Finance & Funding en_MY SME Business Digitalisation Grant - Propelling Small and Medium Enterprises (SMEs) into the Digital World.  The Malaysia Government has announced in... https://quickbooks.intuit.com/my/r/finance-funding/sme-digitalisation-grant-malaysia-intuit-quickbooks/ 2020 SME Digitalisation Grants Malaysia - Intuit QuickBooks
Finance & Funding

2020 SME Digitalisation Grants Malaysia - Intuit QuickBooks

SME Business Digitalisation Grant – Propelling Small and Medium Enterprises (SMEs) into the Digital World. 

The Malaysia Government has announced in the 2020 Budget that in order to build a Digital Malaysia, more SMEs need to adopt digitalization measures for their business operations. With that, 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 Small and Medium Enterprises (SMEs). This denotes that the Government is actively encouraging more local businesses to move rapidly into the technology sphere. The grant was officially launched on 17 February 2020.

business digitalisation grants for small and medium businesses in Malaysia for 2020.

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 SMEs to adopt digitalisation in daily operations.

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

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

Cloud adoption is the way forward to futureproof businesses as it allows more automations and efficiencies in business processes. Additionally, it is also accessible anywhere anytime via computer and mobile app (ios and android). The Government recognizes the benefits of cloud solutions, thus, providing the grant to help SMEs to elevate their competitiveness both locally and globally.

SME Eligibility Criteria

The SME eligibility criteria are as follow:

  • The company is at least 60% owned by Malaysian
  • The company registered under the relevant laws of Malaysia
  • The SME has been in operation for at least one (1) year
  • Company operation in one (1) year, company required to have a minimum annual sales turnover of RM 100,000.
  • Company operation > two (2) years, company required to have a minimum annual sales turnover of RM 50,000 (preceding two (2) consecutive years)

Application Process

The grant application process is as follow:

  1. The SME must contact and appoint one or more panel of Technology Service Providers (TSPs) to perform any of the digitalisation services available (maximum of 3 panels).
  2. The SME must complete and submit the application form together with the required supporting documents to any of the Bank’s branches.
  3. The Bank processes the application. The turnaround time is 15 working days.
  4. Once the SME’s application is approved, the SME is responsible to pay the difference of the total invoice after deducting the subsidized amount granted from the Initiative and to provide proof of payment to any of the Bank’s branches. The turnaround time is 5 working days.
  5. After proof of payment is provided, subject to the total invoice amount, the Bank will make a direct 50% payment of the total invoice amount or up to RM 5,000 to the TSPs in one lump sum payment or in stages based on the Bank’s discretion.

Application Required Documents

The required documents that the SMEs need to submit are as follow:

  • 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 evidences 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 authorized vendor listed by MDEC.
  • Any other information and documents as and when required by the bank.

For more information on the SME Business Digitalization Grant for QuickBooks Online, kindly contact Chun How (Phone: 012-3300 303 / Email: chcheah@highpinestc.com).

About HighPines

High Pines Training and Consultancy Sdn Bhd (High Pines) has been approved as the Technology Solution Provider (TSP) for provision of QuickBooks Online. QuickBooks Online will fall into the category of Enterprise Resources Planning (ERP) / Accounting & Taxation category. High Pines has helped more than 500 SMEs in Malaysia to adopt QuickBooks Online and has trained more than 3,000 users of QuickBooks Online.