Get RM5,000 SME Grant with Kakitangan.com? Find out how!

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By        June 19, 2020   News & Update    Advertising Disclosure

If you’re reading this article, you’ve undoubtedly heard about the Ministry of Finance’s efforts to digitalize SMEs by offering grants or them to adopt more digital services.

 

However, why is the government creating such an initiative? Is the grant really as good as it seems? More importantly, what’s the catch?

 

We dug deep into the system to find out all we can about the grant, what it does, its limitations and most importantly, how you can apply for it with an awesome payroll service provider like Kakitangan.com.

 

Strap in your seatbelts folks, cause we’re going for a ride!

 

 

The SME Digitalisation Initiative – What is it?

 

SME digitalisation initiative rm5000 grant

 

For our Malaysian brothers (& sisters) that haven’t heard of the program yet, the SME Digitalisation Initiative was first announced in the MOF’s Budget 2020 proposal which was received with much fanfare thanks to the massive benefits it brings to our local small and medium enterprises.
 

Led by Bank Simpanan Negara (BSN), SME Bank and Malaysia Digital Economy Corp (MDEC), the government plans to channel RM500,000,000 worth of grants over a 5-year period to the first 100,000 local SMEs to apply for the funds.
 

The Initiative was made in order to get more SMEs to integrate digital services into their operations, in hopes that the move will drive the digital economy and encourage the growth of more Malaysian digital startups.

 

Long story short, the government wants our local digital economy to make it rain.

 

 

 

How does this benefit SME owners?

 

It’ll affect us in just one, but very impactful way.

 

You’ll be enjoying a 50% grant (up to a maximum of RM5,000) on digital services like Kakitangan.com that will enhance your business productivity, so you’ll essentially be enjoying an upgrade to your business at half the cost!

 

This all sounds sweeter than nectar, but do keep in mind that there ARE limitations to the grant.

 

To give you an example of how the grant works, here’s a little scenario:

 

  • You apply for an e-Payroll service like Kakitangan.com which costs you RM7,000 per year. The government will foot 50% of the bill, which ends up at RM3,500.
  •  

  • If the service charges are RM20,000, the maximum amount the government will pay is RM5,000.
  •  

  • In other words, the grant covers 50% of the total bill for digital services, up to a maximum of RM5,000 only.

 

Next, those of you thinking that you’ll be getting straight-up RM5,000 in cash, prepare to be disappointed.

 

To apply for the grant, you’ll need to appoint a digital service provider first, then apply for the grant. If the grant is approved, then you need to pay the service provider 50% of the invoice, while the government will reimburse them with the remaining 50%.

 

If the grant is rejected… then you’re out of luck.

 

Actually, that’s not true. The way I see it, an upgrade to your business via digital services is highly beneficial to SMEs, and you should be looking into it anyway, with or without the grant.

 

The Initiative also covers the first 100,000 applicants only, so if I were you, I’d act fast – nobody’s racing to be the first to apply after the first 100k and walk away disappointed.

 

 

Does your SME qualify for the grant?

 

“So if my company is registered in Malaysia as an SME, I’ll be eligible for the grant right?”

 

I wish it was that easy.

 

Just like anything worthwhile in life, the subsidy doesn’t come easy but it’s definitely worth the trouble. The requirements to qualify for the grant may be a little steep for some starter SMEs, but it isn’t aren’t exactly impossible to fulfil.

 

We’ve compiled the complete list of requirements here, just to make things easier for you, our dear readers.

 

  • The SME must be at least 60% owned by a Malaysian individual
    If you’re the sole owner of the company, you’ll be fine. If you have foreign partners, best discuss the terms of your partnership to take advantage of the grant.
  •  

  • The SME must be registered under the relevant laws of Malaysia and classified as an SME
    As long as your company is legally registered under the SME category, you’ll fulfil this criteria.
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  • The SME must be in operation for at least 1 year with a minimum annual sales turnover of RM100,000
    If your company is less than a year old, you won’t be able to qualify for the grant. Try again next year! If your business has been running for at least a year with sales of at least RM100,000 then you’re eligible!
  •  

  • SMEs that has been operating for 2 years or more must have a minimum annual sales turnover of RM50,000 for the last 2 years
    This one’s pretty straight forward. Been in business for more than 2 years? Has the company produced at least RM50,000 in sales every year? If the answer is yes, then you’re good to go.

 

malaysian sme must be eligible to receive grant

 

 

Which digital services are covered by the grant?

 

When I first heard of the Initiative, I got all excited thinking that the grant applies to ALL digital services. We could use the grant for some of the digital tools we use on a daily basis!

 

It’s too bad that the government decided to limit the grant to cover certain services only.

 

Currently, the services that listed under the grant are:

 

  • Procurement
  • Digital Marketing/Sales
  • Enterprise Resource Planning (ERP)/Accounting & Taxation
  • Electronic POS Systems
  • HR Payroll/CRM Systems

 

More services might be introduced in the future, but for now that’s all we’ll be getting. The types of digital services covered by the Initiative are not that much, but there are already 42 technology solution providers (TSM) under MDEC, and we hear there are more to come!

 

Congratulations Kakitangan.com!

Kakitangan.com is the sole e-Payroll provider to make it into the Initiative list of panels endorsed by MDEC! Read here to find out why it’s one of our best-rated payroll companies!

 

 

How does an SME apply for the grant with Kakitangan.com?

 

With all the Googleable (is that even a word?) information there is out there, it’s surprising to find next to no details on how one actually goes about applying for the grant.

 

Lucky for you, we’ve got backstage tickets to the Grant show and we’re more than happy to share the deets with you.

 

The grant is available to be applied with all the TSM listed, but for purposes of this blog post, we’ll show you how it’s done using Kakitangan.com.

