AmBank offers up to RM1 mln MIDA SAG for SMEs, MTCs

KUALA LUMPUR: 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.