MAE3013Corporate Taxation and Zakat Administration

Malaysian Industrial Development

Finance Berhad (MIDF)NUR INTAN LYANA BT ISMAIL 1090088ROSHIDAH BT MOHD RODZI 1090089NUR LIYANA BT MAT ZAIN 1090090NURUL HUSNA BT MOHD SALLEH 1090106ZAIDA FARHANA BT MOHD SHALADDIN 1090115

Introduction

MIDFIncorporated on 30 March 1960Purpose – Ensure access to financing

manufacturing-based small-and-medium enterprises– 2003, merged with Amanah Capital Partners Bhd– 2004, acquire Utama Merchant Bank Bhd– 2006, established MIDF Amanah Investment Bank

Bhd (MIDF Investment)

MIDF InvestmentEstablished as a result of the integration of 4

subsidiaries of MIDF GroupActivities- investment banking-related services

(financial advisory, underwriting of equities and debt instruments and etc.)MIDF Development Finance Division

Activities- provides financing for manufacturing-based and services-based small and medium enterprises (conventional and Shariah compliance)

Product- project, machinery, factory mortgage and working capital term loans and etc. to finance acquisition of machinery and equipment, resolve credit and factoring for working capital purposes.

MIDF Amanah Asset Management Bhd (MIDF Amanah)

Activities- provides fund management services to statutory bodies, private pension funds and etc.

BACKGROUND

HISTORY

• MIDF was incorporated on 30 March 1960. It is the first and only development finance institution in Malaysia who is listed in the Bursa Malaysia. Its objective is to promote the development of the manufacturing industry in Malaysia through the provision of medium and long-term loans.

PROFILE

• MIDF has many diverse and deep experiences in financial service industry. Its main incorporation purpose is to ensure access to financing for manufacturing-based small and medium enterprises (SMEs). In 2003, MIDF had merged with Amanah Capital Partners Berhad. MIDF also had acquisited Utama Merchant Bank Berhad (MIDF Investment). In 2006, MIDF Amanah Investment Bank Berhad (MIDF Investment) is established. MIDF’s core business areas are investment banking, development finance and asset management.

BOARD OF DIRECTORS

Y.Bhg. Tan Sri Dato’ Mahmood bin Taib

Y.Bhg. Tan Sri Dato’ Ir. (Dr) Wan Abdul Rahman bin Haji

Wan Ya’acob

Y.Bhg. Dato’ Kalsom binti Abd.

Rahman

Ir. Dr. Haji Muhamad Fuad

bin Abdullah

Puan Zaiton binti Mohd. Hassan

Encik Sharkawi bin Alis

Encik Wan Roshdi bin Wan Musa

Y.Bhg. Datuk Mohd. Najib bin

Hj. Abdullah

SHARI’AH COMMITTEE MEMBERS

Ir. Dr. Hj. Muhamad Fuad bin Abdullah

Dr. Mohamed Fairooz bin Abdul Khir

Dato’ Haji Muhamad Asri bin Haji Abdullah

GROUP MANAGEMENT COMMITTEE

Name Position

Y. Bhg. Datuk Mohd Najib Hj. Abdullah Group Managing Director

Y. Bhg. Dato’ Megat Hisham Megat Mahmud

Head of Investment Banking Division

Encik Scott Lim Kok Seng Head of Asset Management Division

Encik Nik Izani Nik Muhamad Head of Development Finance Division

Encik Parthasarathy a/l B.S Narayanan Chief Risk Officer of Investment Banking Division

Encik Azizi Mustafa Chief Operating Officer

Encik Foo Wei Hoong Chief Financial Officer

Puan Shahnaz Radhiah Zulkifli Head of Group Secretarial and Legal/Company Secretary

Encik Ahmad Rafidi Harun Head of Group Control Assurance Services

ROLES OF MALAYSIAN INDUSTRIAL DEVELOPMENT FINANCE(MIDF)

Asset managementMIDF Amanah

Asset Management Berhad (MIDF

Amanah)

