
The Ministry of International Trade and Industry (MITI) launched the Smart Automation Grant (SAG) aimed at encouraging the adoption of automation for industry players, particularly local manufacturers and service providers.
The Smart Automation Grant is timely to boost strategic domestic investments that will assist and incentivize the small and medium enterprises (SMEs) and mid-tier Companies (MTCs) to future-proof their operations, production and trade channels.
This SAG initiative is part of the RM100 million allocation within the National Economic Recovery Plan or PENJANA, which was announced in June 2020. This grant will be awarded on a matching basis or 50 percent of total eligible expenditures, up to a maximum grant cap of RM1 million per company.
SMEs and MTCs that have been undertaking manufacturing or services activities in the past 12 months are eligible to be considered for SAG. To qualify for the incentive, the automation machine, equipment or software purchased must be used directly in the company’s value chain to improve their productivity and efficiency. Improvements will be assessed on a range of criteria such as reduction of unskilled workers, man-hours, defect rate as well as the increase in production volume. Interested stakeholders are able to submit their application for SAG to MIDA from 1 November 2020 to 31 December 2021.
Furthermore, MIDA, in collaboration with selected panel banks, will be organizing an Acceleration Programme for Smart Automation Grant to create awareness and provide financial guidance to companies on automation and digitalization through a series of simulation training and evaluation sessions.
Source: MIDA
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