Smart Automation Grant (SAG) under MIDA
Source: https://www.mida.gov.my
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
Source: https://www.mida.gov.my
ELIGIBLE APPLICANTS
- Incorporated under the Companies Act, 1965/ 2016.
- Effective equity of the company must be at least 51% owned by Malaysians.
- The company possesses a valid Business Licence from a Local Authority.
- 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 - Eligible for SMEs and MTCs only.
- The company has been in operation for at least 12 months.
- 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.
Source: https://www.mida.gov.my
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)
