grants and financial aid
TRANSCRIPT
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GRANTS AND
FINANCIAL AID
Prepared by Business Digital Adoption
#DigitalMalaysiaForward #LetsBuildTogether #digitaladoption
SUPPORTING SMES
7 Aug 2020
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MDEC has driven significant digital transformation and adoption across
the public and private sectors in Malaysia since our establishment in
1996. As the world moves rapidly into Fourth IR, MDEC will lead
Malaysia’s digital economy forward for the nation by boosting:
• Digitally-Skilled Malaysians
• Digitally-Powered Businesses
• Digital Investments
LEADING MALAYSIA’S
DIGITAL ECONOMY
FORWARD
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DIGITALLY-SKILLED
MALAYSIANS
Upskilling all Malaysians to
be digitally savvy and
contribute to the growth of
the leading digital economy
in ASEAN
DIGITALLY-POWERED
BUSINESSES
Clear end-to-end support for
business; Growing Startups,
Digitalising SMEs and
Globalising Scale Ups
DIGITAL INVESTMENTS
Recognised globally for;
• Animation, game
development & esports;
• Suitable location and
environment for Data
Centre;
• Malaysia is a proven global
test bed for ICT and digital
for nearly 23 years
MALAYSIA, HEART OF DIGITAL ASEANLeading the Digital Economy Forward
Towards Shared Prosperity for All Malaysians
*MDEC Focus Pillars
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DIGITALISATION INCREASES COMPETITIVENESS
Streamline
workflow
Reduce cost Automated
business
processes
Improved
revenue
Increased
customer
satisfaction or
employee
satisfaction
Sources (edited): Forbes , WalkMe and McKinsey
Digital adoption benefits from business standpoint:
- Faster, Cheaper & Better -
“Digitisation” is the process of changing from analog to digital form.
“Digitalisation” is when you use digital technologies to change a business model and provide new revenue and value-producing opportunities.
VS.
Terra Grill Langkawi Satay
• Bernama; 17 Apr; Evolusi Sate Terragrill Langkawi, dari tradisional ke digital• Focus Malaysia, 17 Apr; TerraGrill Langkawi satay evolves from traditional to digital• Sinar Harian, 17 Apr; Covid 19: Teringin sate? Dah boleh order secara online…
• Unable to provide seamless customer experience
• Cash transaction is becoming cumbersome and unsafe
Pain Points
• Enabled the company on cashless payment and digital marketing to be able to serve more digitally savvy tourists and shoppers
• Implementation of Electronic Point of Sales
Digital Solution Implemented
• Increase in revenue of 20%
• Reduction of process time cycle of 15%
Outcomes
Serai Group
Business Pain Points
• Manual sale data collection across all the outlets
• Resource intensive to collate data
Digital Solution Implemented
• Data Analytics (Sales, Spending Pattern, Payment Methods, etc)
Outcomes
• Improve efficiencies on consolidating financial reports.
• Reduce discrepancies & fraud preventionSource: UOB Finlab, Jom Transform Programme
Serai Group, a Malaysian family-owned foodand beverage (F&B) group with twelve outletsacross Kuala Lumpur, and has successfullycompleted the Jom Transform Programme(2019 edition).
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Start Your Digital Journey With Easy Steps
Advocacy
Create excitement and build awareness on
digital adoption
Workshops
Nurture and enable businesses to identify and
adopt digital opportunities
Digital Transformation Acceleration
Programme 2.0Provide structured approach for businesses to
adopt digital with outcome-based results
100 Go Digital DTAP 2.0
SME Digital
Journey
SME Business Digitalisation Grant Smart Automation Grant
Digital Presence
(Online)
Ecommerce
(Buy / Sell)
Digital
Operations
(Goods &
Services )
Digital Process
(Back-end)
Advanced
(Emerging
Technologies)
DIGITAL PRESENCE (ONLINE)
ECOMMERCE(BUY / SELL)
DIGITAL OPERATIONS (GOODS & SERVICES )
DIGITAL PROCESS (BACK-END)
ADVANCED (EMERGING
TECHNOLOGIES)
8 © Copyright Malaysia Digital Economy Corporation (MDEC)
8SME Business Digitalisation Grant
AN INITIATIVE UNDER PARTNERS LEAD
7 Digitalisation Areas:
1) Digital Marketing / Sales
2) Electronic point of sales (e-POS) system
3) HR payroll system / CRM
4) Procurement
5) ERP / Accounting & Tax
6) e-Commerce*
7) Remote working*
For More Info:
https://www.mybsn.com.my/content.
