Business growth is critical for the economic and social development of emerging markets such as ours. MIDF’s role within this spectrum is to assist these businesses in gaining greater access to financing by providing funding for working capital and fixed assets in fulfilling their growth ambitions.

We offer high margin of financing, at fixed profit rates free of any BLR movements, which translate into fixed financing costs for you.

Industrial Land & Factory Building

SMEs in the manufacturing sector and its related services, as well as those in the service sectors (excluding insurance and financial services), are able to expand capacity by acquiring industrial or commercial land, as well as construct their own factory or business premises.

It can also be used to acquire ready made factories or business premises, and for renovation or upgrade of business premise and retail outlets.
Commercial Shop-lots
We provide financial assistance to companies acquiring commercial space. We also provide financing for renovations and other related requirements.
Machinery
We provide financial assistance to companies in attaining machinery, which could increase productivity through automation.
Industrial Equipment
We also provide financial assistance to companies in attaining industrial equipment, in developing their capacities.
IT Equipment / Software
We provide financing assistance to new start-up companies and/or enterprises for IT hardware/software and equipment for new services entrepreneurs.
Commercial Vehicles
Islamic financing is also provided with fixed profit rate for financing commercial motor vehicles purchases.
Working Capital Financing

This facility is designed for local companies either SMEs or Non-SMEs in manufacturing and its related services, as well as those in the service sector.

It covers purchase of raw materials, consumables, expenditure on advertising and promotional costs such as media advertising, e-commerce website development and printing of promotional materials.

It also covers receivable financing i.e. Islamic sales revolving credit and factoring.

Products and Services

Soft Financing Scheme for Automation & Modernisation (SFSAM)

The SFSAM was launched in February 2007.

The fund for this Scheme is channelled by the Government of Malaysia via the Ministry of International Trade and Industry (MITI) to MIDF for the implementation of the Scheme.

Objective:

  To encourage manufacturing companies to:
  • Modernise and automate manufacturing processes;
  • Upgrade production capability and capacity;
  • Minimise dependence on labour intensive activities and foreign labour;
  • Diversify into higher value-added activities;
  • Rationalise and streamline operations through mergers and acquisitions;
  • Acquire, develop and produce tooling;
  • Embark on productivity improvement; Enhance export performance; and
  • Utilise information and communications technology (ICT) as a means to improve competitiveness, efficiency and productivity as well as to enhance engineering design capabilities.

Eligibility Criteria and Main Features

1. Eligibility:

 
  • Companies incorporated under the Companies Act 1965 and the Companies Act 2016;
  • At least 51% equity held by Malaysians;
  • Possess a valid business license; and/or
  • In operation for at least 2 years.

2. Sectors:

 
  • Manufacturing

3. Financing Amount:

 
  • Minimum: RM50,000
  • Maximum: RM20 million for each application

4. Items Eligible For Financing:

i. Automation

  Financing for:
  • Purchase of new or used/ reconditioned automation – related machinery equipment **;
  • Costs related to the designing, fabrication. installation, commissioning and related training as well as maintenance of the machinery and equipment for investment in automation and/or
  • Purchase of software and computer peripherals related to the development of the automation system.

ii. Rationalisation and/or Streaming of Operations which also includes the facilitation of the Joint – Venture/Technical Partnership and Vendors Consolidation Programme and/or Consolidation of Business Operations from Various Premises into One Premise;

  Financing for:
  • Due diligence exercise;
  • Purchase of existing factory/building, machinery and equipment;
  • Purchase of ready built factory/building, land and construction of factory/building and renovation of factory/building/premises; and/or
  • Related expenses to undertake rationalisation exercise (mergers & acquisitions) such as registration fees and services undertaken by investment banks and any other related fees.

iii. Tooling Acquisition, Development & Production

  Financing for:
  • Acquisition of moulds, dies, tooling, jigs and fixtures;
  • Development of prototypes and system design;
  • Product testing & registration;
  • Acquisition of new or used/reconditioned machinery/equipment **;
  • Initial patent and industrial design registration/patent and industrial design research;
  • Acquisition of factory/building and acquisition of land for construction of factory/building;
  • Acquisition of technology, testing of electric vehicle and development and construction of charging station under the electric vehicle test bed programme;
  • Development of infrastructure for hybrid, electric and energy efficient vehicles;
  • Adoption of other new/advanced technology; and
  • Working capital requirement:
    • Existing machinery/equipment **
    • Existing moulds, dies, jigs and fixtures **
    • Factory mortgages with other financial institutions
**The age of used/reconditioned machinery/ equipment/ etc. shall not be more than 5 years old.

