TOURISM INFRASTRUCTURE SCHEME (TIS)

ITEM DESCRIPTION
Objective
  • To provide financial assistance to existing and new companies dealing with or involved in tourism related activities and services
Purpose
  • To finance the acquisition of land, construction of building, machinery and other assets related to tourism activities.
  • To part finance working capital requirements of the eligible companies involved in the tourism industry
  • To finance the refurbishment/upgrades of the existing building/hotel/ convention center/facilities which are in the tourism industry or related to tourism activities.
Fund Size
  • RM1.0 billion
    (An aggregate of RM500 million is allocated for Bumiputera companies across all schemes)
Availability
  • 1 January 2021 until 31 December 2023
  • Application received before 31 December 2023 is granted an extension until 31 March 2024 for approval process
Target Sector
  • All tourism infrastructure projects, i.e. projects that contribute to the development of tourism industry such as, but not limited to hotel, convention center, facilities related to education, medical or agro tourism.
Eligibilty
  • Majority ownership of 51% by Malaysian
  • All applicants must have a minimum paid-up capital of RM5.0 million or minimum of 20% from the total financing applied, whichever is higher.
  • Applicants must acquire an endorsement (i.e. Letter of Support) from the Ministry Of Tourism, Art And Culture (MOTAC)
Facility Offered
  • Term financing
  • The scheme can be structured for syndication/club deal arrangements
Financing Purpose
  • For capital expenditure (CAPEX) and operating expenditure (OPEX) purposes
Financing Tenure
  • CAPEX : up to 20 years
  • OPEX : up to 5 years
Margin of Financing
  • Up to 80%
Financing Amount
  • Financing amount is subject to BPMB’s evaluation and credit policies. Any application exceeding the maximum amount must obtain Board approval
  • Minimum amount of RM5 million
  • As guidance, the financing available per customer may be determined based on the following categories:
    • Working capital requirements : RM50 million
    • Development of infrastructure : RM100 million
  • The above may vary subject to the Bank’s credit assessment
Financing Rate
  • Government : COF + Margin – Subsidy of 1.5%
  • Commercial: BFR + Margin – Subsidy of 1.5%
  • Margin is up to 2% per annum. Effective rate is subject to the approving authority of BPMB
Profit Subsidy
  • 1.5 % per annum
Credit Related Matters
  • Subject to BPMB’s credit approval processes.