Government Financial Assistance Programmes by MIDF for Malaysian Owned Companies

Greeting and Happy New Year 2014 to all KLMCC Members!

With the Government recent announcement on the reduction of subsidies on several items, hikes on certain tariffs are expected to affect many local businesses. In order to help these local businesses to sustain and to boost the economy, the Malaysian Government has allocated various funds to be managed by MIDF to assist companies/enterprises in their business operations in the form of soft loans.

This is to inform the members on the availability of the Government Financial Assistance Programmes managed by MIDF.

MIDF provides a range of conventional as well as Islamic facilities such as machinery and equipment financing, industrial and commercial property financing, industrial hire purchases, leasing, term working capital financing, revolving credit and factoring for existing as well as new companies and enterprises. The minimum financing amount to be offered is from RM50,000.00 and up to a maximum amount of RM10 Million per financing application.

Advantage of MIDF Government Financial Assistance Programmes

1. Low Fixed Interest/Profit Rates
   • 4% per annum for SMEs
   • 5% per annum for Non-SMEs
2. Longer Tenure of Financing
   • Industrial Land and Building / Factory / Commercial Property / Shop-Lot – up to 25 years including grace period of up to 2 years
   • Machinery / Equipment / Industrial Hire Purchase / Leasing – up to 7 years including grade period of up to 1 year
   • IT Equipment – Up to 4 years including grace period of up to 1 year
   • 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
   • Factory Facility – up to 150 days for each drawdown (eligible for vendors to the Government and Government-Linked Companies)
   • Term Financing (to finance purchase of stock and consumable) – up to 3 years including grace period of up to 6 months
3. High Margin of Financing
   • Up to 90% of cost of new assists (industrial land and building / factory / commercial property / shop-lot / machinery / equipment
   • Up to 65% for used / reconditioned machinery / equipment which are not more than 5 years old
   • Up to 100% for Purchase Revolving Credit
   • Up to 80% for Sales Revolving Credit and Factoring Facility
   • Up to 90% for Term Working Capital Financing

Applications received for financing under the above Government Financial Assistance Programmes are required to meet the stipulated eligible criteria of the Government Financial Assistance Programmes and subject to consideration of approval by MIDF. It is to be clearly understood that this letter is not the be construed that MIDF has given pre-approval for any application.

Interested in Reducing Your Financial Expenses?

If any of members wishes to take advantage of the above programmes, kindly email to inquiry-feedback@midf.com.my or contact Marketing Department, attention to Fadzlan Abu Bakar or Sharifah Faten Nur at telephone number 03-2173 8888 (Ext. 8598 / 1905)

Thank you.