How to pass the SIRIM verification requirement of the machine for Automation Capital Allowance (ACA)?

Overview

Under the National Budget 2015, the Automation Capital Allowance (ACA) incentive was released to encourage the quick adoption of automation in the manufacturing sector.
The application for the ACA is jointly assessed by both MIDA (non-technical assessment) and SIRIM (technical assessment). The Company that needs to claim the incentive must meet both requirements from MIDA and SIRIM.
On this topic, we will mainly focus on the requirement of the SIRIM for the verification of machines for ACA.

Key takeaways:
You will understand: -
1. What is the general eligibility of the machine?
2. What type of machine is considered automated?
3. What is the productivity enhancement need to be achieved?
4. Other contributing factors for productivity enhancement?

Summary of learnings:
1. What is the general eligibility of the machine?

(I) The machine is used directly in the process of carrying out the services.
(II) The machine is more advanced than the current technology used by the company.
(III) The machine should be used at least 1 month after installation/commissioning.
(IV) The machine is consisting at least one of the:
-Areas of automation / automated system and,
-Automation components

Note: the details of the automated system and components can be found in the next paragraph.

2. What type of machine is considered automated?

The machine shall consist of at least one of the following areas of automation / automated system:

(I) Material handling system
(II) Warehousing
(III) Processing equipment
(IV) Testing equipment
(V) Measurement system
(VI) Packaging equipment
(VII) Others (to specify)

The machine shall also consist of at least one of the following Automation components:

(I) Motion Controllers
(II) Pneumatic / Hydraulics
(III) Programmable Logic Controller (PLC)/Programmable Automation Controller (PAC)
(IV) Computer/Industrial Software including CAD/CAM/CAE/PLM
(V) Computer Numerical Control (CNC), High Speed, Multi Axes
(VI) Robot and Robotic System
(VII) Industrial Networking & Communication
(VIII) Visual system
(IX) Others (to specify)

3. What is the productivity enhancement need to be achieved?

(I) Reduction in the number of manpower involved in the operation
(II) Reduction in the number of man-hours
(III) Increase in efficiency by reducing human errors or reducing the time taken to complete tasks;
(IV) Reduction in accident/complaint rate

4. Other contributing factors for productivity enhancement?

(I) Possibility of upgrading in future
(II) Possibility of integrating into other processes
(III) Worker Safety & Environment Improvement
(IV) Energy Efficiency

Source:
SIRIM verification of machine/equipment for ACA

Visit Us

• Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

• Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

• Website www.ktp.com.my

• Instagram https://bit.ly/3jZuZuI

• Linkedin https://bit.ly/3sapf4l

• Telegram http://bit.ly/3ptmlpn

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients

• Website www.thks.com.my

• Facebook https://bit.ly/3nQ98rs

KTP Lifestyle

An internal community for our colleagues on work and leisure.

• Tiktok http://bit.ly/3u9LR6Q

• Youtube http://bit.ly/3ppmjyE

• Facebook http://bit.ly/3ateoMz

• Instagram https://bit.ly/3jZpKLo

KTP Career

An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.

• Instagram https://bit.ly/3u2PxHg

• Facebook http://bit.ly/3rPxz9o

#Thk

#KTP