iv. Productivity Improvement

  Financing for:
  • Training expenses for TS 16949, ISO 14001 and other related certifications in relation to automotive industries;
  • Training expenses for Improvement of Quality Management System, Operational Management System, Business Management System and Testing capabilities and capacities and Productivity Improvement Programmes;
  • Licensing and technical fees for engineering process improvement;
  • Machinery/equipment testing and calibration;
  • Manufacturing process layout; and/or
  • Any other training required by the company for its business operations related to automation and modernisation

v. Export Enhancement Programme

  Financing for:
  • Participation in trade exhibitions and missions and other export promotion programmes and related activities approved by MATRADE/ MAI;
  • Expenses for overseas sample testing for international standards conformance;
  • Market surveys and feasibility studies; and
  • Setting-up of distribution infrastructure network overseas

vi. Purchase ICT related equipment i.e. engineering design software or Enterprise Resource Planning (ERP) software or any other similar software and/or together with related computer hardware, peripheral and networking equipment and implementation charges including system study, customisation and training programmes.

vii. Others *

 
  • Legal fees for legal documentation prepared for financing facilities provided by MIDF excluding stamping fees, disbursement fees, adjudication fees and other costs.
  • Consultancy fees for projects undertaken by companies for the purpose of business operations related to automation (reimbursable upon automation & modernisation being undertaken within specific time – from the report of the agreement date).
*Applicable to SMEs only

5. Percentage Financing:

 
  • Up to 100% for financing existing loan principal amount with other financial institutions (existing factory building/machinery/ equipment/moulds /dies/jigs/fixtures);
  • Up to 90% for other eligible expenses
  • Up to 65% for used/reconditioned machinery and equipment
  • Working Capital Financing:
    • Up to 100% for Purchase Revolving Credit
    • Up to 90% for Sales Revolving Credit
    • Up to 90% for Term Working Capital Financing
    • Up to 80% for Factoring

6. Repayment:

 
  • Factory/Building

    Up to 25 years including grace period of up to 2 years

  • Machinery and Equipment and other eligible expenses

    Up to 10 years including grace period of up to 3 years

  • Revolving Credit

    Up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days

  • Factoring

    Up to 180 days for each drawdown

  • Working Capital Term Financing

    Up to 3 years including a grace of up to 6 months

7. Interest / Profit Rate:

 
  • 4.0% per annum on yearly rest (SMEs)
  • 5.0% per annum on yearly rest. (Non-SMEs)

Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

 
  • Manufacturing:

    Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.

Soft Financing Scheme for Small & Medium Enterprises (SFSME)

The SFSME was launched in December 2001 to promote the development of small and medium enterprises in Malaysia. This Scheme assists existing as well as newly start-up enterprises in project, fixed assets and working capital financing.

The fund for this Scheme is channelled by the Government of Malaysia via SME Corporation Malaysia to MIDF for the implementation of the Scheme.

Eligibility Criteria and Main Features

1. Eligibility:

 
  1. SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
  2. At least 60% equity held by Malaysians;
  3. Possesses a valid premises licence ; and,
  4. SMEs with shareholdings not exceeding 20% held by public-listed companies (only if applicable).

2. Sectors:

 
  • Manufacturing.
  • Manufacturing-related services.
  • Services (excluding insurance and financial services).

3. Financing Amount:

 
  • Minimum: RM50,000.
  • Project Financing - Maximum RM5 million.  Fixed Assets Financing - Maximum RM5 million.
  • Working Capital Financing - Maximum RM3 million.  IT Hardware/Software - Maximum RM500,000. 

4. Items Eligible For Financing:

 
  • Industrial/Commercial land and factory/business premises construction, ready-built factories/business premises, plant and machinery/equipment, and IT hardware/software.
  • Costs incurred for initial store renovation and upgrade of store display for retail trade.
  • Working capital.

5. Percentage Financing:

    Fixed Assets/IT Hardware/Software:-

 
  • Up to 90% of the cost of new assets.
  • Up to 65% for used/reconditioned machinery/equipment which are not more than 5 years old.

    Working Capital:-

 
  • Up to 100% for Purchase Revolving Credit.
  • Up to 80% for Sales Revolving Credit.
  • Up to 90% for Term Financing. 
  • Up to 80% for Factoring. 

