Small & Medium Industries Development Corporation (SMIDEC)

Matching Grant For Product And Process Improvement

Objective:

The Scheme provides matching grant to SMEs for improvement and upgrading of existing products, product design and processes upgrading.

Qualifying Criteria:

•Manufacturing companies or companies providing manufacturing related services Incorporated under the Companies Act 1965 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)


** 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

Form of Assistance:

Assistance is given in the form of a matching grant where 50% of approved project cost is borne by the Government and the remainder by the applicant. The maximum grant allocated per application is RM500,000.

Eligible Expenses:

Expenses related in improving and upgrading of existing products, product design and processes including:

•Technology Feasibility Studies

•Fees for technology transfer

•Development of prototypes and system design

•Product testing

•Product registration

•Marking and labelling

•Machine & equipment testing and calibration

•Development & designing of equipment and machinery

•Purchase of machinery and equipment

•Initial patent registration/patent search/ IP Protection

•Specific Project Mission

•Cleaner Production and Waste Treatment Project including Energy Efficiency Audit

* Machine & Equipment utilisation is crucial to assist SMEs to improve their production capacity and also reduce cycle-time. Besides that, it will also increase the quality of products. In order to assist SMEs in purchasing the relevant machinery and equipment, SMIDEC provides a list of related companies/distributors of new & used machineries & equipments according to sector.

The list are as follow:
Korean Machine Tool Guide
Parts of Industry

Application:

Application can be made using the Matching Grant for Product And Process Improvement 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=itaf2application

Application Form & Project Proposal
http://www.smidec.gov.my/pdf/Appl_form_ProcessImp.pdf

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