MIDF Aims To Allocate RM200 Mln To SMEs Through Future Ready Financing Initiative

KUALA LUMPUR, Nov 4 (Bernama) -- Malaysian Industrial Development Finance Bhd (MIDF) aims to allocate RM200 million to small and medium enterprises (SMEs) through the newly launched Future Ready Financing (FRF) initiative. 

Chief executive officer Azizi Mustafa said this funding would assist 100 SMEs and create over 500 highly skilled jobs in the manufacturing and related services sectors by 2027. 

“This financing initiative doesn't involve new funding, rather, we are utilising existing government funds. Our target is to reach the RM200 million allocation before 2027," he told reporters after the launch of the FRF by Deputy Investment, Trade and Industry Minister Liew Chin Tong here today.

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The FRF, spearheaded by MIDF in partnership with Malaysian Technology Development Corp (MTDC), SIRIM Bhd and key technology solution providers, aims to support SMEs in adopting automation and Industry 4.0 (IR4.0) technologies.

Liew noted that the FRF aligns with the New Industrial Master Plan (NIMP) 2030, providing a pathway for  SMEs to transition into a technology-based industry and reduce reliance on unskilled foreign labour. 

“The programme offers targeted financial products, expert advisory services, and advanced technological solutions to drive automation, enhance operational efficiency and, crucially, minimise dependence on unskilled foreign labour,” he said in his speech. 

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According to Liew, MTDC and SIRIM play pivotal roles in the programme by assessing technological readiness, matching SMEs with the right solution providers and recommending eligible SMEs for MIDF financing. 

“This holistic approach equips SMEs not only with financial resources but also with expertise needed for smart technology integration, positioning them for sustainable growth.

“By working closely with SMEs, solution providers facilitate the integration of automation and digitalisation technologies, enhancing productivity and efficiency in the manufacturing and manufacturing-related services sectors,” he said. 

Liew expressed optimism that SMEs will adopt IR4.0 technology, leverage real-time data analytics, engage in precision manufacturing, and establish smart factory systems through the programme.

Regarding foreign labour, Liew underscored the government’s commitment to reshaping the labour market by reducing dependency on unskilled foreign workers.

“There is a need to make foreign worker hiring costly through the multi-tier levy, Employees' Provident Fund contributions for foreign workers and a higher minimum wage.

“By making unskilled foreign labour more expensive, it will make more financial sense for industries to adopt more technology, reduce labour demand, and invest in higher wages for skilled workers, which will ultimately benefit Malaysian workers," he added.

-- BERNAMA