 

So what does one need to do to apply for the SME Digitalisation Initiative with Kakitangan.com?

 

Step 1 – Apply

 

You’ll need to click HERE, click on “SCHEDULE DEMO” and apply for the service via the contact form. Leave your details in there and a Kakitangan.com representative will be in contact with you.

 

apply kakitangan.com get sme grant rm5000

 

Discuss the sort of plans you want and the Kakitangan.com representative will send you an Invoice.

 

After you sort that out, you’ll need to fill in the SME Digitalisation Initiative form, which can be downloaded here.

 

We wish that this could be done and submitted digitally (come on, even the word “digital” is in the Initiative’s name) but unfortunately, we’ve got to do this the old-fashioned way.

 

Print and fill out the forms, then you’ll need to gather the documents listed below for the application. You didn’t think they were gonna let you near the grant without documentation, did you?

 

You’ll need:

 

  • SME Digitalisation Initiative Form (printed & filled up).
  • Copy of Identity Card or Passport of Director(s) / Partner(s) / Proprietor(s) (whichever applicable).
  • Copy of business registration licenses (CCM, Form A/B, Form 24 & 49 and M&A or any similar forms under the Companies Act 2016).
  • Audited financial statement for the last financial year and the latest management account, or evidence of sales turnover.
  • Company’s bank statement for the last two months.
  • Invoice/billing and service agreement from Kakitangan.com.
  • Company profile (optional).

 

Step 2 – Submit

 

Submission time!

 

Gather all your documents in a nice folder (including the SME Digitalisation Form, filled up, and the invoice from Kakitangan.com) and head on over to your most favourite Bank Simpanan Nasional or SME bank.

 

Inform the counter that you’re looking to apply for the SME Digitalisation Initiative and they should point you in the right direction.

 

A short interview session will be conducted to ensure there’s no monkey business going on, so make sure to dress presentably and double check to ensure your hair’s on fleek.

 

Also, you might want to bring along a powerbank. The wait might be long, and your phone’s gonna be the only thing keeping you from dying of boredom.

 

Pro Tip

If the person manning the front desk gives you a blank stare when you say SME Digitalisation Initiative, try saying “Geran PKS” or simply “SME grant”.

 

Step 3 – Wait

 

Play the waiting game.

 

This is when the bank is processing your submission, conducting investigations and performing general due diligence. They need to ensure no monkey business, remember?

 

Don’t fret though, if you’ve provided the bank with all the required documentation and you’ve ticked all the right eligibility boxes, you should have nothing to worry about.

 

This process should take about 10 – 15 working days.

 

Step 4 – Approval

 

Your application is approved!

 

Once you receive notice of approval, you will need to pay 50% of the invoice to Kakitangan.com, and provide the payment receipt to the bank.

 

This should be done within 5 working days.

 

Step 5 – DONE!

 

If everything goes smoothly, the bank will then disburse the remaining amount into Kakitangan.com’s coffers.

 

Congratulations! You’ve completed the process!

 

application flow for SME grant

 

 

Conclusion – Our Thoughts

 

The entire process might seem tedious and intimidating, but we highly encourage all business owners to apply for the grant.

 

You can apply it with any of the service providers listed, but if you’re new to cloud technology and SAAS services, we highly suggest to start the digitalisation process by implementing a cloud payroll service first.

 

All companies need to run payroll, and an e-Payroll service provider will undoubtedly help in increasing your SME’s productivity & convenience to yourself!

 

You’re essentially getting an upgrade from your regular payroll to a cloud-based system with better security, HR features and local support at 50% off!

 

But the way I see it, with or without the grant, you should still be applying for services from the TSMs so you can enjoy the many benefits and convenience of cutting-edge cloud technology.

 

 

Recap

 

Anyway, to recap, these are the list of requirements for your SME to qualify for the grant:

 

  • The SME must be at least 60% owned by a Malaysian individual.
  • The SME must be registered under the relevant laws of Malaysia and classified as an SME.
  • The SME must be in operation for at least 1 year with a minimum annual sales turnover of RM100,000.
  • SMEs that have been operating for 2 years or more must have a minimum annual sales turnover of RM50,000 for the last 2 years.

 

Here are a list of things you’ll need to prepare before heading over the BSN or SME bank to submit your application:

 

  • SME Digitalisation Initiative Form (printed & filled up).
  • Copy of Identity Card or Passport of Director(s) / Partner(s) / Proprietor(s) (whichever applicable).
  • Copy of business registration licenses (CCM, Form A/B, Form 24 & 49 and M&A or any similar forms under the Companies Act 2016).
  • Audited financial statement for the last financial year and the latest management account, or evidence of sales turnover.
  • Company’s bank statement for the last two months.
  • Invoice/billing and service agreement from Kakitangan.com.
  • Company profile (optional).

 

To apply for the grant with Kakitangan, you’ll first need to go to the our Kakitangan.com review page, click on “SCHEDULE DEMO” and send in your details in the contact form. A Kakitangan.com representative will then contact you and you may proceed from there.

 

Bring all the required documents to the closest BSN or SME bank and ask to apply for the SME Digitalisation Grant. Remember, you’ll have to go through a short interview so make sure you put on your best Sunday suit.

 

Once the grant is approved, you pay 50% of the invoice to Kakitangan.com, and Government will cough up the remaining 50% and you’re done!

 

All the best, folks!

 

 

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About The Author

Elliot has been writing copy for the past 15 years, working with various Art Directors to create successful advertising campaigns for many local and international brands. He has also worked in the financial services industry, gaining valuable experience and insights in the art of selling. While he mostly does creative copy for retail clients, he also writes for small businesses in his free time, helping them achieve the reach they need.

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