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Tourism Development Infrastructure Fund

INTRODUCTION
To support the development of tourism industry, Ministry of Tourism and Culture Malaysia offers mortgage assistance through Tourism Development Infrastructure Fund.

The purpose is to assist tourism entrepreneurs who wish to develop or expend projects that contribute to the development of tourism industry.

PURPOSE OF FINANCING
  • To finance the incremental cost of new or existing projects excluding working capital.
  • For acquisition of land a maximum amount of 40% of the land cost or project cost whichever is lower is allowed.

AVAILABILITY OF THE FUND
1st January 2014 to 31st December 2018.

LENDING RATE
4% - 6% per annum computed based on annuity, yearly rest basis.

TENURE OF LOAN
Maximum loan period up to 20 years.

REPAYMENT TERMS
  • The period for repayment will be determine based on the project cash flow, the economic life of the assets financed and/ or terms of repayments 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
RM5.0 million

MAXIMUM LOAN AMOUNT
RM100.0 million or up to a maximum of 80% of the total project cost whichever is lower.

ELIGIBLE APPLICANT
  • Applicants must be registered under the Companies Act 1965, Companies Commission of Malaysia Act 2002 or/ and Companies Co-operative Act 1970 or Co-operative Act 1993.
  • Applicants must be majority-owned by Malaysians (at least 51%).
  • Existing and new enterprises carrying out or planning to carry out tourism infrastructure projects are eligible.
  • Applicants must have a minimum paid-up capital of RM5.0 million or minimum of 20% from the total loan applied whichever is higher.

ELIGIBLE PROJECT
Projects must be located in Malaysia and any tourism infrastructure projects that contribute to the development of the tourism industry are eligible. Priority shall be given to the following types of projects:
  1. Integrated or regional tourism centres/attractions/facilities and complexes
  2. Convention hall
  3. Gallery and information centre
  4. F&B or stores related to tourism
  5. Hotel, chalets, resort and other form of accommodation with special 'theme-based' development for example water theme park, jungle theme park, medical tourism, eco-tourism, edu - tourism or sport tourism
  6. Urban redevelopment to enhance tourist spot
  7. Integration of various transport mode, limousine terminal and pedestrian walks/crossing to provide efficient urban connectivity from point to point
  8. River and waterfront development
  9. Theme and/ or recreation parks and centres such as water theme park, heritage, museum, safari parks, zoo, flower garden, theatre/ cultural show/ culture centre and other special concept theme parks
  10. Marina and marine tourism
  11. Other facilities that support the above which include access roads, golf course, cable cars, jetties, airstrips, boats or ferries
  12. Other sectors related to tourism infrastructure as identified from time to time by the Ministry of Tourism and Culture Malaysia and/ or the Bank.

NON PERMISSIBLE LOAN
  • Acquisition of shares
  • Existing assets of the company
  • Taking over existing productive capacity
  • Financing of casinos

ITEMS THAT CANNOT BE FINANCED
ProjectLoan cannot be used to finance
Integrated or regional tourism centres/attractions/facilities and complexes Games machines
Riding machines
Mobile-jet ski
Gym equipment
Theme Parks Games machines
Safari Animals
Time sharing apartment dan lease back

BASIC INFORMATION REQUIRED TO APPLY TOURISM DEVELOPMENT INFRASTRUCTURE FUND
  • Application letter
  • Tourism Development Infrastructure Fund Application Form (must be typed)

Company Profile shall include:
  • Form 9 or Business Registration Form
  • Form 24 (Shareholder)
  • Form 49 (Board of Director)
  • Memorandum and Articles of Association
  • Profile of Board of Directors, shareholders and key management personnel
  • Last three (3) years audited financial report

Project Proposal shall include:
  • Detailed project costs and proposed sources of financing
  • Feasibility study of the project prepared by an independent consultant
  • Project implementation schedule and timeline
  • Valuation report of the project land
  • Land title /grant / contract / sale and purchase
  • Approval letter / license to develop the project from Local Authority
  • EIA report and/or Department of Environment's approval
  • Cash flow projection including details of operating costs and key assumptions (provide soft copy)
  • Main contractor's profile
  • Company profile of consultants and advisors including Architect, Quantity Surveyor (QS), Civil Engineer, M&E Engineer, Interior Designer, Project Management Company etc.
  • Details of existing bank borrowings, incorporating name of financial institutions, facilities, salient terms, securities and latest balance outstanding
  • Sufficient collateral
  • Preliminary Abstract (PDA) certified by Quantity Surveyor
  • Other supporting document or relevant information specific to the proposed project (if necessary)

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