Smart automation grants worth RM138.5 mil approved by MIDA as at June 30

Smart automation grants worth RM138.5 mil approved by MIDA as at June 30

26 Jul 2022

Malaysian Investment Development Authority (MIDA) has approved Smart Automation Grants (SAG) totalling RM138.5 million to 238 companies up to June 30, 2022, following the SAG’s launch in December 2020.

Chief Executive Officer Datuk Arham Abdul Rahman said the recipients include small and medium enterprises (SMEs) from labour-intensive industries such as plastics, wood, furniture and textile, while the rest were from services-related industries.

“New companies should leverage the growing opportunities in the country and establish their presence in Malaysia.

“As Malaysia’s principal investment promotion agency, MIDA will continue to work closely with the companies to provide a more conducive business environment for business to grow,” he said in his welcoming remarks at the MIDA’s Domestic Investment Seminar Series I (Central Region) on Tuesday (July 26).

This year, MIDA continues its initiatives through domestic investment virtual seminars, engagement with national associations and chambers of commerce, industry linkage/supply chain programmes, and domestic coordination platform commitments, Arham said.

He added that MIDA will coordinate business-matching sessions between anchor companies and potential local suppliers or providers within specific industries, from networking arrangements for companies and potential funders and technology providers. 

“MIDA has also launched a dedicated SME Investment Desk in all its state offices to facilitate and coordinate its support services for Malaysian businesses.

“Our digital portal is constantly updated to help decision-makers and potential investors obtain guidance and advice regarding business setups and expansion plans in Malaysia,” he added.

Meanwhile, the National Chamber of Commerce and Industry Malaysia (NCCIM) and Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) President Tan Sri Low Kian Chuan said domestic direct investment (DDI) is an important driver of private investment to complement foreign direct investment.

He said that with SMEs making up 98.5% of total establishments in Malaysia, this has reaffirmed their role as the backbone of the Malaysian economy and industrial development.

“Reviving domestic investment is crucial in raising the economy’s productive capacity, accelerating technological progress, creating employment opportunities and expanding exports with the implementation of the Regional Comprehensive Economic Partnership (RCEP),” he said.

Low said the government has a major defining role in strengthening the conducive environment to facilitate business investment and doing business in Malaysia.

According to him, Malaysian businesses and industries are here to stay, given the more familiar local business conditions, while diversifying their investments outside Malaysia.

“While a favourable tax regime and investment incentives help boost DDI, the effect is stronger if augmented with a good investment climate and better investment facilitation, as well as predictable regulatory environment, backed by stable economic and political conditions,” he added.

Source: Bernama