propelling sme digitalisation for the services industry

A critical part of Pelan Jana Semula Ekonomi Negara (PENJANA), the #SMART Automation Grant (SAG) is a matching grant for services companies.

SMEs and mid- tier companies in the services sector are now able to kickstart their digital adoption journey and increase their digital capabilities to continue striving forward in this new norm.

Each successful application will receive up to 50% of the total project cost, subject to a ceiling limit up to RM200,000 or, whichever is the lowest, through this matching grant.

SMART AUTOMATION GRANT (SAG)

What is the SAG?

This is a specific matching grant for services companies that will help them automate their business processes and move towards digitalisation.

The grant will be used solely for the purpose of kickstarting the development and implementation of projects that push the adoption of technologies to automate business operations.

Project Duration

Total 4 months duration

Project implementation to digitalise the business operation will only run for up to 1 month.

Post monitoring to achieve project outcomes will run for 3 months.

EXPECTED PROJECT OUTCOMES

Below are the expected project outcomes for the SAG grant:

Increase in revenue

Savings in business cost

Reduction of process time cycle

Reduce man hours

Create new sources of growth.

ELIGIBILITY CRITERIA


General Services Sector

The Applicant is required to meet the following criteria at all time of application; and if approved at all times during the Project Availability Period:

1.Company

  • incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
  • Issued and paid up capital of at least RM50,000;
  • Minimum of 51% equity held by Malaysian(s); and

2.Registered business activities comprising primarily traditional or non-technology activities from the service sector;

3.Not be the subject of a liquidation/winding up /bankruptcy order;

4.Has no going concern issue and/or not dormant;

5.Has entered into a written contract or a committed arrangement with technology partner for the development and implementation of the project; and

6.If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s.


Professional Services Sector

The Applicant is required to meet the following criteria at all time of application; and if approved at all times during the Project Availability Period:

1.Enterprises / Sole Proprietorships / Partnerships:

  • Registered under Registration of Business Act 1956 or any other relevant Malaysian law or regulation.
  • Minimum of 51% owned by Malaysians; and
  • Providing professional services which includes but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management , Employment and Security (Private Agency) Services;

OR

2.Limited Liability Partnerships

  • Registered under Limited Liability Partnerships Act 2012 or any other relevant Malaysian law or regulation.
  • Minimum of 51% owned by Malaysians; and
  • Providing professional services which includes but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management , Employment and Security (Private Agency) Services;

3.Registered business activities comprising primarily traditional or non-technology activities from the service sector;

4.Not be the subject of a liquidation/winding up /bankruptcy order;

5.Has no going concern issue and/or not dormant;

6.Has entered into a written contract or a committed arrangement with technology partner for the development and implementation of the project; and

7.If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s.

BRIEFING DATE FOR SMART AUTOMATION GRANT


BATCH 1 – CLOSED

BRIEFING DATE: 29 JULY 2020

SUBMISSION CLOSING DATE: 17 AUG 2020

PITCHING DATE: 4 SEPT 2020

BATCH 2

BRIEFING DATE: 27 AUG 2020

SUBMISSION CLOSING DATE: 14 SEPT 2020

PITCHING DATE: 30 SEPT 2020

BATCH 3

BRIEFING DATE: 29 SEPT 2020

SUBMISSION CLOSING DATE: 14 OCT 2020

PITCHING DATE: 30 OCT 2020

FREQUENTLY ASKED QUESTIONS

What is Smart Automation Grant (SAG)?

SAG is matching grant for services companies to automate their business processes and move towards digitalisation.

What can it be used for?

The matching grant will be used solely for the purpose to kick start the implementation of project by adopting technology to automate the business operation.

What are the expected outcomes of SAG?

This matching grant is intended to assist services companies embarking on automation to achieve one of these outcomes:


  • Increase in revenue
  • Savings in business cost
  • Reduction of process time cycle
  • Reduce man hours
  • Create new sources of growth

Who can apply for this grant?

The Applicant must be a company with the registered business activities comprising primarily traditional or non-technology activities from the service sector.


The companies from the service sector include Retail, Wholesale, Food and Beverages, Tourism, Logistics, Transportation, Education, Healthcare, Real Estate, Professional Services and Financial Services. The list of services sector will be regularly updated..

What are the eligibility criteria?

To be eligible for SAG, the companies must:


General Services Sector

The Applicant is required to meet the following criteria at all time of application; and if approved at all times during the Project Availability Period:

1. Company:

  • incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
  • Issued and paid up capital of at least RM50,000;
  • Minimum of 51% equity held by Malaysian(s); and

2. Registered business activities comprising primarily traditional or non-technology activities from the service sector;

3. Not be the subject of a liquidation/winding up /bankruptcy order;

4. Has no going concern issue and/or not dormant;

5. Has entered into a written contract or a committed arrangement with technology partner for the development and implementation of the project; and

6. If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s.


Professional Services Sector

The Applicant is required to meet the following criteria at all time of application; and if approved at all times during the Project Availability Period:

1.Enterprises / Sole Proprietorships / Partnerships:

  • Registered under Registration of Business Act 1956 or any other relevant Malaysian law or regulation.
  • Minimum of 51% owned by Malaysians; and
  • Providing professional services which includes but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management , Employment and Security (Private Agency) Services;
  • OR

    2.Limited Liability Partnerships

    • Registered under Limited Liability Partnerships Act 2012 or any other relevant Malaysian law or regulation.
    • Minimum of 51% owned by Malaysians; and
    • Providing professional services which includes but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management , Employment and Security (Private Agency) Services;

    3. Registered business activities comprising primarily traditional or non-technology activities from the service sector;

    4. Not be the subject of a liquidation/winding up /bankruptcy order;

    5. Has no going concern issue and/or not dormant;

    6. Has entered into a written contract or a committed arrangement with technology partner for the development and implementation of the project; and

    7. If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s.

    What are the eligible expenses?

