fbpx

The black Oysterflex bracelet separates itself from tradition and makes it a young and innovative product, enriched by the bidirectional automatic winding with Perpetual rotor, while the use of rose gold, amplified by the black and pink dial, makes it a designer jewel.

Our blog

RM5,000.00 SME Business Digitalisation Grant Complete Guide

SME Business Digitalisation grant complete guide | Digital Marketing Service in Malaysia - MYSense

We have good news for all SMEs! In October last year, during the Budget 2020 presentation, our Minister Of Finance did mention about the RM5,000.00 matching grant for SME in order to assist SME to adopt digitalisation into their business.

To build a Digital Malaysia, the private sector must come onboard. More Malaysian Small Medium Enterprise (SMEs) need to adopt digitalisation measures for their business operations, including electronic Point Of Sale systems (e-POS), Enterprise Resource Planning (ERP) and electronic payroll system. The Government will provide a 50% matching grant of up to RM5,000 per company for the subscription of the above services. This matching grant will be worth RM500 million over 5 years, limited to the first 100,000 SMEs applying to upgrade their systems.

YB Tuan Lim Guan Eng, Minister Of Finance

Guess what? The said RM5,000.00 grant had go-live and available for all SMEs to apply.

In this complete guide, we will cover everything you (SME) need to know about the RM5,000.00 Grant.

Malaysia’s SME Definition

Before we begin, let’s understand what does SME really mean in Malaysia.

Effective 1st January 2014, SME Corp has announced a new definition of SME and has been simplified under two categories, namely Manufacturing and Services & Other Sectors. Refer to the image below for details. For even more details, please visit SME Corp’s website.

Building Digital Companies

In a move to accelerate the digital economy and build more digital companies, the government will provide a 50% matching grant of up to RM5,000 per company for subscription to digital services. This matching grant will be worth RM500 million over five years — limited to the first 100,000 SMEs applying to upgrade their systems. The government through Ministry of Finance (MOF) is working together with Bank Simpanan Nasional (BSN), SME Bank and Malaysia Digital Economy Corporation (MDEC) in managing the grant to eligible Small & Medium Enterprises (SMEs) to adopt digitalisation in daily operations. MDEC is in-charge of the TSP while BSN & SME Bank is in-charge of the SME.

The 5 Digitalisation Areas

The Government has identified 5 Key Digitalisation Areas that should be adopted by SMEs.

  • Electronic Point of Sales (e-POS) System
  • Human Resource Payroll System (HR) / Customer Relationship Management (CRM)
  • Digital Marketing / Sales
  • Procurement
  • Enterprise Resource Planning (ERP) / Accounting & Tax

Wait, What?

The RM5,000.00 SME Business Digitalisation Grant is provided by the Government Of Malaysia to Malaysian SMEs through Malaysian Vendors.

From Malaysian to Malaysian through Malaysian. Geddit?

That means, SME can only benefit from the RM5,000.00 Grant by purchasing or subscribing to the approved digital services that developed or provided by local vendors.

That also means you cannot suka-suka hati go and subscribe some digital services provided by some guy and claim under the grant. And NO! Facebook and Google do not included although their advertising product fall under Digital Marketing.

You better triple check the list before you regret, you know.

You Pay Half. Government Pay The Other Half

So right now you’ve checked the list and decided what you need for your SME. Then what?

Close the deal with the TSP and pay half only. Then our Government will pay the other half to the TSP.

One company can only claim a maximum of RM5,000.00 of the matching grant. Means if you intended to maximise the grant benefit, you’ll need purchase or subscribe for digital services that worth at least RM10,000.00. But you only need to fork out half the cash required.

Save your money 50%. Happy ending lah right?

Be advised that you can only claim the first year of subscription service. Example; if the TSP charging you for 2 years subscription services under a contract of RM3,600.00 (RM150/mth X 24mth), you can only claim for the first year charges.

SME Eligibility

As we the TSP need to apply to provide our digital services to you under this grant, you also need to get approval.

Make sense lah. Nobody will buta-buta give you RM5,000.00 right?

These are the criteria that SME need to fulfil in order to get the grant;

  • 60% owned by Malaysian individually
  • Registered under the relevant laws of Malaysia and classified as SME. (Refer to the image above)
  • Has been in operation for at least one (1) year;
  • SMEs which has been in operation for one (1) year, the SME is required to have a minimum annual sales turnover of RM100,000.00 for the first year; and
  • For SMEs which have been in operation for two (2) years or more, the SME is required to have a minimum annual sales turnover of RM50,000.00 for the preceding two (2) consecutive years.

 

Years of OperationMin. Annual Sales Turnover
1 Year (12mth-24mth)RM100,000.00
>2 Years (25mth onwards)RM50,000.00 per year for the latest 2 years

 

A newly set up company that is less than 1 year are not eligible to apply for this grant. The whole idea of the grant is to convert the traditional company into digitalisation.

Application Process

Let me make it simple for you. Refer to the steps below;

  1. Decide which Digital Service you need.
  2. Choose any TSP & product from the list mentioned earlier, maximum of 3 TSPs.
  3. Reach out to the TSP and close the deal. Make sure they know you want it done under the Grant programme.
  4. Download the Application Form (refer below section )
  5. Fill it up and prepare all supporting documents (refer below section)
  6. Go to your nearest BSN or SME Bank branch and submit. Update 10th April 2020; You can now submit the application via e-mail. That means you can #StayAtHome during this MCO but still get the application process moving. Refer to table below for the email address.
  7. Wait for approval by the bank (TAT 15 working days)
  8. Once approved, pay 50% of the invoice amount to the TSP
  9. Submit the proof of payment to BSN or SME Bank branch (TAT 5 working days)
  10. The bank pays the remaining 50% directly to the TSP
  11. TSP deliver your order

If you’re certain that you’ll be approved or you have no issue with paying the remaining 50% in case of rejection, you can make payment earlier and submit the proof of payment together with the application to speed up the process.

Application Form & Supporting Documents

  • Completed SME Digitalisation 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
  •  

Where To E-Mail Your Application?

What else?

For additional info, you can refer to the following websites (direct link);

Don't Forget to Share and like our blog:

Related Posts

This is a Daytona model made entirely of 18k yellow gold, with a black mother-of-pearl dial further enriched by set diamonds. The case has a diameter of 40 mm while the crown is screw-down, with a Triplock triple waterproofing system.

Scroll to Top