SOFT LOAN SCHEMES

BY MIDF
DEVELOPMENT FINANCE
DIVISION

11
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 restructuring the economic structure targeted by the Government.

22
Development Finance Division

Development  Extends fixed interest rate financing through

Finance project, machinery, factory mortgage and
working capital term loans, industrial hire
purchase and leasing facilities and revolving
credit and factoring.

 Continues to remain an important conduit to

disburse Government development funds under
the various special soft loan schemes.

SMEs Financing

10,342 financing
facilities worth
We Assist Our Clients To Lower Their Cost Of Doing Business RM13.3 billion

33
DEVELOPMENT FINANCE

OUR FINANCIAL
PRODUCTS

44
 OUR PRODUCTS

No. Conventional Percentage Financing & Islamic

Repayment Period (Syariah-based)

1. Factory Mortgage  Up to 90% of the Total Cost of Al-Bai Bithaman Ajil

Loan Factory, Land and Buildings (BBA)
(Up to 25 Years) (Property/Factory)
2. Machinery Loan  Up to 90% of Cost of New BBA
Machinery (Machinery)
 Up to 65% of Cost of
Reconditioned/Used Machinery
(Up to 7 Years)
3. Industrial Hire  Up to 90% of Cost of New Al-Ijarah Thumma
Purchase (IHP) Machinery/Equipment/ Al-Bai
Motor Vehicles (AITAB)
 Up to 65% of Cost of
Reconditioned/Used
Machinery/Equipment/Motor
Vehicles (Up to 7 Years)

55
 OUR PRODUCTS
No. Conventional Percentage Financing & Islamic
Repayment Period (Syariah-based)

4. Leasing  Up to 90% of Cost of New Al-Ijarah

Machinery/Equipment/Motor (Leasing-i)
Vehicles
 Up to 65% of Cost of
Reconditioned/Used
Machinery/Equipment/Motor
Vehicles (Up to 7 Years)
5. Sales Revolving  Up to 90% financing of sales Tawaruq
Credit (SRC) invoice value
(Up to 90 days with an option to
extend another 60 days)
6. Purchase Revolving  100% financing of raw material Tawaruq
Credit (PRC) supplier’s invoice
(Up to 90 days with an option to
extend another 60 days)
7. Factoring  Up to 80% financing of sales Bai Al-Dayn
invoice value (180 days)

66
 SCHEME FUNDS
MANAGED BY MIDF

77
MIDF FINANCIAL ASSISTANCE PROGRAMMES
Soft Loan Scheme for Automation & Modernisation
(SLSAM)

Objective:
 Assists manufacturing companies to:
(i) modernise and automate manufacturing processes;
(ii) upgrade production capability and capacity;
(iii) minimise dependence on labour - intensive activities and foreign
labour;
(iv) diversify into higher value - added activities;
(v) rationalise and streamline operations including through mergers
and acquisitions;
(vi) tooling acquisition, development and production;
(vii) productivity improvement; and
(viii) enhancing export performance.

88
MIDF FINANCIAL ASSISTANCE PROGRAMMES

Soft Loan Scheme for Small and Medium Enterprises

(SLSME)

Objective:

 To promote the development of small and medium enterprises

in Malaysia.

 To assist existing as well as newly start-up enterprises in

project, fixed assets and working capital financing.

99
MIDF FINANCIAL ASSISTANCE PROGRAMMES

Soft Loan Scheme for Services Capacity Development

(SLSCD)

Objective:
 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.
 To address 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.

10
10
10
MIDF FINANCIAL ASSISTANCE PROGRAMMES

Soft Loan Scheme for Services Sector

(SLSSS)

Objective:
 To provide financing assistance to new start-up companies and/or enterprises
for the creation of new services entrepreneurs.
 To expand/upgrade/modernise/diversify their services into higher value-added
activities and improve productivity and efficiency in service delivery.
 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.

