In order to encourage more small and medium-sized enterprises (SMEs) to adopt digitalisation in their day-to-day business operations, the Malaysian government has introduced the SME Business Digitalisation Grant. The favourable provisions for digital adoption set out in the 2020 Budget show that the government is actively encouraging more local businesses to move forward and digitalise.
The government will be providing a 50% matching grant of up to RM5,000 per company, and this matching grant will be worth up to RM500 million over the course of 5 years. However, the grant is only limited to the first 100,000 SMEs applications.
The grant enabling SMEs to digitalise was formed through a strategic collaboration effort from the government through the Ministry of Finance (MOF), Bank Simpanan Nasional, SME Bank and Malaysia Digital Economy Corporation (MDEC). There are a total of 7 Digitalisation Areas to be adopted by SMEs which are:
7 Digitalisation Areas
- Digital Marketing and Sales
- Electronic Point of Sales (e-POS) System
- Human Resource Payroll System (HR) / Customer Relationship Management (CRM)
- Remote Working
- Enterprise Resource Planning (ERP) / Accounting & Tax
As the grant is only made available for the first 100,000 SMEs, there are set criteria to be qualified for the SME Business Digitalisation Grant, including:
- The company applying is at least 60% owned by Malaysian.
- The company is registered under the relevant laws of Malaysia.
- The SME has been in operation for a minimum of one (1) year.
- In one (1) year of operation, the company is required to have a minimum annual sales turnover of RM100,000.
- Companies in operation for more than 2 years are required to have a minimum annual sales of RM 50,000 over the past consecutive 2 years.
In November 2020, a total of 5,634 applications from SMEs have been accepted for the SME Business Digitalisation Grant initiative. According to Communications and Multimedia Minister Datuk Saifuddin Abdullah, RM14.6 million matching grants had been approved to 5,087 eligible SMEs, making up 90% of the total number of applications received. If you, too, are interested in applying for the grant, here is how you can apply:
How to apply?
- The company must first contact and appoint one or more panels of Service Providers to perform any of the digitalisation services available (maximum of 3 panels).
- The company must complete and submit the application form together with the required supporting documents to any of the Bank’s branches; OR applicants can choose to submit the application with supporting documents to any TSPs (like FEDELIS) for submission to the nearest Bank Simpanan Nasional.
- Once the application is approved, the company needs to pay the difference of the total invoice after deducting the subsidised amount granted from the Initiative and to provide proof of payment to any of the Bank’s branches.
- Once proof of payment is provided, subject to the total invoice amount, the Bank will make a direct 50% payment of the total invoice amount or up to RM5,000 to the Service Provider in one lump sum payment or in stages based on the Bank’s discretion.
- Completed SME Digitalisation Initiative Application Form
- Copy of Identity Card or Passport of Director(s) / Partner(s) / Proprietor(s), whichever is applicable.
- Copy of business registration licenses (SSM, Form A/B, Form 24 & 49 and M&A or any similar forms under the Companies Act 2016).
- Audited financial statement for the last financial year and the latest management account or evidence of sales turnover (if any).
- Company’s bank statement for the last two (2) months.
- Company’s profile (if any).
- Invoice/billing and service agreement from an authorised vendor listed by MDEC.
FEDELIS is an MDEC Technology Solution Partner!
In order for your company to be eligible for the grant, you need to first engage with approved Technology Solution Providers (TSP). TSPs are partners to the National Digital Adoption Agenda, and these chosen homegrown tech companies will be assisting local SMEs in their digitalisation efforts through the SME Business Digitalisation Grant. And we are excited to announce that FEDELIS is one of the many TSPs! Quickly apply for the grant and start enjoying our products and services!
We are an award-winning cloud solutions provider backed by years of experience. Focusing primarily on Microsoft’s Office365 and related technologies, we strive to carry on the business of System Integrator Provider, rendering all Information Communication Technology (ICT) related services. FEDELIS originated from the root word Fidelis—Latin for faithful, loyal and reliable. We run on these virtues, be it towards our customers or our vendors and suppliers.
Although 2020 has been a challenging year for many, we see it as an opportunity for growth and development. In a way, the Covid-19 pandemic has made us realise the importance of digitalisation and how technology is the future. To put it simply, you either go digital or go home.
For more information on the SME Business Digitalisation Grant, get in touch with us now!
Stay tuned for our upcoming article! We will provide a more detailed explanation on our solutions to help you digitalise.