Soft Loan Scheme for Automation & Modernisation (SLSAM)

The SLSAM was launched in February 2007 and, in August 2013, this Scheme was amalgamated with the Soft Loan Scheme for Automotive Development (SLSAD) and retained its name. 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. The SLSAM assists 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 including through mergers and acquisitions;
  • tooling acquisition, development and production;
  • productivity improvement; and
  • enhancing export performance.

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965;
At least 51% equity held by Malaysians;
Possesses a valid business licence; and
In operation for at least 2 years.

2. Sector:

Manufacturing.

3. Financing Amount:

Minimum: RM50,000.
Maximum: RM10 million for each application.

Soft Loan Scheme for Small & Medium Enterprises (SLSME)

The SLSME 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:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
At least 60% equity held by Malaysians;
Possesses a valid premises licence ; and,
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.

SME Emergency Fund (SMEEF)

The SMEEF was established to assist small and medium enterprises (SMEs) which had their business adversely affected by natural disasters. This Fund provides soft loan financing for purchases of machinery and equipment, refurbishment of premises, and working capital requirements such as purchases of raw materials and consumables. The Fund is channeled by the Government of Malaysia via SME Corporation Malaysia to MIDF for its implementation.

Eligibility Criteria and Main Features

1. Eligibility:

SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956;
Possesses a valid premises licence issued by the municipal council (pihak berkuasa tempatan);
Provides proof of evidence of natural disaster through a letter issued by the district office or a copy of a police report; and,
Operates in the area declared as a disaster area by Majlis Keselamatan Negara or district offices.

2. Types of Natural Disasters:

Flood; Storm; Drought; Beach erosion; or Landslide.

3. Sectors:

All economic sectors.

4. Financing Amount:

Minimum: RM50,000.
Maximum: RM100,000.

Soft Loan Scheme For Services Sector (SLSSS)

The SLSSS 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:-

  • to provide financing assistance to new start-up companies and/or enterprises for the creation of new services entrepreneurs; and,
  • 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:

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;
At least 60% equity held by Malaysians; and,
Possesses a valid premises licence.

2. Sectors:

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

3. Financing Amount:

Minimum: RM100,000.
Maximum: RM5 million.

Soft Loan Scheme For Bumiputera Automotive Entrepreneurs (SLBAE)

The SLBAE 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 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

3. Financing Amount:

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

Soft Loan Scheme For Services Capacity Development (SLSCD)

The SLSCD was launched in April 2009 by the Government of Malaysia under the Services Sector Capacity Development Fund of the First Economic Stimulus Package 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.

It addresses 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.

MIDF is the implementing agency of the Scheme which is administered by the Malaysian Investment Development Authority (MIDA).

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965 or enterprises registered under the Registration of Businesses Act 1956;
At least 60 % equity held by Malaysians;
Possess a valid premises licence;
In operation for at least 2 years; and,
Annual turnover exceeding RM200,000/- and full-time employees exceeding five.

2. Sectors:

All services sectors (excluding financial, insurance, utilities and construction sectors).

3. Financing Amount:

Minimum: RM50,000.
Maximum: RM5 million.

SOFT LOAN SCHEME FOR SERVICES EXPORTS (SLSSE)

The SLSSE was launched in October 2015 to provide assistance to Malaysian Service Providers (MSPs) to undertake activities to expand and venture into international markets.

The implementation of the fund is from 2015 until 2020.

Eligibility Criteria and Main Features

1. Eligibility:

Registered with MATRADE (MER);
Firms incorporated under the Companies Act 1965; or;
Sole proprietors, professionals and partnerships registered with respective professional authorities in Malaysia;
Having at least 60% equity owned by Malaysian;
Company must be currently active in business and in operation for at least 1 year;
Exporting Malaysian services or product made in Malaysia.

2. Sectors:

Services (excluding tourism and financial sectors)

3. Financing Amount:

i. 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 said Bank Guarantee or Performance Bond – Maximum of RM5 million per company.
ii. Financing to assist MSPs in proposing and planning for overseas’ project negotiations – Maximum of RM2 million per company.

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