Smart Automation Grant (SAG) under MIDA

What is SAG?
Eligibility Criteria
Documents Needed
What is SAG?

The Smart Automation Grant (SAG) is offered to Malaysian Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) in Manufacturing and Services Sector. The grant will be given on a matching basis (1:1) based on eligible expenditures, up to a maximum grant of RM1 million per company.


Eligible company may apply for MIDA Smart Automation Grant (SAG) from 4 December 2020 until 31 December 2021. However, consideration of such application is subject to the availability of funding and allocation by the Government of Malaysia and current policy in force.

The main objectives of the Smart Automation Grant are

To assist as well as incentivise SMEs & MTCs to automise & digitalise operations, production & trade channels

To improve efficiency in the manufacturing and services sector

To reduce reliance on low-skilled foreign workers

To provide job opportunities in high value-added sectors

To enhance SME competitiveness on an international level

To be aligned with the National Policy on Industry 4.0

To boost domestic investment

Eligibility Criteria

ELIGIBLE APPLICANTS

  1. Incorporated under the Companies Act, 1965/ 2016. 
  2. Effective equity of the company must be at least 51% owned by Malaysians. 
  3. The company possesses a valid Business Licence from a Local Authority. 
  4. The company must engage in the following activities: 
    i. Manufacturing activity in compliance with the Industrial Co-ordination Act, 1975; or
    ii. Services activities which must be regulated by specific acts/ regulations or governed by relevant ministries/ agencies
  5. Eligible for SMEs and MTCs only.
  6. The company has been in operation for at least 12 months. 
  7. The company must meet at least one of the Committed Deliverables

ELIGIBLE EXPENDITURES

Eligible expenditures refer to the automation machine/ equipment/ software that are used directly in the overall value chain of manufacturing and services activities. 

*Note: Software which is embedded in a machinery/equipment or used to perform specific function related to company’s core activity. 


Non-eligible expenditures 

  • Purchase or rental of land / building / office / vehicles / furniture 
  • Rental of automation machine/ equipment/ software 
  • Purchase or rental of second hand or refurbish automation machinery / equipment / software ▪ Maintenance and repair costs including renovation of premise 
  • Wages paid to employees 
  • Employee benefits programs 
  • Legal and stamp duty fees 
  • Insurance 
  • Collateral or loan including its interest paid for purpose other than smart automation 
  • Office expenses and supplies including general purpose computers & peripherals and mobile phones 
  • Utility expenses 
  • Research & development expenses 
  • Advertising and marketing expenses 
  • Mobile apps and Enterprise Resource Planning (ERP) software 

**This list is not meant to be exhaustive and will be reviewed from time to time. 


Company is not allowed to dispose any machinery/ equipment/ software within the grant period.

Documents Needed

Application Form (PENJANA SAG) - Download form at www.mida.gov.my 

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 Letter of Exemption 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 which govern the activities. (Applicable for services company only)

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FAQ

What is MIDA SAG?

A grant to help SMEs and MTC automate their service operations

What is the amount of the grant?

The grant covers 50% of your total project cost up to RM 1 Million

What are the eligibilty criteria?
  1. Incorporated under companies act 1965/2016 
  2. Malaysian owned (at least 51%) 
  3. Possesses a valid Business Licence 
  4. Company must engage in the following activities:
    a. Manufacturing activity in compliance with the Industrial Co-ordination Act, 1975
    b. Services activities which must be regulated by specific acts/regulations or governed by relevant ministries/agencies 
  5. Eligible for SMEs and MTCs only 
  6. In operation for at least 12 months 
  7. Meet at least one of the Committed Deliverables
Is my company eligible for this grant?

If your company falls under the approved eligibilty criteria industry you are eligible but if you want to be sure, you can contact MIDA using their hotline 03-2267 3633

What is the difference with MDEC SAG?

MDEC SAG focus on the digitalization of business process whereas MIDA SAG focus on the automation of your services operations which excludes business operations (Accounting, Human Resource, Advertising, Marketing)

If I want to buy hardware or machine, does aplikasi provide the service?

No, we will only provide solutions to your service operations using Zoho. 

What is the application process?

You have to download the application form from MIDA website and submit your application through email submission complete with all requested documents

Can my company apply for MIDA SAG if my business is approved for other grants?

No, you are not eligible for this grant. 

Is my company eligible for this grant if it is a startup?

If your company has been in operations for at least 12 months, you may proceed with your application. 

Can my company apply for MIDA SAG if the business focuses on an area or industry other than the ones mentioned?

No, only companies engaging in manufacturing or services activities can apply for MIDA SAG.

Will my company be able to keep the unutilized amount of grant given?

No, the remaining grant amount will be withdrawn by MIDA after 12 months. 

Can my company request additional time while executing the project?

Request for extension must be made before the end of the 6 months claim period and is subjected to the approval of the Committee.

Must I submit a hard copy of my application as well?

Yes, you may mail your application to the address stated. Please ensure that it arrives before the closing date; 31st December 2021. 

Chief Executive Officer,

Malaysian Investment Development Authority (MIDA), 

MIDA Sentral, No.5, Jalan Stesen Sentral 5, Kuala Lumpur Sentral,

50470 Kuala Lumpur.

Is my company still entitled for MIDA SAG if it is run by a non-local team?

Yes your company is entitled if 51% of it is owned by fellow Malaysians. 

Can I submit my company’s application through aplikasi?

No, all applications must be submitted directly to MIDA.

What is aplikasi's role?

If you are confirmed to acquire our software and services, we will help GUIDE you with the application of the MIDA SAG

Can I get in touch with aplikasi team to get the application form for the grant?

You are welcome to make your inquiries with the aplikasi team, we will try our best to assist. As for the application form, you may only obtain it from MIDA website.

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