Calling all SMEs incorporated in Malaysia! Are you aware of the grants and subsidies available to you from the government? Here’s one that most, if not all SMEs should take advantage of – SME DIGITALISATION GRANT for your business. It aims to encourage SMEs to jump onboard the digitalisation train and to move your business operations to a digital space. We can feel your many burning questions, so read carefully as we’re here to answer them.
So, what is SME Grant? Definition and Meaning.
In essence, this SME grant means the Government is willing to provide a 50% matching grant, up to RM5,000, for those upgrading their digital systems. This matching grant will be worth RM500 million over 5 years and limited only to the first 100,000 SMEs applying to upgrade their systems. Get your pen ready and note down the following 5 Key Digitalization Areas highlighted by the Government:
- Digital Marketing / Sales
- Electronic Point of Sales (e-POS) System
- Enterprise Resource Planning (ERP) / Accounting & Tax
- Human Resource Payroll System (HR) / Customer Relationship Management (CRM)
By upgrading your operations and moving them to a digital sphere, the Government will pay for half of the purchase or subscription to digital adoption strategies. Therefore, to fully utilize this government grant for SMEs, the services you’re paying for must be more than RM10,000. And the good news is, you’re going to pay RM5,000 less! (wah, where else are you going to get such a discount)
Is my Business Eligible for this RM5,000 Government Grant?
To answer that, we must first define an SME. In 2014, the criteria to be qualified as an SME was updated. SMEs fall under two broad categories, either Manufacturing or Services & Other Sectors. Depending on which category your business falls under, the criteria is different and is simplified to be:
|Manufacturing||Services and Other Sectors|
|Sales turnover not exceeding RM50 million |
Full-time employees not exceeding 200 workers
|Sales turnover not exceeding RM20 million |
Full-time employees not exceeding 75 workers
Meeting either requirement (sales turnover or the number of full-time employees) qualifies you to be an SME, and you are in the clear for the grant. If you wish to read the full details, you may refer to the SME Guidelines provided by SME Corps. Malaysia.
But hang on there, it’s not just that.
It would be too good to be true if that’s the only box to check.
SME Digital Grant Eligibility
In order to be eligible for the SME Government Grant, your company must be an SME that is/has
✓ Registered under relevant laws of Malaysia.
✓ Minimum 60% owned by Malaysians.
✓ Minimum operation of 1 year and above;
- those in operation for one (1) year must have at least RM100,000 sales turnover per annum.
- those in operation for two (2) years and above must have at least RM50,000 sales turnover per annum for the preceding two (2) consecutive years.
All checked? Tahniah kerana layak untuk memohon SME Digitalization Grant!
How Do I Sign Up for the SME Grant Funding?
Basically, you will need to appoint a certified Technology Service Provider (TSP) and submit your application form together with the required supporting documents. Refer below for a quick checklist before submitting your application.
Go through the list and ensure that all the boxes are ticked.
- Completed SME Digitalization Initiative Application Form.
- Copy of Identity Card or Passport of Director (s) / Partner (s) / Proprietor(s), whichever is applicable.
- Copy of business registration licenses (CCM, Form A/B, Form 24 & 49 and M&A or any similar forms under the Companies Act 2016).
- Audited financial statement for the last financial year and the latest management account. (if any) or evidence of sales turnover (if any).
- Company’s bank statement for the last two (2) months.
- Company’s profile (if any).
- Invoice/billing and service agreement from an authorized vendor listed by MDEC.
- Any other information and documents as and when required by the bank.
Application Procedure (How to Apply)
- Get in touch with a minimum of one and a maximum of three panels of Service Providers for the digitization services you wish to subscribe to.
- Complete and submit the application form together with the required supporting documents to your nearest BSN or any of SME Bank branches.
- Once the SME digital grant application is approved (which usually takes up to 15 working days), pay your TSP the difference of the total invoice after deducting the subsidized amount granted from the Initiative (which is equivalent to 50% of the invoice amount). Remember to provide proof of payment to BSN or any of SME Bank branches within 5 working days.
- Subject to the total invoice amount, the bank will then make a direct 50% payment of the total invoice amount or up to RM 5,000.00 to your TSP.
- Enjoy your subscription.
Phew, did you get all that? It’s a long wall of text but we have to be very thorough with this so you can enjoy the benefits without any hassle. But that leaves one last question..
Um, what ARE TSPs?
Technology Service Providers (TSP) are local companies that are registered under the Digitalization Grant to provide technological solutions to your problems! These companies have been fully approved by our Government and are ready to help you in digitising your operations. Thus, there is no worry about the credibility and reliability of the TSP of your choice. The full list of TSPs can be found here.psst page 151, number 54 😉
Wah, so many in the list.
Which TSP should I go for My Business then?
If you need to organise an event, you are in the right place! Evenesis is a pre-approved Technology Service Provider under the Malaysian Government’s Business Digitalisation Matching Grant initiative for SMEs. We offer a myriad of services to assist your SME in performing a digital transformation.
By subscribing to Evenesis event management software, your SME is entitled to enjoy
✓ Evenesis – Event Management System
✓ Virtual Event and Assistance Setup
✓ Evelet – Lead Retrieval App
✓ Event Mobile App and Custom App
✓ Live Q&A and Live Polling
✓ Event Business Matching
✓ Virtual Conference & Exhibitions System
✓ Facial Recognition Check-In System
For more details on our service, do feel free to check out what Evenesis can do for your event on our SME Digitalisation Grant landing page. With the top-notch technology and dedicated support from our Evenesis team, we strive to provide you with a flawless, customised experience throughout your event journey, from zero to hero.
Seize the chance now to digitize your business with this SME Matching Grant. It isn’t a normal occasion that you can own a set of premium software from Evenesis by paying only half of its price.
Wait no longer and consult Evenesis today via Live Chat on the right side of browser or simply call us at +603 8408 2112!