Smart Automation Grant (SAG): Boost Your Business with Government Support
The SAG was introduced under the MADANI Economy initiatives in August 2023 with the main objective to help businesses automate and digitalise their operations, in order to boost their productivity, efficiency and competitiveness.
The SAG is specifically aimed at small and medium enterprises (SMEs) and mid-tier companies in the manufacturing and services sectors. These businesses are often the backbone of the Malaysian economy, but they often face challenges in adopting new technologies due to limited resources and expertise. The SAG provides financial support to businesses to help them overcome these challenges and invest in smart automation solutions. This can include hardware and software costs, consultancy and training costs and project management costs.
The SAG is also designed to promote the adoption of specific smart automation technologies, such as robotics, artificial intelligence and the Internet of Things (IoT). These technologies are transforming the way businesses operate, and the SAG can help Malaysian businesses to stay ahead of the curve.
The key feature of the SAG is that it is a matching grant with a matching basis of 70:30 based on eligible expenditures, with a maximum grant of Ringgit Malaysia One Million (RM1,000,000) per company.
Eligible Applicants
In order to be eligible for the SAG, businesses must:
- Be incorporated under Companies Act, 1965/2016
- Have equity ownership of at least 51% Malaysian
- Possess a valid Business License from a local authority
- Engage in the following activities:
- Manufacturing activity in compliance with the Industrial Co-ordination Act, 1975 and possess a valid Manufacturing License (ML) from the Ministry of International Trade and Industry (MITI) or a Confirmation Letter for exemption from ML from the Malaysian Investment Development Authority (MIDA); or
- Services activities that is governed/supervised by relevant ministries/ agencies in the following areas:
- Hotel & tourism;
- Private Healthcare;
- Private Education;
- Oil & Gas Services;
- Global Establishment - Principal Hub/Global Services Hub;
- R&D Activities;
- Logistics Services; or
- Other Services - Ship building, ship repair, Green technology project for business purpose, Sterilisation services, Digital infrastructure, Maintenance, repair & overhaul for aerospace.
In order to be eligible for the SAG, businesses must be:
- Eligible for Micro Small and Medium Enterprises:
- Micro Enterprises across all sectors: Sales turnover of less than RM300,000 or less than 5 full-time employees.
- SMEs for the following sectors:
Manufacturing Services - Sales turnover note exceeding RM50 million; or
- Employees not exceeding 200
- Sales turnover note exceeding RM20 million; or
- Employees not exceeding 75
- In operation for at least three (3) years
- Not been approved for the Industry4WRD Intervention Fund (IIF), Smart Automation Grant from MIDA and Malaysia Digital Economy Corporation (MDEC), and Domestic Investment Strategic Fund (DISF) for modernisation and upgrading of machine and equipment
- Meet at least two (2) of the Committed Deliverables (Appendix I) :
No. Committed Deliverables Sector 1. Increase of Malaysian skilled workers with a basic salary of minimum RM5,000.00 / month Manufacturing / Services 2. Reduction in Man Hours Manufacturing / Services 3. Increase in Production Volume Manufacturing 4. Quality Improvement (Reduction in Defect Rate) Manufacturing 5. Increase in Services Delivery / Sales Manufacturing / Services
6. Reduction of Man Hours in Delivering Services Manufacturing / Services
