Industry4WRD
Intervention Fund
(as at 27.03.2023)

www.mida.gov.my

GUIDELINES AND PROCEDURES FOR THE APPLICATION OF
INDUSTRY4WRD READINESS ASSESSMENT INTERVENTION PROGRAMME(“INDUSTRY4WRD INTERVENTION FUND”)
1. INTRODUCTION
1.1. The Industry4WRD Intervention Fund is a financial support facility for Malaysian Smalland Medium Enterprises (SMEs) in the manufacturing and related services sectors toembrace Industry 4.0.
1.2. The Fund will be provided to support companies in implementing intervention projects
based on the recommendation of Industry4WRD Readiness Assessment (RA) Reporton the shift factors of people, process and technology.
1.3. Objectives of this Fund are to:1.3.1. Improve productivity of the company;
1.3.2. Accelerate business growth through adoption of Industry 4.0 technologies andprocesses; and1.3.3. Improve the current level of scoring based on the Industry4WRD RA
undertaken.
2. ELIGIBILITY
2.1. This Fund is eligible for all SMEs in the manufacturing and related services sectors
which have completed the government-funded Industry4WRD ReadinessAssessment (RA) programme.
Note:▪ All SMEs must be entities registered with the Companies Commission of Malaysia.
▪ SMEs with shareholder of more than 20% by Public Listed Companies in the mainboard, Multinational Corporations (MNCs), Large Firms, Government Link Companies(GLCs), Government-owned Companies, Syarikat Menteri Kewangan Diperbadankan(MKDs) and State-Owned enterprises (if any) are NOT eligible.
2.2. Any expenditure incurred prior to the approval letter issued by MIDA will not becovered or reimbursed.

12.3. The Company which has been approved the Smart Automation Grant (SAG) fromMIDA or Malaysia Digital Economy Corporation (MDEC); or Domestic Investment
Strategic Fund (DISF) for modernization & upgrading of machine and equipment is not
eligible to apply for this grant. The company can apply for Industry4WRD Intervention
Fund after 3 years utilisation (based on the last payment received by the company) of
the SAG or DISF grants.
2.4. The non-eligibility criteria on companies that has been approved the Smart Automation
Grant (SAG) from MIDA or Malaysia Digital Economy Corporation (MDEC) and theDomestic Investment Strategic Fund (DISF) (modernisation & upgrading of machineryand equipment grant) is exempted for companies located at six (6) Less Developed
States (LDS) as declared under the Twelfth Malaysia Plan (RMKe-12) which include
Kelantan, Terengganu, Kedah, Perlis, Sabah and Sarawak or Bumiputera Companies(with more than 51% Bumiputera equity).
2.5. Companies that been approved other grants under MITI Agencies and theGovernment of Malaysia, are eligible to apply for the IIF.
2.6. A company related to another company which has been granted any of the grants
mentioned in 2.3 is not eligible to apply for this grant.
2.7. The SMEs engaged in the following activities may eligible to apply :2.7.1. Manufacturing activities in compliance with the Industrial Coordination Act(ICA), 1975; and2.7.2. The exempted activities from the Industrial Coordination Act (ICA), 1975 asfollows :i.
Milling of oil palm fresh fruits into crude palm oil (CPO).
ii.

Production and processing of raw natural rubber of all types including
latex, skim, sheets, scrap, technically-specified rubbers, non-standard
and modified rubber or any other vulcanized form of natural rubber
prepared by any patented or technically specified procedure; andiii.

The milling of paddy into rice.

2.5.1 Manufacturing-related services (MRS) activities as per Industry4WRD RAguideline in the following areas:i.
Main operating services;
ii.
Distribution services;
iii.
Maintenance services;iv.
Assurance services; andv.
Environmental-related services2

3. APPLICATION PROCEDURE
3.1 Upon completion of the Industry4WRD RA, SMEs may apply for this Fund to MIDA.
Application must be submitted not more than six (6) months after receiving theIndustry4WRD RA report, i.e. from the date of the approval cover letter issued by theMalaysia Productivity Corporation (MPC).
3.2 The applicants are required to submit the following documents:
3.2.1
3.2.2
3.2.3
3.2.4

Application Form (Appendix A);
Industry4WRD RA Report (With cover letter by MPC);
Detailed technical proposal; and(Audited) Financial statements for the past three (3) years.

