Soft Loan For Factory Relocation (SLFR)

The Soft Loan is to assist the SMEs to relocate their factories to designated industrial sites.


  • SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956.

  • Subsidiaries of public-listed companies with shareholding not exceeding 20%.

  • At least 60% equity held by Malaysians.

  • Companies to be located at approved location without having to close down the existing operation/premise.

1. Minimum Loan Size: RM50,000

2. Maximum Loan Size: RM3 million

3. Eligible Expenses:

   Purchase of ready-made factories

   Purchase of factory lot and construction of factories including related infrastructure

   Costs to purchase related machinery and equipment due to relocation

   Costs incurred for initial store renovation and upgrade of store display for retail trade

4. Percentage of Financing: Up to 90% of the cost of eligible items  

5. Repayment Period: Up to 15 years including grace period of up to 2 years.

6. Interest Rate: 2 % per annum




Posting date070907
Revised 011309


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