INTRODUCTION
The Smart Automation Grant (SAG) was meant to get businesses, especially local manufacturers and service providers, to use automation more. The government has set up RM100 million for this Smart Automation Grant program, with a maximum of RM1 million going to each enterprise.
Objectives
The Smart Automation Grant’s key goals are:
To help and encourage small and medium-sized businesses (SMEs) and mid-tier companies (MTCs) to automate and digitize their operations, production, and trade channels.
To make the manufacturing and service sectors work better
To cut down on the need for immigrant labor with few skills
To create jobs in sectors that add a lot of value
To make small and medium-sized businesses more competitive on a global scale
To be in line with the National Policy on Industry 4.0
To encourage investment at home
Grant
The Smart Automation Grant would be given out on a 1:1 basis for approved expenses, with a maximum grant of Ringgit Malaysia One Million (RM1,000,000) per company.
Eligibilty
1. Registered as a company under the Companies Act of 1965/2016.
2. At least 51% of the company’s effective equity must be owned by Malaysians.
3. The organization has a valid Business License from a Local Authority.
4. The business must do the following:
i. Manufacturing activity that follows the rules set out in the Industrial Coordination Act of 1975; or
ii. Services activities that need to be controlled by specific laws or rules or by the right ministries or authorities.
5. The business has been running for at least a year.
6. The organization must meet at least one of the Committed Deliverables that are listed in Appendix I.
7. Only SMEs and MTCs can apply
Definition of SME and MTC:
Eligible expenses
Eligible expenses are the machines, tools, and software utilized directly in the manufacturing and service activities that make up the whole value chain.
Costs that don’t qualify:
Buy or rent land, buildings, offices, cars, or equipment. Buy or rent used or refurbished automation gear, equipment, or software. Costs of maintenance and repairs, including remodeling the building; wages paid to workers; employee benefits programs; legal and stamp duty fees; and insurance • Collateral or a loan, including the interest paid for something other than smart automation • Office supplies and expenses, such as PCs and accessories for general use and mobile phones
Costs of utilities
Costs for research and development
Costs for advertising and marketing
*This list isn’t meant to be complete, and it will be looked at from time to time.
LENGTH OF THE PROJECT
The project has to be done within a year of getting the Approval Letter from MIDA.
MIDA will take back any grant money that hasn’t been used after 12 months.
Requests for an extension must be made at least two months before the project is due to expire and must be approved by the Committee.
APPLICATION PROCESS
These are the steps to apply:
MIDA gets the application for the Smart Automation Grant.
Then, MIDA will look over the application and ask the qualified applicant to give their proposal at a pitching session at MIDA.
The Smart Automation Grant Approval Committee (SAGAC) of MIDA will hear the proposal from the eligible applicant (pitching session).
After getting the go-ahead, the company will get an approval letter and sign a grant agreement with MIDA.
The company that won the award has to buy and set up the automation machine, equipment, or software.
The company that gets the grant will have to apply to MIDA for the money within six months of the approval date.
MIDA will go to the site for an audit and then tell the Committee on Coordination & Disbursement of Grants (JPPG) what they found.
MIDA will give the funding to the winning company once JPPG gives its approval. For businesses that use Panel Banks, the award will go to the chosen Panel Banks.
* Please note that the company can ask the Panel Bank for hire purchase financing to buy the automation machine, equipment, or software and use the MIDA Approval Letter as proof.
ACCELERATION PROGRAM
MIDA is working with a few selected Panel Banks to put together a special Acceleration Program to help companies learn about automation and digitalization and raise awareness about them.
Companies will go through a number of sessions as part of this program. These sessions will assist them improve their understanding of automation and digitalization through simulations and evaluations. After that, the company will talk about their plans to start using or developing new technologies to make their production process more automated or to make their corporate processes more digital.
Companies that are part of this program can send their application to MIDA and then present it to the SAGAC at MIDA for approval.
Required Documents
Applicants are required to submit the following documents:
Application Form (PENJANA SAG)
Latest Financial Statement (audited)
Latest SSM Company Profile (e-Info) by Companies Commission of Malaysia (SSM)
A copy of Business Licence from Local Authority
A copy of Manufacturing Licence (ML) OR a Confirmation Letter Exempted from ML from MIDA under Industrial Co-ordination Act, 1975 (Applicable for manufacturing company only)
A copy of License/ Permit/ Support letter from relevant ministries/ agencies that govern the activities. (Applicable for services company only)
