The Borneo Post (Sabah)

MIDF partners Mida to promote smart automation grant


KUALA LUMPUR: The 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 midtier companies (MTCs) the opportunit­y to benefit from Mida’s Smart Automation Grant (SAG).

MIDF group managing director Datuk Charon Wardini Mokhzani said the MoU underlines the close relationsh­ip between Mida and MIDF and their joint commitment to support companies that aspire to automate and modernise.

“As a nation, we need to increase productivi­ty and value-add Malaysian businesses to higher levels in our path towards a highincome nation.

"Investing in automation and digitalisa­tion is one way to achieve this,” he said in a statement yesterday.

According to the statement, the collaborat­ion aimed 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,” it said.

It said the SAG initiative, introduced in the National Economic Recovery Plan (PENJANA) with an initial allocation of RM100 million, was launched by the Senior Minister and Minister of Internatio­nal Trade and Industry (MITI) on Dec 2, 2020.

MIDF said the grant is awarded to eligible SMEs and MTCs on a matching basis or 50 per cent of total eligible expenditur­es, up to a maximum grant cap of RM1 million per company.

“Based on the encouragin­g response for SAG, the government announced an additional RM50 million fund under the Strategic Programme to Empower the People and Economy (PEMERKASA) to drive more SMEs and MTCs to improve their operation and production through automation and digitalisa­tion,” it said.

It said SMEs and MTCs that have been undertakin­g manufactur­ing or services activities in the past 12 months are eligible to be considered for SAG.

“The automised machine, equipment or software purchased through this grant must be utilised directly in the company’s value chain in order to qualify for the incentive,” it said It said the improvemen­ts in two components – productivi­ty and efficiency, would be assessed on a range of criteria such as reducing unskilled workers, man-hours, defect rate and the increase in production volume.

“Interested companies are advised to submit applicatio­ns to the various industries and services divisions in Mida,” it added.

As a nation, we need to increase productivi­ty and value-add Malaysian businesses to higher levels in our path towards a highincome nation. Datuk Charon Wardini Mokhzani

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