    The eligible expenses are the approved project costs that are critical to the project success.


    Expenses include:


    • Cost of IT Hardware or IT equipment
    • Cost of Software associated
    • License fee
    • Process redesign
    • Testing and certification costs associated with the development of the project.
    • Training costs associated to the project


    Non-eligible expenses:


    • Salary
    • Outsourcing outside the country
    • Calibration (deemed as part of maintenance)
    • Any form of taxes
    • Expenses in obtaining certification & accreditation
    • Maintenance of plant / equipment
    • General purpose computers and peripherals
    • Mobile phones
    • Tablets, laptops and personal computer
    • Camera
    • Furniture or any office interior materials.
    • Travelling expenses
    • Coaching and mentoring
    • Utilities
    • Office rental
    • Audit fee
    • Secretarial fee

    What is the amount of this matching grant?

    The amount of matching grant which will be awarded to each applicant for up to fifty percent (50%) of the total project cost or subjected to a ceiling limit up to RM200,000 which ever is lower.

    What is the reimbursement process?

    The matching grant will be reimbursed based on achievement of the agreed milestone deliverables, which will be limited to 2 times payments as follows;


    1st Payment -Implementation Costs

    • 50 % of the approved grant amount for Project Milestone One (1) deliverable(s);

    2nd /Final Payment – Remaining Costs

    • 50% of the approved grant amount for Project Milestone Two (2) deliverable(s)/Final deliverable(s);

    What is the project duration under this matching grant?

    Project implementation period is up to one (1) month and post monitoring to achieve project outcome is up to three (3) months. Total 4 months duration.


    The SAG recipient(Recipient) may apply to MDEC for an extension of the following date, by serving a written request on MDEC not less than One (1) month or such other period as agreed by MDEC, prior to the expiry of such date, together with its justification and supporting documents for such request, and MDEC may but is not obliged to grant an extension, provided always that such extension, if granted, shall not exceed the following duration maximum period of extension:


  • Project Implementation Date – up to 1 month
  • Project Completion Date – up to a third (1/3) of the original Project Duration (subject to recommendation of the Project Assessor where applicable);
  • How to apply?

    This matching grant can be applied through:

    • Specific digitalisation programmes under MDEC’s Business Digital Adoption Division; or
    • Direct online Application

    Specific digitalisation programmes under MDEC’s Business Digital Adoption Division


    • MDEC will be organising specific digitalisation programmes with digital transformation partners.
    • Under these programmes, SMEs will receive guidance on developing a structured approach for their operations and be able to also identify possible pain points and opportunities in the digital space.
    • This will increase the success rate of the SMEs to digitalise their business because they will be equiped with the know-how in specific areas of digital transformation after going through the programmes.
    • SMEs will go through a hand-holding approach whereby they will be matched with selected technology solution providers to pilot relevant solutions and receive guidance to assess the effectiveness of the digital solutions.
    • Subsequently, the SMEs will share their plan to start developing or deploying new technologies to digitalise their business operation with the selected technology solution providers
    • A grant briefing session will be conducted for SMEs to kick start the grant application process.
    • Upon attending the SAG briefing, all applications need to be submitted online no later than the respective end date.
    • The submission shall comprise of a duly completed application form, a pitch deck and a proposal of digital solutions together with other relevant company documents as requested.
    • Should you have any enquiries with regards to the application, kindly contact our MDEC Client Contact Centre at 1-800-88-8338 or [email protected]

    Direct online Application


    • Interested SMEs can registered their interest at mdec.my/sag.
    • The SMEs will be notified of the briefing date by MDEC.
    • MDEC will conduct a grant briefing session and the applicants can kick start the grant application process.
    • Upon attending the SAG briefing, all applications need to be submitted online no later than the respective end date.
    • The submission shall comprise of a duly completed application form, a pitch deck and a proposal of digital solutions together with other relevant company documents as requested.
    • Should you have any enquiries with regards to the application, kindly contact our MDEC Client Contact Centre at 1-800-88-8338 or [email protected]

    What is the mechanisms of awarding the grant?

    All the applicants need to pitch their proposal on how to automate their business processes in resolving their business pain points.

    Approval of grant will be based on the decision made during the pitching session.

    I am a Malaysian owner but my company is registered abroad. Can I participate?

    No as the SAG eligibility criteria is incorporated under Malaysia laws.

    How do I submit my application if I own multiple companies?

    SAG is allowed once for companies with the same shareholding

    What is MDEC’s role in this Smart Automation Grant ?

    MDEC is the Programme manager for Smart Automation Grant.

    When will I know the outcome of my submission? How will I be notified?

    CLIC will acknowledge receipt of the complete submission in term of application form and supporting documents.


    MDEC verifies application based on the eligibility criteria and will notify the applicants via email to participate in the pitching session.

    AUTOMATE YOUR BUSINESS TODAY

    Register your interest now and start your digitalisation journey.

    Apply Now