MIDF, Mida join forces to assist automation, digitalisation via grant

Malaysian Industrial Development Finance Bhd (MIDF) has inked a memorandum of understanding (MoU) with the Malaysian Investment Development Authority (Mida) to offer the latter’s Smart Automation Grant (SAG) to small and medium enterprises (SMEs) and mid-tier companies.

The grant was introduced in the national economic recovery plan (Penjana) with an initial allocation of RM100 million, awarding eligible applicants on a matching basis or 50% of eligible expenditure with a maximum cap of RM1 million per company.

Due to encouraging response, the government has allocated an additional

RM50 million under the Strategic Programme to Empower the People and Economy.

Under the partnership, the agency will provide grants to qualified companies while the financial institution will offer financing for the remaining expenses.

Additionally, qualified companies already enjoying financing facilities from MIDF may lower their financial commitment upon successful application for SAG.

Mida deputy CEO Ahmad Khairuddin Abdul Rahim commented that through the agency, the government is committed to assist Malaysia’s businesses towards higher productivity and market competitiveness.

He explained the objective of SAG is to reassure SMEs and mid-tier companies in the manufacturing and services sectors to automate and digitalise their operations and production, to spur their competitiveness and reduce the reliance of foreign workers and to create new job opportunities in high valueadded sectors.

MIDF group managing director Datuk Charon Wardini Mokhzani stated the MoU underlines both parties’ commitment to support companies that aspire to automate and modernise.

Additionally, SMEs and mid-tier companies that have been undertaking manufacturing or services activities in the past 12 months are eligible to be considered for the grant.