Strong MIDF financial position in 2015–2017: AG report

15 Jul 2019 / 17:57 H.

KUALA LUMPUR: The overall financial position of Malaysian Industrial Development Finance Bhd (MIDF) is strong based on pre–tax profit of RM45.54 million, RM37.25 million and RM94.71 million it recorded from 2015 to 2017.

According to the Auditor–General’s Report, 2018 Series 1 on the Management of the Federal Government Company, MIDF’s total assets exceed the total liabilities for the same period.

The liquidity level of the company it said, was also good at 18.8: 1 in 2017 which indicated MIDF’s ability to accommodate its current liabilities.

As of December 31, 2017, the MIDF’s accumulated profits stood to RM617.96 million, while cash balance and cash equivalents were also positive at RM464.55 million at the end of 2017, it said adding that an audit was conducted between May and September 2018.

On the other hand, the audit noted that the overall performance of loan schemes had not yet reached the optimum level as the funds’ utilization only reached 74.2% in 2017.

“The performance of funds under the schemes, the Simple Loan Scheme for the Services Sector (SLSSS), the Simple Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE) and the Simple Loan Scheme for Services Export (SLSSE) for three years is less efficient, as it only reached between zero to 40.6% with SLSSE scheme did not record any use of funds during that period,“ the report said.

Meanwhile, the report mentioned on the efficient performance of loan repayment for SLSSS, SLSAM and SLBAE schemes for 2015 to 2017 as payment receipts have reached between 84.4% and 99.7%.

The report also noted on the need to improve repayment for Simple Loan Scheme for Capacity Development (SLSCD) and Simple Loan Scheme for Small and Medium Enterprises (SLSME) as its collection only reached 64.6% and 70.5%, respectively.

Overall, it said the MIDF has achieved its lending objectives and grant distribution in line with its establishment. — Bernama

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