RM20M GOVT ALLOCATION FOR SMES
New fund to encourage adoption of automation, green technology among industry players
THE government, through the Malaysian Rubber Export Promotion Council (MREPC), has allocated RM20 million under a new automation and green technology fund to help industry players, especially small and medium enterprises (SMEs).
The fund will help SMEs in the rubber sector to embrace the Fourth Industrial Revolution (Industry 4.0).
MREPC board of trustees chairman Chik Chan Chee said since its initial commencement earlier this year, 19 applications had been received, consisting of 12 for automation and seven for green technology projects.
Five applications have been approved thus far with more expected soon.
“The fund will provide matching grants
of up to 50 per cent of the company’s project cost, or up to a maximum of RM1 million per company,” said Chik.
“We hope this fund will assist SMEs in investing in green technology and automation to deal with rising labour and production costs,” he added.
The five applicants received their certificate of awards from Primary Industries Minister Teresa Kok, here, yesterday.
Chik said MRECP would continue to support the rubber industry and help boost its competitiveness.
The rubber industry, which consists of more than 300 rubber product manufacturers, posted RM23.7 billion in total exports last year, which constituted 2.4 per cent of the country’s total exports.
Meanwhile, Kok said the fund would also address the need to use renewable energy as the energy cost component of the manufacturing processes could be as high as 20 per cent.