Soft Loan Scheme for Automation & Modernisation (SLSAM)


The SLSAM assists 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 including through mergers and acquisitions
  • Tooling acquisition, development and production
  • Productivity improvement
  • Enhancing export performance
Financing type
Financing rate
  • 4% per annum for SMEs
  • 5% per annum for non-SMEs
Financing tenure
  • Factory / building – Up to 25 years including grace period of up to 2 years
  • Machinery & equipment and other eligible expenses – Up to 10 years including grace period of up to 3 years
  • Revolving credit – Up to 150 days for each drawdown including an option to rollover for a period not exceeding 60 days
  • Factoring - up to 180 days for each drawdown
  • Working Capital term financing - Up to 3 years including grace period of up to 6 months
Financing amount (max)

Up to RM 20 million for each application

Purpose of Financing
Working Capital
Eligibility criteria
  • Companies incorporated under the Companies Act 1965
  • At least 51% equity held by Malaysians
  • Possesses a valid business licence
  • In operation for at least 2 years
Application procedure
  • Applicants interested in obtaining financing from MIDF are required to provide detailed information to prove the feasibility and viability of their projects, and that the implementation of the project will be under competent management
  • Each application will be considered strictly on its merits through careful evaluation of the project. MIDF personnel will conduct inspection of premises, assess machinery / equipment and appraise the overall existing, as well as proposed operations, including the production layout, technology, turnover of stocks and plant / machinery utilisation. Credit checking is conducted on the applicant and proposed guarantors of the financing applied for
For further information

Fadzlan Abu Bakar
Head, Marketing & Product Development
Tel: 03-2173 8888

Malaysian Industrial Development Finance Berhad (MIDF)
Development Finance Division
Level 15, Menara MIDF,
82, Jalan Raja Chulan,
50200 Kuala Lumpur