6. Repayment:

    Fixed Assets/IT Hardware/Software:-

 
  • Land & building – up to 25 years including grace period of up to 2 years.
  • Plant & machinery & equipment – up to 7 years including grace period of up to 1 year.
  • IT hardware/software – up to 4 years including grace period of up to 1 year.

    Working Capital:-

 
  • 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.
  • Term Financing - up to 3 years including grace period of up to 6 months.
  • Factoring - up to 180 days for each drawndown.

7. Interest / Profit Rate:

 
  • 4% per annum on yearly rest.
 

Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

 
  • Manufacturing :
Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.
  • Services and Other Sectors :
Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.
SME Emergency Fund (SMEEF)
Soft Financing Scheme For Services Sector (SFSSS)

The SFSSS was established and funded by the Government of Malaysia to provide financing assistance to companies and enterprises in the services sector.

The objectives of the Scheme are:-

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

The Scheme provides financing to companies and enterprises for the 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.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade And Industry (MITI).
 

Eligibility Criteria and Main Features

1. Eligibility:

 
  1. Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice any Professional Regulatory Bodies;
  2. At least 60% equity held by Malaysians; and,
  3. Possesses a valid premises licence.

2. Sectors:

 
  • Services (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

 
  • Minimum: RM100,000.
  • Maximum: RM5 million.

4. Items Eligible For Financing:

Fixed Assets

 
  • Land & buildings / ready-built premises (including renovation).
  • Machinery / equipment / motor vehicles / hardware & software and other fixed assets.

Working Capital

 
  • Working capital such as for purchases of raw materials and consumables.
  • Working capital for advertising and promotional costs such as media advertising, e-commerce website development and printing of promotional materials.

5. Percentage Financing:

Fixed Assets

 
  • Land & buildings - up to 100% of the costs of land/building construction/ready-built premises and renovation.
  • Machinery / equipment / motor vehicles / hardware & software and other fixed assets - up to 80% of the costs of new fixed assets.
  • Machinery / equipment / motor vehicles which are not more than 5 years old - up to 60% of the costs of used/reconditioned fixed assets.

Working Capital

 
  • Up to 100% for Purchase Revolving Credit.
  • Up to 80% for Sales Revolving Credit.
  • Up to 50% of advertising and promotional costs.

6. Repayment:

Fixed Assets

 
  • Land & buildings - up to 15 years including grace period of up to 2 years.
  • Machinery / equipment / motor vehicles / other fixed assets - up to 6 years including grace period of up to 1 year.
  • Hardware & software - up to 4 years including grace period of up to 1 year.

Working Capital

 
  • 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.
  • Advertising and promotional costs - up to 3 years including grace period of up to 1 year.

7. Interest / Profit Rate:

 
  • 4.0% per annum on yearly rest for SME.
  • 5.0% per annum on yearly rest for non-SME.

Definition of SMEs in Services Sector As Endorsed By National SME Development Council (NSDC) :-

 
  • Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.
Soft Financing Scheme For Bumiputera Automotive Entrepreneurs (SFBAE)

The SFBAE was established and funded by the Government of Malaysia to facilitate and assist Open Approved Permit (AP) holders to expand and diversify into other automotive-related businesses and to sustain and enhance Bumiputera participation in the automobile industry.

MIDF is the implementing agency of the Scheme which is administered by the Ministry of International Trade and Industry (MITI).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 and Companies Act 2016 with:

 
  • Open AP Holders for passenger vehicles (excluding motorcycles);
  • Open AP Holders for motorcycles that are registered members of Persatuan Pengimpot Dan Peniaga Kenderaan Melayu Malaysia (PEKEMA);
  • A Joint venture company with controlling equity stake held by Open AP Holders;
  • A company with controlling stakes are owned by Director(s) or shareholder(s) of the Open AP holders and the controlling aspects are reflected in the equity stake, members of the company’s Board of Directors, managerial, technical and supervisory;
  • A joint venture company with shares are owned by Open AP Holders and Director(s) or shareholder(s) of the Open AP holders with controlling equity stake; and
  • Possess a valid premises licence.

