1

GRANTS AND

FINANCIAL AID

Prepared by Business Digital Adoption

#DigitalMalaysiaForward #LetsBuildTogether #digitaladoption

SUPPORTING SMES

7 Aug 2020

2

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

3

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

4

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).

×

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)

9

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)

10

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)

11

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)

12

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)

13

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)

14

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 clic@mdec.com.my.

16

17

18

Don't miss out on the most happening event in 2020!!

This time around, we are bringing in more than 60 speakers and brands like Google, Amazon, Alibaba, Tencent and many more so that you can get all the first-hand tips and important digital insights at #SMEDigitalSummit.

This exciting virtual event aims to empower businesses, cultivate digital transformation and assist SMEs in accelerating their digital journey . Our team is fully committed to elevate SMEs to take the #DigitalLeap

Grab Your FREE Tickets Here: https://www.smedigitalsummit.com/

• Sector

• Language

• Gender

FOCUS

• Associations

LIVE

STREAMING