MTC SPECIAL ATA INCENTIVE FOR IR 4.0 TECHNOLOGY
GUIDELINES
The special incentive is designed to encourage the Malaysian timber industry to adopt IR 4.0 technologies by facilitating access to cutting-edge machinery and innovations showcased at international trade fairs. These platforms offer first-hand exposure to advanced solutions—such as Artificial Intelligence (AI), Machine Learning (ML), Cyber-Physical Systems, Autonomous Robots, and Augmented Reality—that are not yet prevalent locally. By leveraging these opportunities, timber companies can drive operational efficiency, boost productivity, embrace data-driven decision-making, transform their workforce, and enhance competitiveness and sustainability in line with IR 4.0 goals.
(A) Eligibility Criteria:
1) The company shall be incorporated in Malaysia and based in Peninsular Malaysia with own manufacturing facilities.
2) The company shall be a Malaysian-owned company (with at least 51% of shareholding).
3) The company shall be a member of any one (1) of the following six (6) Timber Associations:
4) The company shall be installed with wood-based manufacturing facilities and in operation for at least three (3) years.
5) Must be involved in sawmilling or production of value-added timber products.
6) To prioritise manufacturing companies specialising in timber products for export.
7) Eligible for both small and medium enterprises (SMEs) and non-SMEs with an annual revenue below RM100 million
and are not public listed.
8) Companies that have received other grant or subsidy for the purchase of the same item from other government or
government-linked agencies are not eligible.
9) Companies must have successfully completed the MTC Factory Transformation Programme (FTP-Lean) or other
equivalent programmes recognised by MTC, and must still be actively implementing its practices.
10) Priority will be given to MTC FTP participants who are actively implementing its practices.
11) Graduated companies will be assessed based on the following additional criteria:
i. The company must have successfully completed the MTC Factory Transformation Programme
(FTP-Step-up Lean), and must still be actively implementing its practices.
ii. Priority will be given to companies that participated in the MTC Timber Reality Programme.
iii. Preference will be given to high-impact investments.
(B) IR 4.0 Technology
1) A single machinery/technology/system purchased from a recognised international trade fair/exhibition must be
valued at RM350,000.00 and above. This machinery may be integrated into a smart system or production line.
2) The machinery/technology/system purchased must satisfy at least three (3) of the following criteria:
i. Automation: Capable of automated operation or integration into a smart production line.
ii. Digital connectivity & IoT Integration: Equipped with IoT (Internet of Things) features, which supports
infrastructure and interfaces that provide real-time machine operation feedback to a centralised data
management system for production monitoring, performance analysis, and process optimisation.
iii. AI/ML Integration: Utilises artificial intelligence or machine learning for process optimisation or
quality control.
iv. Energy Efficiency: Designed with advanced energy-saving technologies or sustainability features.
v. Remote Operation or Monitoring: Capable of being monitored or operated remotely via cloud or
networked systems.
vi. Advanced CNC or Robotics Integration: Includes robotic handling, multi axis CNC capabilities, or
robotic-assisted manufacturing.
vii. Augmented Reality (AR) & Virtual Reality (VR) Integration: Enhances human-machine interaction through
AR/VR applications as well as supports immersive training, real-time visual guidance, or remote assistance
to improve productivity and safety.
(C) International Trade Fair/Exhibition
1) Minimum Exhibition Area
2) Percentage of Foreign Exhibitors
3) IR 4.0 Relevance
4) Accreditation or Recognition
(D) Reimbursement Rate
The reimbursement rates and entitlements are as outlined below:
|
No. |
Description |
Special Financial Incentive per Company/Group of Companies |
|
(1) |
Incentive amount |
20% of the purchase price of the machinery or system/production line. |
|
(2) |
Annual limit |
A maximum of two (2) units of machinery or one (1) system/production line per year. |
|
(3) |
Lifetime claim limit |
Limited to a total of RM300,000.00 per company or group of companies, with 2019 designated as the base year of the special incentive. |
(E) Registration
1) Register for an account at MTC IAP Portal: iap.mtc.com.my. Once the account registration is approved, the applicant
will receive an email notification and instructions to log into the Portal.
