Malaysian Investment Development Authority (MIDA), the country’s principal investment promotion agency, has approved Smart Automation Grants (SAG) totaling MYR 138.5 million (USD 30.94 Million) to 238 companies by June 30, 2022. MIDA has launched The Smart Automation Grant in December 2020 to assist and incentivize Malaysian Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs) in the Manufacturing and Services Sector to digitalize operations, production and trade channels.
MIDA’s Chief Executive Officer Datuk Arham Abdul Rahman said SMEs from labor-intensive industries such as plastics, wood, furniture and textile are among the recipients. The remaining grantees are from service-related industries. MIDA will keep collaborating with the companies to create a more conducive business environment. MIDA has undertaken initiatives such as domestic investment virtual seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programs, and domestic coordination platform commitments. Additionally, it will organize business-matching sessions between anchor companies and potential local suppliers or providers within specific industries, from networking arrangements for companies and potential funders and technology providers.
Arham added that MIDA has established a dedicated SME Investment Desk in all state offices to facilitate and coordinate its support services. The National Chamber of Commerce and Industry Malaysia (NCCIM) and Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) President Tan Sri Low Kian Chuan noted that SMEs make up to 98.5% of total establishments in Malaysia, which reaffirmed their role as the backbone of the Malaysian economy and industrial development. Therefore, accelerating domestic investment is significant to enhance productive capacity, accelerate technological progress, create jobs, and expand exports in line with Malaysia’s signing of the Regional Comprehensive Economic Partnership (RCEP).
(Sources: MIDA; The Edge Markets)
