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Special Tourism Fund

INTRODUCTION
To develop the tourism industry, the Ministry of Tourism and Culture Malaysia (MOTAC) offers mortgage assistance through Special Tourism Fund (SFT) which is under the Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank).

The purpose of this fund is to support the government's effort to develop the tourism industry among the small medium entrepreneurs to contribute towards the income for the nation.

The SFT's application will be process by MOTAC and subjected to the endorsement of Jawatankuasa Pinjaman Tabung Pelancongan (JKPTP) based on the viability of the project for tourism industry. The application that was endorse by JKPTP will be forwarded to SME Bank for final assessment and approval.

PURPOSE OF FINANCING
  • To help entrepreneurs to expand tourism products/services.
  • Acquisition of tourism business/assets, which include redemption.

AVAILABILITY OF THE FUND
The fund will be made available up 22 Oct. 2029.

LENDING RATE
From BFR + 0% p.a up to BFR + 2.5% p.a.

FINANCING TENURE
Maximum of 12 years (not exceeding 22 Oct. 2029).

REPAYMENT TERMS
  • The period for payment will be determined based on the project cash flow, the economic life of the assets financed and/or terms of repayment as stipulated by the Fund provider.
  • Grace period may be given and is determined based on the gestation period and the cash flow of the project.

MINIMUM LOAN AMOUNT
RM250,000

MAXIMUM LOAN AMOUNT
RM30.00 million per project or 90 % of the project cost (excluding the cost of land), whichever is lower.

TYPE OF FINANCING
Shariah based financing.

TYPE OF FACILITIES
  • Fixed asset financing.
  • Working capital/revolving capital financing.
  • Guarantee.

ELIGIBLE APPLICANT
  • Malaysian owned companies registered under Companies Commision of Malaysia Act 2002 or Co-operative Act 1993 (minimum 51% owned by Malaysian) and categorised as 'SMEs'.
  • Have shareholders fund not more than RM10 Million.
  • Existing shariah compliance business operating for more than 2 years are eligible. For those being in operation for less than 2 years, applications will be assessed on case to case basis.
  • Any other conditions imposed by the Bank and MOTAC. (i.e. endorsement from MOTAC, such as Letter of Support etc).

ELIGIBLE PROJECT
Projects must be located in Malaysia and any tourism projects that contribute to the development of the tourism industry are eligible. Priority shall be given to the following types of projects:-
  1. All projects classified as tourism related activities including manufacturing of products related to tourism;
  2. Projects must be registered with MOTAC as tourism project (where applicable), or endorsed as a tourism projects by Jawatankuasa Pinjaman Tabung Pelancongan (JKPTP), MOTAC;
  3. Tourism projects that are being promoted by the government including (but not limited to) recreational, sports, health, education etc;
  4. Building new or adding, widens and renovate tourism and historical properties (such as hotels, motels, chalet, lodge and rest house);
  5. Provide transport services related to tourism such as coach, self driven, car rental, ferry, boat hydrofoil etc;
  6. Tourism resorts and places (includes renovation and landscape work) i.e. theme park/ recreation park such floral garden, safari park and tourism intergrated complexes;
  7. Provide facilities related to tourism such as restaurant which provides cultural show, souvenirs and hand-craft centers, free-duty shop, recreation equipments at tourism area such as bicycle, marine equipments and others (except golf equipment) purchasing of equipments for the culture group, gallery and museum and Malaysian cultures;
  8. Working capital for the tourism activities; and
  9. Other related tourism project which is determined by Government.

ADDITIONAL TERMS AND CONDITION
The recipients of financing under SFT that require specific intervention will be eligible for a training program conducted by the SME Bank. The arrangement of the training will be notified from time to time.

SECURITY ACCEPTABLE TO THE BANK (BUT NOT LIMITED TO THE FOLLOWINGS)
  • First fixed legal charge;
  • Debentures;
  • Third party charge (if required);
  • Joint and several guarantee of Directors/shareholders (in their personal capacity);
  • Corporate Guarantee;
  • Bank Guarantee; and
  • Assignment of rights of projects, insurance, assignment of revenue/proceeds etc.

BASIC INFORMATION REQUIRED TO APPLY SPECIAL TOURISM FUND
  • Application letter; and
  • Special Tourism Fund Application Form (must be typed).
Company Profile shall include:
  1. Form 9 or Business Registration Form*;
  2. Form 24 (Shareholder)*;
  3. Form 49 (Board of Director)*;
  4. Memorandum and Articles of Association*;
  5. Profile of Board of Directors, shareholders and key management personnel; and
  6. Last three (3) years audited financial report.
  7. Current SSM e-Info
* must be certified by company secretary

Project Proposal shall include:
  1. Detailed project costs and proposed sources of financing; and
  2. Feasibility study of the project prepared by an independent consultant.

Other Documents
Additional documents will be applied to applicants based on the project proposals submitted by applicants.

The completed application form and documents must be forwarded to:

Chief Secretary
Ministry of Tourism and Culture Malaysia
Industrial Development Division
Level 14, Tower 1
No. 2, Jalan P5/6 Presint 5
62200 Putrajaya

For further inquiries or consultation session regarding SFT, please contact Dana Pelancongan 03 - 8891 7480/7492/7469 or email to This email address is being protected from spambots. You need JavaScript enabled to view it.. Applicant is encourge to get advice from Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) regarding the detailed terms and conditions of the financing:-

Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank)
Tower of the SME Bank
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03 - 2615 2843/2020


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