Govt awards RM6.2 mil Smart Automation Grant to 66 SMEs, mid-tier companies
04 Feb 2021
KUALA LUMPUR (Feb 4): A total of 66 small and medium-sized enterprises (SMEs) and mid-tier companies have been awarded the Government’s National Economic Recovery Plan (PENJANA) 2020 #SMART Automation Grant (SAG).
In a statement today, the Malaysia Digital Economy Corporation (MDEC) said the grant, involving a total of RM6.2 million, was awarded to registered businesses in primarily traditional or non-technology activities from the services sector.
MDEC chief marketing officer and head of digital investments and brand Raymond Siva said the outcome-based matching grant will assist these companies to accelerate automation and achieve productive results, such as increased revenues; savings in business costs; reduction of process time cycle and man-hours spent; and creating new sources of growth.
“Each successful applicant had been allocated up to 50 per cent of their total project cost, subject to a limit of RM200,000, or whichever is the lowest, through this matching grant.
“This means the successful applicants will pay at least 50 per cent of the total cost of the digitalisation project and, subsequently, receive the remaining amount based on the achievements of the agreed milestone deliverables,” he said.
MDEC said the SAG, which was launched in July 2020, had been conceptualised as a matching grant for companies in the services sector to spur them towards automating their business processes and pursue full digitalisation.
“The grant allocated from the 2020 PENJANA initiative aims to drive these businesses towards kickstarting the implementation of digital processes and the use of technology tools that will automate their business operations,” it said.
MDEC noted that all of the 66 approved SAG recipients come from all over Malaysia, including service providers from the wholesale and retail trade (30 per cent); general services (24 per cent); and professional services (14 per cent).
The other sectors consist of transportation and storage, tourism, education, healthcare, food and beverage, financial and insurance, and real estate and construction.
Since its unveiling, this initiative solely focused on enabling digital adoption among businesses, which is a central part of MDEC’s three strategic framework pillars, namely Digital Jobs, Digital Businesses and Digital Investments. The agency continues to set the foundation for SMEs and mid-tier companies to thrive in the Fourth Industrial Revolution era by focusing on empowering businesses at every level and in all sectors.