Grant For Product And Process Improvement (ITAF 2)

INTRODUCTION

Introduced in 1990, the Product And Process Improvement Grant, or ITAF 2 provides assistance for Small and Medium Enterprises (SMEs) to improve and upgrade existing products, product design and processes.

The objectives of ITAF 2 are for the improvement and upgrading of existing:

	Products
	Product design
	Process

FORM OF ASSISTANCE

The maximum grant allocated per company is RM 500,000. Assistance is given in the form of a matching grant where 50% of approved project cost is borne by the Government and the remainder by the applicant.

Eligible Expenses

	Cost of technical expertise;
	Cost of acquiring technology and skills;
	Cost for testing and calibration;
	Cost of testing materials and equipment;
	Cost of designing and prototyping.

Priority

Priority will be given to SMEs which:

	Manufacture products or are involved in activities or services promoted under the Promotion of Investments Act (PIA), 1986
	Participate in the Industrial Linkage Programme (ILP).

ELIGIBILITY CRITERIA

	Companies incorporated under the Companies Act, 1965;
	Manufacturing companies or companies providing manufacturing related services** with an annual sales turnover not exceeding RM25 million and with full-time employees not exceeding 150; and
	A least 60% equity held by Malaysian.

**Manufacturing related services

	Engineering support services such as calibration, electroplating, machining, heat treatment, metal casting, metal forging;
	Specialised services such as warehousing, bulk breaking, international procurement centre, haulage;
	Maintenance and repair of factory machinery and equipment;
	Software development such as CAD, CAM, CAE, ERP, CIM, SCM, CRM;
	Automation of production line;
	Design houses; and
	Packaging services.

HOW TO APPLY

Further information on this scheme and application forms can be obtained from:

ITAF Secretariat,

Small and Medium Industries Development Corporation (SMIDEC),

801C, Level 8, Tower C, Uptown 5,

No. 5, Jalan SS21/39, Damansara Utama,

47400 Petaling Jaya,

Selangor Darul Ehsan

Tel: 03-7628 7400/7660 8585

Fax: 03-7665 1920 / 7660 1919

Email: smidec@smidec.gov.my

Web site: http://www.smidec.gov.my

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