xhtml?contentId=1561
Help SMEs Adopt Digitalisation Measures For Business
Operations
Criteria:1. At least 60% owned by Malaysian.
2. Registered under relevant laws in Malaysia
3. Has been in operation for at least one (1) year
• Operation in one (1) year, company required to
have a minimum annual sales turnover of RM
100,000
• Operation > two(2) years, company required to
have a minimum annual sales turnover of RM 50,000
(preceding two (2) consecutive years).
50% Matching grant of up to RM 5000 per company
9 © Copyright Malaysia Digital Economy Corporation (MDEC)
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Fund Amount Expected Outcomes Project duration
▪ Project implementation period is up to 1 month
▪ Post monitoring to achieve project outcome is up to 3 months
OVERVIEW OF SMART AUTOMATION GRANT (SAG)
• SAG is matching grant for services companies to automate their business processes and move towards digitalisation
• The grant will be used solely for the purpose to kick start the development and implementation of project by adopting technology to automate the business operation
Up to fifty percent (50%) of the total project cost, subject to a ceiling limit of RM200,000.
• Increase in revenue;• Savings in business cost• Reduction of process time
cycle• Reduce man hours• Create new sources of
growth.
• MDEC has launched the SAG on 2 July 2020 and the info can be found here at mdec.my/sag.
• This matching grant can be applied via 2 approaches:
o Digital Transformation Acceleration Programme 2.0 (MDEC Partner program )
➢ Specially-designed digitalisation programmes that the SMEs will receive guidance on developing a
structured approach to digitalise their business operation.
o Direct Application
➢ Companies who are interested, and confirmed as qualified, can send their applications directly to
the MDEC.
10 © Copyright Malaysia Digital Economy Corporation (MDEC)
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DTAP 2.0 (MDEC PARTNER PROGRAMME) VS DIRECT APPLICATION
No ApproachKnow how in
digitalisation areasGuidance
Technology Solution
ProviderTime perspective
1 Digital
Transformation
Acceleration
Programme 2.0
(together with
MDEC’s
partner)
Specially-designed
digitalisation
programme with
series of workshops to
help companies
identify business pain
points and prioritise
digitalization projects
• Digitalisation areas
needed focusing on
outcomes
• Pitching workshops
to help refine
presentation
Based on pain-points and
prioritisation, companies
will have access to
suitable potential
technology solution
providers to choose from,
arranged by MDEC’s
program partner
Upon programme
completion
(approx. 7 weeks)
2 Direct
Application
Companies are to
identify business pain
points and
prioritisation on their
own. They may work
with any technology
service provider
Basic from MDEC’s
grant application
team on
documentation
readiness
Companies will identify
and evaluate suitable
technology solution
provider on their own.
Selected solution provider
will be vetted by MDEC
during application.
As and when
ready with
documentations
11 © Copyright Malaysia Digital Economy Corporation (MDEC)
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TECHNOLOGY SOLUTION PROVIDERS SUPPORTING SAG
• MDEC is not onboarding any solution providers (TSPs) to support the Smart Automation Grant.
• The applicants are free to choose any TSP that they wish to work with as long as the TSP can meet all the followingcriteria:
• Must have a paid-up capital of at least RM50,000;
• Must have successfully deployed digital solutions to at least 10 enterprises which have achieved at least one of theseoutcomes
o Increase in revenueo Savings in business costo Reduction of process time cycleo Reduction in man hourso Create new sources of growth.