3 DIVISION

Investment Banking-MIDF Amanah Investment Bank Berhad

Development finance-MIDF Development Finance Division

Investment Banking-MIDF Amanah Investment Bank Berhad

Development finance-MIDF Development Finance Division

Is the result of the integration of 4 subsidiaries of MIDF group•Responsibilities:1.To deliver value-added advisory and structuring solutions to companies, institutions and government agencies in areas such as mergers and acquisitions and restructuring.2. To be involved in identifying and originating deals, maintaining client relationship, assisting the execution process of mandated deals.3. To design and provide fund-raising strategies in the debt and equity capital markets.

to promotes the development of the industrial sector in Malaysia through the provision of financing for manufacturing-based and services-based small

and medium enterprise

• Asset management• MIDF Amanah Asset

Management Berhad (MIDF Amanah)

1.To provides fund management services2. To provides its services to individuals, institutional investors, and corporations

3.To employs a fundamental analysis with a top-down and a bottom-up stock picking approach to create its portfolios

DEVELOPMENT

MIDF have provided soft loan schemes. The available schemes from MIDF are:

• Soft Loan Scheme for Small & Medium Enterprises (SLSME)

• Soft Loan Scheme for Automation & Modernisation (SLSAM)

• Soft Loan Scheme for Automotive Development (SLSAD)

Soft Loan Scheme for Small & Medium Enterprises (SLSME)

• The SLSME was launched in December 2001 to promote the development of small and medium enterprises in Malaysia. This Scheme assists existing as well as newly start-up enterprises in fixed assets, IT software/hardware and working capital financing.

• The fund for this Scheme is channeled by the Government of Malaysia via SME Corporation Malaysia to MIDF for the implementation of the Scheme.

Soft Loan Scheme for Automation & Modernisation (SLSAM)

• The SLSAM was launched in February 2007 to:

i) encourage industries to modernize and automate their manufacturing processes; ii) upgrade production capability and capacity; and iii) assist companies in:- – minimizing dependence on labour-intensive activities and foreign labour;– diversifying into higher value-added activities; and– rationalizing and streamlining their operations through mergers and

acquisitions.

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

Soft Loan Scheme for Automotive Development (SLSAD)

• The SLSAD was launched in February 2007 to:-

i) encourage automotive parts and components manufacturers to rationalize their operations; and, ii) assists companies in:-

– tooling acquisition, development and production;– productivity improvement; and,– enhancing export performance.

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

MIDF 2011 Achievement

MIDF have completed many deals with other companies. They are : AWC BERHAD, IDEAL JACOBS , SEAL INCORPORATED BERHAD, MITRAJAYA

HOLDINGS BERHAD, HAISAN RESOURCES BERHAD,THE MEDIA SHOPPE BERHAD, and C.I. HOLDINGS BERHAD

Some of their roles in the dealings made are as:• Adviser • Independent Adviser • Sponsor• Sole Underwriter • Sole Placement Agent • Principal Adviser• Lead Arranger • Facility Agent

Incentives for Automotive Parts & Component Manufactures

• Investments tax allowance- 60% on the qualifying capital expenditure incurred within five years from the date the first capital expenditure is incurred.

• Can be offset against 100% of the statutory income each year of assessment.

• Any unutilized allowances can be carried forward to subsequent years until fully utilized.

Soft Loans Scheme for Automotive Development

Criteria Revision

Percentage of Financing Up to 90% of eligible expenses

Repayment tenureUp to 7 years including grace period up to

2 years

Interest rate2% annually based on annual balances for

SMEs3% annually based on annual balances for

non-SMEs

Conclusion MIDF was incorporated with the objective to promote the development of

the manufacturing industry in Malaysia through the provision of medium and long-term loans.

MIDF achieved its ambition to become a leading financial services provider in three core business areas :

Investment Banking

Provides financial advisory, underwriting

of equities and debt instruments, treasury activities and equity brokerage services.

Development FinancePromotes the

provision of financing for manufacturing-based and services-

based small and medium enterprises

which includes conventional and

Shari’ah-compliant financing.

Assets Management

Provides fund management services

to statutory bodies, private pension funds, insurance companies,

state government-related funds, charities and

foundations, and corporations.