MIDF ALLOTS RM200M TO FUND 120 AUTOMOTIVE FIRMS
Financial assistance is to spur growth of parts and components manufacturers
MALAYSIAN Industrial Development Finance Bhd (MIDF) is setting aside RM200 million from next year to 2020 to fund 120 companies under the MIDF-Malaysia Automotive Institute (MAI) strategic partnership.
MIDF managing director Datuk Mohd Najib Abdullah said the launch of the MIDF-MAI Industry 4.0 Development Programme partnership would spur the growth of manufacturers of automotive parts and components.
“MIDF’s role is to provide financial assistance via soft loan schemes,” he said at the signing ceremony, here, yesterday.
Also present were International Trade and Industry Ministry deputy secretary-general Datuk Isham Ishak and MAI chief executive officer Datuk Madani Sahari.
Najib said MIDF had assisted the automotive sector by financing RM544.8 million through 144 loans since 1966 and helped 10,598 companies with total approved loans of RM13.9 billion since its inception.
“Our financing facilities focus on business expansion, encouraging automation and reducing dependency on human labour as well as reducing the costs of business operations.
“MIDF’s financial assistance programme is aimed at establishing or expanding businesses involving the acquisition of fixed assets such as land for the construction of industrial and commercial buildings, ready-built industrial or commercial buildings, plant, machinery and equipment, as well as provision of working capital requirement.”
Najib said the financing would enable companies to compete competitively, with a low financing rate of four per cent per year for small and medium enterprises (SMEs).
The highest financing repayment is up to 10 years for machinery or equipment financing.
With the assistance, Najib said SMEs would be able to enhance their capacities and competitiveness by using state-of-the-art machinery and equipment.
It was important that SMEs embraced various aspects of Industry 4.0 in their production and deliver accordingly to build customer loyalty, he added.