FUND FOR AUTOMATION AND GREEN TECHNOLOGY

Supporting Rubber Products Industry Towards Sustainable Transformation

ABOUT THE FUND

The Fund for Automation and Green Technology is established with the following objectives:

Scope of Coverage
The fund shall cover the following projects:
  1. Automation
  2. Green technology which comprises:
    • Technology that utilises renewable energy sources i.e. solar and biomass
    • Wastewater recycling and/or rainwater harvesting
Eligibility Criteria
The company shall meet the following criteria:
  1. Incorporated under the Companies Act 1965 or 2016
  2. Possess a valid manufacturing license from MITI or business license from the local authority or any other equivalent license issued by a regulatory body
  3. For SME companies, possess the latest Certificate of SME status issued by SME Corporation Malaysia.
  4. For downstream sector, producing and exporting predominantly rubber products with minimum RM1000 average cess contribution in the last three (3) consecutive years.
  5. For midstream sector, producing and selling processed rubber locally and/or internationally in the last three (3) consecutive years.
  6. Ongoing project(s) where the equipment has been installed/in-operation or purchase order has been issued are not eligible to apply
  7. Not receiving other incentives, grants, or any other form of benefits from Government and its related agencies for the same project. (i.e. MIDA -Reinvestment Allowance, Investment Tax Allowance, Automation Capital Allowance, etc.)
  8. Possess a healthy financial status and free from any legal or insolvency cases
  9. Encouraged to use local technology/service provider in their respective project implementation
ADDITIONAL CRITERIA
BY PROJECTS

Automation

Automation projects shall be for use in at least one of the areas as follows:

  • Material handling
  • Processing
  • Packaging
  • Inspection and testing
  • Other activities which are part of the manufacturing process

Projects should incorporate elements of Industry 4.0 (i.e. Real time data collection and statistical analysis and reporting).

The Fund does not cover:

  • Purchase of automation equipment or system for investment in a new plant or new products.
  • Duplication of existing equipment.

Preliminary Readiness Assessment Scheme

MRC encourages rubber processors and rubber products manufacturers to participate in the Industry4WRD Readiness Assessment (RA) Programme offered by the Ministry of Investment, Trade and Industry (MITI).

The Industry4WRD Readiness Assessment Scheme is an additional incentive offered by MRC for eligible companies to claim full reimbursement of Industry4WRD RA fees up to RM20,000 per company.

Upon completion of the assessment and full payment to the Assessor Bodies registered under Malaysia Productivity Corporation (MPC), the companies are required to submit project applications under the "Automation & Digitalization" categories within six (6) months. The reimbursement claim will not be affected by the Select Committee's decision on the submitted project applications.

The companies that benefitted from this scheme will be ineligible for tax reduction under the Deduction for Expenditure on Industry4WRD Readiness Rules 2020.

Solar Energy

The energy produced from the project(s) should be utilized directly in the manufacturing process. Further, the adoption of renewable solar energy should also be able to reduce the consumption of fossil fuel-based electricity generation.

The installation of photovoltaic (PV) panels and all relevant facilities shall comply with the standards determined by the relevant authorities, i.e latest edition of MS1837.

Biomass Energy

The energy produced from the project(s) should be utilized directly in the manufacturing process. Further, the adoption of renewable biomass energy should also be able to reduce the consumption of fossil fuel-based electricity generation.

The Fund does not cover:

  • Utilization of Refuse Derived Fuel (RDF).
  • Purchase of raw materials used for the production of bio-energy e.g. wood pellet, wood chips, palm kernel shell, palm fibre, rice husk, sawdust, etc.

Water Treatment

Water Treatment only applicable for wastewater recycling and/or rainwater harvesting.

The technology used in wastewater recycling and rainwater harvesting should be able to treat or purify the water and use it directly in the manufacturing process. The technology should also be able to constitute more than 30% if mixed with Public Utility Water Supply (PUWS) in the manufacturing process.

The Fund does not cover:

  • Simple reuse of untreated water in the manufacturing process without any further treatment or tertiary wastewater treatment system.
  • Reuse of water for simple cleaning or washing of equipment or factory premises.
APPLICATION

Proposal Application and Submission

The application is open throughout the year via Online Application System.

Application Guidelines

Approval Process

Approval from Relevant Authorities

For proposed projects that require approval from relevant authorities, it is the responsibility of the applicants to obtain the necessary approval for the projects.

