service centres;
Purchase of new/used/reconditioned plant & machinery/ equipment; *
Purchase of other fixed assets related to automotive industries;
Costs incurred/to be incurred in securing automotive distributorships/dealerships from existing franchise holders; and
Working Capital in the form of:-
- Purchase Revolving Credit -
  working capital requirement for the purchase of raw materials/stocks/consumables/spare parts/services supplied by suppliers/sub-contractors used in the business operations;
- Sales Revolving Credit -
  working capital requirement in relation to the sales and/or supply or provision of the goods and/or parts, products or services; or
- Term Loan -
  working capital requirement for the purchase of raw materials/stocks/consumables/spare parts supplied by suppliers/sub-contractors used in the business operations;
  
  * for used/reconditioned machinery and equipment, the age shall not be more than 5 years old

5. Margin of Financing:

Up to 90% of the costs of land / building construction / ready-built buildings or renovation / upgrade of service centres or new plant & machinery / equipment and / or related fixed assets;
Up to 65% of the costs of used / reconditioned plant & machinery / equipment which are not more than 5 years old;
Up to 80% of the costs incurred / to be incurred in securing automotive distributorships / dealerships from existing franchise holders;
Working Capital:-
- Up to 100% for Purchase Revolving Credit;
- Up to 80% for Sales Revolving Credit;
- Up to 80% for Term Loan; and
- Up to 80% for Factoring.

6. Repayment:

Land & Building – up to 25 years including grace period of up to 2 years;
Plant/Machinery/Equipment/Related Fixed Assets – up to 6 years including grace period of up to 1 year;
IT Equipment – up to 4 years including grace period of up to 1 year;
Securing automotive distributorships/dealerships – up to 3 years including grace period of up to 1 year; and,
Working Capital
- Sales Revolving Credit & Purchase Revolving Credit
  – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible Customer(s) ; and
- Term Loan – up to 3 years including grace period of up to 1 year.
- Factoring – up to 180 days for each drawdown.

7. Interest / Profit Rate:

3.5% per annum on yearly rest.

Soft Financing Scheme For Services Capacity Development (SFSCD)

Soft Financing Scheme For Digital & Technology (SFSDT)

Objective:

To accelerate local SMEs in adoption of e-commerce;
To increase marketability of local SMEs’ products into national and global market;
To encourage and increase utilization of digital technologies among local SMEs as means to escalate competitiveness and efficiency and marketability.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965/2016 or Registration of Business Ordinance 1956;
At least 60% equity held by Malaysians;
Company must be currently active in business and in operation for at least 6 months;
Possess a valid business licence issued by local authority (local PBT).

2. Sectors:

All sectors

3. Financing Amount:

Minimum: RM30,000
Maximum: RM1 million

4. Items Eligible For Financing:

IT Hardware & Software/Motor Vehicle/Machinery/ Equipment.

Working Capital Term Financing for:
1. Operational Expenses of up to 6 month’s costs;
2. Product Listing in e-commerce Market Place or into retail hypermarket;
3. Advertising & promotional expenses up to 1 year costs;
4. Certification/Licensing costs.

Purchase/Sales Revolving Credit Facility for the purchase of raw materials and stock.
Contract Financing (Eligible for financing Purchase/ Receivables from Ministries/Government agencies/Government Link Companies related to digital economy platform).

5. Percentage Financing:

Up to 90% of the total costs (as per eligible items) including legal fees related to MIDF’s financing.

6. Repayment:

IT Hardware & Software/Motor Vehicle/Machinery/ Equipment:

Up to 5 years (including grace period of up to 1 year)

Working Capital Term Financing:

Up to 5 years (including grace period up to 6 months)

Purchase Revolving Credit/Sales Revolving Credit Facility for the purchase of raw materials and stock:

Up to 150 days for each drawdown including an option to rollover for a period not exceeding
60 days for eligible borrowers

Contract Financing:

Pre-financing : Up to 180 days for each drawdown.
Post-financing (Factoring) : Up to 120 days for each drawdown

7. Interest / Profit Rate:

As low as 4% per annum on yearly rest.

Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

Manufacturing :	Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.
Services and Other Sectors :	Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.

Services Biz Financing (SBF)

Objective:

To encourage service companies to expand their markets locally and globally;
To assist existing and new companies to improve company’s cash flow and cost of doing business;
To encourage expansion/ upgrading/ modernization/ diversification of existing services providers into higher value-added activities and improve productivity in service delivery;
To enhance capacity building of local companies facing intense competition by the impact of liberalization.

Eligibility Criteria and Main Features

1. Eligibility:

Companies registered under Companies Act 2016 or enterprises registered under the Registration of Businesses Ordinance 1956 or professionals registered under the Certificate of Practice by Professional Regulatory Bodies;
At least 51% equity held by Malaysian;
Possess a valid business license issued by local authority.

