Ambank inks MoU with MIDA on Smart Automation grant for SME, MTCs
18 Jan 2021
AmBank Group has inked a memorandum of understanding (MoU) with the Malaysian Investment Development Authority (MIDA) to offer small and medium enterprises (SME) and mid-tier companies (MTC) the opportunity to be part of MIDA’s smart automation grant (SAG).
The partnership is aimed to help companies refine their knowledge particularly SMEs and MTCs on matters relating to automation and digitalisation.
AmBank will be undertaking a series of simulation trainings and classroom sessions that are specifically designed to help companies identify business pain points and prioritise automation and digitalisation solutions.
MIDA chief executive officer Dato’ Azman Mahmud said the collaboration between MIDA and AmBank complements the agency’s goal to create awareness and financial guidance to assist SMEs and MTCs to automate and digitalise their operations and production process.
“This will be realised toward the co-implementation of the smart automation grant and the ongoing AmBank BizRACE programme,” he said in a statement today.
He also said that in understanding the needs of investors, SAG will not only improve Malaysia’s industrial competitiveness and capabilities but also reduce reliance on low-skilled foreign workers while creating new job opportunities in high value-added sectors.
“We trust that this partnership will result in driving Malaysia’s businesses and accelerate economic growth towards continuous adoption of automation and digitalisation,” Azman said.
The SAG initiative is part of the RM100 million allocation approved within the National Economic Recovery Plan or PENJANA, launched by the Senior Minister and Minister of
International Trade and Industry (MITI) on 2 December 2020.
This grant will be 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.
AmBank Group group chief executive officer Dato’ Sulaiman Mohd Tahir said Ambank is he first bank to collaborate with MIDA to provide much needed assistance to SMEs and MTCs.
“This assistance is particularly timely given the challenging
business landscape we are faced with today. Through this collaboration, we are able to share our expertise and resources with these companies to help them future-proof their businesses.
“This initiative will be part of the AmBank BizRACE programme to develop our clients in the key areas of IR 4.0, Digitalisation and the halal industry, which is in line with AmBank’s sustainability agenda,” he said.
Sulaiman said AmBank believe in going beyond financing to help its customers compete better.
The AmBank BizRACE programme provides a platform for SMEs to have a head start in driving new revenue streams, new products, upskilling their talent and driving efficiency by adopting digital and automation solutions, he said.
“This is part of our push to help SMEs reset and revive their businesses that have been impacted by the COVID-19 pandemic,” he said.
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 through this grant must be utilised directly in the company’s value chain to improve their productivity and efficiency.
Improvements will be assessed on a range of criteria such as the reduction of unskilled workers, man-hours, defect rate as well as the increase in production volume.
Interested stakeholders can submit their application to the various industries and services divisions in MIDA.