• Not subjected to any liquidation/winding up order.
• Has no going concern issue and/or not dormant and;
• Has entered into a written contract or a committed arrangement with grant recipient for the development andimplementation of the project.
Note : *Priority is given to the local technology solution providers (TSP) to support SAG but upon the validation by the SME business owners, that the local TSPs are not able to provide the required
digital solution to support them, therefore the SME business owners will be allowed to opt for a foreign TSP to support their digitalisation journey.
12 © Copyright Malaysia Digital Economy Corporation (MDEC)
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SMART AUTOMATION GRANT CRITERIA
Entity 1: Company
(Registered under Companies Act
1965 or Companies Act 2016)
Entity 2: Enterprises
Entity 3: Sole Proprietorships
Entity 4: Partnerships
(Registered under Business Act 1956)
Entity 5: Limited Liability Partnerships
(Registered under Limited Liability Partnerships Act
2012)
1. Issued and paid up capital ofat least RM50,000
1. Professional Services; but not limited to Legal, Accounting, Surveying, Engineering, Architectural, Consultation, Management, Employment and Security (Private Agency) Services;
2. Minimum of 51% owned by Malaysians
3. Registered business activities, primarily traditional or non-technology activities from the service sector;
4. Not a liquidation/winding up /bankruptcy order;
5. No going concern issue and/or not dormant;
6. Has a written contract or a committed arrangement with Technology Solution Partner for thedevelopment of the Project;
7. If received any MDEC/government grant: must demonstrate the completion and success of thefunded project/s.
13 © Copyright Malaysia Digital Economy Corporation (MDEC)
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APPLICATION JOURNEY
Briefing Session
Scan the QR
code to select
your application
approaches
CLIC will check
eligibility
YesCLIC will email to
GMD and cc
applicant
No
CLIC to notify
applicant
Completeness &
Compliance
checkingPitching
Yes
Notes:
CLIC: Client Contact Centre
GMD: Grant Management Dept
MDEC will send
the activation link
to access to
online application
system
Approval
Document
Digital Transformation
Accelerator Program
2.0
Yes
Grant
Management
Team
Register your interest
https://mdec.my/digital-economy-
initiatives/for-the-industry/smart-
automation-grant/
14 © Copyright Malaysia Digital Economy Corporation (MDEC)
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APPLICATION DOCUMENTS REQUIRED
CMG Online
Application
1. Fully completed and signed application form;
2. SSM Search Report;
3. Winding Up/Bankruptcy Search Report;
4. Latest Audited Account (for company)/Tax Return Form (For professional services of
▪ Enterprises / Sole Proprietorships / Partnerships/Limited Liability Partnerships And
▪ Current Management Account;
5. Board of Director Resolution (For Company only) of the appointment authorized signatory;
6. Written commitment with the Technology Solution Provider (TSP) for the development of the Project;
7. If ex-MDEC/government grant recipient-to provide closure/completion letter and
8. On behalf of TSP :
▪ TSP SSM Search Report and
▪ Proof of successful deployment of the digital solutions to at least 10 enterprises
15 © Copyright Malaysia Digital Economy Corporation (MDEC)
15SME BUSINESS DIGITALIZATION GRANT (SBDG)https://www.mybsn.com.my/content.xhtml?contentId=1561
For more information, please contact the numbers below:-
BSN (Bank Simpanan Nasional)1-300-88-1900
SME Bank (Small Medium Enterprise Development Bank Malaysia Berhad)03 – 2603 7700
SMART AUTOMATION GRANT (SAG)
https://mdec.my/digital-economy-initiatives/for-the-industry/smart-
automation-grant/
For more information, please contact the numbers below:-
MDEC at 1800-88-8338/+603-83153000 (if you are calling from outside of malaysia) or email MDEC at [email protected].
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