Small & Medium Industries Development Corporation (SMIDEC)

Matching Grant For Business Start-Ups

Objective:
The scheme provides assistance to assist start-up of businesses.

Qualifying Criteria

•Manufacturing companies or companies providing manufacturing related services Incorporated under the Companies Act 1965 or enterprises in the manufacturing sector incorporated under the Registration of Business Ordinance 1956 with annual sales turnover of not exceeding RM25 million or full-time employees not exceeding 150

• For the services sector, businesses incorporated under the Registration of Business Ordinance 1956 with an annual sales turnover of not exceeding RM5 million or full-time employees not exceeding 50

• At least 60% equity held by Malaysians

• Possess valid premise license.

Sector Coverage :

•Manufacturing

•Manufacturing Related Services**

Services (excluding insurance and financial services)

Form of Assistance:

Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder by the applicant. For enterprises in the manufacturing sector*, incorporated under the Registration of Business Ordinance 1956, assistance is given up to 80% of the approved cost. The maximum grant allocated per application is RM 100,000

Eligible Expenses

Expenses incurred in starting up a business, including:
->Preparation of Business Planning
->Related Feasibility Studies
->Rental of incubators and business premises up to 24 months
->Rental of equipment and machineries
->Development of prototype
->Product sample and testing
->Purchase of machinery or office equipment (for the services sector only)
->One year broadband subscription fee (for ICT sector)

** Main activities under manufacturing related services are:

->Research and Development ( R & D) such as product/ process development and software development
->Product and Process Design
->Distribution and Logistics such as warehousing, freight forwarding, bulk breaking, international procurement centre, haulage
->Marketing such as packaging and market research
->Environmental Management
->Other related services such as engineering support services, gas sterilization services, calibration and testing services

Application:

Application can be made using the Matching Grant for Business Start-Ups Form which can be obtained free of charge from SMIDEC's offices or download here:

Online Application
->http://www.smidec.gov.my/detailpage.jsp?page=itaf1application

Application Form & Project Proposal
->http://www.smidec.gov.my/pdf/form_BussStartUp.pdf

Application Checklist
->http://www.smidec.gov.my/pdf/checklist_SMIDEC.pdf