Do you know? Small and medium business owners (SMEs) like you can now apply for grants amounting to RM5,000. This is not a myth.
You must be wondering how an SME Digitization Grant can help your business, especially in MCO where most customers make purchases from home. Before we get to that topic, let’s find out more about the MDEC SME Digitization Grant.
What is the MDEC SME Digitization Grant?
Based on Budget 2020, the government has found an opportunity to help SME business owners to thrive despite facing obstacles in MCO through digitization. To encourage more local businesses to venture into the latest technology, the government has allocated an additional RM150 million under the SME’s Digitization Grant scheme in Budget 2021.
The government will provide 50% grants worth up to RM5,000 to each company to own digital solutions. The cumulative allocation of this Grant is RM500 million for a period of five years, and is limited to the first 100,000 successful applicants.
MDEC, having its role as well, is responsible for ensuring local businesses receive the right tools and solutions to help them digitize their business operations.
In addition, the government has identified seven main frameworks for digitization that need to be adapted by SMEs, namely:
- Digital Marketing and/or Sales
- Electronic Point of Sales (e-POS) System
- Human Resource Payment System/CRM
- Accounting and Taxation/ERP
How do grants help your business?
Let’s take a look at 3 scenarios to understand more about how you can take full advantage of the grant.
Scenario 1: Spend with limits
An SME trader contacted 3 vendors and applied for three different services. The first service costs RM5,000, the second is RM3,000 and the third is RM2,000 with a total amount of RM10,000, so the trader is eligible to receive the full amount of the grant of RM5,000.
Scenario 2: Spending over the limit
An SME trader spends RM12,000 for a settlement and pays RM7,000 but not RM6,000 (50%), this is because the total grant is limited to RM5,000. So, the trader has also used the full amount of the grant limit.
Scenario 3: Spend less than the limit
An SME trader bought a solution worth RM4,000. This means that the company has to pay half the price (RM2,000) and the rest is paid using a grant (RM2,000). In this case, the trader did not use the balance of RM3,000.
For more information about mdec grant malaysia, please visit https://www.nuweb.com.my/sme-matching-grant/