MDV Supports Green Lane Policy to spur Malaysian SMEs
Green Lane Policy is a newly introduced initiative by the Government to further boost the growth of Malaysia’s SME. The scheme was introduced to recognize the importance of SME for the development of the country’s economy. In addition, it is also to acknowledge the contribution of competitive and innovative local SMEs under the 10th Malaysia Plan.
With this initiative, MDV will be able to further strengthen its support to the SMEs in ICT, Biotechnology, Green Technology and other high growth sectors by providing them innovative financing facilities.
The policy was intended to accelerate and provide easiness of doing business on matters pertaining to the four (4) incentives listed under the policy. The incentives are:
- Loans with subsidised interest rates
Subsidised interest rate at 2% per annum subject to the maximum sum amount of RM200, 000 annually or cumulative amount of RM1, 000,000 for five years for each company, from the Development Institutes Development Financial Institutions / banks approved by Ministry of Finance (MoF).
- Tax exemption
Exemption of stamp duty under the Section 80 (1) Stamp Act 1949 for the legal documentations under the loans with subsidised interest rates incentives as mentioned above.
- Government Procurement
- – Registration of company for manufacturer status with the Ministry of Finance may be approved without the requirement of site-visits
- – Additional bonus points on technical assessment
- – Priority to join the Government Offset Programmes
- – Consideration to be included in the Central Contract / Panel System Contract
- Privileges in the Ministry of Finance Incorporated Companies’ Procurement
Companies will be given priority in procurement activities done by Ministry of Finance Incorporated Companies, depending on the procurement rules that were agreed upon with Ministry of Finance.
Since its inception in 2002, MDV has approved loans amounting to RM6.25 billion to 445 companies, of which approximately RM3.5 billion funded to technology SMEs.