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SAG MADANI PRE-APPLICATION CHECKLIST-GRANT-MALAYSIA

Writer: Adeeb Ul Mulk
Adeeb Ul Mulk
2 hours ago
3 min read

1. Eligibility Check

  • Confirm the company is incorporated under the Companies Act 1965/2016.

  • Verify effective equity is at least 51% Malaysian-owned.

  • Confirm the company has operated for at least 3 years.

  • Check that you hold a valid Business Licence from your local authority.

  • Confirm your sector is eligible:

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  • Manufacturing under the Industrial Co-ordination Act 1975, or

  • Regulated services: hotel and tourism, private healthcare, private education, oil and gas, global hubs, R&D, logistics, shipbuilding and repair, green tech, sterilisation, digital infrastructure, aerospace MRO

  • Hold a Manufacturing Licence or ML exemption letter (manufacturers), or an agency licence, permit, or support letter (services).

  • Confirm no prior IIF, MIDA/MDEC SAG, or DISF approval within the last 2 years after final payment.

  • Confirm no related company received any of those grants.

2. MSME Size Check

  • Micro: Turnover below RM300,000 or fewer than 5 full-time staff.

  • Manufacturing SME: Turnover up to RM50M or up to 200 staff.

  • Services SME: Turnover up to RM20M or up to 75 staff.

  • Confirm no listed company, MNC, large firm, GLC, MKD, or state entity holds more than 20%.

  • Verify the company is registered with SSM.

3. Project Fit Check

  • Choose new automation machines, equipment, or software only.

  • Confirm each item is used directly in your manufacturing or services value chain.

  • Remove rentals, second-hand, or refurbished items from the claim.

  • Exclude land, buildings, vehicles, furniture, renovation, and maintenance.

  • Exclude wages, insurance, taxes, legal fees, utilities, and marketing.

  • Exclude general-purpose computers, peripherals, and phones.

  • Plan to keep all funded assets for the full grant period.

4. Software and SaaS Eligibility Check

  • Confirm the software is embedded in equipment or performs a specific core function.

  • Prefer perpetual licences over monthly or yearly subscriptions.

  • Treat SaaS subscriptions as likely ineligible (similar to rental).

  • Fund subscription tools separately from your grant claim.

  • Ask MIDA to confirm software eligibility before paying the fee.

5. Committed Deliverables Check (Meet at Least Two)

  • Record your baseline figures before any purchase.

  • Select at least two deliverables your project clearly affects:

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  • More Malaysian skilled workers earning RM5,000+/month

  • Fewer man-hours per item or batch (manufacturing)

  • Higher daily production volume (manufacturing)

  • Lower defect rate (manufacturing)

  • More services delivered per day (services)

  • Fewer man-hours per service delivered (services)

  • Set realistic, measurable targets using MIDA's before/after formulas.

  • Set up records: timesheets, production logs, QC reports, payroll.

6. Vendor Selection Check

  • Get itemised quotations separating hardware, software, installation, training, and subscriptions.

  • Mark which line items you will claim and which you'll self-fund.

  • Confirm delivery and installation fit within 18 months.

  • Ask for performance data from similar local installations.

  • Confirm the system can export reports for your deliverables.

  • Reject vendors promising "guaranteed approval" or demanding early payment.

7. Cashflow Readiness Check

  • Calculate your 30% share of eligible costs.

  • Confirm you can fund up to 100% upfront until reimbursement.

  • Explore hire purchase with a Bank Negara-licensed institution.

  • Budget for external auditor certification costs.

  • Budget for ineligible costs like installation, training, and taxes.

  • Note: reaching the RM1M cap requires about RM1.43M in eligible costs.

8. Document Checklist

  • Online application form (InvestMalaysia portal)

  • Summary of latest 3 years' audited financial statements

  • Latest SSM company profile (e-Info)

  • Business Licence copy

  • Manufacturing Licence/exemption letter or services licence/permit/support letter

  • Production line diagram showing proposed additions

  • Vendor quotations for all equipment and software

  • Supporting project documents (if applicable)

9. Application Process Steps

  1. Confirm an open application window with MIDA.

  2. Submit online and pay the RM3,000 non-refundable fee.

  3. Receive the Acknowledgement Letter. Your 18-month period starts here.

  4. Do not spend on project items before this letter.

  5. Await the Approval Committee's final decision.

  6. Return the signed, stamped Grant Agreement within 30 days of the offer.

  7. Buy, install, and run the approved equipment.

  8. Submit your claim within 18 months. No extensions are allowed.

  9. Pass MIDA's audit and JPPG approval to receive payment.

 
 
 

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