3.3 The detailed technical proposal should include:
3.3.1
Background, purpose and objectives;
3.3.2
Scope of project;
3.3.3
Method of execution including potential solution providers;3.3.4
Implementation period;
3.3.5
Breakdown of expenditure;
3.3.6
Expected outputs and outcomes.
4. APPLICATION EVALUATION
4.1. Evaluation will be carried out by MIDA by taking into consideration thefollowing criteria:
4.1.1. Viability of technical proposal;
4.1.2. Company’s financial performance;
4.1.3. Projected impact towards productivity improvement and business growth; and4.1.4. Adoption or implementation of at least one (1) of the Industry 4.0 technology
pillars.
5. PROJECT DURATION
5.1. The project duration is up to 12 months from the date of the Approval Letter issued
by MIDA. Any expenditure incurred prior the approval of Approval Letter issued by
MIDA will not be covered or reimbursed.
5.2. Any request for extension is required to be made at least 2 months before the projectend date and subject to the approval of the Committee.
6. SCOPE AND QUANTUM OF FUNDING
6.1. The funding will be provided on matching basis (70:30) based on eligible
expenditures, up to a maximum grant of Ringgit Malaysia Five Hundred Thousand(RM500,000.00) only.

36.2. Only expenditures based on the recommendations of RA report will be considered. At
least one of the shift factors of people, process and technologies must be addressedin the intervention project, subject to a maximum grant of RM50,000 on the shift factorof people.
6.3. The following expenditures will not be eligible:
6.3.1.
6.3.2.
6.3.3.
6.3.4.
6.3.5.

Purchase or rental of land, building, vehicles and furniture;
Premise renovation;
Collateral or loan which not related to the approved intervention project;
Marketing/ promotional activities;
Operation expenditure including salary, employee benefits, travelling
expenditures;
6.3.6. Expenditures on R&D activities; and6.3.7. Working capital not related to the project.
7. NOTIFICATION OF RESULTS
7.1. The result of the application will be notified by MIDA after decision by theIndustry4WRD Intervention Fund Approval Committee. The decision by the ApprovalCommittee is final.
7.2. Successful applicants will be approved a maximum 30% upfront payment of the 70%
matching grant.
7.3. Company approved with Industry4WRD Intervention Fund located at the Less
Developed States (LDS) as defined under the 12th Malaysia Plan i.e. Perlis, Kedah,Kelantan, Terengganu, Sabah and Sarawak, will be granted 40% upfront payment of
the 70% matching grant.
7.4. Amount of upfront is subject to decision by the Industry4WRD Intervention FundApproval Committee (based on the company’s financial status). The balance of theremaining grant should be claimed by the company only one time and not more than
18 months from the date of MIDA’s approval letter, by:
7.4.1. Submission of progress report and project completion report to MIDA.
7.4.2. Submission of milestones achievement to MIDA.
8. EFFECTIVE DATE OF APPLICATION
Application received by MIDA from the date of approval of Industry4WRD Readiness
Assessment Report (refer letter issued by MPC) is eligible to be considered for theIndustry4WRD Intervention Fund. However, consideration of such application is subject to theavailability of funding and allocation by the Government of Malaysia and current policy inforce.
9. CONDITION
Government reserves the right to withdraw the grant if the applicant fails to execute theintervention project as approved.
410. OVERALL PROCESS WORKFLOW
Refer to Appendix B.
11. APPLICATION SUBMISSION:
The application should be submitted to:Chief Executive Officer
Malaysian Investment Development Authority (MIDA),
MIDA Sentral,
No. 5, Jalan Stesen Sentral 5,
Kuala Lumpur Sentral, 50470 Kuala Lumpur.
For project in Sabah and Sarawak, the application should also be submitted to therelevant MIDA office as follows:
Sabah
Director
MIDA Sabah Office
Lot D9.4 & 9.5,
9th Floor, Block D, Bangunan KWSP,Karamunsing,88100 Kota Kinabalu,Sabah, Malaysia.

SarawakDirector
MIDA Sarawak OfficeRoom 404, 4th Floor,
Bangunan Bank Negara Malaysia,
No 147, Jalan Satok,
PO Box 716, 93714 Kuching,
Sarawak, Malaysia.

For enquiries and clarification, please refer to:MIDA website
TelFaxE-mail::::www.mida.gov.my(603) 2267-3633(603) 2273-4208
investment@mida.gov.my5