KUALA NERUS: Malaysian Industrial Development Finance Bhd (MIDF) will support local small and medium enterprises (SMEs) via an estimated RM625 million in soft loans next year.
Deputy Minister of International Trade and Industry, Datuk Chua Tee Yong, said the soft loans aimed to encourage the SMEs increase investments in value-added manufacturing activities.
“The loans would also help them be more innovative and cost efficient in production activity and services delivery.
“Currently, MIDF manages close to RM2.1 billion soft loan schemes to boost competitiveness among local companies,” he said.
Chua said this in a statement after a site visit to the light-emitting diode (LED) company, Avialite Sdn Bhd, in the Gong Badak Industrial Area here today.
Avialite is the first home-grown manufacturer of aviation lighting technology using LED in Malaysia and was awarded the pioneer status by the Malaysian Investment Development Authority.
He said MIDF has its five main loan schemes – Soft Loan Scheme for Automation and Modernisation, Soft Loan Scheme for Small Medium Enterprises, Soft Loan Scheme for Services Development, Soft Loan Scheme for Services Sector and Soft Loan Scheme for Services Export.
MIDF has helped over 3,700 SMEs with total funding approvals of RM4.4 billion as at Oct 31 this year, he said.
“The loans aim to give the SMEs the opportunity to acquire and enhance their capacities and capabilities to use state-of-the-art machinery and equipment.
“This will also allow them to adopt automation in production processes to produce competitive products and high quality services, simultaneously improving their cash flow positions,” he said.--BERNAMA