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 t 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.
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)
- 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)