The Launch of SME Digitalisation Initiative
A New Initiative for a More Digitised Future
The Ministry of Finance (MOF) recently launched the SME Digitalisation Initiative.
This initiative is a working collaboration between the Government (via MOF) and the following organisations:
- Bank Simpanan Nasional (BSN)
- SME Bank
- Malaysia Digital Economy Corporation (MDEC)
Working together, these organisations will be collectively managing the grants that will be given to eligible Small and Medium Enterprises (SMEs). The SME Digitalisation Initiative grant is meant to encourage these SMEs to adopt a more digitalised approach in their everyday operations.
5-key Digitalised Identified Areas
The Government intends to match the grant by 50%, providing up to RM5,000 for each company. This is for the subscription to the digital solutions offered from the extensive list of panel. These panels will be listed under what the 5-key digitalised identified areas by MDEC. This initiative started from 17 February 2020.
The matching grant will be for a period of 5 years and worth more than RM500 million. However, this will be limited to only the first 100,000 SMEs who intend to apply to upgrade their existing system.
The 5 Digitalisation Areas that have been identified include:
- Digital Sales and Marketing
- Electronic Point of Sale System or the e-Pos
- Customer Relationship Management and Human Resource Payroll Systems
- Accounting and Taxation or Enterprise Resource Planning (ERP)
If you are an SME that fulfils any of the eligible criteria below, you are encouraged to submit your application:
- At least 60% of the SME business is owned by a Malaysian individual.
- You are an SME registered under the relevant Malaysian laws that classify you as an SME.
- You are an SME who has been operational for at least 1 year with a RM100,000 sales turnover minimum within the 1 year period.
- You are an SME who has been operational for two years or more with a RM50,000 minimum annual sales turnover for the two consecutive years preceding that.
For more information and a list of technology solution providers that have been authorised by the MDEC, visit the BSN website. There are also some common frequently asked questions about the SME Digitalisation Initiative available on this website.