The favorable provisions for digital adoption set out in the 2020 Budget denotes the government is actively encouraging more local businesses to move rapidly into the technology sphere.

The Government will provide a 50% matching grant of up to RM 5,000 per company for the subscription of the above services. This matching grant will be worth RM 500 million over 5 years, limited to the first 100,000 SMEs applying to digitalise their business operation.

Strategic Collaboration Efforts

The government through Ministry of Finance (MOF) is working together with Bank Simpanan Nasional, SME bank and Malaysia Digital Economy Corporation (MDEC) in managing the grant to eligible Small & Medium Enterprises (SMEs) to adopt digitalization in daily operations.

7 Digitalization Areas

The Government has identified 7 Key Digitalisation Areas that should be adopted by SMEs.

1. Digital Marketing /Sales
2. Electronic Point of Sales (e-POS) System
3. HR Payroll System/CRM
4. Procurement
5. E-Commerce
6. Remote Working
7. ERP/Accounting & TAX

Million range of products has been approved for the SME business digitalization grant announced by the Ministry of Finance under the 2020 budget.

In brief, the Malaysian government will provide a 50% matching grant of up to RM5,000 per company for the subscription of the services below. This matching grant will be worth RM500 million over 5 years, limited to the first 100,000 SMEs applying.

Products Eligibility

• Million Accounting
• Million Stock Control
• Million Payroll
• Million POS (retail)
• Million On-the-Go (cloud based)
• Million HRM (cloud based)
• Popcorn POS for FNB (cloud based)

SMEs Eligibility

1. The company must be at least 60% owned by a Malaysian
2. The company registered under the relevant laws of Malaysia
3. The SME has been in operation for at least one (1) year
4. Company operation in one (1) year, company required to have a minimum annual sales
turnover of RM 100,000; OR
5. Company operation > two (2) year, company required to have a minimum annual sales turnover of RM 50,000 (preceding two (2) consecutive years)

Required Documents

1. Complete Application Form & Declaration Form
2. Copy of Identity Card or Passport of Director(s) / Partner(s) / Proprietor(s), whichever is applicable
3. Copy of business registration licenses (CCM, Form A/B, Form 24 & 49 and MBA or any similar forms under the Companies Act 2016)
4. Company’s bank statement for the last two (2) months
5. Audited financial statement for the last financial year and the latest management account or evidences of sales turnover (if any)
6. Invoice or billing and service agreement from authorized vendor listed by MDEC
7. Company’s profile (if any)