Soft Loan For Automation and Modernisation (SLSAM)
The Soft Loan Scheme was launched in February 2007 to:-
i) encourage industries to modernise and automate their manufacturing processes;
ii) upgrade production capability and capacity; and
iii) assist companies in:-
Ø minimising dependence on labour-intensive activities and foreign labour;
Ø diversifying into higher value-added activities; and
Ø rationalising and streamlining their operations through mergers and acquisitions.
1. Eligibility: Companies incorporated under the Companies Act 1965 with:-
2. Sector Coverage:
3. Eligible Expenses:
• Purchase of new or reconditioned machinery and equipment;
• Purchase of software and computer peripherals related to the industrial adjustment process;
• Purchase of new machinery, plant and equipment for the purpose of diversification into higher value-added activities;
• Costs related to the installation, commissioning and related training as well as maintenance of the machinery; and
• Expenses related to undertake services related to mergers and acquisition (M&A) such as registration fees and payment for services by investment bankers.
* The above activities must result in a reduced number of foreign workers
4. Minimum Loan Amount: RM100,000
5. Maximum Loan Amount: RM5.0 million.
6. Margin of Financing:
7. Repayment Period: 5 to 7 years including grade period of up to 1 year.
8. Interest rate: 4% on yearly rest.