RM480 mln soft loan scheme to help firms adopt automation — Chua

RAWANG: Malaysian Industrial Development Finance Bhd (MIDF) is expected to disburse about RM480 million in loans under the Soft Loan Scheme for Automation and Modernisation (SLSAM) to help local manufacturers adopt automation for their production facilities this year.

Deputy Minister of the Ministry of International Trade and Industry, Datuk Chua Tee Yong, said RM2.23 billion had so far been granted, benefitting 587 firms, comprising small and medium enterprises (SMEs) and non-SMEs.

“The government has allocated RM1.1 billion for SLSAM since its inception in 2007. This showed that MIDF has managed the loan well so that it could be reused for new companies after the repayment term.

“For this year, the government is allocating an additional RM150 million to SLSAM and I expect the total amount of loans that MIDF can issue is expected to reach up to RM480 million,” he told reporters after visiting Saiyakaya ( M) Sdn Bhd’s factory.

MIDF is the fund manager for SLSAM, an automation financing that allows local manufacturers to access financing up to RM20 million.

The scheme also provides the lowest financing profit rate of four per cent per annum on yearly reducing principal balances for local SMEs and five per cent per annum for the non-SMEs.

Chuah said to further help local firms enhance their business growth, MIDF has extended the repayment tenure to 10 years from seven previously.

He said SLSAM has an excellent track record with less than five per cent non-performing loan rate.

Although the scheme has assisted many companies, some were still not aware about the existence of this MIDF loan.

“Some assume this loan is for Bumiputeras and only assists the government-linked companies, but it’s wrong because the loan is actually specifically made to assists the SMEs.

“They can use this loan service to buy new plant equipment as well as new machines to help increase productivity,” he said. — Bernama