2. Sectors:

All services sector with prioritization to 12 promoted sub-sectors:

Hotel
Tourism
Transportation
Green Technology
Ship Building & Repair
Healthcare
Education
Professional Services
Information Technology & Communication
Research & Development (R&D)
Oil & Gas
Manufacturing Related Services (MRS)

3. Financing Amount:

Minimum: RM50,000.00
Maximum: RM5,000,000.00

Note: The maximum limit is per company

4. Items Eligible For Financing:

i. Project

Covers the entire project cost items including pre-operational expenses

ii. Asset acquisition

Property

Purchase of new/ ready-built premise
Purchase of land and construction of premise
Remortgage - free from encumbrances
Refinance - property charges to other banks*
Renovations
Other eligible expenses

Note: *Refinance of existing facility with other banks up to principal amount only.

Machinery/ Equipment/ Motor Vehicles

New
Used/ Reconditioned**
Other eligible expenses

Note: **not more than 5 years old

New ICT Hardware and Software

Including other eligible expenses

iii. Working Capital

Purchase of components/ inventory/ raw materials etc.
Advertising and Promotional cost
- Related expenses such as media advertising, e-commerce website development, printing of promotional materials etc.
- Up to 12 months cost

Accreditation/ Certification/ Licensing/ Training
- To meet Local/ Global Standard

Research and Development
- Operating Expenses (OPEX)
  - Day-to-day related expenses (e.g. staff salary/ utilities and etc.)
  - Up to 6 months

5. Percentage Financing:

Working Capital - Up to 100%

Asset acquisition

(a) Property	- Up to 100%
(b) Machinery/ equipment/ motor vehicles and other eligible expenses i. New	- Up to 90%
ii. Used/ Reconditioned*	- Up to 65%
iii. ICT Hardware and Software	- Up to 90%

6. Repayment:

Asset Acquisition

(a) Property	-	Up to 20 years Including grace period of up to 2 years
(b) Machinery / Equipment / Motor Vehicles / other eligible expenses	-	Up to 7 years Including grace period of up to 1 year
(c) ICT hardware / software / other eligible expenses	-	Up to 7 years Including grace period of up to 1 year

Working Capital - Up to 7 years Including grace period of up to 6 month

7. Interest / Profit Rate:

4% per annum or SMEs
5% per annum Non-SMEs

Sustainable & Green Biz Financing (SGBF)

Objective:

To encourage and increase utilization of green technology and energy efficiency among local industry players;
To encourage the use of energy efficiency systems and the use of ‘greener’ manufacturing processes;
To increase marketability of local companies using green technology and energy efficiency into national & global market;
To assist local industry players to improve the cash flow and reduce the business costs.

Eligibility Criteria and Main Features

1. Eligibility:

SME or non-SME duly registered with SSM;
At least 51% equity/ ownership held by Malaysian;
Possess a valid business license issued by local authority;
In operation for more than 6 months.

2. Sectors:

Manufacturing and Services sectors

3. Financing Amount:

Minimum: RM100,000.00
Maximum: RM10,000,000.00

4. Items Eligible For Financing:

i. Asset acquisition

Property

Purchase of new/ ready-built premise
Purchase of land and construction of premise
Remortgage - free from encumbrances
Refinance - property charges to other banks*
Renovations

Note:
*Refinance of existing facility with other banks up to principal amount only
*Only applicable for project specific related to developing a sustainable environment with energy efficiency and renewable energy solution.

Machinery / Equipment / Commercial Motor Vehicle

New
Used / Reconditioned**

Note: **Not more than 5 years

ICT hardware & software (new only)

Acquisition of the latest technology

ii. Working capital

Accreditation / Certification / Licensing / Training
- To meet Local/ Global Standard

Operational Expenses (OPEX)
- Day-to-day related expenses (e.g. staff salary/ utilities and etc.)

Any other expenses to finance short term expenses excluding fixed asset

Other expenses
- Legal & disbursement fees related to MIDF’s financing excluding stamping fee;
- 1^st year insurance premium; and
- 1^st year SJPP fee

5. Percentage Financing:

Asset Acquisition

(a) Property

- Up to 100%

(b) Machinery / Equipment / Motor Vehicles

i. New

ii. Used/Reconditioned

- Up to 90% of the purchase price

Working Capital - Up to 100%

Note: OPEX is capped up to 30% from proposed working capital financing limit or maximum RM1.0 million

6. Repayment:

Asset Acquisition

(a) Property	-	Up to 25 years Including grace period of up to 3 years
(b) Machinery/Equipment/ Commercial Motor Vehicle i. New	-	Up to 9 years Including grace period of up to 1 year
ii. Used/Reconditioned	-	Up to 7 years Including grace period of up to 1 year
(c) New ICT hardware/ software	-	Up to 7 years Including grace period of up to 6 months

