MTC FACTORY TRANSFORMATION PROGRAMME (FTP) 

GUIDELINES

A.      Introduction

This programme aims to assist timber companies in improving their manufacturing efficiency and productivity as well as towards Industry 4.0 ready through the application of Lean Manufacturing and other good manufacturing practices. The programme modules are based on manufacturing industry needs developed by the training providers.

B.      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:

• Malaysian Wood Industries Association (MWIA)
• The Timber Exporters' Association of Malaysia (TEAM)
• The Malaysian Panel-Products Manufacturers' Association (MPMA)
• Malaysian Wood Moulding & Joinery Council (MWMJC)
• Malaysian Furniture Council (MFC)
• Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA) [Association of Malaysian Bumiputra Timber & Furniture Entrepreneurs]

4. Eligible for both SMEs and non-SMEs.

C.     Incentives

1.     Modules by Selangor Human Resource Development Centre (Duration: 2 to 4 months)

a. LEAN Manufacturing System (4 man-days)

This module focuses on lean practices to improve manufacturing performance through standardised workstations, better process flow, and practical improvement activities, enhancing efficiency, quality, and productivity at the factory floor level.

b. Step-Up LEAN Smart Factory (5-man-days)

The module is tailored for timber manufacturers who have already adopted Lean Manufacturing and are ready to advance toward Smart Factory transformation. This initiative supports factories in evaluating their current capabilities, uncovering opportunities for digital innovation, and creating a strategic roadmap for Industry 4.0 integration.

2.     Modules by ICA40 Sdn Bhd (Duration: 6-8 months)

a. LEAN-ESG Management (8 man-days)

The module adopts a practical approach that eliminates operational waste to procure, produce and deliver products at the right time, price, place, quantity and quality, in line with client requirements, while meeting environmental, social and governance (ESG) standards.

b. Quick Response Quality Culture “QRQC” (8 man-days)

The module is designed to foster a data-driven culture on the shop floor, empowering teams to make real-time decisions based on facts. It emphasises key areas such as Detection, Communication, Analysis and Verification.

c. Real-Time Quality Culture "RTQC" *(8 man-days)

The module is an extension to QRQC by transforming real-time quality data into organisational knowledge, enabling systematic problem prevention, knowledge sharing, and sustainable improvements across all sites, product families and R&D phases.

d. Total Productive Maintenance “TPM” (8 man-days)

The module is designed to maximise Overall Equipment Effectiveness (OEE) by involving all employees, i.e. management, operators and maintenance, in maintaining machine health and preventing breakdowns.

*Note:

       i.          Nett cost borne by company after MTC’s partial contribution.

      ii.          The programmes by Selangor Human Resource Development Centre and ICA40 Sdn Bhd are HRD Corp Fund claimable.

3.     FTP Referral Programme

Companies that refer participants who successfully enrol in the FTP will be eligible to receive a cash rebate:

• The cash rebate can be applied to offset the fees for the company’s current or future FTP programmes, or other MTC’s programmes deemed appropriate by MTC (e.g., TSP, TimbeReality), and shall remain valid for a period of two (2) years from the date of the notification letter of Cash Rebate Entitlement issued by MTC.
• The cash rebate may be accumulated and utilised in full at one time, subject to the applicable programme terms and conditions.
• Any unutilised amount after the validity period will lapse and shall not be carried forward.

D.      Application

1. Select the FTP training providers (i.e. SHRDC or ICA40 Sdn Bhd) and submit registration form to MTC accordingly.

2. 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.

3. Applying company shall complete their company profile in the online portal, with the following supporting documents (with certified true copy stamped and signed on front page only):.

• Section 78 as per the Companies Act 2016 OR Form 24 as per the Companies Act 1965;
• Section 58 as per the Companies Act 2016 OR Form 49 as per the Companies Act 1965;
• Latest Form of Annual Return; and
• Latest Audited Accounts.

4. 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.

5. MTC will issue an approval letter to the applying company upon receiving the completed registration form.

6. The training provider will arrange for the training schedule and kickstart the programme.

7. For companies that opt to utilise their available HRD Corp levy for claimable courses, the selected consultant shall liaise directly with HRD Corp to facilitate the claim process. In the event that no reimbursement is disbursed by HRD Corp, full payment shall be made by the company to the selected consultant. Companies that do not apply for HRD Corp claims shall make full payment directly to the consultant.

8. The approval is at the sole discretion of MTC.

9. The financial incentive provided is on a first-come, first-served basis until the budgeted allocation is completely utilised in the particular year.

10. Participating companies that have completed FTP Programme will be given priority consideration in the application of other incentives and programmes organised or funded by MTC, subject to fund availability and the respective eligibility criteria, as follows:

• Automation Technology Acquisition (ATA) & Business Digitalisation (BD): Priority consideration shall be applied to existing companies, i.e. companies that have previously made claims under ATA and BD.
• Timber Sustainability Programme (TSP): An additional incentive of 20%, up to a maximum of RM2,800, will be provided based on the existing TSP reimbursement cap of RM14,000.
• TimbeReality: FTP participants commencing from 2025 onwards will be entitled to a complimentary Virtual Reality Factory package upon successful completion of their programme.

E.      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.

F.      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:

1. Ms. Ong Lay Lee (Tel: 03-9286 9962; Email: ong@mtc.com.my)
2. Ms Rachel Ling (Tel: 03-9286 9964; Email: ling@mtc.com.my
3. Ms. Noor Ateeqah (Tel: 03-9286 9967; Email: noorateeqah@mtc.com.my)
4. Mr. Ammar Muhammad Shahmie Shahidi (Tel: 03-9286 9968; Email: shahmie@mtc.com.my)
5. Ms. Siti Azura Saidin (Tel: 03-9286 9987; Email: azura@mtc.com.my)