smart automation grant (sAG)

PROPELLING SME DIGITALISATION FOR THE SERVICES INDUSTRY

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

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 Smart Automation Grant (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.

We take our time to really understand your needs and provides you with options that work best for present and future.

EXPECTED PROJECT OUTCOMES

Increase in revenue

Saving 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.

Businesses in the service sector that qualify include the following:

  • Retail
  • Wholesale
  • Food and Beverages
  • Tourism
  • Logistics
  • Transportation
  • Education
  • Healthcare
  • Real Estate
  • Professional and Financial Services

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.

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..

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);

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.