15 Mar What exactly is the SME Digitalisation Grant?
The SME (Small and Medium Enterprise) Digitalisation Initiative is a new grant programme designed to help SMEs implement digitalization in their company operations.
Over a five-year term, a 50 percent matching grant of up to RM5,000.00 per SME would be offered for the subscription of digital services that will increase their productivity and competitiveness.
The following are the grant specifics:
Grant: This matching grant is limited to one (1) application per SME; however, SMEs may apply for up to three (3) digital services with one (1) or more MDEC-approved service providers (“Service Provider”).
Availability: The government will provide this funding facility for five (5) years, commencing on February 17, 2020, or until 100,000 applications are received, whichever comes first.
There are seven (7) different types of digitalisation services accessible, which are as follows:
- POS (Point of Sale) System (e-POS)
- Customer Relationship Management / Human Resource Payroll System (CRM)
- Sales / Digital Marketing – SEO / Google Ads / Web Design
- Accounting and Taxation / Enterprise Resource Planning (ERP)
- Working from Home
WHO CAN APPLY FOR THE SME DIGITALISATION GRANT PROGRAM?
Small and medium-sized enterprises (SMEs) that meet the following requirements are eligible and encouraged to apply:
- Malaysians must own at least 60 percent of the SME.
- The SME must be registered and classed as such under Malaysian rules.
- The SME has been in business for at least one (1) year.
- For SMEs that have been in operation for one (1) year, an annual minimum sales turnover of RM100,000.00 is required for the first year; and
- For SMEs that have been in operation for two (2) years or longer, the SME must have a minimum sales turnover of RM50,000.00 for the previous two (2) years.
HOW DO I APPLY FOR THE SMALL BUSINESS DIGITALIZATION GRANT PROGRAM?
- To undertake any of the digitization services available, the SME must contact and hire one or more panel of Service Providers listed by MDEC (maximum of 3 digital services).
- The SME must complete and submit the application form to the Service Provider, along with the needed papers.
- The application form and accompanying documentation must be submitted to the Bank by the Service Provider.
- Once the SME’s application is accepted, the SME is responsible for paying the difference in the total invoice after subtracting the subsidized amount given by the Initiative for each digitisation service to the Service Provider, subject to the total invoice amount.
- The Bank will then make a direct 50% payment of the whole invoice amount, or up to RM5,000.00, to the Service Provider, either in one lump sum payment or in phases at the Bank’s discretion.
- For detailed application information, visit HERE
For more information about sme digitalisation grant, please visit https://smegrant.nuweb.com.my