1. Malaysian Industrial Development Authority www.mida.gov.my THE SERVICES SECTOR CAPACITY DEVELOPMENT FUND By Ms. Lim Bee Vian Senior Deputy Director Business & Other Services Division, MIDA 13 July 2009

2. Malaysian Industrial Development Authority www.mida.gov.my1 CONTENT Background Objectives of SSCDF Eligible Services Activities Eligible Applicants Qualifying Capacity Development Programmes Type of Assistance & Disbursement Implementation Mechanism

3. Malaysian Industrial Development Authority www.mida.gov.my2 BACKGROUND CABINET DECISION (14.11.2008): To accelerate the liberalisation of the services sector; To review current laws and regulations pertaining to the service sectors in line with Malaysia’s commitments; To establish a Services Sector Capacity Development Fund (SSCDF) with initial allocation of RM100 million;

4. Malaysian Industrial Development Authority www.mida.gov.my3 CABINET DECISION (cont.) To establish a Cabinet Committee to monitor and coordinate the liberalisation of services as well as to effectively address cross-cutting issues faced by the services sector; and To improve the system for the compilation of data on services.

5. Malaysian Industrial Development Authority www.mida.gov.my4 SERVICES SECTOR CAPACITY DEVELOPMENT FUND (SSCDF) Objectives To enhance capacity building of local companies facing intense competition by the impact of liberalisation; To enhance competitiveness of local companies especially sectors that have been prioritised for liberalisation;

6. Malaysian Industrial Development Authority www.mida.gov.my5 Objectives (cont.) To encourage local companies to compete globally through mergers & acquisitions, as well as participation in overseas projects; and To improve the productivity of the services sector.

7. Malaysian Industrial Development Authority www.mida.gov.my6 All services sectors except Financial Services; Utilities; and Construction. ELIGIBLE SERVICES ACTIVITIES

8. Malaysian Industrial Development Authority www.mida.gov.my7 Associations / professional bodies; and Domestic service providers (at least 60% Malaysian equity) ELIGIBLE APPLICANTS

9. Malaysian Industrial Development Authority www.mida.gov.my8 Training / Outreach Programmes Accreditation Mergers & Acquisitions Upgrading & Modernisation QUALIFYING CAPACITY DEVELOPMENT PROGRAMMES

10. Malaysian Industrial Development Authority www.mida.gov.my9 Criteria Programmes currently covered by existing training funds are excluded Services industry associations and professional bodies are encouraged to apply TRAINING / OUTREACH PROGRAMMES

11. Malaysian Industrial Development Authority www.mida.gov.my10 Form of Assistance For association – One-off grant up to a maximum of RM500,000 For service provider – matching grant (1:1) subject to a maximum of RM250,000 TRAINING / OUTREACH PROGRAMMES (cont.)

12. Malaysian Industrial Development Authority www.mida.gov.my11 Disbursement For association – 50% upon approval, remaining to be disbursed upon completion of programme For service provider – reimbursement basis TRAINING / OUTREACH PROGRAMMES (cont.)

13. Malaysian Industrial Development Authority www.mida.gov.my12 Criteria Accreditation must be internationally recognised SMEs that have received assistance under the Matching Grant for Certification and Quality Management Systems under SMIDEC are excluded ACCREDITATION

14. Malaysian Industrial Development Authority www.mida.gov.my13 Form of Assistance Matching grant (1:1) subject to a maximum of RM250,000 Disbursement Reimbursement basis ACCREDITATION (cont.)

15. Malaysian Industrial Development Authority www.mida.gov.my14 Criteria Both parties must be Malaysian entities Transaction must be completed within 1 year from date of approval Merged/acquired entity must be held for at least 5 years At least 60% Malaysian equity MERGERS & ACQUISITIONS

16. Malaysian Industrial Development Authority www.mida.gov.my15 Form of Assistance Matching grant (1:1) on cost of the M&A subject to a maximum of RM250,000 Disbursement Reimbursement basis MERGERS & ACQUISITIONS (cont.)

17. Malaysian Industrial Development Authority www.mida.gov.my16 Criteria Qualifying expenditure includes: –Purchase of equipment and software including development cost for the purpose of diversifying into higher value-added activities, improving productivity and efficiency of service delivery UPGRADING & MODERNISATION

18. Malaysian Industrial Development Authority www.mida.gov.my17 Form of Assistance For association – One-off grant up to a maximum of RM1,000,000 For service provider – soft loan on the cost of the purchase subject to a maximum of RM2,000,000 (loan to be disbursed by MIDF) UPGRADING & MODERNISATION (cont.)

19. Malaysian Industrial Development Authority www.mida.gov.my18 Disbursement For association – 50% upon approval, remaining to be disbursed upon completion of programme For service provider – financing up to 90% UPGRADING & MODERNISATION (cont.)

20. Malaysian Industrial Development Authority www.mida.gov.my19 IMPLEMENTATION MECHANISM Applications Received By MIDA Grant Applications Evaluated By MIDA Approval Committee Grant Disbursement Committee in MIDA Applicants Note: All soft loan applications will be evaluated and disbursed by MIDF

21. Malaysian Industrial Development Authority www.mida.gov.my20 For enquiries and clarification, please refer to: 1.MIDA CUSTOMER SERVICE CENTRE Tel : 03-2267 3633 Fax : 03-2274 7970 / 2273 4204 email: mida@mida.gov.mymida@mida.gov.my 2.BUSINESS & OTHER SERVICES DIVISION Tel : 03-2267 6723 Fax : 03-2267 6655 email: services@mida.gov.myservices@mida.gov.my 3.LOGISTICS & REGIONAL OPERATIONS DIVISION (for logistics services) Tel : 03-2267 6723 Fax : 03-2267 6655 email: logistics@mida.gov.mylogistics@mida.gov.my

22. Malaysian Industrial Development Authority www.mida.gov.my21 Thank You www.mida.gov.my