Supporting Rubber Products Industry Towards Sustainable Transformation

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 the downstream sector under the 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.


Downstream Sector


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

The MRC Fund for Automation & Green Technology has been extended to the midstream sector with effect from 1st September 2021. This is to provide a platform for financial assistance to the midstream sector to be in line with the latest technology development in automation and green technology.


Midstream Sector


Maximum Grant
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 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, 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.)
  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.

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 solar 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

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 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

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

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

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

Phone No: (603) 2782 2100

E-mail: agt@myrubbercouncil.com

Website: https://www.myrubbercouncil.com



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