Catch Up with The World via Soft Loan Scheme for Automation & Modernisation (SLSAM)

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The world is changing with robots taking over human labour. As an SME, are you prepared for the change? If you are in manufacturing, the first thing you can do is to automate your manufacturing process. The good news is the government via Malaysian Industrial Development Finance (MIDF) is offering a soft loan – ‘Soft Loan Scheme for Automation & Modernisation (SLSAM)’ which was first launched in February 2007.

Objectives:

To encourage manufacturing companies to:

  • Modernise and automate manufacturing processes;
  • Upgrade production capability and capacity;
  • Minimise dependence on labour intensive activities and foreign labour;
  • Diversify into higher value-added activities;
  • Rationalise and streamline operations through mergers and acquisitions

Eligibility:

  • Companies incorporated under the Companies Act 1965 and the Companies Act 2016, possessing a valid business license;
  • At least 51% equity held by Malaysians;
  • In operation for at least 2 years; or
  • For automotive manufacturers, endorsed by Malaysia Automotive Institute (MAI)

Financing Amount:

Minimum RM50,000 & maximum RM20 million for each application.

Items Eligible For Financing:

  • Purchase of new or used/reconditioned automation – related machinery equipment  and related costs;
  • Purchase or renovate factory/building, machinery and equipment and related costs;
  • Purchase of tooling, development, production and related costs;
  • Costs related to productivity improvement including specified training courses and services related to automation and modernisation;
  • Costs related to export enhancement programme including participation in trade exhibitions and missions and related activities approved by MATRADE/ MAI and other related costs;
  • Purchase of ICT related equipment and services.

Other Eligible Financing Costs *

  • Legal fees for legal documentation for financing facilities provided by MIDF excluding stamping fees, disbursement fees, adjudication fees and other costs;
  • Consultancy fees for projects undertaken for the purpose of business operations related to automation.

*Applicable to SMEs only. ( Manufacturing SMEs are those whose sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers ).

Percentage of Financing:

65%-100%.

Interest Rates:

  • 4.0% per annum on yearly rest (SMEs);
  • 5.0% per annum on yearly rest. (Non-SMEs);

Application & Enquiries:

Obtain further information and apply online via http://www.midf.com.my/index.php/en/what-we-do-en/sme-financing.

Malaysian Industrial Development Finance Berhad (MIDF)
Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur
Tel: +603-2173 8888 ( General ), +603-27721896/2 (Marketing/Sales )
Fax: +603-2173 8877
Email: gccir@midf.com.my

 

Written by:
Ms Wee Hui Bieh, AFMSA, Feb. 2018

Information Source:
Malaysian Industrial Development Finance (MIDF)

This post is also available in: zh-hans简体中文 (Chinese (Simplified))

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