Industry 4.0 (Industry4WRD) Incentives
The industry4wrd readiness assessment intervention programme or in short known as ‘industry4wrd intervention fund’ was launched by the government in budget 2019. It is a financial support facility for Malaysian SMEs in the manufacturing and related services sectors to embrace Industry 4.0. This Fund is eligible for all SMEs which have completed the government-funded Industry4WRD Readiness Assessment (RA) programme.
Supporting SMEs in the adoption of Industry 4.0 – Industry4WRD Intervention Fund
Industry4WRD Intervention Fund
What is the incentive?
It is a matching grant (70:30) on reimbursable basis based on eligible expenditures, up to a maximum grant of Ringgit Malaysia Five Hundred Thousand (RM500,000.00). This fund aims to support SMEs in implementing intervention projects based on the recommendation of Industry4WRD Readiness Assessment (RA) Report on the shift factors of people, process and technology.
Who are eligible?
- Manufacturing or manufacturing-related services (MRS) companies incorporated under the Companies Act, 2016
- Small & Medium Enterprises (SMEs)
- Manufacturing: Sales turnover from RM300,000 to not more than RM50 million and/or employee from 5 to not more than 200
- MRS: Sales turnover from RM300,000 to not more than RM20 million and/or employee from 5 to not more than 75
- In operation for at least three years in the current business line
- Possess a valid business licence and/or Manufacturing Licence
- Completed the Government-funded Industry4WRD Readiness Assessment (RA) Programme–received a report from the Malaysia Productivity Corporation (MPC)
What are the eligible expenditures?
- Only expenditures based on the recommendations of the RA report will be considered.
- The following expenditures will not be eligible:
- Purchase or rental of land, building, vehicles and furniture;
- Premise renovation;
- Collateral or loan for any purpose;
- Marketing/ promotional activities;
- Operation expenditure including salary, employee benefits, travelling expenditures; Expenditures on R&D activities; and
- Working capital not related to the project.
What are the important timelines?
- Received Remaining Grant from MIDA
- Submit claim for Remaining Grant to MIDA
- Initiate the expenditures
- Received Upfront Grant from MIDA
- Sign Grant Agreement
- Grant Agreement must be signed not more than 30 days from the date of approval by MIDA
- Received Approval letter from MIDA
- Submit Application to MIDA
- Application must be submitted not more than 2 months from the date of approval (RA Report) by MPC
- Received RA report from MPC
Expenditures must be incurred not more than 12 months from the date of approval by MIDAClaims for remaining grants must be submitted not more than 18 months from the date of approval by MIDA.
What are the process workflow?
- Received RA Report from MPC
- Submit application of Intervention Fund to MIDA for evaluation
- Company to present (pitching session) at IIFC at MITI
- Upon approval by IIFC, MIDA will send approval letter and grant agreement to company
- MIDA and Company sign the agreement
- Company receives upfront grant from MIDA
- Company implements the project
- Company submits claim for remaining grant to MIDA
- Audit visit by MIDA and RA Assessor Body
- The application of claim will be deliberated at JPPG at MIDA
- Upon approval by JPPG, company will receive remaining grant from MIDA
IIFC = Industry4WRD Intervention Fund Approval Committee
JPPG = Coordination & Disbursement of Grants Committee
What are the documents needed?
- 1-page Application Form
- Industry4WRD Readiness Assessment (RA) Report (with MPC’s cover letter)
- Technical Proposal
- Financial Statements (audited) for the past three (3) years
- Manufacturing Licence from MITI or a Confirmation Letter for Exempted from Manufacturing Licence from MIDA
What to put in Technical Proposal?
- Project Description
- Scope of Project
- Duration of Project
- Method of execution (solution providers)
- Source of Technology
- Expected Deliverable
- Breakdown of Expenditures
How YGL BeyondERP can help SMEs in manufacturing industry to adopt and implement Industry 4.0?
We Help Manage Industry 4.0 Implementation via ERP System
With YGL, you’ll be working with the most experienced professionals in the ERP industry. Whether you need short-term support or resources for a long term engagements, our ERP Consultants have the expertise to help you implement and integrate the ERP system requirement for Industry 4.0. With a core team of functional and technical ERP consultants that are both skilled and certified, we can quickly implement a robust ERP System to maximize the value of your investment.
YGL BeyondERP system applications allows you to enable a seamless workflow from your finance to warehouse and right down to your production efficiency by providing you the essential management dashboard which allows you to have a clear visibility.
As an industry leader in ERP system Implementation, we can be sure that each YGL consultants have the highest qualifications. We provide a wide range of ERP System Integrations with experience ranging from IOT(Internet of Things) right down to Data analytics on OEE (Overall Equipment Effectiveness), supporting all functional modules to complete project management for your project needs. All of our consultants are fully vetted for the project they’re submitted for, which means you’re only reviewing the most qualified consultants who do what you need done.
We Can Help to implement ERP System Integration under Industry 4.0
We look forward to hearing from you. Contact us today so that we can help you with our YGL BeyondERP which is strategy Industry 4.0 ready implementation needs heading towards Industry 4.0.
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