MTC HIGH IMPACT PROJECT (HIP)
The Financial Incentive for High Impact Project (HIP) is introduced to encourage domestic investment in new production line(s) with modern technologies for upgrading of manufacturing facilities and business expansion. It also aims to drive the timber industry towards implementing smart manufacturing and Industry 4.0 (I4.0) enabling technologies to enhance the industry’s competitiveness with a more responsive and efficient operation.
A) Eligibility Criteria
- Shall be a member of any one (1) of the six (6) timber associations:
i. Malaysian Wood Industries Association (MWIA);
ii. The Timber Exporters' Association of Malaysia (TEAM);
iii. The Malaysian Panel-Products Manufacturers' Association (MPMA);
iv. Malaysian Wood Moulding & Joinery Council (MWMJC);
v. Malaysian Furniture Council (MFC); and
vi. Persatuan Pengusaha Kayu-kayan & Perabot Bumiputra Malaysia (PEKA)
[Association of Malaysian Bumiputera Timber & Furniture Entrepreneurs].
- The company must be based in Peninsular Malaysia, installed with wood-based manufacturing facilities, in operation for at least three (3) years;
- Must be involved in sawmilling or production of value-added timber products;
- Must be a majority Malaysian-owned company (i.e. with at least 51% of Malaysian shareholding);
- Companies with common shareholders, only one (1) company may apply;
- Each company is eligible for one (1) successful application;
- Ongoing project(s) where the production line/equipment/system has been installed/in-operation is not eligible to apply; and
- Companies that have received any grant or subsidy for the proposed project from other government or government-linked agencies are not eligible for this incentive.
B) Reimbursement Rate
- SMEs : 15% of the total investment for the HIP (minimum investment at RM700,000.00), and up to RM150,000.00 per company/group of companies (one-off allocation).
- Non-SMEs: 10% of the total investment for the HIP (minimum investment at RM700,000), up to RM150,000 per company/group of companies (one-off allocation).
C) Project Scopes
- Investment in new production line for business expansion or diversification of products.
- Adoption of smart factory/Industry 4.0 technologies.
- The technical proposal submitted will be evaluated on a case-to-case basis and the approval is at the sole discretion of MTC.
- Register for an account at iap.mtc.com.my. Once the account registration is approved, the applicant will receive an email notification and instruction to log into the Portal.
- Applying Company shall complete their company profile in the online application portal.
- 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.
- Submit the Application Form online after the purchase has been confirmed.
- Certified true copies of documents1 to be submitted online include:
- Form 24 as per the Companies Act 1965 OR Section 78 as per the Companies Act 2016
- Form 49 as per the Companies Act 1965 OR Section 58 as per the Companies Act 2016
- Latest Form of Annual Return
- Purchase Order/Sales Contract
- Manufacturing process flow chart explaining existing major processes and new process
- Factory layout plan
- Latest three (3) years Audited Accounts
- Latest three (3) months bank statement
- Technical Proposal Note: 1To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.
- After receiving the acknowledgement from MTC of its application, the Applying Company must allow an introductory session (remote or on-site) to be carried out by MTC prior to the execution of the project.
- The Applying Company is required to submit the Project Completion Report issued by its system integrator/solution provider/supplier online to MTC immediately after the project has been commissioned.
- The application will then be tabled at the monthly IHWG Meeting/by Circular Resolution for approval to progress to next stage, and a Conditional Approval Letter will be issued and sent to the Applying Company.
- Online submission for reimbursement (with full supporting documents) must reach MTC within two (2) months after commissioning of the project.
- Late submission for reimbursement after the aforementioned two (2) months period will not be considered and shall be rejected by MTC.
- Certified true copies of documents1 to be submitted online for the reimbursement include:
- Invoice from system integrator/solution provider/supplier
- Delivery Order
- Bill of Lading, Customs Declaration Form (K1) and Packing List (if purchased offshore)
- Proof of payment issued by local system integrator/solution provider/supplier
- Project Performance Report which includes the project outcomes and achievements, as well as to share the success story of the Applying Company. Note: 1To certify on the first page only.
- Subsequently, MTC will conduct a due diligence audit (DDA) upon receipt of the online submission for reimbursement. Hardcopy documents (certified true copies) for the reimbursement submission to be submitted to MTC within two (2) weeks from the DDA.
- MTC may engage a technical expert to assist in DDA
- A consultant will be engaged by MTC to conduct an assessment on the feasibility of the HIP and on whether it was charged at a fair and reasonable price.
- Approval for reimbursement is at the sole discretion of MTC.
- The financial incentive provided is on a first-come first-served basis, until the budgeted allocation is completely utilised in the particular year.
F) Non-compliance (Penalty)
- In the event of non-compliance to the guidelines, the company must undertake to refund in full the disbursement's amount to MTC.
G) Process Workflow
For further enquiries and information, please contact:
Ms. Ong Lay Lee (ext. 602, email: email@example.com)