SMART AUTOMATION GRANT (SAG)
Propelling SME Digitalisation For The Service Industry
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.
SMART AUTOMATION GRANT (SAG)
Propelling SME Digitalisation For The Service Industry
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.
SMART AUTOMATION GRANT (SAG)
Propelling SME Digitalisation For The Service Industry
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.
What Is Smart Automation Grant (SAG)?
SAG is a matching grant for services companies to automate their business processes and move towards digitalisation.
The grant will be used solely to kick start the development and implementation of project by technology to automate the business operations.
What Is Smart Automation Grant (SAG)?
SAG is a matching grant for services companies to automate their business processes and move towards digitalisation.
The grant will be used solely to kick start the development and implementation of project by technology to automate the business operations.
What Is Smart Automation Grant (SAG)?
SAG is a matching grant for services companies to automate their business processes and move towards digitalisation.
The grant will be used solely to kick start the development and implementation of project by technology to automate the business operations.
Objectives
To future-proof Malaysian companies and ensure their competitiveness in the coming years by assisting them to move up the value chain from a technology frontier in automating their business operations.
To identify pain points, gaps of their business and identify potential solutions to automate their business operations.
Project Duration
Total 4 months duration
Application Eligibility Criteria
General Services Sector
The Applicant is required to meet the following criteria at all times and to continuously meet the criteria throughout the project period.
Local company- Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
- Minimum issued and paid up capital of RM50,000;
- Minimum of 51% equity held by Malaysian(s). For companies which shareholders are another company, the same rule applies. The checks are limited to three tiers of shareholding.
- Enterprises / Sole Proprietorships / Partnerships:
- Registered under Registration of Business Act 1956;
- 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;
- Limited Liability Partnerships:
- Registered under Limited Liability Partnerships Act 2012;
- 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; ”
- In operation for at least 1 year.
- Not the subject of liquidation/winding up /bankruptcy order *and has no going concern issue. (*If the Applicant has going concern issue (as reported in their latest audited account, the Applicant to provide a letter of undertaking by the shareholder and/or director of the Applicant to undertake that in the event that their application is approved, the Applicant shall perform its obligations under the terms & conditions to be issued by MDEC and to provide financial support to the Applicant to enable the Applicant to meet its obligations and/or liabilities under the terms & conditions.)
- Company director/ shareholder/ partner/ senior management to declare and disclose if there is any close business relationship/close family relationship with any of MDEC’s director or employee.
- Company director/ shareholder/ partner/ outsourced partner to declare if they are under any litigation (not applicable for grants under RM 50,000).
- Companies with common shareholder/s can only submit application for one company only.
- If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s.
- The business nature of the company – to see if it falls under the following categories.
- Non-technology related service – Registered business activities comprising primarily traditional or non-technology activities from the service sector .
- Professional services – Registered under Registration of Business Act 1956 or Limited Liability Partnerships Act 2012 or any other relevant Malaysian law or regulation as well as providing professional services which includes but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management , Employment and Security (Private Agency) Service.
Application Flow
Step 1
Register now via MDEC website
Step 3
Completeness Checking
Step 4
Compliance Checking
Step 5
Pitching Session
Step 6
Approval Process
Frequently Asked Questions
SAG is matching grant for services companies to automate their business processes and move towards digitalisation.
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.
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
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..
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
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 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.
The successful applicants will need to pay 50% of the total project cost and subsequently will receive the reimbursement
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);
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);
This matching grant can be applied through:
- Specific digitalisation programmes under MDEC’s Business Digital Adoption Division; or
- Direct online Application
Note: For both approaches, application forms will be submitted to and processed solely by MDEC
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 MDEC’s grant briefing nearing the end of programme,the digital transformation partners will assist in compiling and submitting applications forms to MDEC
- 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 clic@mdec.com.my
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 clic@mdec.com.my
All the shortlisted 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.
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.
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.