Soft Loan Scheme for Factory Relocation


Provides assistance for SMEs, including graduates of rehabilitation and incubation to open / relocate / expand their business through acquisition of factory / business premises.

Maximum financing rate : 2% per annum

Maximum tenure : Up to 15 years including up to 2 years period

Minimum financing : RM50,000

Maximum financing : RM1.5 million or 85% of the cost of the project (90% for Bumiputera)

Participating financial institutions / Implementing Ministry / Agency
Malaysian Industrial Development Finance Berhad (MIDF)

Eligibility criteria

  • SMEs incorporated under the Companies Act 1965 or Registration of Business Ordinance 1956
  • At least 60% equity held by Malaysians
  • Subsidiaries of public-listed companies with shareholding not exceeding 20%
  • Companies to be located at approved location without having to close down the existing operation/premises

Purpose of financing

  • Purchase of ready made factories or/and business premises
  • Purchase of factory lots and construction of factories including related infrastructure
  • Cost of purchase of related machinery and equipment arising from relocation

Eligible sector / Types of financing

  • Manufacturing
  • Manufacturing Related Services
  • Services (excluding insurance and financial services)

Eligible expenses

  • Purchase of ready-made factories/business premises;
  • Purchase of factory lot and construction of factories including related infrastructure; and
  • Purchase of related machinery and equipment due to relocation/expansion

Application procedure
Applications to be submitted to MIDF


Assistant Vice President and Head
Group Corporate Communications,
Malaysian Industrial Development Finance Berhad (3755-M),
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



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