Did you know that? Small and medium-sized firm (SME) owners like you may now apply for a grant of up to RM5,000. That is correct.
You may be wondering how the SME Digitalisation Grant might benefit your company, particularly during MCO when clients mostly purchase from home. Before we get there, let’s learn more about MDEC’s SME Digitalisation Grant.
What precisely is the MDEC Digitalisation Grant?
According to Budget 2020, the government recognised digital adoption as a chance to assist SME company owners survive despite present MCO limits. The government has also committed an extra RM150 million under the SME Digitalisation Grant scheme in Budget 2021 in order to aggressively encourage more local enterprises to move quickly into the digital arena.
To buy digital solutions, the government would pay a 50% matching grant of up to RM5,000 per enterprise. This matching award will total RM500 million over five years and is only available to the first 100,000 successful applicants.
- Digital Marketing and/or Sales
- Electronic Point of Sales (e-POS) Systems
- HR Payroll Systems/CRM
- Procurement
- eCommerce
- Remote Working
- ERP/Accounting and Tax
How does the grant work?
Let’s look at three different scenarios to see how you may make the most of the award.
Scenario 1: Excessive spending
An entrepreneur calls three vendors and requests three separate services. The first service costs RM5,000, the second RM3,000, and the third RM2,000, for a total of RM10,000 including the whole RM5,000 grant.
Scenario 2: Excessive spending
Because the grant amount is set at RM5,000, a SME spends RM12,000 on a solution and pays RM7,000 instead of RM6,000 (50%). The SME has likewise surpassed the maximum award amount in this case.
Scenario 3: Spending less than the allotted amount
An SME spends RM4,000 on a solution. The corporation must pay half of the total (RM2,000), with the remainder covered by the grant (RM2,000). In this example, the SME is omitting RM3,000.
Questions concerning the MDEC SME Digitalisation Grant in general
How many grant applications may I submit?
Each organization may only have one application, however each application may cover up to three digital solutions.
When is the application deadline?
The grant period will last five years, beginning on February 17, 2020, or until 100,000 applications have been granted.
Are there any charges?
The grant application is completely free. However, in order to get the matching grant, successful candidates must pay 50% of the cost of the solution.
What other words should I be familiar with?
SMEs are in charge of training and implementing the solutions.
It is important to have proof of activation on hand in case the bank requests it.
Illegal actions are absolutely forbidden for SMEs.
The award also covers subscription-based digitization services, but only for the first year and not for following years.
For more information about geran digital mdec, please visit https://smegrant.nuweb.com.my/ms/
