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’s 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
    • Wastewater recycling and/or rainwater harvesting

Grant Amount  

Please be in informed that the eligibility criteria for MRC Fund for Automation & Green Technology has been revised with effect from 1st January 2020. The decision was made in light of sustainability of the Fund. With this revision, the maximum claimable grant amount will be based on average cess contribution in the last 3 years as shown below. Besides that, the applicant company should also be producing and exporting predominantly cessable rubber products.

SME Companies

Cess Contribution
Maximum Grant
More than RM 30,000
RM 500,000
RM 5,001 - RM 30,000
RM 300,000
RM 1,000 - RM 5,000
RM 200,000

Non SME Companies

Cess Contribution
Maximum Grant
More than RM 500,000
RM 1 million
RM 100,001 - RM 500,000
RM 500,000
RM 1000 - RM 100,000
RM 300,000

For more clarification on the above, please do not hesitate to contact Ms Shafinaz / Ms Najlaa @ 03-2782 2100 or email to agt@myrubbercouncil.com

Eligibility Criteria

The company shall meet the following criteria:

  1. Incorporated under the Companies Act 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. Producing and exporting predominantly cessable rubber products with minimum RM1000 cess contribution in the last three (3) consecutive 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 / in-operation or purchased order has been issued are not eligible to apply under this Fund
  5. Not receiving other incentives, grants, soft loans, 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, GreenTech Malaysia – Green Technology Financing Scheme, etc.)
  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 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).

Solar Energy


The energy produced should be utilised directly in the manufacturing process. In the long run, the adoption of renewable 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 renewable bio-energy should be able to reduce the consumption of fossil fuel.


The Fund does not cover:

  • Utilisation of Refuse Derived Fuel (RDF)
  • Purchase of raw materials 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 should be:

  • Able to treat/purify the water and directly utilised in the manufacturing process
  • Able to constitute more than 30% if mixed with the 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


  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 MRC 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.


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

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

Water Treatment

  • 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 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.

Contact Us


Phone No: (603) 2782 2100

E-mail: agt@myrubbercouncil.com

Website: http://www.myrubbercouncil.com




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