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

• 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 the services sector will be regularly updated.

The Applicant is required to ensure that the technology solution provider (TSP) to be appointed for the implementation of the project shall meet the following criteria at all time of application; and if approved, at all times during the Project Availability Period:

1. Local TSP: Company incorporated under the Companies Act 1965 or the Companies Act 2016 with paid-up capital of at least RM50,000;
2. Foreign TSP: Company incorporated under the relevant laws of its country with paid-up capital equivalent to at least RM50,000;
3. The TSP  is  NOT the shareholder of the Applicant and vice versa;
4. Successfully deployed digital solutions to at least 10 enterprises which have achieved at least  one of these outcomes:
   
   • Increase in revenue; 
   • Savings in business cost; 
   • Reduction of process time cycle; 
   • Reduction in man-hours; and/or
   • Create new sources of growth.
5. Has entered into a written contract or a committed arrangement with Applicant for the development and implementation of the project under the SAG.

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

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

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

1. 1st Payment – Implementation Costs
   
   • 50% of the approved grant amount or up to 50% of the actual cost incurred whichever is the lower, in respect of the payment made by the SAG Recipient to the technology solutions provider/s (“TSP”) in relation to the implementation of the project. 
   • Supported with the following deliverables, completed and submitted to the satisfaction of MDEC by the set timeline. 
     
     • Written engagement commitment of SAG project implementation between the SAG Recipient and the TSP;
     • User Acceptance Test document;
     • Demonstration of project implementation; and/or
     • Such additional information and/or other documents as may be requested by MDEC. 
2.  2nd / Final Payment – Remaining Costs
   
   • Balance of up to 50% of the approved grant amount or up to 50% of the actual cost incurred whichever is the lower, in respect of the payment made by the SAG Recipient to the TSP in relation to the implementation of the project, based on the final outcome achieved. 
   • Supported with the following deliverables, completed and submitted to the satisfaction of MDEC by the set timeline;
     
     • A report (in such format as may be specified by MDEC) and supporting documents indicating the completion of the Project ie. Certificate of Completion by TSP and achievement from one of these outcomes:
       
       • increase in revenue;
       • Savings in business cost;
       • Reduction of process time cycle;
       • Reduce man-hours; 
       • Create new sources of growth; and/or
     • Such additional information and/or other documents as may be requested by MDEC.

The grant shall be cancelled or terminated if the SAG recipients: 

1. Fails to submit a claim for disbursement by specified due dates or upon expiry of the specified availability period for the incentive; 
2. Fails to deliver any of the deliverables specified in the terms & conditions issued by MDEC; or
3. Fails to meet any eligibility criteria for any reason whatsoever during the specified availability period for the incentive which shall commence from the date of the terms & conditions issued by MDEC; and/or
4. Fails to perform or comply with or commits a breach on any of the obligations specified in the terms & conditions issued by MDEC.

In the event of breach and/or the incentive is being cancelled or terminated, the Applicant: 

1. May be subject to clawback on the amount already disbursed or such other smaller amount as MDEC may specify; and/or
2. MDEC has the right to blacklist the Applicant.

This matching grant can be applied through Direct Application

1. Interested business owners can register at mdec.my/sag.
2. The submission shall comprise of a duly completed application form with other relevant documents as requested and email to [email protected]
3. Should you have any enquiries with regards to the application, kindly contact MDEC Client Contact Centre at 1-800-88-8338.

Mandatory documents to be submitted for the application are as follow:

1. Fully completed and signed SAG application form;
2. Following documents:
   
   • Applicable for Company only: Incorporated more than 1 year:  Company’s financial statements (Copy of latest Audited Accounts and latest to-date Management Accounts). A copy of the latest audited account must be dated and certified by the Commissioner of Oath/ Company’s Secretary / Company’s Auditor. If the Applicant is unable to do so, the Applicant is required to provide justification. (e.g., previously dormant);
   • Applicable for Enterprises / Sole Proprietorships / Partnerships/Limited Liability Partnerships which providing a professional service which includes but is not limited to   Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management, Employment and Security (Private Agency) Services: The firms’ latest tax return and supporting management accounts.
3. Applicable For Company Only: Board of Director Resolution on the appointment of the authorized signatory as per template;  
4. Proof of written contract or a committed arrangement with technology solution provider for the development and implementation of the project. Note:  The written contract should be signed by both Applicant and the technology solution provider i.e.:  Letter of Award, Letter of Commitment, Master Services Agreement etc. which should include the breakdown costing and scope of work. The quotation is not considered as a written contract;
5. Proof of project completion (i.e: closure letter from the ministries/agencies). For Applicant applying or has previously received a grant from MDEC/government (if applicable);  
6. CCRIS Report for top 5 shareholders; 
7. Supporting document in relation to the Technology Solution Provider (TSP):  
   
   • For local TSP: Latest SSM Search Report from the link: https://www.ssm-einfo.my/ (valid within two months from the date of submission); 
   • For foreign TSP: Document/report equivalent to SSM report as evidence of incorporation and proof that the paid-up capital is equivalent to at least RM50,000.00;
8. Proof of successful deployment of the digital solutions to at least 10 enterprises that have achieved one of these outcomes: 
   
   • Increase in revenue; 
   • Savings in business cost ;
   • Reduction of process time cycle;
   • Reduce man-hours; and/or
   • Create new sources of growth.

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

SAG is allowed once for companies with the same shareholding

MDEC is the Programme manager for Smart Automation Grant.

MDEC 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.