1. 1 MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES – “THE SOLUTION TO YOUR FINANCIAL CHALLENGES” BY DEVELOPMENT FINANCE DIVISION

2. 2 Presentation Outline MIDF in brief Products & Services Government Financial Assistance Programmes

3. 3 MIDF in brief  Incorporated on 30 March 1960.  Mandated role in helping, developing and improving the manufacturing sector in Malaysia.  Merged with Amanah Capital Partners Berhad in February 2003.  Wholly-owned by Permodalan Nasional Berhad (PNB) since February 2008.  3 core business units:- i) Development Finance Division; i) Development Finance Division; ii) MIDF Amanah Investment Bank Berhad; and ii) MIDF Amanah Investment Bank Berhad; and iii) MIDF Amanah Asset Management Berhad. iii) MIDF Amanah Asset Management Berhad.

4. 4 FOCUS OF MIDF via Development Finance Division  MIDF is one of the agencies under MITI whose main role is to manage government scheme funds via providing financial assistances to SMEs and Non-SMEs.  Provides medium and long term financing for new projects, expansion, automation, modernisation and relocation programmes.  Provides both Conventional and Islamic financing (Shariah-based) products.  Main focus is developing the manufacturing and services sectors in Malaysia.

5. 5 An Integral Part Of MITI MIDF collaborates with MITI and its Agencies as a conduit for assisting specific sectors and/or industries in the economic structure targeted by the Government. GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES

6. 6 Roles & Functions of MIDF  Promotional/marketing activities.  Credit evaluation of financing applications.  Disbursement of approved financing facilities.  Loan collection and supervision efforts.  Loan recovery processes (if any)  To maintain close relationship with business communities and relevant government agencies through various outreach programmes & dialogues.

7. 7 MIDF Products & Services

8. 8 MIDF PRODUCTS & SERVICES Leasing / IHP Facility Facility PropertyMortgageFinancingPropertyMortgageFinancingMachinery / Equipment FinancingMachinery Financing ProjectFinancingProjectFinancing WorkingCapitalFinancingWorkingCapitalFinancing MIDFMIDF

9. 9 Government Financial Assistance Programmes

10. 10 MIDF - Development Finance Division (DFD) Government Financial Assistance Programmes managed by MIDF are:- Government Financial Assistance Programmes managed by MIDF are:-  Soft Loan Scheme for Small & Medium Enterprises (SLSME)  Soft Loan Scheme for Services Sector Capacity Development (SLSCD)  Soft Loan Scheme for Services Sector (SLSSS)  Soft Loan Scheme of Automation and Modernisation (SLSAM)

11. 11 Soft Loan Scheme for Small & Medium Enterprises (SLSME)Soft Loan Scheme for Small & Medium Enterprises (SLSME) MIDF Government Financial Assistance Programme Objective Financing existing SMEs as well as new SMEs in project, fixed assets and working capital financing. Financing existing SMEs as well as new SMEs in project, fixed assets and working capital financing. Main Criteria SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956; At least 60% equity held by Malaysians; If related to a public-listed company with shareholding not exceeding 20%; and Possess valid premises license. SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956; At least 60% equity held by Malaysians; If related to a public-listed company with shareholding not exceeding 20%; and Possess valid premises license. Features Financing of industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises of up to 25 years. Financing of machinery & equipment of up to 7 years. Working Capital Financing of up to 150 days (in the form of revolving credit/ factoring) or up to 3 years (in the form of term loan). Minimum financing amount of RM50,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum. Margin of financing of up to 90% (fixed assets) and 100% (working capital). Financing of industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises of up to 25 years. Financing of machinery & equipment of up to 7 years. Working Capital Financing of up to 150 days (in the form of revolving credit/ factoring) or up to 3 years (in the form of term loan). Minimum financing amount of RM50,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum. Margin of financing of up to 90% (fixed assets) and 100% (working capital).

12. 12 Soft Loan Scheme for Services Capacity Development (SLSCD)Soft Loan Scheme for Services Capacity Development (SLSCD) MIDF Government Financial Assistance Programme Objective To assist services companies and enterprises to undertake upgrading and modernisation for diversifying into higher value-added activities; and To improve the productivity and efficiency of service delivery in facing liberalisation. To assist services companies and enterprises to undertake upgrading and modernisation for diversifying into higher value-added activities; and To improve the productivity and efficiency of service delivery in facing liberalisation. Main Criteria SMEs incorporated under the Companies Act 1965, Registration of Business Ordinance 1956 or Certificate(s) of Practise with Professional Regulatory Bodies; At least 60% equity held by Malaysians; In operation for at least 2 years; Annual turnover exceeding RM200,000/- and full-time employees exceeding 5; and Possess valid premises license. SMEs incorporated under the Companies Act 1965, Registration of Business Ordinance 1956 or Certificate(s) of Practise with Professional Regulatory Bodies; At least 60% equity held by Malaysians; In operation for at least 2 years; Annual turnover exceeding RM200,000/- and full-time employees exceeding 5; and Possess valid premises license. Features Expenditure to be incurred for upgrading and modernisation including the purchase of equipment, hardware and software as well as related cost for the purposes of diversifying into higher – added activities, and improving productivity and efficiency of service delivery. Financing of machinery & equipment of up to 7 years. Minimum financing amount of RM50,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 90%. Expenditure to be incurred for upgrading and modernisation including the purchase of equipment, hardware and software as well as related cost for the purposes of diversifying into higher – added activities, and improving productivity and efficiency of service delivery. Financing of machinery & equipment of up to 7 years. Minimum financing amount of RM50,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 90%.

