MTC Industry Assistance Programme

ATA Guidelines

MTC AUTOMATION TECHNOLOGY ACQUISITION (ATA)


GUIDELINES

 

MTC expanded its Financial Incentive for Purchase of Machinery (FIPM) to incentivise eligible manufacturers in the timber industry not limited to the purchase of new machinery to upgrade their manufacturing processes. In addition, it also covers the expansion and diversification of the company’s manufacturing capacity as well as process line automation.

 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);
    • SMEs with common shareholders having different core businesses may apply, with a reimbursable amount of up to RM140,000.00;
  • SMEs with common shareholders with similar core businesses may apply and share the incentive of RM70,000.00;
  • Ongoing project(s) where the machinery/system has been installed/in-operation are not eligible to apply; and
  • Companies that have received other grant or subsidy for the purchase of the said item from other government or government-linked agencies are not eligible for this incentive.

B)   Type of Incentive

(i)     Purchase of New Equipment/System

      1. Reimbursement Rate

  • Non-Bumiputera SMEs: Entitled to 20% of the equipment/system price and freight charges, limited to a maximum of RM70,000.00 once every three (3) years per company/group of companies.
  • Bumiputera SMEs: Entitled to 25% of the equipment/system price and freight charges, limited to a maximum of RM70,000.00 once every three (3) years per company/group of companies.
  • Non-SMEs: Entitled to 10% of the equipment/system price (minimum purchase value at RM300,000.00) and freight charges, limited to a maximum of RM50,000.00 once every three (3) years per company/group of companies

      2. Automation Technology

  • Automation technology refers to machinery, robotics, automatic material handling and conveyor system which is:

             - Dedicated for sawmilling or value-added timber processing

             - Used directly in the manufacturing processes at the factory floor

             - New equipment/system

             - Imported or locally fabricated

  • The equipment/system must be installed in the factory and have been in operation for at least one (1) month after commissioning before the submission for reimbursement.
  • The company should demonstrate that the equipment/system purchased enhances productivity, e.g. reducing man hours, reducing number of workers, increasing the volume of output, reducing production lead time and/or increasing company’s revenue.

 (ii)   Purchase of Reconditioned Machine

      1. Reimbursement Rate

  • SMEs and Non-SMEs: Entitled to 10% of the reconditioned machine’s price, limited to a maximum of RM50,000.00 once every three (3) years per company/group of companies.

      2.  Reconditioned Machine

  • In addition to the eligibility criteria for Automation Technology, reconditioned machine should mean that a machine which has been inspected, and that any damaged or worn parts have been either repaired or replaced. The machine is then assembled, returning it to “as new” condition or in good working condition.
  • A used machine “as is”, i.e. a machine that has been used and not properly maintained or reconditioned is not eligible for this incentive.
  • The reconditioned machine must not be more than 5 years old from the fabrication date.

(iii)   Purchase of Material Handling Equipment

      1. Reimbursement Rate

  • SMEs: Entitled to 30% of the equipment/system price and freight charges, limited to a maximum of RM70,000.00 once every three (3) years per company/group of companies.
  • Non-SMEs*: Entitled to 20% of the equipment/system price and freight charges, limited to a maximum of RM50,000.00 once every three (3) years per company/group of companies.

            Note: *The eligibility of non-SME is not subject to a minimum purchase of RM300,000.

      2. Material Handling Equipment

  • Eligible material handling equipment includes semi and auto pallet truck, auto stacker, conveyors/rails, sortation system, automated guided vehicle, etc and positioning equipment covers lift/tilt/turn tables, manipulators, industrial robots, etc.

C)    Registration/Application

  • 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 for the machine
    • Brochure with photos and technical specification of new equipment/system
    • Valuation Report (for reconditioned machine only)
    • Manufacturing process flow chart explaining major processes
    • Relevant position of the new equipment/system on the factory floor
    • Factory layout plan
    • Latest three (3) years audited accounts
    • Latest three (3) months bank statement                                                                                                             Note1To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.
  • MTC will send an acknowledgement of receipt to the Applying Company of its application.
  • After that, the Applying Company must allow a remote due diligence audit (DDA) to be conducted by MTC prior to the installation of the equipment/system (i.e. 1st DDA).
  • The Applying Company is required to submit the “Letter of Commissioning/ Service Report” online to MTC immediately after the new equipment/system has been commissioned.
  • A Conditional Approval Letter will be issued and sent to the Applying Company if the application is approved to progress to 2nd stage.

D)    Reimbursement

  • Online submission for reimbursement (with full supporting documents) must reach MTC within two (2) months after commissioning of machine purchased.
  • 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:
    • Supplier’s Invoice and Delivery Order for the machine
    • Bill of Lading, Customs Declaration Form (K1) and Packing List (if purchased offshore)
    • Transport or ocean freight charges
    • Proof of payment issued by the local supplier
    • Data2 (e.g. “before and after” results) to show that the equipment/system enhances production efficiency, e.g. reducing man hours, reducing number of workers and increasing the volume of output, reducing production lead time and/or increasing company’s revenue.                                                                                 Note: 1To certify on the first page only.                                                                                                                                              2Latest 1 month’s production record each for before and after the commissionin of the new machine.
  • MTC will conduct the 2nd DDA after receiving the online submission for reimbursement. MTC may go with a technical expert for the DDA.
  • 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.

E) 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.

F)     Process Workflow

  

For further enquiries and information, please contact:

1. Ms. Ong Lay Lee, ext. 602, email: ong@mtc.com.my

2. Ms. Wong Mei Kuan, ext. 604, email: mkwong@mtc.com.my