Incentives and Grant for Automation Project in Malaysia

The future of economic growth relies heavily on the competitiveness and the readiness of the country towards the changes in the new era. With this, it’s vital the industrial players and business owners work out the continuous improvement plan and implant the R&D activities in their company operation routines. However, it’s not easy for regular SME to invest in the R&D activities, due to it’s high initial investment cost, and the uncertainties of the R&D outcomes. 

Understanding the challenges faced by the business owners, Malaysian government has launched and subsidizes numbers of R&D activities through various agencies. These initiatives have benefited thousands of SMEs and startups to nurture their idea and make it into reality. In the following articles we listed down a number of them for your quick reference:

This article was published on 20 September 2021, and the following information is valid on the date of publication. For more accurate and up-to-date information, please always check with the respective person in charge from the correspondence agencies. 

Cradle Fund

Cradle’s mission is to create an ecosystem that supports a strong and innovative business-building environment for technology entrepreneurs and innovators through the Cradle Investment Program (CIP). Established in 2003 with a mandate to fund high-calibre technology, Cradle has supported more than 1000 Malaysian technology-based companies across various sectors and has the highest commercialization rate among funding agencies in the country. DF Automation and Robotics is honourable to be one of the recipients of Cradle Fund back to the early day of its establishment. Cradle’s program offerings are not limited to financial assistance alone, but also include commercialization support and various other value-added services to accelerate growth. DF Automation and Robotics have gained a lot and grown tremendously after being the family of Cradle Fund. Up-to-date, Cradle provides 2 types of funding scheme, namely CIP IGNITE and CIP ACCELERATE. CIP IGNITE have 2 categories, which are CIP IGNITE (i), mainly for Deep Tech Company with Technology Readiness Level 5 to 7, where CIP IGNITE (ii) is for non Deep Tech Company with Technology Readiness Level 8 to 9. Any company that would like to apply for CIP IGNITE (ii) needs to have a market validated product via paying customers. CIP IGNITE provides conditional grants up to RM500,000.00 for validation and commercialization of systems and technology.

CIP ACCELERATE is a conditional grant up to RM2 Million for commercialization of proven systems and technology. CIP ACCELERATE however is only for Deep Tech Company

 

The funding focus is on digital/ICT, Technology Drivers, Socioeconomic Drivers, etc. For more information about Cradle fund, the application process, please visit the following link:

 

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CIP IGNITE & CIP ACCELERATE Funding schemes.

 

This is a specific matching grant from MDEC for companies to 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. A critical part of Pelan Jana Semula Ekonomi Negara (Penjana), the Smart Automation Grant (SAG) is a matching grant for general services and professional services companies. 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

 

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Smart Automation Grant (SAG)

 

Each successful applicant 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. The project duration given is 4 months whereas project implementation to digitalise the business operation will only run for up to 1 month and post monitoring to achieve project outcomes will run for 3 months. There are certain criteria in order for company to apply the grant, such as the company must be incorporated in Malaysia, with the paid up capital of at least RM50,000. The company need to have a minimum of 51% equity held by Malaysian. For more information about the eligibility criteria of the grant, please visit mdec.my/sag.

 

The Industry4WRD Readiness Assessment Intervention Programme or in short known as ‘Industry4WRD Intervention Fund’ was launched by the Government in Budget 2019. It is a financial support facility for Malaysian SMEs in the manufacturing and related services sectors to embrace Industry 4.0. This Fund is eligible for all SMEs which have completed the government-funded Industry4WRD Readiness Assessment (RA) programme. MITI has appointed MIDA as the Implementing Agency for the Industry4WRD Intervention Fund. The fund will be provided on a matching basis (70:30) based on eligible expenditures, up to a maximum grant of Ringgit Malaysia Five Hundred Thousand (RM500,000.00) only. Maximum 30% of the matching amount (70% of the total grant) will be provided upfront to the companies subject to the approval by the Intervention Fund Approval Committee at MITI, whereby the balance of the remaining grant will be on a reimbursable basis which will be deliberated at MIDA. This Fund is eligible for all SMEs in the manufacturing and related services sectors which have completed the government-funded Industry4WRD Readiness Assessment (RA) programme. Upon completion of the Industry4WRD RA, SMEs may apply for this Fund from MIDA. The application must be submitted not more than two (2) months after receiving the Industry4WRD RA report (date of approval letter issued by MPC).

 

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Industry4WRD Intervention Fund

 

The National Innovation and Technology (NTIS) Sandbox is a facility that enables researchers, innovators, start-ups and high-tech entrepreneurs to test products, services, business models and delivery mechanisms in a live environment. NTIS is open to all types of technology with priority given to the following technologies 5G / 6G, Sensor Technology, 4D / 5D printing, Advanced Materials, Advanced Intelligence System, Enhanced Analytics & Data Recovery, Bioscience Technology, Robotics, Artificial Technology, Dron and many more. The SME eligibilities are Malaysians or Malaysian-Owned Companies, Foreign companies – Joint Venture/merger of entities owned by Malaysians when the application is approved, Technology Availability Level (TRL) at level 6 (Commercial Ready Prototype) and above. Applicants who are interested in participating in the NTIS program must apply for the program through the website https://sandbox.gov.my/.

 

DF Automation and Robotics is honoured to be one of the recipients of NTIS Sandbox Grant for MCK19 project in the year of 2020. This project is an initiatives from MOSTI, HUKM and DF, to facilitate the robotic solution to help the frontliner during the pandemic outbreak. Following these activities, MCK19 has been deployed to MAEPS, HTA, Hospital Rehabitilasi Cheras Covid ward. Besides of MCK19, NTIS also supporting the development of UVC Disinfection robot for hospital and critical common area. 

 

The National Innovation and Technology (NTIS) Sandbox is a facility that enables researchers, innovators, start-ups and high-tech entrepreneurs to test products, services, business models and delivery mechanisms in a live environment. NTIS is open to all types of technology with priority given to the following technologies 5G / 6G, Sensor Technology, 4D / 5D printing, Advanced Materials, Advanced Intelligence System, Enhanced Analytics & Data Recovery, Bioscience Technology, Robotics, Artificial Technology, Dron and many more. The SME eligibilities are Malaysians or Malaysian-Owned Companies, Foreign companies – Joint Venture/merger of entities owned by Malaysians when the application is approved, Technology Availability Level (TRL) at level 6 (Commercial Ready Prototype) and above. Applicants who are interested in participating in the NTIS program must apply for the program through the website https://sandbox.gov.my/.

 

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. A critical part of Pelan Jana Semula Ekonomi Negara (Penjana), the Smart Automation Grant (SAG) is a matching grant for services companies. SMEs 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 normal. Each successful applicant 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. The project duration given is 4 months whereas project implementation to digitalise the business operation will only run for up to 1 month and post monitoring to achieve project outcomes will run for 3 months. The SME eligibilities are Issued and paid-up capital of at least RM50,000, Registered business activities, primarily traditional or non-technology activities from the service sector, Not a liquidation/winding up/bankruptcy order, No going concern issue and/or not dorman, Has a written contract or a committed arrangement with Technology Solution Partner for the development of the project and  If received any MDEC/government grant: must demonstrate the completion and success of the funded project/s.This matching grant can be applied through Specific digitalization programmes under MDEC’s business digital adoption division or direct online application at  mdec.my/sag.