2. Sectors:

 
  • Manufacturing
  • Services excluding financial and insurance services; and
  • Non-automotive related business activities as approved by the Jawatankuasa Kumpulan Wang established under the Surat Ikatan Amanah Bagi Kumpulan Wang  Amanah Dana Automotif Bumiputera Kementerian Perdagangan dan Industri dated 23 October 2015

3. Financing Amount:

 
  • Minimum: RM100,000
  • Maximum: RM5,000,000

4. Items Eligible For Financing:

 
  • Purchase of land & construction of buildings and/or purchase of ready-built buildings;
  • Renovation/upgrade of service centres;
  • Purchase of new / used / reconditioned plant & machinery / equipment;
  • Purchase of other fixed assets related to automotive industries;
  • Costs incurred / to be incurred in securing automotive distributorships / dealerships from existing franchise holders; and
  • Working Capital in the form of:-
    • Purchase Revolving Credit -
      Working capital requirement for the purchase of raw materials/stocks/consumables/spare parts/services supplied by suppliers/sub-contractors used in the business operations;
    • Sales Revolving Credit -
      Working capital requirement in relation to the sales and/or supply or provision of the goods and/or parts, products or services; or
    • Term Loan* -
      Working capital requirement for the purchase of raw materials/stocks/consumables/spare parts supplied by suppliers/sub-contractors used in the business operations;
    • Factoring - 
      Working capital requirement for the purchase of receivables or credit sales invoices
      * for used/reconditioned machinery and equipment, the age shall not be more than 5 years old

5. Margin of Financing:

 
  • Up to 100% of the costs of land / building construction / ready-built buildings or renovation / upgrade of service centres or new plant & machinery / equipment and / or related fixed assets;
  • Up to 65% of the costs of used / reconditioned plant & machinery / equipment which are not more than 5 years old;
  • Up to 80% of the costs incurred / to be incurred in securing automotive distributorships / dealerships from sold;
  • Existing franchise holders; or
  • Working Capital:-
    • Up to 100% for Purchase Revolving Credit;
    • Up to 80% for Sales Revolving Credit;
    • Up to 80% for Term Loan; and
    • Up to 80% for Factoring.

6. Repayment:

 
  • Land & Building – up to 25 years including grace period of up to 2 years;
  • Plant/Machinery/Equipment/Related Fixed Assets – up to 6 years including grace period of up to 1 year;
  • IT Equipment – up to 4 years including grace period of up to 1 year;
  • Securing automotive distributorships/dealerships – up to 3 years including grace period of up to 1 year; and,
  • Working Capital
    • Sales Revolving Credit & Purchase Revolving Credit
      – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible Customer(s);
    • Term Loan – up to 3 years including grace period of up to 1 year; and
    • Factoring – up to 180 days for each drawdown.

7. Interest / Profit Rate:

 
  • 3.5% per annum on yearly rest.

2. Sectors:

 
  • Manufacturing
  • Services excluding financial and insurance services

3. Financing Amount:

 
  • Minimum: RM100,000.
  • Maximum: RM5,000,000

4. Items Eligible For Financing:

 
  • Purchase of land & construction of buildings and purchase of ready-built buildings;
  • Renovation/upgrade of service centres;
  • Purchase of new/used/reconditioned plant & machinery/ equipment; *
  • Purchase of other fixed assets related to automotive industries;
  • Costs incurred/to be incurred in securing automotive distributorships/dealerships from existing franchise holders; and
  • Working Capital in the form of:-
    • Purchase Revolving Credit -
      working capital requirement for the purchase of raw materials/stocks/consumables/spare parts/services supplied by suppliers/sub-contractors used in the business operations;
    • Sales Revolving Credit -
      working capital requirement in relation to the sales and/or supply or provision of the goods and/or parts, products or services; or
    • Term Loan -
      working capital requirement for the purchase of raw materials/stocks/consumables/spare parts supplied by suppliers/sub-contractors used in the business operations;

      * for used/reconditioned machinery and equipment, the age shall not be more than 5 years old

5. Margin of Financing:

 
  • Up to 90% of the costs of land / building construction / ready-built buildings or renovation / upgrade of service centres or new plant & machinery / equipment and / or related fixed assets;
  • Up to 65% of the costs of used / reconditioned plant & machinery / equipment which are not more than 5 years old;
  • Up to 80% of the costs incurred / to be incurred in securing automotive distributorships / dealerships from existing franchise holders;
  • Working Capital:-
    • Up to 100% for Purchase Revolving Credit;
    • Up to 80% for Sales Revolving Credit;
    • Up to 80% for Term Loan; and
    • Up to 80% for Factoring.