11
11
11
 ELIGIBILITY CRITERIA

No. Criteria SLSME SLSAM SLSSS SLSCD

1 Companies incorporated under    

Companies Act 1965, or

2 Businesses registered with ROB   

3 Professionals registered under  

the certificate of Practice by
Professional Regulatory Bodies

4 60% Malaysian Equity   (*)  

5 Valid premises/business license    

6 For SME only 

7 For both SME and non-SME   

(*) 51% Malaysian Equity

12
12
12
 MIDF FINANCIAL ASSISTANCE PROGRAMMES

Funds Administered by SME Corp Malaysia

(SME Corp)

Interest
Scheme Loan Amount
Rate

1. Soft Loan Scheme for Small  Project: Up to RM5.0 million 4.0%

and Medium Enterprises  Fixed Assets: Up to RM5.0
(SLSME) million
 Working Capital: Up to RM3.0
million
 IT Hardware/Software: Up to
RM500,000/-

13
13
13
 MIDF FINANCIAL ASSISTANCE PROGRAMMES

Funds Administered by Ministry of

International Trade And Industry (MITI)

Interest
Scheme Loan Amount
Rate

1. Soft Loan Scheme for  Up to RM10 million for each 4.0%

Automation and Modernisation application (SMEs)
(SLSAM)
5.0%
(Non-SMEs)

2. Soft Loan Scheme for Services  Up to RM5 million 4.0%

Sector (SLSSS) (SMEs)

5.0%
(Non-SMEs)

14
14
14
 MIDF FINANCIAL ASSISTANCE PROGRAMMES

Funds Administered by
Malaysian Industrial Development Authority (MIDA)

Interest
Scheme Loan Amount
Rate

1. Soft Loan Scheme  Up to RM5 million 4.0%

for Services Capacity (SMEs)
Development (SLSCD)
5.0%
(Non-SMEs)

15
15
15
 MIDF Government Financial Assistance Programme

• Soft Loan Scheme for Service Export (SLSSE)

• Financing to defray the cost related to the issuance of a Bank Guarantee or

Performance Bond for project execution excluding the principal value of the
Bank Guarantee or Performance Bond of up to maximum of RM5 million per
company.

• Financing to assist MSPs in proposing and planning for overseas’ project

negotiations of up to maximum of RM2 million per company.
Features

 Example of eligible activities are:

 Preparation of master plan;
 architectural designs;
 preparation of blueprint;
 engineering designs for projects;
 project management;
 IC and software design; and
 IP registration of designs and patents.

16
16
16
 MIDF Government Financial Assistance Programme

• Soft Loan Scheme for Service Export (SLSSE)

• Repayment period of up to 2 years including 6 months grace

period.
Features

• Fixed interest / profit rate of 2% per annum.

• Margin of financing of up to 90%.

• Maximum loan up to RM5.0 million

17
17
17
 MIDF Government Financial Assistance Programme

• Soft Loan Scheme for Service Export (SLSSE)

 Registered with MATRADE (MER);

 Firms incorporated under the Companies Act 1965; OR
 Sole proprietors, professionals and partnerships registered with
respective professional authorities in Malaysia;
Eligibility

 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.

18
18
18
MIDF FINANCIAL ASSISTANCE PROGRAMMES

ADVANTAGES

 Low Interest/Profit Rates (2%, 4% & 5% per annum)

 Great savings on costs of borrowings

 Fixed Interest/Profit Rates
 No volatility on financial commitment
 Grace Period (up to 2 years) - only service interest
 Eases cash flow
 Available For Start-Up Companies

19
19
19
 REGIONAL OFFICES
Eastern Region Sabah Branch
Kota Bharu, Kelantan Kota Kinabalu,
Northern Region Sabah
Penang

Central
Kuala Lumpur, WP
Sarawak Branch
Southern Region Kuching, Sarawak
Johor Bharu, Johor

Northern Region Branch, Georgetown, Penang

Telephone No.: 04-2298434/435/436
Email: penang@midf.com.my

Southern Region Branch, Johor Bahru, Johor

Telephone No.: 07-2232727, 07-2243046
Email: johor@midf.com.my

Eastern Region Branch, Kota Bharu, Kelantan

Telephone No.: 09-7483546, 09-7461679
Email: kotabharu@midf.com.my

Sabah Branch, Kota Kinabalu, Sabah

Telephone No.: 088-211633, 088-211523
Email: sabah@midf.com.my

Sarawak Branch, Kuching, Sarawak

Telephone No. : 082-254533, 082-254203
Email: sarawak@midf.com.my

20
20
20
THANK YOU

21
21
21