Working Capital - Up to 7 years. Including grace Period of up to 6 month

7. Interest / Profit Rate:

2% per annum or SMEs
5% per annum Non-SMEs

SME Revitalisation Financing (SMERF)

Objective:

Provide a comprehensive financial solutions and accessibility to assist viable SMEs constrained by financial difficulties and underserved sectors.
Ease cashflow blockage facing by viable SMEs in revitalising & achieving business goals, strengthening core business, building capacity & capability and improve productivity as well as job creation.
Facilitate local and potential SMEs to high level of competition through enhancement of products marketability, business expansion and adoption of technology & modernisation.
Facilitate local and potential SMEs to obtain financing with minimum collateral, credit history and track record.
Fast, flexible and convenient way to finance the need of business from startup to small and emerging business.

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated in Malaysia and: -

SMEs as defined and endorsed by the National Entrepreneur and SME Development Council (NESDC), as amended from time to time, which shall include all micro, small and medium sized business entities duly registered with Suruhanjaya Syarikat Malaysia (SSM), authorities, district officers (Sabah or Sarawak) or statutory bodies for professional service providers bodies;
With at least sixty per cent (60%) equity held by Malaysians;
Possess valid business license. However, exclusion can be considered on case-to-case basis, subject to approval;
Must have viable proposal; and
Start-up company must be in operation for more than 6 months

Note: SME Status is not a prerequisite. MIDF will channel the details of approved applications to SME Corp. Malaysia for the SME Status registration.

2. Sectors:

All economic sectors.

3. Financing Amount:

Minimum: RM50,000
Maximum: RM250,000.00

Note: The maximum limit is per application

4. Items Eligible For Financing:

Working Capital;
Asset financing i.e. Purchase of Machinery/ Equipment/ Commercial Motor Vehicle/ ICT Hardware/ Software.

5. Percentage Financing:

Up to ninety per cent (90%) of the total costs (as per eligible items)

6. Repayment:

Maximum of seven (7) years includes the maximum moratorium and grace period.

Note: The moratorium and/or grace period is optional to be offered to the customer:

Up to six (6) months moratorium; and/ or

Up to six (6) months grace period

7. Interest / Profit Rate:

3% per annum

Matching Grant for Aerospace & Medical Devices (MGAMD)

The Matching Grant for Aerospace & Medical Devices (MGAMD) was introduced in the Strategic Programs to Empower the People and the Economy or Program Strategik Memperkasa Rakyat Dan Ekonomi (PEMERKASA) with the following objectives:

Objective:

To encourage aerospace and medical devices companies in Malaysia to secure new work packages, i.e., manufacturing, maintenance, repair & overhaul (MRO), targeting the effected suppliers/service providers especially in Europe, US and Canada;
To provide incentives to support the non-recurring cost (NRC) of transferring aerospace or medical devices work packages to Malaysia, where customers, i.e. Original Equipment Manufacturer (OEM)/Tier 1 are not willing to pay the NRC; and
To also enable local companies (suppliers) to pay for NRC development through this Grant.

Eligibility:

Applications are open to any aerospace and medical devices company in Malaysia incorporated under the Companies Act, 1965/ 2016.
The company must engage in the following activities:
1. Manufacturing; and
2. Services.

For application and enquiries, please contact MIDF Business Advisory:

MIDF Website : www.midf.com.my

Tel (Hotline) : 1300-88-6433

Email : GrowYourBusiness@midf.com.my

Get In Touch - Business Advisory

Hotline: 1-300-88-6433 (MIDF)
E-mail: GrowYourBusiness@midf.com.my
Hotline service: 9.00 am - 5.00 pm (Monday - Friday), excluding Public Holiday

Client Charter

We, at Development Finance Division (DFD), pledge to provide exemplary services to our Customers through these commitments:

Evaluate all applications for financing facilities with fairness and without prejudice, in accordance with the applicable statutory requirements, as set forth by the relevant authorities.

Treat all parties with courtesy, understanding, respect and sincerity.

Endeavour to provide the most suitable available financing facility to match the financial requirements of our customers.

Process the application for financing facilities upon receipt of all the necessary documents/information and communicate the outcome of the application in a timely manner.

Disburse promptly all approved facilities upon request by our customers with proper and complete documentation.

Ensure that the asset/property/documents/information submitted to us or kept in our custody will be protected, in terms of its integrity and secrecy.

Attend to any queries or feedback in a prompt and courteous manner.

Inform the public on the latest developments of DFD and the available financing schemes.

Client Charter Achievement

Client Charter

Achievement

Oct - Dec 2019

Jan - Mar 2020

Apr - June 2020

July - Sept 2020

Oct - Dec 2020

30 days – Decision for loan application.

100%

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