MTC BUSINESS DIGITALISATION (BD) 

GUIDELINES

MTC Business Digitalisation (BD) programme aims to facilitate industry players to digitalise business processes thus encouraging digital transformation in the timber industry. In addition, it has been expanded to cover a wider scope to further assist the industry players in various stages of their digital transformation journey and to build data driven culture in their businesses.

A)   Eligibility Criteria

• The company shall be incorporated in Malaysia and based in Peninsular Malaysia.
• The company shall be a Malaysian-owned company (with at least 51% of shareholding).
• The company shall be a member of any one (1) of the following 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].

• Must be involved in sawmilling or production of value-added timber products, or timber trading, and in operation for at least three (3) years.
• The sawmillers or timber manufacturers shall be installed with own wood-based manufacturing facilities.
• Small and Medium Enterprise (SMEs) with common shareholders having different core businesses may apply. Each company may be eligible for a reimbursable amount of up to RM100,000, subject to a combined maximum of RM200,000 once every 3 years.
• SMEs with common shareholders with similar core businesses may apply and share the incentive up to RM100,000 once every 3 years.
• On-going project(s) where the system/software/project has been installed/deployed or executed are not eligible.
  • 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.

 B)   Scopes and Incentive Categories

1. Digital software used directly in the overall value chain of manufacturing to digitalise business processes in the following:

a)     Business/Operation Management (e.g. ERP, Cloud ERP, EUDR compliance (NEW), etc)

b)    Manufacturing Management (e.g. MES, MOM, OEE, etc)

c)     Inventory Management (e.g. smart logistics, smart warehouse, eStockcard, etc)

d)    Data Analytics, simulations, etc 

 2. System integration (SI) for digitalisation

a)    Retrofitting of machinery for digitalisation

b)    Implementation of IIoT project/Real Time Locating System

c)     Machine-to-Machine (M2M) & Machine-to-Human (M2H)

d)    Programmable Logic Controllers (PLCs)

3. The followings are not eligible for the incentive:

a)    Basic accounting/finance/HR Management system(s) .

b)    Office expenses and supplies including general purpose computers, peripherals and mobile phones.

The reimbursement rate are as follows:

Note: ¹Professional services such as implementation, customisation, data migration, training etc. which is deemed necessary by MTC.

C)   Registration/Application

• Applying Company is encouraged to undergo MDEC’s Data, Analytics and AI Readiness Assessment to identify your organisation's data, analytics and AI readiness prior to your investment in digitalisation. (The website link for the online assessment: https://mdec.my/datakita/dde/)
• For new applicant, 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.
• 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.
• Certified true copies of documents² 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 Section 68 (Annual Return) as per the Companies Act 2016
  • Latest three (3) years audited accounts

Note: ²To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.

• After the purchase of software has been confirmed with a signed Contract/Functional Specification Document (FSD) with the supplier, the Applying Company is required to submit the Application Form to MTC via http://mtc.com.my/BDapplication.
• Certified true copies of documents² to be submitted together with the Application Form include:
  • Signed Contract with detailed information
  • Project blueprint/detailed timeline for the software/project implementation
  • Diagram of the existing production line with proposed addition/retrofitting of hardware/software & diagram/picture of hardware and software in the proposed project
  • Latest three (3) months bank statement

Note: ²To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.

• The Applying Company is required to notify MTC on the progress of the implementation and to submit User Acceptance Testing (UAT)/Conference Room Pilot (CRP)/Project Commissioning Report to MTC within one (1) month from the date of the Report. An Acknowledgement Letter will be issued and sent to the eligible Applying Company to progress to the next stage.

D)   Reimbursement

• The Applying Company is required to submit for reimbursement within one (1) month from the date of the Project/Work Completion Report:

a)    After the software system has been successfully implemented and go live; or

b)    After the SI project has been successfully executed.

• Late submission for reimbursement after the aforementioned one (1) month period will not be considered and shall be rejected by MTC.
• Certified true copies of documents² to be submitted for reimbursement include:
  • Invoice from service provider/system integrator
  • Proof of payment issued by service provider/system integrator
  • Project/Work Completion Report, highlighting the challenges, achievements and business benefits resulting from the implementation of the software/system.
  • Printed report generated by the software system (if applicable)
  • Printed screenshot of dashboard (if applicable)

Note: ²To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.

• Subsequently, MTC will conduct a due diligence audit (DDA) upon receipt of the submission for reimbursement. Revised report and required supporting documents (where necessary) to be submitted to MTC within two (2) weeks from the DDA.
• 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.
• The financial incentive provided is on a first-come, first-served basis until the budgeted allocation is fully utilised.

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.

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.

G) Process Workflow

For further enquiries and information, please contact:

1. Ms Ong Lay Lee (Tel: 03-9286 9962; Email: ong@mtc.com.my
2. Mr `Ammar Muhammad Shahmie Shahidi (Tel: 03-9286 9968; Email: shahmie@mtc.com.my)