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SEMINAR ON INVESTMENT OPPORTUNITIES

IN RESOURCE BASED INDUSTRIES

PULLMAN HOTEL, KUCHING

18 APRIL 2016

MIDF GOVERNMENT FINANCIAL

ASSISTANCE PROGRAMMES

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Presentation Outline

MIDF in brief

Products & Services

Government Financial Assistance Programmes

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MIDF in brief

Incorporated on 30 March 1960.

Mandated role in helping, developing and improving the manufacturing sector in Malaysia.

Merged with Amanah Capital Partners Berhad in February 2003.

Wholly-owned by Permodalan Nasional Berhad (PNB) since February 2008.

3 core business units:-

i) Development Finance Division;

ii) MIDF Amanah Investment Bank Berhad; and

iii) MIDF Amanah Asset Management Berhad.

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FOCUS OF MIDF via Development Finance Division

MIDF is one of agencies under MITI whose main role is to provide and manage government financial assistance via providing soft loans to SMEs and Non-SMEs.

Main focus is developing the manufacturing and services sectors in Malaysia.

Emphasis is given in capacity development and ability of SMEs to be more innovative in producing products and to be able to provide high quality service delivery.

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An Integral Part Of MITI Since Inception

MIDF collaborates with MITI and its Agencies as a conduit for assisting

specific sectors and/or industries in the economic structure targeted

by the Government.

GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES

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MIDF Products & Services

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MIDF PRODUCTS & SERVICES

Leasing Facility

Property Mortgage

Loan

Machinery / Equipment

Loan

Project Loan

Revolving Credit Facility

MIDF

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MIDF PRODUCTS AND SERVICES

Project Loan

Purpose: Financing of industrial/commercial land, construction

of building and renovation of factory/business

premises.

Loan Tenure:

Up to 25 years (inclusive Grace Period).

Margin of Finance: Up to 90% of the cost of the project.

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MIDF PRODUCTS AND SERVICES

Property Mortgage Loan

Purpose: Purchase of Factory/Warehouse/Commercial

Lots

Loan Tenure: Up to 25 years (inclusive Grace Period).

Margin of Finance:

Up to 90% of the cost of the factory or shop lot

purchased.

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MIDF PRODUCTS AND SERVICES

Machinery or Equipment Loan

Purpose: Purchase of Machinery or Equipment.

Loan Tenure: Up to 7 years (inclusive Grace Period).

Margin of Finance:

Up to 90% of the cost of new Machinery or

Equipment;

Up to 65% the cost of used/refurbished machinery or

equipment (not more than 5 years)

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MIDF PRODUCTS AND SERVICES

Leasing Facility – inclusive Leasing and Industrial Hire-Purchase

Purpose: Financing for machinery or equipment

Loan Tenure: Up to 7 years (inclusive Grace Period).

Margin of financing:

Up to 90% of the cost of new Machinery or

Equipment;

Up to 65% the cost of used/refurbished machinery

or equipment (not more than 5 years)

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MIDF PRODUCTS AND SERVICES

Working Capital Financing

Sales Revolving Credit (SRC) • Financing up to 80% of sales invoices

• Up to 120 days on revolving basis

Purchase Revolving Credit (PRC)

• Financing purchases of raw material

up to 100% • Up to 120 days on revolving basis

Working Capital Term Loan

• Financing purchase of raw material /

consumables up to 90% • Up to 5 years inclusive Grace Period

of 6 months

Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM3,000,000

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Government Financial

Assistance Programmes

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Development Finance Division (DFD)

Government Financial Assistance Programmes managed by MIDF are:- Soft Loan Scheme for Small & Medium Enterprises

(SLSME) Soft Loan Scheme for Automation & Modernisation

(SLSAM) Soft Loan Scheme for Services Sector Capacity

Development (SLSCD) Soft Loan Scheme for Services Sectors (SLSSS)

Soft Loan Scheme for Bumiputera Automotive

Entrepreneurs (SLSBAE) AP Holders

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Government Financial Assistance Programmes

Financing existing SMEs as well as new SMEs in project, fixed assets

and working capital financing.

Eligibility :

SMEs incorporated under the Companies Act 1965 or Registration

of Business Ordinance 1956;

at least 60% equity held by Malaysians;

If related to a public-listed company with shareholding not

exceeding 20%; and

Possess valid premises license.

Sectors :

Manufacturing

Manufacturing Related Services

Services (excluding insurance and financial services)

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Soft Loan Scheme for Small & Medium Enterprises (SLSME)

Financing Amount (Loan Size ) :

Minimum : RM 50,000 Maximum : RM 5 million

Eligible expenses:

Project financing, fixed assets, IT Hardware & Software and

working capital financing; Margin of Finance (Fixed Assets)

Up to 90% of the cost for new fixed assets; and

Up to 65% for used/reconditioned equipment which shall not be more than 5 years old.

Margin of Finance (Working Capital)

Up to 100% of the working capital requirements.

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Soft Loan Scheme for Small & Medium Enterprises (SLSME)

Payback Period

Land and Building - up to 25 years including grace period;

- up to 15 years (SLSSS Scheme)

Machinery and Equipment - up to 7 years including grace period;

IT Equipment - up to 4 years including grace period; and

Revolving Working Capital – Up to 150 days ( subject to yearly review)

Interest / Profit Rate: 4 % perannum on yearly rest

- 4% per annum (SMEs)

- 5% per annum (Non-SMEs)

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Why MIDF ….???

Low Interest/Profit Rates (as low as 4% per annum)

Fixed Interest/Profit Rates – Not tag to BLR

Grace Period (up to 2 years)

Available For Start-Up Companies

Advantages of MIDF’s Government Financial Assistance Programmes

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1. Northern Region Branch, Georgetown, Pulau Pinang.

Tel : 04-2298434/435/436

2. Southern Region Branch, Johore Bahru

Tel : 07-2232727, 07-2243046

3. Eastern Region Branch, Kota Bharu

Tel : 09-7483546, 09-7461679

4. Sabah Branch, Kota Kinabalu

Tel : 088-211633, 088-211523

5. Sarawak Branch , Kuching

Tel : 082-254533, 082-254203

MIDF Regional Offices

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SARAWAK Regional Offices

Level 4, Bangunan Bank Negara Malaysia

Jalan Satok

93400 Kuching, Sarawak.

Tel : 082 - 254533 / 254203

Fax No : 082 - 246343

E-mail : sarawak@midf.com.my

Website: http://www.midf.com.my

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THANK YOU FOR YOUR ATTENTION