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   New Entrepreneurs Fund 2

Background
This fund is part of Bank Negara Malaysia's (BNM) funds for SMEs and was created to help stimulate the growth of small and medium sized Bumiputera enterprises. This fund is disbursed through all commercial banks and financial institutions in Malaysia. Applicants do not apply directly to BNM but to the participating financial institutions (PFIs). Essentially, BNM is the provider of low-cost funds to the PFIs which then on-lend/provide finance to their SME customers at an approved rate. BNM also sets the criteria and objectives of the fund and monitors its utilisation.

Allocation
RM900 million

Who Can Apply
  • Both new and ongoing concerns, with shareholders' funds not exceeding RM10 million; and
  • 100% Bumiputera-owned concerns incorporated under the Companies Act 1965, the Societies Act 1966, the Co-operative Societies Act 1993, Bumiputeras residing in Malaysia and Bumiputera entrepreneurs registered under the Registrar of Business or any other authoritative bodies; or 
  • 70% Bumiputera-owned and managed SMEs participating under the vendor development programmes of the Ministry Of Entrepreneur Development or Ministry of Finance

Approved Activities
  • Expansion in production capacity; and/or
  • For working capital requirements
  • Covers all economic sectors/industries, including but not limited to, manufacturing, agriculture, services (including ICT), trade/commerce, tourism, engineering, transportation, etc.

Funding
This loan is for financing of fixed assets for the purpose of increasing production capacity and working capital, and is not applicable for purchase of shares and refinancing of existing loans or credit facilities. 
  • Minimum funding per customer     : None
  • Maximum funding per customer    : RM5 milliion
  • Maximum financing rate               : 5.0% per annum
  • Maximum repayment tenure         : 8 years

Submission of Application and Communication
  Participating financial institutions (PFIs):
  • All commercial banks
  • All finance companies
  • All Islamic banks
  • Bank Pembangunan dan Infrastruktur Malaysia Bhd
  • Bank Industri dan Teknologi Malaysia Bhd
  • Malaysian Industrial Development Finance Bhd

All enquiries and applications should be made through any one of the PFIs. A complete listing of PFIs can be found through the BNM website at www.bnm.gov.my or directly at this link, www.bnm.gov.my/en/References/Funds/pfi.list.asp. Since there are numerous PFIs, only the contact details for Malaysia Industrial Development Finance Berhad (MIDF) is reproduced here for convenience.

Attn:                 Malaysian Industrial Development Finance Berhad

                        Level 19, Menara MIDF

                        82, Jalan Raja Chulan

                        50200 Kuala Lumpur

Tel:                   +(603) 2173 8888

Fax:                  +(603) 2173 8877

E-mail:              inquiry@midf.com.my

URL:                 www.midf.com.my


 

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