 

MRC reserves the rights to withdraw the matching grant in the event the applicants failed to obtain the necessary approval from the relevant authorities.

Supporting Documents

Applications must be supported with the following documents:

Automation Projects

  • Layout plan to indicate locations where machinery / equipment will be installed
  • Quotations and manufacturer's specifications for major equipment
  • Spreadsheet on current throughput for existing machine(s)

Solar Energy Projects

  • Solar PV System Schematic Diagram certified by GCPV holder
  • Layout of system installation certified by GCPV holder
  • Quotations / purchase order of equipment
  • Latest annual return form of service provider
  • Licenses issued by CIDB, Suruhanjaya Tenaga (ST) and SEDA
  • Electricity bills for 6 months prior to the project
  • Levelized Cost of Energy (LCOE) calculation for 25 year

Industry4WRD Readiness Assessment

  • Industry4WRD Readiness Assessment (RA) Report;
  • Verification Letter from MPC; and
  • Quotation, Invoice, and Receipts from the appointed Assessor Bodies.

Water Treatment Projects

  • Process Flow Diagram (PFD) certified by Professional Engineer
  • Piping and Instrument Drawing (P&ID) certified by Professional Engineer
  • Quotations / purchase order of equipment
  • Site Location Plan

Biomass Energy Projects

  • Feedstock supply quotation (wood chips, wood pellets, rice husk, palm kernel shell, palm fibre or other types of biomass)
  • Documents of key vendor(s) providing the technology and installing the machines, equipment and system:
    • Technology or equipment specifications (eg. brochure, quotation)
    • Vendor profile / URL
    • Vendor registration (SSM / Form 9) or vendor license (if applicable)
  • Quotations / purchase order of equipment
  • Valuation report for used machines and equipment
  • Process Flow Diagram (PFD) to include layout plan for machinery certified by professional engineer

Evaluation of Applications

Applications received will be evaluated by the relevant Panels of Experts established by MRC.

In addition to the information uploaded into Online Application System, MRC may request for further information for evaluation. Companies which apply for the Fund may also be required to give a presentation to the relevant Panels of Experts.

DISBURSEMENT OF FUND

The Fund for approved projects will be disbursed as follows:


  • 25% - upon purchase of equipment
  • 50% - upon full payment and commissioning of approved projects
  • 25% - upon verification of the project outcome

MRC will carry out on-site inspection prior to the disbursement of matching grant.

SUCCESS STORIES

Advancing through Automation

Cooltec Industries Sdn Bhd

View Article

Going Green with Solar Energy

Nastah Industries Sdn Bhd

View Article

Powering High Value Through Green Electricity Innovation

CE Technology Bhd

View Article

Optimising Costs and Energy Consumption with a Biomass Boiler

Duramitt Sdn Bhd

View Article

Going Green for Sustainable Success

Rubber Leisure Products Sdn Bhd

View Article

Advancing through Automation

Sumirubber Malaysia Sdn Bhd

View Article

Advancing through Automation

G.B. Industries Sdn Bhd

View Article

Soaring Higher with Solar

Eversafe Rubber Works Sdn Bhd

View Article

Soaring Higher with Solar

Medical Rubber Products Sdn Bhd

View Article

Industry
Interaction Session


The FAGT Industry Interaction Session is organized by MRC to provide a meeting point and information sharing session between the Expert Panels of FAGT and the rubber industry to assist the industry members in identifying potential technologies to be adopted under the FAGT programme. The first Industry Interaction Session has been successfully organized in October 2021.

Listed here are the presentation slides from the Expert Panel and companies that have completed their projects funded under the FAGT programme


Expert Panel

Click on the tabs below


Automation

Solar Energy

Biomass Energy

Water Treatment



Companies

Click on the tabs below


Cooltec Industries Sdn Bhd

Rubber Leisure Products Sdn Bhd

Duramitt Sdn Bhd

CE Technology Bhd

Contact Us

FUND FOR AUTOMATION AND GREEN TECHNOLOGY
SECRETARIAT
CORPORATE PLANNING & RESEARCH DIVISION
MALAYSIAN RUBBER COUNCIL (MRC)
UNIT NO. 36-02, LEVEL 36, Q SENTRAL
2A JALAN STESEN SENTRAL 2, KL SENTRAL
50470 KUALA LUMPUR.

  (603) 2782 2100
  (603) 2782 2199
  agt@myrubbercouncil.com

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