SOFT LOAN SCHEME FOR AUTOMATION AND MODERNISATION (SLSAM)

The SLSAM was launched in February 2007 to:

i) encourage industries to modernise and automate their manufacturing processes;
ii) upgrade production capability and capacity; and
iii) assist companies in:-

minimising dependence on labour-intensive activities and foreign labour;
diversifying into higher value-added activities; and
rationalising and streamlining their operations through mergers and acquisitions.

The fund for this Scheme is channelled by the Government of Malaysia via the Ministry of International Trade and Industry (MITI) to MIDF for the implementation of the Scheme.

Eligibility Criteria and Main Features

1. Eligibility:

Companies incorporated under the Companies Act 1965:

with at least 60% equity held by Malaysians;
possesses a valid business licence; and,
in operation for at least 2 years.

2. Financing Amount:

Minimum: RM100,000.
Maximum: RM5 million per application.
Priority will be given to first-time applications.

3. Items Eligible For Financing:

Automation *

Financing for:

purchase of new or reconditioned automation-related machinery and equipment. **
costs related to the installation, commissioning and related training as well as maintenance of the machinery and equipment for investment in automation.
purchase of software and computer peripherals related to the development of the automation system.
* The automation must result in a reduced number of foreign workers employed.

** The age of reconditioned machinery and equipment shall not be more than 5 years old.

4. Percentage Financing:

Up to 85% for new machinery and equipment.
Up to 60% for reconditioned machinery and equipment.

5. Repayment:

5 to 7 years including grace period of up to 1 year.

6. Interest / Profit Rate:

4% per annum on yearly rest (SMEs).
5% per annum on yearly rest. (Non-SMEs).

 

For more information, fo to http://www.midf.com.my/cms/development-finance/slsam