6. Repayment:

 
  • Land & Building – up to 25 years including grace period of up to 2 years;
  • Plant/Machinery/Equipment/Related Fixed Assets – up to 6 years including grace period of up to 1 year;
  • IT Equipment – up to 4 years including grace period of up to 1 year;
  • Securing automotive distributorships/dealerships – up to 3 years including grace period of up to 1 year; and,
  • Working Capital
    • Sales Revolving Credit & Purchase Revolving Credit
      – up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days for eligible Customer(s) ; and
    • Term Loan – up to 3 years including grace period of up to 1 year.
    • Factoring – up to 180 days for each drawdown.

7. Interest / Profit Rate:

 
  • 3.5% per annum on yearly rest.
Soft Financing Scheme For Services Capacity Development (SFSCD)
Soft Financing Scheme For Digital & Technology (SFSDT)

Objective:

 
  • To accelerate local SMEs in adoption of e-commerce;
  • To increase marketability of local SMEs’ products into national and global market;
  • To encourage and increase utilization of digital technologies among local SMEs as means to escalate competitiveness and efficiency and marketability.


Eligibility Criteria and Main Features

1. Eligibility:

 
  • SMEs incorporated under the Companies Act 1965/2016 or Registration of Business Ordinance 1956;
  • At least 60% equity held by Malaysians;
  • Company must be currently active in business and in operation for at least 6 months;
  • Possess a valid business licence issued by local authority (local PBT).

2. Sectors:

 
  • All sectors

3. Financing Amount:

 
  • Minimum: RM30,000
  • Maximum: RM1 million 

4. Items Eligible For Financing:

 
  • IT Hardware & Software/Motor Vehicle/Machinery/ Equipment.
  • Working Capital Term Financing for:
    1. Operational Expenses of up to 6 month’s costs;
    2. Product Listing in e-commerce Market Place or into retail hypermarket;
    3. Advertising & promotional expenses up to 1 year costs;
    4. Certification/Licensing costs.
  • Purchase/Sales Revolving Credit Facility for the purchase of raw materials and stock.
  • Contract Financing (Eligible for financing Purchase/ Receivables from Ministries/Government agencies/Government Link Companies related to digital economy platform).

5. Percentage Financing:

 
  • Up to 90% of the total costs (as per eligible items) including legal fees related to MIDF’s financing.

6. Repayment:

 
  • IT Hardware & Software/Motor Vehicle/Machinery/ Equipment:

       Up to 5 years (including grace period of up to 1 year)

  • Working Capital Term Financing:

       Up to 5 years (including grace period up to 6 months)

  • Purchase Revolving Credit/Sales Revolving Credit Facility for the purchase of raw materials and stock:

       Up to 150 days for each drawdown including an option to rollover for a period not exceeding
       60 days for eligible borrowers

  • Contract Financing:
  1. Pre-financing : Up to 180 days for each drawdown.
  2. Post-financing (Factoring) : Up to 120 days for each drawdown


7. Interest / Profit Rate:

 
  • As low as 4% per annum on yearly rest.


Definition of SMEs As Endorsed By National SME Development Council (NSDC) :-

 
  • Manufacturing :
Sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.
  • Services and Other Sectors :
Sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers.
Get In Touch - Business Advisory

Hotline: 1-300-88-6433 (MIDF)
E-mail: GrowYourBusiness@midf.com.my
Hotline service: 9.00 am - 5.00 pm (Monday - Friday), excluding Public Holiday

Client Charter

We, at Development Finance Division (DFD), pledge to provide exemplary services to our Customers through these commitments:

  • Evaluate all applications for financing facilities with fairness and without prejudice, in accordance with the applicable statutory requirements, as set forth by the relevant authorities.
  • Treat all parties with courtesy, understanding, respect and sincerity.
  • Endeavour to provide the most suitable available financing facility to match the financial requirements of our customers.
  • Process the application for financing facilities upon receipt of all the necessary documents/information and communicate the outcome of the application in a timely manner.
  • Disburse promptly all approved facilities upon request by our customers with proper and complete documentation.
  • Ensure that the asset/property/documents/information submitted to us or kept in our custody will be protected, in terms of its integrity and secrecy.
  • Attend to any queries or feedback in a prompt and courteous manner.
  • Inform the public on the latest developments of DFD and the available financing schemes.
Client Charter Achievement

Client Charter Achievement
Oct - Dec 2019 Jan - Mar 2020 Apr - June 2020 July - Sept 2020 Oct - Dec 2020

30 days – Decision for loan application.

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