MAI, MIDF launch RM200m fund for auto parts vendors

PETALING JAYA: Malaysian Industrial Development Finance Bhd (MIDF) expects to fund 120 auto companies with total financing assistance of up to RM200 million via the MAI-MIDF Industry 4.0 Development Programme.
Launched today, the programme is the result of a strategic alliance between MIDF and Malaysia Automotive Institute (MAI) and aims to further catalyse the development of automotive parts and component manufacturers, towards supply chain excellence, efficient manufacturing and higher value competitiveness.
“With this strategic alliance, we are expecting to fund 120 companies with a total financing assistance of up to RM200 million between 2018 and 2020. Thus far, MIDF has assisted companies in the automotive sector with financing amounting to RM544.8 million,” MIDF group managing director Datuk Mohd Najib Abdullah said in a statement today.
He said the collaboration will mark another milestone for MIDF. The company was the financier of Malaysia’s first motor assembly plant, a joint venture between AB Volvo of Sweden and Federal Co. Ltd of Malaysia to assemble Volvo cars in 1966.
“MIDF’s collaboration with MAI will assist the local automotive manufacturers as well other supporting automotive service providers to achieve international standards and be ready for the international markets.”
MAI CEO Datuk Madani Sahari said such collaborations are now more important than ever as it enables the capitalisation on strengths and specialisations to serve the automotive community.
“Vehicles on our roads are rapidly evolving from mere mechanical equipment to becoming integrated machines that compliment our lifestyle, requiring diverse disciplines and specialisations. It is important that this same diversity is embedded into governance that are responsible to encourage competitiveness within our own industry,” he said.