2) Applying company shall complete their company profile in the online portal. Certified true copy of documents1
to be submitted online include:
i. Section 78 as per the Companies Act 2016 or Form 24 as per the Companies Act 1965.
ii. Section 58 as per the Companies Act 2016 or Form 49 as per the Companies Act 1965.
iii. Latest Section 68 (Annual Return) as per Companies Act 2016.
iv. Latest Audited Account.
Note: 1To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.
3) Applying company with existing account in the portal shall log in and update their company profile.
The company profile can be updated at any time and should be kept up to date for MTC’s evaluation.
(F) Application
1) Applying companies must ensure that the machine is installed and commissioned before submitting their
application through the IAP Portal. The commissioning of the machine must be within six (6) months from the
last day of the trade fair.
2) Applying companies are required to submit their application within 30 days of the machine’s commissioning date.
The documents to be submitted online include:
i. Purchase Order/Sales Contract and Letter of Commissioning for the new machine
ii. Brochure with photos and technical specification of new machine
iii. Manufacturing process flow chart explaining major processes
iv. Relevant position of the new machine on the factory floor
v. Factory layout plan
vi. Technical proposal
vii. Latest three (3) years audited accounts
viii. Latest three (3) months bank statement
3) An introductory session will be conducted by MTC to provide guidance to the Applying Companies on
the reimbursement application process.
4) An acknowledgment letter will be issued to the eligible applying company, confirming their progression to the
next stage of the process, i.e. reimbursement.
(G) Reimbursement
1) Online submission via MTC IAP Portal (iap.mtc.com.my) for reimbursement application
(with full supporting documents) must reach MTC within two (2) months from the date of “Acknowledgement Letter”.
Late submission for reimbursement application after the aforementioned two (2) months period
will not be considered by MTC.
2) The documents to be submitted online for the reimbursement include:
i. Supplier’s Invoice and Delivery Order for the machine
ii. Bill of Lading, Customs Declaration Form (K1) and Packing List (if purchased offshore)
iii. Transport or ocean freight charges
iv. Proof of payment issued by the supplier
v. Detailed Impact Report indicating key performance indicators (KPIs) pre- and post-adoption
(qualitative and quantitative benefits, e.g. cost savings/operational efficiency, productivity improvements,
market expansion, workforce/talent attraction, quality control, data driven decision making,
scaling of technology use, etc)
3) MTC will conduct the due diligence audit (DDA) upon receipt of the online submission for reimbursement.
Revised production data and required supporting documents (where necessary) to be submitted to MTC within
two (2) weeks from the DDA.
4) MTC may engage a technical expert to assist in the DDA.
5) The applying company is required to submit company declarations via the IAP portal to acknowledge
the responsibility for the accuracy and authenticity of all information provided in the submitted documents.
Certified true copies are not required for the uploaded supporting documents, except for those required
for the Company Profile.
6) Applying companies will also be subject to a three-year impact monitoring process. This monitoring aims to
assess the effectiveness and long-term outcomes of the support provided, including business growth,
market expansion, and overall benefits derived from participation in the special incentive programme.
7) Approval for reimbursement of incentive under this programme is at the sole discretion of MTC subject
to any application for reimbursement supported by credible and non-misleading requisite documentation
as stipulated herein.
8) The financial incentive provided is on a first-come, first-served basis until the budgeted allocation is fully utilised.
(H) Non-compliance (Penalty)
In the event of non-compliance with any of the provisions contained herein, the company must refund in full the disbursement amounts to MTC within fourteen (14) calendar days from the receipt of a written notice from MTC. MTC reserves its rights to initiate legal action to recover the disbursed amount and/or any other actions deemed suitable. All costs incurred in pursuing such actions shall be solely borne by the company.
MTC also reserves the sole right to blacklist any company found to be non-compliant with any of the provisions contained herein.
(I) Amendment
MTC reserves the right to amend the Guidelines of this Programme at any time without any prior notice. Interested companies is highly encouraged to refer the IAP Portal for the latest version of the Guidelines from time to time.
For further enquiries and information, please contact:
Industry Development & Transformation Division (IDTD)