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 Loan Scheme for Automation & Modernisation (SLSAM)

The SLSAM 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:

  1. 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.
  2. To assist automotive parts and components manufacturers in:
    • Mitigating the Foreign Exchange (FOREX) fluctuation; and
    • Managing the unamortized cost of tooling and development for Proton related models

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;
  • In operation for at least 2 years; and/or
  • Endorsed by Malaysia Automotive Institute (MAI) *
* Only applicable for Objective (ii)

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

viii. Assisting the Automotive Parts and Components Manufacturers in ***:

Financing for:
  • Mitigating the Foreign Exchange (FOREX) fluctuation
    • Purchase of raw material affected by forex from January 2015 onwards
  • Managing the unamortized cost of tooling and development for Proton related models
    • Redeeming existing financing facilities with financial institutions
*** Only applicable for Objective (ii)

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
    • Up to 100% for Objective (ii)

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

  • Objective (ii)

    Up to 5 years including grace period of 1 year

7. Interest / Profit Rate:

  • 4.0% per annum on yearly rest (SMEs)
  • 5.0% per annum on yearly rest. (Non-SMEs)
  • 0.0% (For Bumiputera status company – applicable for Objective (ii))

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 Loan Scheme for Small & Medium Enterprises (SLSME)

The SLSME 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:

  1. SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
  2. At least 60% equity held by Malaysians;
  3. Possesses a valid premises licence ; and,
  4. 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:

  1. SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
  2. Possesses a valid premises licence issued by the municipal council (pihak berkuasa tempatan);
  3. Provides proof of evidence of natural disaster through a letter issued by the district office or a copy of a police report; and,
  4. 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 Loan Scheme For Services Sector (SLSSS)

The SLSSS 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:-

  1. to provide financing assistance to new start-up companies and/or enterprises for the creation of new services entrepreneurs; and,
  2. 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:

  1. 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;
  2. At least 60% equity held by Malaysians; and,
  3. 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 Loan Scheme For Bumiputera Automotive Entrepreneurs (SLBAE)

The SLBAE 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 Loan Scheme For Services Capacity Development (SLSCD)

The SLSCD was launched in April 2009 by the Government of Malaysia under the Services Sector Capacity Development Fund of the First Economic Stimulus Package to assist companies and enterprises to undertake upgrading and modernisation for diversifying into higher value-added activities, and improving the productivity and efficiency of service delivery.

It addresses the impact of liberalisation on local services providers by providing financial assistance to the services sectors to build up its capacity in order to withstand competition due to the opening up of markets as well as to strengthen international competitiveness.

MIDF is the implementing agency of the Scheme which is administered by the Malaysian Investment Development Authority (MIDA).

Eligibility Criteria and Main Features

1. Eligibility:

  1. Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Act 1956;
  2. At least 60 % equity held by Malaysians;
  3. Possess a valid premises licence;
  4. In operation for at least 2 years; and,
  5. Annual turnover exceeding RM200,000/- and full-time employees exceeding five.

2. Sectors:

  • All services sectors (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

  • Minimum: RM50,000.
  • Maximum: RM5 million.

4.Items Eligible For Financing:

  • Expenditures to be incurred for upgrading and modernisation including the purchase of equipment, hardware and software as well as related development costs for the purposes of diversifying into higher value - added activities and improving productivity and efficiency of service delivery.

5. Percentage Financing:

  • Up to 90% of the expenditures.

6. Repayment:

  • Up to 7 years including a grace period of up to 24 months.

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 Loan Scheme For Services Export (SLSSE)

Objective:

  1. To increase the competitiveness of Malaysian Service Providers (MSPs) overseas;
  2. To increase accessibility and expand export of MSPs in the global market;
  3. To expand the scope for export promotion to gain market access and export opportunities for services; and
  4. To raise the profile of Malaysia at the international level as competent service provider and brand Malaysia as a supplier of services

1. Eligibility:

  • Registered with MATRADE (MER);
  • Firms incorporated under the Companies Act 1965; OR
  • Sole proprietors, professionals and partnerships registered with respective professional authorities in Malaysia;
  • Having at least 60% equity owned by Malaysian;
  • Not a Government Linked Company (GLCs) and Company that have Government (Federal / State Government) Equity;
  • Company must be currently active in business and in operation for at least 1 year;
  • Exporting Malaysian services or product made in Malaysia.

2. Sectors:

  • Services (excluding financial, insurance, and tourism sub sectors)

3. Financing Amount:

  • Minimum: RM50,000
  • Maximum: RM5 million

4. Items Eligible For Financing:

Activity 6:
Costs for preparation of project proposals for overseas projects

Eligible Expenses:
Financing to assist MSPs in proposing and planning for overseas project negotiations.
Example of eligible activities are:

  • Preparation of master plan;
  • Architectural designs;
  • Preparation of blueprint;
  • Engineering designs for projects;
  • Project management; and
  • IC and software design.

Financing Amount:
Up to a maximum of RM2 million per company.

Activity 7:
Expenses related to raising bank guarantee or performance bond to execute overseas project

Eligible Expenses:
Examples of eligible expenses are interest rate, legal fees, documentation fees and bank insurance, excluding the principal value of the said bank guarantee of performance bond.

Financing Amount:
Up to a maximum of RM5 million per company.

Activity 8:
Collateral in issuance of bank guarantee or performance bond

Eligible Expenses:
Financing to assist MSPs in undertaking/ implementing overseas project

Financing Amount:
Up to a maximum of RM5 million per company.

Activity 9:
Remaining 50% on eligible expenses for setting up office overseas for the initial twelve (12) month

Eligible Expenses:
Company which has been approved 50% grant on eligible expenses for setting up office overseas for the initial twelve (12) months under SEF grant is eligible for the remaining 50% under soft loan.

Financing Amount:
Up to a maximum of RM150,000 per company.

Activity 10:
Mobilization costs

Eligible Expenses:
The eligible expenses include labour, equipment, rental (if any) or/and transportation of equipment

Financing Amount:
Up to a maximum of RM5 million per company.

5. Percentage Financing:

  • Up to 90% of the costs

6. Tenure of Financing:

  • The maximum repayment period is up to 5 years including 6 months grace period.
  • The maximum repayment period is up to 5 years including 6 months grace period.
  • The maximum repayment period is up to 5 years including 6 months grace period.
  • The maximum repayment period is up to 5 years including 6 months grace period.
  • The maximum repayment period is up to 12 month (1 year) including 3 months grace period.

7. Interest / Profit Rate:

  • 2.0 % per annum on yearly rest
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
Jan - Mar 2017 Apr - June 2017 July - Sept 2017 Oct - Dec 2017

 30 days – Decision for loan application. 

98.5% 98.4% 100% -
         

 

Client Charter and Client Charter Achievement

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