seminar on investment opportunities in resource based

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
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
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.
An Integral Part Of MITI Since Inception
GOVERNMENT FINANCIAL
ASSISTANCE PROGRAMMES
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.
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MIDF Products & Services
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MIDF PRODUCTS & SERVICES
Revolving
Credit Facility
Leasing
Facility
Project Loan
MIDF
Property
Mortgage
Loan
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Machinery
/ Equipment
Loan
MIDF PRODUCTS AND SERVICES
Project Loan
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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.
MIDF PRODUCTS AND SERVICES
Property Mortgage Loan
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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.
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
Financing up to 80% of sales
invoices
• Up to 120 days on revolving basis
Sales Revolving Credit (SRC)
•
Purchase Revolving Credit
(PRC)
•
Working Capital Term Loan
•
Financing purchases of raw material
up to 100%
• Up to 120 days on revolving basis
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:-
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
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
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.

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Sectors :

Manufacturing

Manufacturing Related Services

Services (excluding insurance and financial services)
Soft Loan Scheme for Small & Medium Enterprises (SLSME)
 Financing Amount (Loan Size ) :
 Minimum
 Maximum
: RM 50,000
: 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.

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Margin of Finance (Working Capital)

Up to 100% of the working capital requirements.
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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Advantages of MIDF’s Government Financial Assistance Programmes
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
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MIDF Regional Offices
1. Northern Region Branch, Georgetown, Pulau Pinang.
Tel : 04-2298434/435/436
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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
SARAWAK Regional Offices
Level 4, Bangunan Bank Negara Malaysia
Jalan Satok
93400 Kuching, Sarawak.
Tel
: 082 - 254533 / 254203
Fax No : 082 - 246343
E-mail : [email protected]
Website: http://www.midf.com.my
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THANK YOU FOR YOUR ATTENTION
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