MIDF Government Financial Assistance Programs 

Malaysian Industrial Development Finance BHD (MIDF) is an agency of Ministry of International Trade and Industry (MITI). 

MIDF offers various Government Financing Assistance Programs in the form of soft loans to finance machinery and equipment, industrial and commercial property as well as working capital. This is availed to existing as well as new companies. Below is the Soft Loan Scheme for Automation and Modenisation (SLSAM) : 

1.            Land & building (factory or commercial lots) inclusive of renovation expenses;

2.            Machinery & Equipment loans (inclusive commercial vehicles)

3.            Purchase of software and computer peripherals related to the development of the automation system.

1. Eligibility: 

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

• At least 60% equity held by Malaysians (individuals or corporates); and

• Possess a valid premises licence (if required, will be imposed in drawdown conditions)

 2. Sectors:

• Manufacturing; or

• Services (excluding insurance & financial services). 

3. Financing Amount:

• Minimum:           RM50,000;

• Maximum:          RM5.0 million

 4. Percentage Financing

Fixed Assets

• Up to 90% of the cost for new assets 

5. Repayment: 

• Land and Building - up to 25 years including grace period of up to 2 years.

• Machinery and Equipment - up to 5 years including grace period of up to 1 year.

• IT Equipment - Up to 4 years including grace period of up to 1 year.

 6. Interest Rates:  

• 4 % per annum on yearly rest. (SMEs**)
            • 5%  per annum on yearly rest. (Non-SMEs) 

**  Definition of SME for Manufacturing sector : Annual sales turnover not exceeding    RM50 million OR full time employees not exceeding 200 persons. 

Documents are required for preliminary evaluation : 

1.            Company profiles;

2.            Profiles of directors & shareholders;

3.            Certified True Copy(ies) of Form 9, 24 & 49 of the company;

4.            Copy of company’s Memorandum of Associations (M&A);

5.            Certified True Copy of past 3 to 5 years Audited Financial Statement (if any);

6.            Latest 2018 Management Accounts;

7.            Quotation for the equipment to be purchased from 3 different suppliers(if any);

8.            Details of the commercial property to be purchased (if any);

9.            Copies of Current Account Statements for the past Six(6) months;

10.          Latest 6 months Debtors & Creditors aging list; and

11.          Copy of other banks’ Letter of Offer(s) (if any).

Back to Index of  July - September 2018