About the Fund

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

  • To encourage the rubber product industry to adopt automation and green technology to enhance the industry‚Äôs competitiveness
  • To alleviate labour shortage problem in the rubber product industry
  • To promote the adoption of green technology towards achieving sustainability in the rubber product industry

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
    • Recycling and harvesting of water and extraction of ground water

Matching Grant

Matching grant up to 50% of the project cost subject to a maximum of RM 1 million per company, whichever is lower

Eligibility Criteria

The company shall meet the following criteria:

  1. Incorporated under the Companies Act 1965
  2. Possess a valid business license from the local authority and manufacturing license from MITI or relevant agencies
  3. An exporter of cessable rubber products with minimum record of cess contribution in the last three (3) years
  4. Project(s) undertaken prior to the implementation of the Fund for Automation and Green Technology and ongoing project(s) where the equipment has been installed / purchased order has been issued are not eligible to apply under this Fund
  5. Not be benefitting from other incentives such as Reinvestment Allowance, MIDA's Automation Capital Allowance, incentives provided by Green Technology Malaysia or any other incentives or benefits provided by the government relating to automation or green technology
  6. Possess a healthy financial status and free from any legal or insolvency cases
  7. Encouraged to use local technology/service provider in their respective project implementation

Additional Criteria by Projects



Automation projects eligible for the Fund shall be for use in at least one of the category 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).

Solar Energy


The energy produced should be utilised directly in the manufacturing process.


In the long run, the adoption of solar energy should be able to reduce the consumption of fossil fuel.


The installation on photovoltaic panels and all related facilities shall comply with the standards determined by the relevant authorities.

Biomass Energy


The energy produced should be utilised directly in the manufacturing process.


In the long run, the adoption of biomass energy should be able to reduce the consumption of fossil fuel.


The Fund does not cover biomass energy projects that utilised Refused Derived Fuel (RDF).


The Fund does not cover expenses for the purchase of raw materials e.g. wooden pellet, palm kernel shell etc.

Recycling or Harvesting of Water and Extraction of Ground Water


The technology used for recycling and harvesting of water or extraction of ground water should be:

  • Directly utilised in the manufacturing process
  • Able to constitute more than 30% if mixed with Public Utility Water Supply (PUWS) in the manufacturing process

Simple reuse of untreated water in the manufacturing process without any treatment process or tertiary waste water treatment system does not qualify for the fund.


Reuse of water for simple cleaning or washing of equipment or factory premises which is not part of the manufacturing process does not qualify for the fund.


  Proposal Application and Submission

The application is open throughout the year.


All applications for the Fund are required to be made via the Online Application System which is available on MREPC website.

  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.


MREPC 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

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

Recycling, Harvesting and Extraction of Water Projects

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

Evaluation of Applications

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


In addition to the information uploaded into Online Application System, MREPC 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

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

Contact Us


Phone No: +6(03) 2782 2100

E-mail: agt@mrepc.com

Website: http://www.mrepc.com




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