Status: This fund is not yet ready for application but I was informed that it will be approved in the very near future, so keep on checking the website.
Ever heard of NCER or Korridor Utara launched by our previous Prime Minister, Pak Lah? Well there are lots of financial and fiscal incentives but I’m gonna focus on the Business Start-Up Fund for this post.
What is this loan for?
It’s mainly for modern agriculture, manufacturing and tourism in the Northern Corridor (Perlis, Kedah, Perak, Pulau Pinang). Please take note that “modern” would be defined by NCIA (Northern Corridor Implementation Agency) therefore your business for example, agriculture, must meet the terms of modern. Since there is no list available, contact the person in charge when the fund is ready for application.
Are there any other details I need to know of this fund?
This is a soft loan fund, similar to the ones provided by MIDF (Malaysia Industrial Development Finance). I heard that there are no collateral or guarantor needed but probably you’ll need one when the amount you request gets higher.
What is the minimum and maximum amount for the fund?
Minimum RM250,000 to RM 3.5 mil maximum.
Who is eligible to apply for this fund?
- Company incorporated in Malaysia (70% Malaysians owned & at least 30% equity hold by Bumiputera)
- Business activity in NCER appointed region and in the NCER geographical location
- Promote NCER socio economy objective which are: job building, capacity building
- Company characteristics: operating less than 5 years old and not yet profitable or in commercial production
- Company must possess experienced management team (degree holders and above with prescribed years of work experience determined by NCIA)
- Business plan feasible and demonstrable market for the company
- Company must have at least 10% knowledge workers and at least 10% graduates.
Expenditure covered by the fund?
Mainly operating expenses and fixed assets. The expenses as per website are:
- 80% of land rental cost (2 yrs max)
- 80% of building cost (2 yrs max)
- Cost for land and building development
- Cost related to hiring knowledge workers
- Cost for accreditations and certification
- Cost of purchasing agricultural inputs
- Cost of acquiring machinery and equipment
- Cost of purchasing good quality animal and plant
How do I apply or this fund?
It’s not yet open for application but just like any other funds, it’s better to have a concept paper, prototype and a preliminary business plan ready and consult the officers. They would explain to you the criteria to obtain the loan better. Check the website from time to time as I heard they are going to accept application in the near time.
Should you need more information on the fund:
- Financial Incentives, NICA Website
- Head Office (+604 2383 888), KL Office (+603 2096 6888) & Kedah Office (+604 7329 881)