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 the Government financial assistance 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 to promote socio-economic inclusiveness and advancement for the people of Malaysia.
 

The Division offers financial assistance through the following soft loan scheme programmes:-
 

1. Soft Loan Scheme For Small And Medium Enterprises (SLSME)promotes the development of SMEs;

2. Soft Loan Scheme For Automation And Modernisation (SLSAM) assits manufacturing companies to automate and modernise processes in order to minimise dependence on labour-intensive activities and foreign labour;

3. Soft Loan Scheme For Automative Development (SLSAD) assists eligible automative parts and components vendor to rationalise operations, and in tooling acquisitions, development and production, productivity improvement and enhancing export performance;

4. Soft Loan Scheme For Services Sector (SLSSS) assist companies and enterprises in the services sector to expand/upgrade/modernise/diversity their services into higher value- added activities and improve productivity and efficiency in service delivery;

5. Soft Loan Scheme For Bumiputera Automative Entrepreneurs (SLBAE) facilitates and assists Open Approved Permit (AP) Holders to expand and diversity into other automative-related businesses and to sustain and enhance Bumiputera participation in the automobile industry; and,

6. SME Emergency Fund (SMEEF) assists SMEs affected by natural disasters to revive their operations.

7. Soft Loan Scheme For Services Capacity Development (SLSCD) provides financial assistance to local services providers to build up their capacities so as to enable them to withstand competition due to liberalisation and the opening up of the domestic market as well as to strengthen their internation competitiveness.

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 also 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.