Smart Automation Grant (SAG) to Enable Future-Proofing of Local Businesses - MIDA | Malaysian Investment Development Authority
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Smart Automation Grant (SAG) to Enable Future-Proofing of Local Businesses

Smart Automation Grant (SAG) to Enable Future-Proofing of Local Businesses

Kuala Lumpur, 2 December 2020 – The Ministry of International Trade and Industry (MITI) today launched the Smart Automation Grant (SAG) aimed at encouraging the adoption of automation for industry players, particularly local manufacturers and service providers.

YB Dato’ Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry said, “The Government, through the Malaysian Investment Development Authority (MIDA) is committed in driving Malaysia’s industry and businesses towards automation and digitalisation. It goes beyond having the right solution providers and talents in place; it is also about ensuring that the need for accessible financial aid is met.

The Smart Automation Grant is timely to boost strategic domestic investments that will assist and incentivise the small and medium enterprises (SMEs) and mid-tier Companies (MTCs) to future-proof their operations, production and trade channels,” he added.

This SAG initiative is part of the RM100 million allocation within the National Economic Recovery Plan or PENJANA, which was announced in June 2020. This grant will be awarded on a matching basis or 50 per cent of total eligible expenditures, up to a maximum grant cap of RM1 million per company.

SMEs and MTCs that have been undertaking manufacturing or services activities in the past 12 months are eligible to be considered for SAG. To qualify for the incentive, the automation machine, equipment or software purchased must be used directly in the company’s value chain to improve their productivity and efficiency. Improvements will be assessed on a range of criteria such as reduction of unskilled workers, man-hours, defect rate as well as the increase in production volume. Interested stakeholders are able to submit their application for SAG to MIDA from 1 November 2020 to 31 December 2021.

“The Government is optimistic that this grant will see to a more robust uptake of automation and digitalisation efforts in the country to meet the technologically evolving global supply chain today. SAG will not only improve Malaysia’s industrial competitiveness and capabilities but also reduce our reliance on low-skilled foreign workers while creating new job opportunities in high value-added sectors,” said YB Dato’ Seri Mohamed Azmin Ali.

Furthermore, MIDA, in collaboration with selected panel banks, will be organising an Acceleration Programme for Smart Automation Grant to create awareness and provide financial guidance to companies on automation and digitalisation through a series of simulation training and evaluation sessions.


About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 20 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit and follow us on Twitter, Instagram, Facebook, LinkedIn and YouTube channel.

For more information, please contact:

Ms. Masni Muhammad 

Director, Strategic Planning and Policy Advocacy (Manufacturing) Division, MIDA 

Email: [email protected] | DL: +603 2267 6786