Industry4WRD is a comprehensive policy launched by the Malaysian government to help industries transform and modernize in order to achieve Industry 4.0 standards. If you are a Malaysian SME in the manufacturing or related services sectors and looking to adopt Industry 4.0 technologies, here are the steps to apply for Industry4WRD Intervention Fund by MIDA.
What is Industry4WRD Intervention Fund (IIF)?
The Industry4WRD Intervention Fund (IIF)is open to Malaysian SMEs in the manufacturing and related services sectors up to 70% with a maximum grant of Rm500k. The fund will be provided on a matching basis (70:30) based on eligible expenditures. Only expenditures based on the recommendations of the RA report will be considered.
What is RA report? continue reading…
A maximum of 30% of the matching amount (70 % of the total grant) will be given upfront to the companies with the condition that it is approved by the Intervention Fund Approval Committee at MITI. The remaining grant will then be on a reimbursable basis and will be decided at MIDA.
Also read: Industry 4.0 in Malaysia
The 4 Steps to Apply for Industry4WRD Intervention Fund
Step 1: Determine Eligibility
The first step is determining whether your company is eligible to apply for the Industry4WRD Intervention Fund.
To be eligible:
- Your company must be registered with the Companies Commission of Malaysia (SSM).
- Have at least 60% Malaysian ownership.
- In operation for at least 3 years.
- The SMEs engaged in Manufacturing and its related services (MRS) activities.
- Must have Manufacturing Licence (ML) or Confirmation Letter Exempted from ML from MIDA.
- A copy of the Licence/ Permit/ Support Letter/Registration Certificate from relevant ministries/agencies that govern the activities. (Applicable for manufacturing-related services company only).
- SMEs with shareholder of more than 20% by Public Listed Companies in the main board, MNCs, Large Firms, GLCs, Government-owned Companies, Syarikat Menteri Kewangan Diperbadankan (MKDs) and State-Owned enterprises (if any).
Step 2: Obtain Readiness Assessment Report
The Industry4WRD Readiness Assessment Report (RA report) is a comprehensive assessment tool that helps companies in Malaysia evaluate their current level of readiness to adopt Industry 4.0 technologies and practices.
The report provides an in-depth analysis of the company’s current manufacturing processes, organizational structure, technology adoption, and workforce capabilities. The assessment is based on a set of criteria developed by the Malaysian government to assess the readiness of companies for Industry 4.0.
SMEs need to fill out the Industry4WRD Readiness Assessment Online Application (MRS)– Fill in your company details, tick the ones relevant to your company, and submit online.
The approval process will take 2-3 weeks. Once approved, you will be notified to set an appointment for a 2-day onsite assessment with the assigned assessment committee (Free of Charge). For a company with more than 60 mil sales turnovers, assessment is chargeable with deductible tax. Once the onsite assessment is done, the company gets its RA report within 1 month.
Step 3: Apply for the fund
Upon completion of the Industry4WRD RA, SMEs may apply for this Fund to MIDA. The application must be submitted within six (6) months of obtaining the Industry4WRD RA report (as per the guideline updated on March 2023).
Required documents for the submission:
- Application Form
- Industry4WRD RA Report
- Approval Letter from MPC
- (Audited) Financial statements for the past three (3) years
- Manufacturing Licence (ML) or Confirmation Letter Exempted from ML from MIDA
- A copy of the Licence/ Permit/ Support Letter/Registration Certificate from relevant ministries/agencies that govern the activities. (Applicable for manufacturing-related services company only)
- Technical Proposal – Axxis Consulting will be happy to help 🙂
Click here for a complete guideline.
Step 4: Wait for Approval
After you have submitted your application, you will need to wait for approval from MIDA. If your proposal is approved, you will receive a letter of approval and instructions on how to proceed with your project. If your proposal is not approved, you will receive a letter explaining the reasons for the rejection.
The Process Workflow of Industry4wrd Intervention Fund
By following these 4 steps, you can increase your chances of success in securing funding and implementing your Industry 4.0 project such as Cloud ERP implementation.
Overall, the Industry4WRD Intervention Fund can help increase the competitiveness of Malaysian Manufacturer businesses and promote economic growth by giving financial and technical support to businesses wishing to embrace the technologies.