1. 1 MIDF GOVERNMENT FINANCIAL ASSISTANCE PROGRAMMES BY DEVELOPMENT FINANCE DIVISION

2. 2 Presentation Outline MIDF in brief Products & Services - NEW in 2014 & - Existing Products & Services - NEW in 2014 & - Existing Government Financial Assistance Programmes

3. 3 MIDF in brief  Incorporated on 30 March 1960.  Mandated role in helping, developing and improving the manufacturing and services sectors 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 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

5. 5 MIDF Products & Services - NEW MIDF Products & Services - NEW

6. 6 FINANCING FOR MINIMUM WAGES IMPLEMENTATION Machinery / Equipment FinancingMachinery Financing Industry / Trade Related Certification Industry / Trade Related Certification WorkingCapitalFinancingWorkingCapitalFinancing MIDFMIDF

7. 7 SOFT LOAN FOR MINIMUM WAGES IMPLEMENTATION Machinery or Equipment Financing Purpose:Purchase of Machinery or Equipment. Loan Tenure: Up to 7 years (inclusive grace period of up to 12 months) Margin of Financing: Up to 90% of the cost of new Machinery or Equipment; Up to 65% the cost of used/refurbished machinery or equipment (not more than 5 years old) Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM5,000,000

8. 8 MIDF PRODUCTS AND SERVICES Working Capital Financing Sales Revolving Credit (SRC) Financing up to 80% of sales invoices Up to 120 days on revolving basis Purchase Revolving Credit (PRC) Financing purchases of raw material up to 100% Up to 120 days on revolving basis Working Capital Term Loan Financing purchase of raw material / consumables up to 90% Up to 5 years inclusive Grace Period of 6 months Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM3,000,000

9. 9 MIDF PRODUCTS AND SERVICES Industry / Trade Related Certification Purpose:Certification financing Loan Tenure: Up to 5 years (inclusive grace period of up to 6 months). Margin of Financing: Up to 80% of the cost Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM500,000

10. 10 Soft Loan Scheme for Minimum Wages Implementation  Eligibility:  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%;  Possess valid premises license; &  Submission of an action plan to automate, reduce workers and move to higher value-added activities.  Sectors:  Manufacturing  Services (excluding insurance and financial services)

11. 11 Soft Loan Scheme for Minimum Wages Implementation  Financing Amount:  Minimum : RM 50,000  Maximum : Up to RM 5 million for machinery & equipment  Maximum : Up to RM 3 million for working capital  Maximum : Up to RM 500,000 for certificate  Eligible expenses:  machinery and/or equipment;  working capital financing;  certification related to industry or trade  Interest / Profit Rate : 4% per annum.

12. 12 MIDF Products & Services - Existing MIDF Products & Services - Existing

13. 13 MIDF PRODUCTS & SERVICES Leasing / IHP Facility Facility PropertyMortgageFinancingPropertyMortgageFinancingMachinery / Equipment FinancingMachinery Financing ProjectFinancingProjectFinancing WorkingCapitalFinancingWorkingCapitalFinancing MIDFMIDF

14. 14 OTHER MIDF PRODUCTS AND SERVICES Project Financing Purpose: Financing of industrial/commercial land, construction of building, renovation of factory/business premises and machinery & equipment. Loan Tenure: Up to 25 years (inclusive grace period). Margin of Financing: Up to 90% of the cost of the project.

15. 15 OTHER MIDF PRODUCTS AND SERVICES Property Mortgage Financing Purpose: Financing of industrial / commercial land / construction of building / ready-built industrial and commercial premises. Loan Tenure: Up to 25 years (inclusive grace period). Margin of Financing:Up to 90% of the cost.

16. 16 OTHER MIDF PRODUCTS AND SERVICES Machinery or Equipment Financing / Hire Purchase / Leasing Purpose:Purchase of Machinery or Equipment. Loan Tenure: Up to 7 years (inclusive grace period of up to 12 months) Margin of Financing: Up to 90% of the cost of new Machinery or Equipment; Up to 65% the cost of used/refurbished machinery or equipment (not more than 5 years old) Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM5,000,000

17. 17 MIDF PRODUCTS AND SERVICES Working Capital Financing Sales Revolving Credit (SRC) Financing up to 80% of sales invoices Up to 120 days on revolving basis Purchase Revolving Credit (PRC) Financing purchases of raw material up to 100% Up to 120 days on revolving basis Working Capital Term Loan Financing purchase of raw material / consumables up to 90% Up to 5 years inclusive Grace Period of 6 months Financing/Loan Amount : Minimum of RM50,000 & Maximum up to RM3,000,000

