PETALING JAYA: Malaysian Industrial Development Finance Bhd (MIDF) has signed a memorandum of understanding (MoU) with the Malaysian Investment Development Authority (Mida) to offer small and medium enterprises (SMEs) and mid-tier companies (MTCs) the opportunity to benefit from Mida’s Smart Automation Grant (SAG).
The SAG initiative was introduced in the National Economic Recovery Plan or Penjana with an initial allocation of RM100mil.
A statement yesterday said “This grant is awarded to eligible SMEs and MTCs on a matching basis or 50% of total eligible expenditures, up to a maximum grant cap of RM1mil per company.
“Based on the encouraging response for SAG, the government announced an additional RM50mil fund under the Strategic Programme to Empower the People and Economy or Pemerkasa to drive more SMEs and MTCs to improve their operation and production through automation and digitalisation, ” it added.
The collaboration between MIDF and Mida aims to promote and facilitate the SAG’s utilisation through a strategic alliance. Under this alliance, Mida will provide grants for qualified companies, whereas MIDF will offer financing to these companies for their remaining expenses.
Additionally, qualified companies already enjoying financing facilities from MIDF may lower their financial commitment upon successful application for SAG.
According to Mida deputy CEO II Ahmad Khairuddin Abdul Rahim, the government, through Mida, is committed to assist local industry players and businesses towards higher productivity and market competitiveness.
“The collaboration between Mida and MIDF is in line with our objective to provide financial assistance for SMEs and MTCs towards automation and digitalisation.
“These two processes are crucial components and push factors in speeding up the operation process, reducing errors and increasing productivity.”
He pointed out that the objective of SAG is to reassure SMEs and MTCs in the manufacturing and services sectors to automate and digitalise their operations and production, to spur their competitiveness, to reduce the reliance on foreign workers and create new job opportunities in high value-added sectors.
“The government looks forward to Malaysian companies to embark transformation towards digitalisation and automation to remain resilient amidst the impact of the Covid-19 pandemic and economic contraction. We trust that this partnership would result in Malaysia’s businesses growth across industry supply chains, ” added Ahmad Khairuddin.