AmBank offers MIDA SAG grant for SME, MTC
18 Jan 2021
AmBank Group is offering up to RM1 million grant to small and medium enterprises (SMEs) and mid-tier companies (MTCs) via the Malaysian Investment Development Authority’s (MIDA) Smart Automation Grant (SAG).
In a joint statement today, MIDA and AmBank said the SAG initiative is part of the RM100 million allocation approved within the National Economic Recovery Plan, or PENJANA, launched by the Ministry of International Trade and Industry (MITI) on Dec 2, 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,” they 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 the grant must be utilised directly in the company’s value chain to improve their productivity and efficiency.
Improvements would 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.
The parties earlier inked a memorandum of understanding (MoU) to help companies particularly SMEs and MTCs refine their knowledge on matters relating to automation and digitalisation.
AmBank would be undertaking a series of simulation training and classroom sessions that are specifically designed to help companies identify business pain points and prioritise automation and digitalisation solutions.
MIDA’s chief executive officer (CEO) Datuk Azman Mahmud said the collaboration complements the agency’s goal to create awareness and financial guidance to assist SMEs and MTCs in automating and digitalising their operations and production process.
“Understanding the needs of investors, 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.
“We trust that this partnership will result in driving Malaysia’s businesses and accelerate economic growth towards continuous adoption of automation and digitalisation,” he said.
Meanwhile, AmBank group CEO Datuk Sulaiman Mohd Tahir said the bank was pleased to be the first bank to collaborate with MIDA in providing the much-needed assistance to SMEs and MTCs which was particularly timely given the current challenging business landscape.
“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 Industrial Revolution (IR) 4.0, digitalisation and the halal industry, which is in line with AmBank’s sustainability agenda,” he said.
He said the bank believed in going beyond financing to help its customers compete better and the AmBank BizRACE programme provided 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.
“This is part of our push to help SMEs reset and revive their businesses that have been impacted by the COVID-19 pandemic,” he added.