24 July 200224 July 2002

“Jumpstart Your Business With Grants”

-Financial Assistance Programme for SMEs

by Mr. Wong Tin Song, SMIDEC

ITINERARYITINERARY

ABOUT SMIDEC

PERFORMANCE OF SMEs

FINANCIAL INCENTIVES FOR

SMEs

TO ENHANCE THE

COMPETITIVENESS,

EFFICIENCY AND

PRODUCTIVITY OF SMEs

PerformanceSME

DEFINITION OF SMEs

DEFINITION OF SMEs

MANUFACTURING COMPANIES

WITH AN ANNUAL SALES

TURNOVER NOT EXCEEDING RM 25

MILLION AND FULL-TIME

EMPLOYEES NOT EXCEEDING

150

MANUFACTURING COMPANIES

WITH AN ANNUAL SALES

TURNOVER NOT EXCEEDING RM 25

MILLION AND FULL-TIME

EMPLOYEES NOT EXCEEDING

150

Size of SME Companies

24 %

76 %

Medium

Small

SMEs constitute 90 % of the manufacturing SMEs constitute 90 % of the manufacturing

sectorsector

Number of SME companies in operation-21,385Number of SME companies in operation-21,385

SMEs constitute 90 % of the manufacturing SMEs constitute 90 % of the manufacturing

sectorsector

Number of SME companies in operation-21,385Number of SME companies in operation-21,385

PROFILE OF SMEsPROFILE OF SMEs

CONTRIBUTION OF SMEs (2001)

CONTRIBUTION OF SMEs (2001)

18 %Value Added

31.2 %Employment

15 %Total Output

VALUE ADDED

TOTAL OUTPUT

EMPLOYMENT

MARKET SHARE :EXPORT - 20%DOMESTIC - 80%

TEXTILE AND APPAREL -17.5%

WOOD-BASED PRODUCTS - 15.6%

FABRICATED METAL PRODUCTS - 11.9%

FOOD INDUSTRIES - 11.9% CHEMICAL, PETROLEUM, PLASTIC & RUBBER PRODUCT -11%

OTHERS ( PAPER , BASIC METAL, ETC) -22%

SECTOR DISTRIBUTIONSECTOR DISTRIBUTION

17.5%

11%

22% 11.9%

11.9%

15.6%

FINANCIAL ASSISTANCEPROGRAMME FOR SMEs

GRANT SOFT LOANSOFT LOAN PACKAGE FOR SMEs

INDUSTRIAL TECHNICAL ASSISTANCE FUND (ITAF)

UPGRADING ENGINEERING DESIGN CAPABILITIES

FACTORY AUDITING

ICT APPLICATION

- E-MANUFACTURING

- ROSETTANET

FINANCIAL ASSISTANCEPROGRAMME FOR SMEsFINANCIAL ASSISTANCEPROGRAMME FOR SMEs

GRANTSGRANTSINDUSTRIAL TECHNICAL ASSISTANCE FUND

(ITAF)

UPGRADING ENGINEERING DESIGN CAPABILITIES

FACTORY AUDITING

ICT APPLICATION - E-MANUFACTURING

- ROSETTANET

COMPANIES INCORPORATED UNDER THE COMPANIES ACT, 1965;

ANNUAL SALES TURNOVER NOT EXCEEDING RM 25 MILLION AND

FULL TIME EMPLOYEES NOT EXCEEDING 150;

AT LEAST 60 % EQUITY HELD BY MALAYSIANS;

PRIORITY TO COMPANIES PARTICIPATING IN THE ILP.

QUALIFYING CRITERIA FOR GRANTS

GRANT FOR UPGRADING ENGINEERING DESIGN CAPABILITIES

GRANT FOR UPGRADING ENGINEERING DESIGN CAPABILITIES

The scheme provides assistance to SMEs:

to purchase design software (CAD, CAM, CAE);

to purchase related computer hardware, peripheral and networking equipment;

to enhance their engineering design capabilities and enable SMEs to carry out their own design in-house;

training in the use of systems related to production design.

Form of Assistance:

Matching grant not exceeding RM300,000 per company or 50% of approved project cost, whichever is lower.

The Scheme provides assistance for the adoption of ICT so as to improve competitiveness, efficiency and productivity of SMEs.

Purchase of Enterprise Resource Planning (ERP) software; or

Implementation charges including system study, customisation and training;

Purchase of related networking equipment and server; and

Purchase of other software such as CIM, ERM, MRP, SCM and CRM.

Form of Assistance: Grant not exceeding RM500,000 per company or 50% of

approved project costs, whichever is lower.

ICT ApplicationE-MANUFACTURING GRANT-ERPICT ApplicationE-MANUFACTURING GRANT-ERP

The Scheme provides assistance to local Electrical and Electronic (E&E) companies:

to implement RosettaNet , an internet based common messaging standard for global supply chain

management;

enables companies in the supply chain to communicate and conduct business electronically through common codes sourcing of parts and components;

acquisition of RosettaNet Middleware which include software, hardware and licensing fee.

Form of Assistance:

Grant not exceeding RM100,000 per company or 50% of approved project costs, whichever is lower.

ICT Application - GRANT FOR ROSETTANET STANDARD IMPLEMENTATION

LOAN LOAN

SOFT LOAN PACKAGE FOR

SMEs

Offers assistance to SMEs in modernizing and automating their manufacturing operations.

Both existing as well as start-up companies are eligible for:

- Project Financing.

- Fixed Asset Financing.

- Working Capital Financing.

SOFT LOAN FOR SMEsSOFT LOAN FOR SMEs

SOFT LOAN

GRANTS

INDUSTRIAL TECHNICAL ASSISTANCE FUND (ITAF)

UPGRADING ENGINEERING DESIGN CAPABILITIES

FACTORY AUDITING

SKILLS UPGRADING

ICT APPLICATION (E-COMMERCE AND E-MANUFACTURING)

• SOFT LOAN PACKAGE FOR SMALL AND MEDIUM ENTERPRISES

Special Assistance Scheme for

Women Entrepreneurs

To integrate more companies / enterprises owned and run by women into the mainstream of manufacturing through inter and intra industry linkage

To enhance the global competitiveness of companies / enterprises owned and run by women

To upgrade the technological capabilities and technical skills and expertise of companies / enterprises owned and run by women

SPECIAL ASSISTANCE SCHEME FOR WOMEN ENTREPRENEURS

SPECIAL ASSISTANCE SCHEME FOR WOMEN ENTREPRENEURS to allow greater access to financing for women entrepreneurs

the sector coverage of this Scheme has been expanded to include other activities specifically packaged to be more flexible and accessible to women entrepreneurs

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THANK YOU801C, Level 8, Tower C, Uptown 5,

No.5 Jalan SS21/39Damansara Utama

47400 Petaling JayaSELANGOR DARUL EHSAN Tel. No. 603 – 76287400Fax No.: 603 - 7660 1920

Email : wong@smidec.gov.myhttp://www.smidec.gov.my