SMIDEC stands for Small Medium Industries Development Corporation. You can visit the site about Matching Grant here : http://www.smidec.gov.my/detailpage.jsp?page=itaf1
One of the grants available is the “Matching Grant” for startups. The maximum amount as per the website I last surfed and from SMIDEX 2009 was RM100,000.
Please take note that this is a 50%-50% grant which means the you pay 50% while the government pay another 50% on the list of allowable expenses. Therefore before applying for the grant, you have to obtain the necessary working capital in order to achieve the 50%-50%.
Do not fall into the trap of thinking that every expenses apply for this grant, only allowable expenses.
So what are the criteria in applying for the matching grant?
- Companies incorporated under Companies Act 1965 (just get your company registered at SSM)
- Fulfill definition of SMEs
- 60% equity held by Malaysians
- Possess business license
- Falls in the category of Manufacturing, Manufacturing-related, services (please check with SMIDEC, some business may not fulfill this category such as insurance)
So what are the allowable expenses?
- Rental of business premises of up to 24 months
- Purchase of office equipments and materials
- Consultancy and registration fee
- Feasibility studies
- Preparation of business planning
- Development of prototype
- Product sample and testing
- One year broadband subscription fee
For more information on allowable expenses please check with SMIDEC.
In terms of disbursement, I read from certain forums that it is claim in nature such as payment of your business premises, you pay first and then you get the claim.
Before you submit the application, do contact the SMIDEC staff for assistance and provide the documents accordingly as stated in the form.
You can download the form and contact SMIDEC as below:
- Matching Grant – Application Form & Project Proposal
- SMIDEC Infoline: 1-300-88-1801