MTC AUTOMATION TECHNOLOGY ACQUISITION (ATA)
GUIDELINES
MTC expanded its financial incentive to incentivise eligible manufacturers in the timber industry for the purchase of new machinery/equipment to upgrade their manufacturing processes, for the diversification of the company’s product range as well as process line automation.
a) The company shall be incorporated in Malaysia and based in Peninsular Malaysia.
b) The company shall be a Malaysian-owned company (with at least 51% of shareholding).
c) The company shall be a member of any one (1) of the following six (6) timber associations:
d) The company shall be installed with wood-based manufacturing facilities and in operation for at least three (3) years.
e) Must be involved in sawmilling or production of value-added timber products, or timber trading.
f) To prioritise manufacturing companies specialising in timber products for export.
g) Eligible for both small and medium enterprises (SMEs) and non-SMEs with an annual revenue below RM100 million and are not public listed, subsidiaries of public listed companies (PLC) or companies have equity owned by PLCs.
h) Companies with Government equity (federal or state) in its shareholding or state-owned enterprises are not eligible.
i) SMEs with common shareholders having different core businesses may apply (excluding Purchase of Material Handling Equipment), with a reimbursable amount as follows:
j) SMEs with common shareholders with similar core businesses may apply and share the eligible incentive.
k) On-going projects where the machinery/system has been installed/in-operation are not eligible.
l) 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.
A. AUTOMATION TECHNOLOGY
a) Automation technology refers to new machinery/equipment which is:
b) The machine/equipment must be installed in the factory and has been commissioned before submitting the application.
c) The company should demonstrate that the machine/equipment purchased enhances productivity, e.g. reducing man hours/number of workers/increasing the volume of output/reducing production lead time or increasing company’s revenue.
d) The categories of incentives and their scopes are defined below.
i. To incentivise SMEs that purchase new woodworking machinery involved directly in the manufacturing processes to upgrade their manufacturing processes or to diversify the company’s manufacturing capacity.
A(i) Matching Grant for Small Enterprises
A(ii) Purchase of New Machine
A(iii) Medium Impact Project (MIP)
ii. To incentivise non-SMEs in their domestic investment in new production line(s) with modern technologies for upgrading of manufacturing facilities and ultimately to gear the industry towards Industry 4.0.
A(iv) High Impact Project (HIP)
B. MATERIAL HANDLING EQUIPMENT
a) To address timber industry’s urgent needs for material handling equipment due to labour shortage.
b) Material handling equipment includes semi and auto pallet truck, auto stacker, conveyors/rails, sortation system, automated guided vehicle, etc. and positioning equipment covering lift/tilt/turn tables, manipulators, industrial robots, etc.
B(i) Purchase of Material Handling Equipment
C. RECONDITIONED MACHINE
a) 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 reassembled, returning it to “as new” condition or in good working condition.
b) 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.
c) The reconditioned machine must not be more than 5 years old from the original fabrication date.
C(i) Purchase of Reconditioned Machine
3. GRADUATION POLICY
a) The recurring financial incentive is given up to a stipulated period of two (2) cycles1 per company/group of companies.
b) The number of cycles shall be determined by the company’s participation in ATA [formerly known as Financial Incentive for Purchase of Machinery (FIPM)], following the launch of the FIPM programme in 2018.
Note: 1 The duration of each cycle for the application year from 2018 to 2021 was three (3) years, whereas from 2022 onwards, it is two (2) years.
4. REGISTRATION
a) 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.
b) Applying company shall complete their company profile in the online portal. Certified true copy of documents2 to be submitted online include:
Note: 2To certify on the first page only. Hardcopies are not required. Verification would be carried out during on-site DDA.
c) 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.
d) Submit the online Application Form after the machine has been commissioned. The documents to be submitted online include:
5. APPLICATION
a) Applying companies must ensure that the machine is installed and commissioned before submitting their application.
b) Applying companies are required to submit their application within 30 days of the machine’s commissioning date.
c) Applying companies are required to submit the “Letter of Commissioning/ Service Report” online/via email to MTC within one (1) month from the date ofthe “Letter of Commissioning/Service Report”.
d) An introductory session will be conducted by MTC to provide guidance to the Applying Companies on the reimbursement application process.
e) A Conditional Approval Letter will be issued and sent to the eligible Applying Company to progress to the next stage.
6. REIMBURSEMENT
a) Online submission via MTC IAP Portal (iap.mtc.com.my) for reimbursement application (with full supporting documents) must reach MTC within two (2) months from the date of “Conditional Approval Email”. Late submission for reimbursement application after the aforementioned two (2) months period will not be considered by MTC.
b) The documents to be submitted online for the reimbursement include:
Note:
3 Latest one (1) month’s production record each for before and after the commissioning of the new machine. Application for material handling equipment need not to provide the data.
c) MTC will conduct the due diligence audit (DDA) upon receipt of the online submission for reimbursement. Revised production data and required supporting documents (where necessary) to be submitted to MTC within two (2) weeks from the DDA.
d) MTC may engage a technical expert to assist in the DDA.
e) The applying company is required to submit company declarations via the IAP portal to acknowledge the responsibility for the accuracy and authenticity of all information provided in the submitted documents. Certified true copies are not required for the uploaded supporting documents, except for those required for the Company Profile.
f) Approval for reimbursement is at the sole discretion of MTC.
g) Priority is given to companies that participate in MTC Factory Transformation Programme.
h) The financial incentive provided is on a first-come, first-served basis until the budgeted allocation is fully utilised.
i) MTC reserves the right to amend the Guidelines of this Programme at any time without any prior notice.
7. Non-compliance (Penalty)
a) In the event of non-compliance to the guidelines, the company must undertake to refund in full the disbursement's amount to MTC.
8. Process Workflow
For further enquiries and information, please contact:
Industry Development & Transformation Division (IDTD)