MTDC plans to approve RM170m in loans this year

BANGI: Khazanah Nasional Bhd subsidiary, Malaysian Technology Development Corporation (MTDC), is targeting to approve RM170 million in loans to technology-based companies this year.
MTDC chief executive officer Datuk Norhalim Yunus said the financing would be given out through its six funds.
These are Commercialisation of Research and Development Fund (RM40 million), Technology Acquisition Fund (RM10 million), Business Start-up Fund (RM15 million), Business Growth Fund (RM15 million), Bumiputera Expansion Fund (RM75 million) and Halal Technology Development Fund (RM15 million).
"The funds would be allocated according to the size of the projects, starting from a minimum of RM500,000 to a maximum of RM15 million," he told the media after speaking at the MTDC Road 2 Funding programme here today.
He said the loans would be disbursed through a combination of grants and convertible promissory notes.
Norhalim said MTDC planned to disburse the RM170 million funds within two years, according to the type of projects carried out by the companies.
"The funds would be disbursed in stages based on the progress of the projects, and would not be given out if they did not achieve the target that had been set," he said.
He added that most of the applicants for the loans were companies involved in the green technology industry, such as solar technology, energy efficiency systems, biotechnology and electronics and electrical, among others.
Norhalim said the recently introduced Halal Technology Development Fund would also see more active involvement by halal product manufacturers that export their products.
"The Department of Islamic Development Malaysia's halal certification is recognised by 50 halal agencies all over the world, and this fund would encourage more companies to expand their business overseas," he said.
He added that last year, MTDC had disbursed RM145 million in loans to 71 technology-based companies. — Bernama