18. 18 Government Financial Assistance Programmes

19. 19 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 Automation & Modernisation (SLSAM)  Soft Loan Scheme for Services Sector (SLSSS)

20. 20 Soft Loan Scheme for Small & Medium Enterprises (SLSME)  Eligibility:  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.  Sectors:  Manufacturing  Manufacturing Related Services  Services (excluding insurance and financial services)

21. 21 Soft Loan Scheme for Small & Medium Enterprises (SLSME)  Financing Amount:  Minimum : RM 50,000  Maximum : RM 5 million  Eligible expenses:  Industrial/commercial land, construction of building, renovation of factory/business premises, ready-built industrial or commercial premises, machinery & equipment, IT Hardware & Software and working capital financing.  Interest / Profit Rate : 4% per annum.

22. 22 Soft Loan Scheme for Services Capacity Development (SLSCD)  Eligible Sector: Services (excluding financial, insurance, utility and construction) ~ Companies/enterprises registered under; - the Companies Act 1965; - the Companies Act 1965; - the Registration of Businesses Act 1956; - the Registration of Businesses Act 1956; - Certificate(s) of Practise with Professional Regulatory Bodies. - Certificate(s) of Practise with Professional Regulatory Bodies. ~ At least 60% equity held by Malaysians; ~ Possesses a valid premises license; ~ In operation for at least 2 years; and ~ Annual turnover exceeding RM200,000/- and full-time employees exceeding 5.  Eligible expenses: purchase of equipment, IT hardware and software

23. 23 Soft Loan Scheme for Services Capacity Development (SLSCD)  Financing Amount: − Minimum : RM50,000 − Maximum : RM5,000,000  Interest / Profit Rates: - 4.0% per annum for SMEs - 4.0% per annum for SMEs - 5.0% per annum for non-SMEs - 5.0% per annum for non-SMEs

24. 24 Soft Loan Scheme for Automation and Modernisation (SLSAM)  Eligibility: Manufacturers incorporated under the Companies Act Manufacturers incorporated under the Companies Act 1965 with:- 1965 with:-  at least 51% equity held by Malaysians;  possess a valid business license; and  in operation for at least 2 years.  Financing Amount:  Minimum : RM 100,000.00  Maximum : Up to RM 10 million  Interest / Profit Rate: - 4% per annum (SMEs) - 4% per annum (SMEs) - 5% per annum (Non-SMEs) - 5% per annum (Non-SMEs)

25. 25 Soft Loan Scheme for Automation and Modernisation (SLSAM)  Eligible expenses:  Industrial Land, Factory, Machinery, Equipment & Working Capital  Margin of Financing Up to 70% for mergers & acquisition Up to 90% for factory/industrial building Up to 90% for new machinery, equipment, moulds, dies, jigs & fixtures Up to 65% for used/reconditioned machinery or equipment Up to 100% for financing existing loan principal outstanding amount with other financial institutions (existing factory building /machinery /equipment/mould/dies/jigs/fixtures) Up to 100% for Purchase Revolving Credit (Working Capital Financing) Up to 90% for Sales Revolving Credit (Working Capital Financing) Up to 80% for Term Working Capital Financing

26. 26 Soft Loan Scheme for Services Sector (SLSSS)  Financing assistance for:  Services-based companies / business entities to own commercial shop-lots or industrial properties; &  machinery & equipment and working capital financing.  Eligibility 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.  Possesses a valid premises licence.  To be occupied by services providers to conduct their businesses.  Not applicable to companies from finance, insurance, construction & utility sub-sectors.

27. 27 Soft Loan Scheme for Services Sector (SLSSS)  Percentage of financing: Up to a maximum of 100%  Maximum Loan amount up to RM5.0 million.  Tenure of Financing:  Commercial Property : Up to 15 years including a grace period of up to 2 years.  Machinery & Equipment : Up to 7 years including Grace Period of Up to 12 months.  Working Capital : Revolving Credit up to maximum tenor of 150 days (including roll-over period of 30 days)  Interest / Profit Rates:  4.0% per annum for SME  5.0% per annum for non-SME

28. 28  Low Interest/Profit Rates (as low as 4% per annum)  Fixed Interest/Profit Rates  Grace Period  Capacity building purposes. Advantages of MIDF’s Government Financial Assistance Programmes Why MIDF???

29. 29 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

30. 30 Eastern Region Kota Bharu Southern Johor Bharu Sarawak Kuching Sabah Kota Kinabalu Northern Pulau Pinang Central Kuala Lumpur Network of Regional Offices

31. 31 THANK YOU