AMBANK has inked a memorandum of understanding (MoU) with the Malaysian Investment Development Authority (MIDA) to offer small and medium enterprises (SMEs) and mid-tier companies (MTCs) the opportunity to be part of MIDA’s Smart Automation Grant (SAG).
This partnership is aimed at help companies refine their knowledge particularly SMEs and MTCs on matters relating to automation and digitalisation.
AmBank will be undertaking a series of simulation trainings and classroom sessions that are specifically designed to help companies identify business pain points and prioritise automation and digitalisation solutions.
The SAG initiative is part of the RM100 mil allocation approved within the National Economic Recovery Plan or PENJANA, launched by the Senior Minister and Minister 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% of total eligible expenditures, up to a maximum grant cap of RM1 mil per company.
According to MIDA CEO Datuk Azman Mahmud, the collaboration between MIDA and AmBank complements the goal to create awareness and financial guidance to assist SMEs and MTCs to automate and digitalise their operations and production process.
“This will be realised toward the co-implementation of the Smart Automation Grant and the ongoing AmBank BizRACE programme,” Azman noted.
He also added: “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.”
Meanwhile, AmBank Group CEO Datuk Sulaiman Mohd Tahir believed that the assistance is particularly timely given the challenging business landscape businesses, especially SMEs and MTS, are faced with today.
“Through this collaboration, we are able to share our expertise and resources with these companies to help them future-proof their businesses,” Sulaiman said.
“The AmBank BizRACE programme provides 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 concluded.
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 this grant must be utilised directly in the company’s value chain to improve their productivity and efficiency.
Improvements will 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. – Jan 18, 2021