13. 13 Soft Loan Scheme for Services Sector (SLSSS)Soft Loan Scheme for Services Sector (SLSSS) MIDF Government Financial Assistance Programme Objective To assist: New start-up companies / enterprises – creation of new services entrepreneurs; Expansion/upgrading/modernisation/diversification for existing services providers into higher value-added activities and improving productivity and efficiency in service delivery. To assist: New start-up companies / enterprises – creation of new services entrepreneurs; Expansion/upgrading/modernisation/diversification for existing services providers into higher value-added activities and improving productivity and efficiency in service delivery. Main Criteria Companies incorporated under the Companies Act 1965 or enterprises registered under the registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice by any Professional Regulatory Bodies; At least 60% equity held by Malaysians; and Possesses a valid premises licence. Companies incorporated under the Companies Act 1965 or enterprises registered under the registration of Businesses Ordinance 1956 or services providers registered under the Certificate of Practice by any Professional Regulatory Bodies; At least 60% equity held by Malaysians; and Possesses a valid premises licence. Features Land & Buildings/ready-built premises (including renovation) of up to 15 years. Minimum financing amount RM100,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 100%. Land & Buildings/ready-built premises (including renovation) of up to 15 years. Minimum financing amount RM100,000, Maximum RM5,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 100%.

14. 14 Soft Loan Scheme for Automation and Modernisation (SLSAM)Soft Loan Scheme for Automation and Modernisation (SLSAM) MIDF Government Financial Assistance Programme Objective To assist manufacturers to:- Modernize and automate the manufacturing process; Rationalization of Operations which also includes the facilitation of the Joint – Venture/Technical Partnership and Vendors Consolidation Programme; Tooling Acquisition, Development & Production; Productivity Improvement; and Export Enhancement Programme. To assist manufacturers to:- Modernize and automate the manufacturing process; Rationalization of Operations which also includes the facilitation of the Joint – Venture/Technical Partnership and Vendors Consolidation Programme; Tooling Acquisition, Development & Production; Productivity Improvement; and Export Enhancement Programme. Main Criteria Companies incorporated under the Companies Act 1965; At least 51% equity held by Malaysians ; Possess a valid business license; and In operation for at least 2 years. Companies incorporated under the Companies Act 1965; At least 51% equity held by Malaysians ; Possess a valid business license; and In operation for at least 2 years. Features Financing of industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises of up to 25 years. Financing of machinery & equipment of up to 7 years. Working Capital Financing of up to 150 days (in the form of revolving credit/ factoring) or up to 3 years (in the form of term loan). Minimum financing amount RM50,000, Maximum RM10,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 90% (fixed assets) and 100% (working capital). Financing of industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises of up to 25 years. Financing of machinery & equipment of up to 7 years. Working Capital Financing of up to 150 days (in the form of revolving credit/ factoring) or up to 3 years (in the form of term loan). Minimum financing amount RM50,000, Maximum RM10,000,000. Fixed interest / profit rate of 4% per annum for SMEs and 5% for non-SMEs. Margin of financing of up to 90% (fixed assets) and 100% (working capital).

15. 15  Low Interest/Profit Rates (as low as 4% per annum)  Fixed Interest/Profit Rates  Grace Period  Available also for Start-Up Companies  Capacity building purposes. Advantages of MIDF’s Government Financial Assistance Programmes Why MIDF???

16. 16 How To Contact MIDF Main Office Development Finance Division Level 15, Menara MIDF 82, Jalan Raja Chulan 50200 Kuala Lumpur Tel : 03 - 2173 8888 Fax No : 03 - 2772 1911 E-mail : inquiry-feedback@midf.com.my Website: http://www.midf.com.my

17. 17 1. Northern Region Branch 3 rd Floor, Wisma Leader, No. 8, Jalan Larut, 10050 Penang. Tel : 04-2298434/435/436 E-mail : penang@midf.com.my 4. Sabah Branch Lot D6.4, Tingkat 6, Blok D, Bangunan KWSP, 88000 Kota Kinabalu, Sabah. Tel : 088-211633, 088-211523 E-mail : sabah@midf.com.my 2. Southern Region Branch Tingkat 15, Lot 15-6, Menara TH, Jalan Ayer Molek, 80000 Johor Bahru, Johor. Tel : 07-2232727, 07-2243046 E-mail : johor@midf.com.my 5. Sarawak Branch Rooms 401-402, 4 th Floor, Bangunan Bank Negara, Jalan Satok, 93400 Kuching, Sarawak. Tel : 082-254533, 082-254203 E-mail : sarawak@midf.com.my 3. Eastern Region Branch Lot 304-307, Aras 3, Wisma Perkeso, Jalan Kota Darul Naim, 15538 Kota Bharu, Kelantan Tel : 09-7483546, 09-7461679 E-mail: kotabharu@midf.com.my MIDF Regional Offices

18. 18 THANK YOU