Spanning over four decades of contributing to the country’s economic growth, Malaysian Industrial Development Finance Berhad (MIDF) today has strengthened its foothold in many segments of the financial services industry.
MIDF was incorporated on 30 March 1960 mainly for the purpose of ensuring access to financing for manufacturing-based small-and-medium enterprises (SMEs) as part of Malaysia’s strategy to expedite the industrial sector development. From boasting the status as Malaysia’s maiden development finance institution, MIDF has over the years transformed into a diversified group.
Following its merger with Amanah Capital Partners Berhad in 2003, the acquisition of Utama Merchant Bank Berhad (UMBB) in 2004, and the establishment of MIDF Amanah Investment Bank Berhad (MIDF Investment) in 2006, the MIDF Group accentuated its ambition to become a leading financial services provider in three core business areas, namely investment banking, asset management and development finance.
A subsidiary of Permodalan Nasional Berhad (PNB), MIDF has total assets of over RM9 billion and shareholders’ funds of over RM2 billion.
INVESTMENT BANKING OVERVIEW
MIDF’s newly formed investment bank, MIDF Amanah Investment Bank Berhad (MIDF Investment), is an integration of four companies within MIDF’s investment banking division namely Amanah Short Deposits Berhad, Malaysia Discounts Berhad, MIDF Sisma Securities Sdn. Bhd. and the former Utama Merchant Bank Berhad. MIDF Investment commenced operations as an investment bank on 3rd January 2007 to combine the expertise of the four companies with long and successful history to provide a whole range of investment banking related activities such as financial advisory, underwriting of equities and debt instruments, treasury activities, and equity-broking services. MIDF Investment is expected to contribute significantly to the MIDF Group’s overall profit in years to come.
ASSET MANAGEMENT OVERVIEW
MIDF’s Asset Management Division comprises MIDF Amanah Asset Management Berhad (formerly known as Amanah SSCM Asset Management Berhad) (MIDF Asset). MIDF Asset provides investment management services with total funds under management of RM5.37 billion as at 31 December 2006.
DEVELOPMENT FINANCE OVERVIEW
MIDF’s Development Finance Division provides medium and long-term conventional and Shari’ah-based financing for new projects as well as expansion, modernisation and relocation programmes primarily in the manufacturing, manufacturing-related services and services sectors in Malaysia.
The division, which focusses on small and medium enterprises (SMEs), extends fixed interest rate financing through project, machinery, factory mortgage and working capital term loans, industrial hire purchase and leasing facilities for the acquisition of machinery and equipment, and also revolving credit and factoring facilities for working capital purpose.
MIDF is designated by the Government of Malaysia to process applications for financing under special soft loan schemes with fixed interest rates as low as 3% and 4% per annum, to disburse government-allocated funds from these schemes to approved applications, and to manage these funds.
INDUSTRIAL PROPERTY OVERVIEW
As a developer of comprehensive and integrated industrial estates, MIDF Property Berhad provides the core business for MIDF’s Property division. MIDF Property Berhad is reputed as Malaysia’s premier industrial estate developer since its inception in 1964 and is backed by an unmatched record of accomplishment of having built over 3,000 units of industrial and commercial buildings in more than 50 locations in each state nationwide. To date, MIDF Property Berhad is marked as an institution and provider of a comprehensive range of industrial terrace, duplex, detached, purpose-built factories and industrial land lots with complementary and commercial property development.
MIDF’s Property division also includes the serviced residence industry. MIDF’s joint-venture project is a five-star serviced residence, The Ascott Kuala Lumpur that offers a full range of facilities including serviced offices.
Aside from its four core businesses, MIDF also operates in other areas, namely Venture Capital, Serviced Residency, Issuing House and Share Registrar, Money Broking, Logistics and Warehousing as well as Property Development in Indonesia.