BUMIPUTERA MACHINERY INCENTIVE (BMI)

GUIDELINES

 A.      Introduction

The Malaysian Timber Council’s Bumiputera Machinery Incentive (BMI) is introduced to assist Bumiputera and B40 micro enterprises in acquiring new woodworking machinery. This initiative is taken to support the effort to increase Bumiputera and B40 micro enterprises’ productivity, production capacity, revenue and competitiveness.

B.    Incentive

One-off assistance for the purchase of woodworking machinery capped at RM5,000.

C.    Company/Enterprise Eligibility     

The company/enterprise shall be:

1. Incorporated in Malaysia, based in Peninsular Malaysia, and a Bumiputera or B40-owned company (with 100% of equity of the company owned by Malaysian).
2. Meet the definition of SMECorp’s micro enterprises with annual turnover less than RM300,000 or less than 5 number of workers.
3. Registered with the Companies Commission of Malaysia (SSM) with valid certificate.
4. In operation for a minimum of six (6) months prior to application.
5. Installed with woodworking facilities for the production of value-added timber products.

D.    Machinery Eligibility

1. New woodworking machinery only.
2. Dedicated to production of value-added timber processing.
3. Used directly in the woodworking/ production processes at the premise floor.
4. Purchased machinery cannot be sold, traded or rented out to other parties.
5. Eligible for imported or locally fabricated machinery.
6. The machinery purchased must be able to enhance productivity, e.g. reducing man hours, increasing the volume of output, reducing production lead time and/or increasing enterprise’s revenue.
7. Purchase of second-hand or reconditioned machinery is not eligible.

E.    Application Procedures

i. Company to complete and submit the application form to MTC.

ii. Supporting documents required to be submitted include:

• Company Registration Form D/E (SSM) as per the Companies Act 1965.
• Latest balance sheet / management accounts which provides information on the annual and monthly sales.
• Minimum 3 quotations of the requested new machinery from different established suppliers.
• Latest three (3) months bank statement.

iii. Upon receiving the complete application form and supporting documents, MTC would review the application and conduct a price comparison assessment on the machinery requested based on the three quotations provided by the enterprise.

iv. MTC would then conduct a due diligence visit to the micro enterprise’s premise to obtain more information of enterprise’s core business, main products, production capacity and capability.

v. Recommendations for approval documents would then be prepared for MTC’s CEO’s approval. Recommendations would be based on the price competitiveness and/or the specifications offered by the selected machinery supplier.

vi. Upon approval, an Approval Letter will be issued to the applicant and MTC would then proceed to raise payment for the purchase of the machinery.

vii. Upon payment, applicant to arrange for the collection/delivery of the machinery to their enterprise. MTC to obtain the Delivery Order and payment invoice from the supplier.

viii. MTC would then conduct a follow-up visit/engagement to enterprise to review the improvement post new basic machinery purchased, when necessary.

viii. For machinery price exceeding RM5,000 and not more than RM10,000, MTC would only cover RM5,000 and the machinery must first be purchased by the enterprise after completion of the requirements outlined in the guidelines. MTC would reimburse RM5,000 upon complete submission of documents.

x. MTC would allow the enterprise to purchase machinery from online platform or customised machinery and the reimbursement would be processed upon complete submission of documents and price comparison.

xi. Enterprise that is approved under this incentive is encouraged to participate in MTC’s other programmes or activities deemed suitable.

xii. Approval for application is at the sole discretion of MTC.

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

F.    Application Workflow

For further enquiries and information, please contact: 

1. Mr. Nasrul Izan Shahrin, ext. 603, email: nasrul@mtc.com.my 
2. Ms Noor Ateeqah Abdul Rahman ext. 607, email: noorateeqah@mtc.com.my 

Industry Development & Transformation Division (IDTD)