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🏢 F.A.Q.

Facilitation Fund

Funds provided by the Government as an incentive for investments made by the private sector throughout the implementation of development projects.

Subjected to Government policies and decisions from time to time, generally the Facilitation Fund assistance is given in the form of grants.

Facilitation Fund is a form of grant provided by the Government. Since it is not a loan, there is no repayment.
Payback Period in the Facilitation Fund Guidelines refers to the repayment period for loans obtained from other financial institutions by the company to finance the project.

Touch Point elements are components of projects that can provide direct benefits to the public. Examples of touch point elements are public utilities, roads, bridges and other benefits accruing from projects that provide value to the public.

Facilitation Fund Agreement is a tripartite agreement signed between the Government of Malaysia, a bank designated by the Government of Malaysia and the Facilitation Fund recipient company.

Generally, disbursement of the Facilitation Fund is made through a lump sum reimbursement upon completion of the project.

The terms, conditions and qualifying criteria are as follows:

  • The company must be incorporated in Malaysia under the Companies Act 1965 with a paid-up capital of at least RM300,000.00 at the point of signing of the Facilitation Fund agreement;
  • The company must own the land on which the project is to be developed or at least possess the right to develop the land if it does not possess ownership rights over the land;
  • Company has obtained the Development Order from the Local Authority and all other required permits and approvals from relevant Government Agencies;
  • Company must possess the capacity, ability and skills as well as sufficient expertise to implement the proposed project;
  • and Company must be financially strong and be able to obtain commercial financing for project development and implementation.

Components of a Project that can be considered are basic infrastructures with public touch-point elements.

Examples include road works, general infrastructure, or utilities.

Among the key sectors that can apply for the Facilitation Fund are:

  1. Tourism ;
  2. Mixed development
  3. Oil, Gas and Energy
  4. Manufacturing
  5. Transport
  6. Retail
  7. Health
  8. Education
  9. PRIMA and PPA1M

The maximum limit of Facilitation Fund that can be considered for a Project, shall not exceed 10% of the project cost or
RM200 million (whichever is lower).

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