It’s not exactly easy to find information on SME Grants in Malaysia. Mostly because it is rare for these grants to be marketed online. Another factor is that applying for the grant can be a long and strenuous process, approval can be brutal too. However, all good things are worth the wait.
Let’s take a look at a few of these specialised SME Grants that your SME might need to grow your business especially for service line.
1. Business Scale-Up Programme (Biz-Up Programme)
Business Scale-Up Programme (Biz-Up Programme) is an integrated assistance programme for the purpose of enhancing the capabilities of SMEs via business advisory services and financial support. Acting as an advisory board, this programme is aimed at helping SMEs scale-up, to grow and expand both locally and globally.
Offered by the SME Corporation Malaysia (SME Corp), the grant given goes up to a maximum of RM400,000.
This SME Corp grant is only applicable for a selected number of industries. If your SME is part of Industry 4.0, Automation, Digitalisation, Logistics, Retail, Wholesale, Smart Cities or Agarwood then you are indeed the target market for this grant.
Specifics for this grant also include the breakdown of what your grant gets you. Depending on which grant amount you apply for up to RM400,000, the coverage varies.
Grant for RM400,000 Covers costs for machinery, CRMs, Front-end to Back-end Systems, Automation Systems, Retrofitting and Warehousing systems. Definitely the grant for Online Business SMEs.
Grant for RM200,000 The grant covers premise renovation (for certification requirement only), advertising and promotional budgets, and finally product packaging. It’s a better option for SMEs involved in the supply chain industry.
Grant for RM50,000 This final option of an SME grant for RM50,000 is only for e-Commerce businesses.
Biz-Up Programme has a limited application season, which means they open applications at specific times during the year. Luckily enough, if you wish to apply now the closing date for application is 31st of July 2020. The next application window is from the 1st to the 31st of October 2020.
To be eligible for this grant you will need to fulfil the following criteria.
At least 60% of Malaysian equity
Fulfil SME definition
Business license from the Local Authority
At least 6 months in operation and full-time business operator
Has undergone or willing to undergo SCORE / M-CORE assessment
NOT ELIGIBLE for Public Listed Companies in the Main Board / Secondary Markets / Large Firms, MNCs, GLCs, MoF Inc. & State-Owned Enterprises Companies AND their subsidiaries.
Annual sales turnover exceeds RM300,000 per year
Also, be informed there is usually an administrative fee of RM3,000 to be paid by the SME upon acceptance of the grant offer. However, due to the Covid-19 outbreak, this fee has been WAIVED until further notice.
2. Smart Automation Grant (SAG) Penjana
Offered by the Malaysia Digital Economy Corporation (MDEC) this tech-centric fund plays a critical role in the advancement and digitalisation of Malaysian SMEs. With this programme, SMEs will be able to kickstart their digital adoption journey and continue to strive in the online world we live in today.
SAG is a specific matching grant that only allows for the grant to be used for services that will help with your business automation and platform upgrading. The grant finances 50% or up to RM200,000 of the project costs upon successful application. As mentioned, some grants are given with specific intention, Smart Automation Grant has an expected outcome from your SME.
Some of the expected outcomes are an increase in revenue, savings in your SME business costs, and the reduction of man-hours, amongst other things. So remember to keep that in mind when completing your application.
To be eligible for this grant, you will need to fulfil the following criteria.
Incorporated in Malaysia under the Companies Act 1965 of the Companies Act 2016.
Has an issued and paid-up capital of at least RM50,000
Has a minimum of 51% equity held by Malaysian(s)
Not be the subject of a liquidation/winding-up order
Has no going concern issue and/or not dormant and
Has entered into a written contract or a committed arrangement technology partner for the development and implementation of the project
If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s
To apply, you can check out MDEC’s site and make your application there.
In closing, there are many more SME Grants out there available to Malaysian SMEs, so if you are an SME looking to grow, make sure you do your research. That being said, we at Funding Societies Malaysia also support growing Malaysian SMEs and businesses.
Funding Societies is Malaysia’s leading P2P Financing platform, with thousands of investors waiting to help grow Malaysian SMEs and our local businesses. We offer financing up to RM1 million over a range of industries. Check out the links below, if you want to learn more about how we can help boost your SME via P2P Financing.
We hope you found this article insightful, and wish you good luck on your business journey!