This is to be achieved through the following schemes: -

• Consultancy Service Scheme (ITAF 1);
• Product Development and Design Scheme (ITAF 2);
• Quality and Productivity Improvement Scheme (ITAF 3); and
• Market Development Scheme (ITAF 4).

Applications were processed by the three implementing agencies. Of these, 925 were tabled at the respective evaluation committee meetings. The remaining were found ineligible for the scheme.

Many SMIs have yet to understand the concept of the ITAF 2 and ITAF 3 schemes and thus cannot come up with practical objectives for their projects as required. Most of the applications are made with the purpose of purchasing new or additional machinery and equipment which are not provided for under the scheme. As for ITAF 4, applicants claim that they do not have enough funds to pay for the project before claiming for reimbursements under the scheme.

The ITAF secretariat together with the implementing agencies continue to carry out appropriate activities to promote the schemes. The number of applications is expected to increase with these promotional activities being intensified and there is an increase in awareness among SMI manufacturers of the benefits from various schemes under the Fund.

Briefing: -

1. The eligible SMI must complete the ITAF 3 application form by enclosing M&A, Form 9, 24, 49, Latest Audited Account and Manufacturing License (if paid-up capital is more than RM2.5 million) or Local Authority License to SMIDEC.
2. Within a month, an officer from NPC (National Productivity Council) will conduct a Factory Audit.(The officer will check if the actual factory is genuinely involve in production/manufacturing, check for the validity of the relevant license, and to ascertain if the factory is situated in the approved/designated industrial area)
3. Within the next month, SMIDEC will release an approval letter to the SMI and the first 30% of the approved fund will be released to the SMI (no need to show invoice).
4. Upon the receiving the approval letter, the project can commence immediately.
5. Subsequent claims are at the next 30% and final 40% with invoice from Consultants.

ITAF 1 (Business Planning and Development Scheme)

Eligible Activities

• Market pre-feasibility studies/ Kajian-kajian pra-feasibiliti pasaran
• Technology pre-feasibility and feasibility studies/ Kajian-kajian pra-feasibiliti dan feasibiliti teknologi
• Business planning/ Perancangan business
• Studies on market strategy both domestic and export / Kajian-kajian tentang strategi-strategi pasaran domestik dan eksport
• Branding/ membina jenama

Funding

• 50% matching grants of the project
• Maximum grant / company is RM40,000

Qualifying Criteria

• SMEs incorporate under the Companies Act 1965.
• A manufacturing company or companies providing manufacturing related services with an annual sales turnover not exceeding RM25 million OR full time employees not exceeding 150.
• At least 60% equity is held by Malaysian.
• Company must be operating in an approved premise. (with business license issued by local authority)
• Priority to activities related to manufacturing under PIA, & participated in ILP.

ITAF 2 (Process and Product Development Upgrading Scheme)

Eligible Activities

• Development of new product, new design or new processes/ Pembangunan produk baru, rekabentuk baru atau proses baru
• Improvement and upgrading of existing process/ Memperbaiki dan meningkatkan proses sedia ada
• Improvement of existing products or designs/ Memperbaiki produk-produk/ rekabentuk sedia ada
• Improve and upgrade existing product, product design and process. For cost of: -
  • Technical expertise
  • Acquiring technology & skills
  • Testing & calibration
  • Testing materials & equipment
  • Designing & prototyping

Funding

• 50% matching grants of the project
• Maximum grant / company id RM500,000

Qualifying Criteria

• SMEs incorporate under the Companies Act 1965.
• A manufacturing company or companies providing manufacturing related services with an annual sales turnover not exceeding RM25 million OR full time employees not exceeding 150.
• At least 60% equity is held by Malaysian.
• Company must be operating in an approved premise. (with business license issued by local authority)
• Priority to activities related to manufacturing under PIA, & participated in ILP.

ITAF 3 (Productivity and Quality Improvement and Certification Scheme)

Grant for Productivity and Quality Improvement and Certification provides assistance to Small and Medium Enterprises (SMEs) for productivity and quality improvement and to comply with international quality standards and certification.

Manufacturing companies or companies providing manufacturing related services incorporated under the Companies Act 1965 with annual sales turnover of not exceeding RM25 million or full-time employees not exceeding 150 are eligible for the above grant.

We shall assist our clients in the facilitation of all the relevant documents required by the governing body for application and claims at no obligation and cost. Our consultants shall provide you with the accurate advice on how to get the best out of the grant.

Eligible projects are ISO 14000, ISO 13485, ISO 17025, OHSAS 18000, TS 16949, GMP, Halal and HACCP.

Eligible expenses covered by the grant are cost of consultancy and training, cost of certification, cost for testing and calibration and cost of acquiring equipment for product testing, pollution prevention and safety.

ITAF 4 (Market Development Scheme)

Eligible Activities

• Participation in internationally recognized trade exhibitions locally and abroad (including seminars held during the exhibitions)/ Penyertaan dalam pameran-pameran perdagangan di luar dan di dalam negeri, termasuk seminar-seminar yang diadakan semasa pameran.
• Participation in trade mission overseas (including seminar during the mission)/ Penyertaan dalam misi-misi perdagangan di luar negeri.
• Printing of promotional materials/ Percetakan bahan-bahan promosi.

Funding

• 50% matching grant with the remainder of the cost to be borne by the applicant
• Maximum grant per company is RM60,000

Qualifying Criteria

Participation in International Trade Missions, Specialised Selling Missions, and Trade Fairs Companies participating in: -

• Trade missions and specialised selling missions organised by the Government and its agencies such as Ministries, MATRADE, MITI, MIDA; and private sector trade and industry associations, and chambers of commerce.
• International trade fairs overseas, local international trade fairs, catalogue show overseas, in-store promotion programmes and promotional programmes held in Malaysian trade centres overseas.

Trading companies that meet the following conditions: -

• Having annual sales turnover of between RM10 million to RM25 million.
• Exporting Made in Malaysia products especially from SMEs.
• Not more than 20% of the company's annual sales is derived from trading in primary commodity products.