A lot of Grant is available in Malaysia

Now day, a lot of Ministry and Agencies give the grant to help SME Company growth and Boost their sales. Government of Malaysia has established the Grant for various of Industry to help them grow bigger. Every year, Government of Malaysia introduce the new grant scheme and continuing pumping the money to existing grant scheme for industry to apply and get used to it.

 

But not easy to get, cause ...

  • Not all new grants is publicly announce by media;

  • The guidelines is always change;

  • Difficult in searching the right person to talk about the grant;

  • Information stated in Ministry/Agencies pertaining Grant are limited;

  • Difficulty in doing the good proposal based on Ministry/Agencies requirement.

  • Need a lot of time and effort to prepare all the documents they needed. 

Why come to SMI Funding

  1. Comprehensive information on Grant’s;

  2. Updated guidelines every 3 month;

  3. One Stop Center for all grant’s in Malaysia (You can ask every single question and we will answer you);

  4. Experience in handling all type of proposal from Grant’s and meet the Ministry/Agencies requirement;

  5. Good relation/network with Ministry/Agencies for easy process.

  6. Free checking your grant option.

List of Grant from Ministries or Agencies 

The government of Malaysia under several ministries or agencies offered grants to the Malaysian and also Foreigners that looking forward to set up, expand, diversify and modernize their business in Malaysia. Below are the type of grant offered by ministries or agencies which we can give advisor on application.

Updated on 18th June 2021

Purchase New Automation/Machinery/Techonology Grant :

> DOMESTIC INVESTMENT STRATEGIC FUND (DISF) MIDA (Combine Maximum RM5Mil)

> HIGH IMPACT STRATEGIC FUND (Combine Maximum RM5Mil) 

> INDUSTRY4WRD GRANT (Combine Maximum RM500k)

> Business Accelerator Programme (BAP 3.0) (Maximum Grant RM400k)

> TECHNOLOGY ACQUISITION FUND (TAF) (Maximum Grant RM50

> MIDA SMART AUTOMATION GRANT (SAG) (Maximum Grant RM1Mil)

> MDEC SMART AUTOMATION GRANT (Maximum Grant RM200k)

Research & Development  :

> DOMESTIC INVESTMENT STRATEGIC FUND (DISF) MIDA (Combine Maximum RM5Mil) 

> HIGH IMPACT STRATEGIC FUND (Combine Maximum RM5Mil) 

> MESTECC R&D Fund (Maximum Grant RM3Mil)

> NATIONAL TECHNOLOGY AND INNOVATION SANDBOX (NTIS) (Single RM250k,  Multi side RM500k)

> CRADLE INVENTMENT PROGRAMME IGNITE (CIP IGNITE I) (Maximum Grant RM500k)

> TECHNOLOGY DEVELOPMENT 1 (Ted1) (Maximum Grant RM1Mil)

> TECHNOLOGY DEVELOPMENT 2 (Ted 2) (Maximum Grant RM3Mil)

> STRATEGIC RESEARCH FUND (SRF) (Maximum Grant RM15Mil)

> APPLIED INNOVATION FUND (Maximum Grant RM500k)

Commercialisation new product :

> INTERNATIONAL COLLABORATION FUND (ICF) (Maximum Grant RM3mil)

> NATIONAL TECHNOLOGY AND INNOVATION SANDBOX (NTIS) (Maximun RM4Mil)

> CRADLE INVENTMENT PROGRAMME IGNITE (CIP IGNITE II)(Maximum Grant RM500k) 

> CRADLE INVESTMENT PROGRAMME ACCESLERATE (CIP ACCELERATE) (Maximum Grant RM2Mil) 

> BRIDGING FUND (BGF) (Maximum Grant RM4Mil) 

Training for staff Grant :

> DOMESTIC INVESTMENT STRATEGIC FUND (DISF) MIDA (Maximum Grant RM500k) 

> HIGH IMPACT STRATEGIC FUND (Maximum Grant RM500k) 

Products Certificate Grant :

> DOMESTIC INVESTMENT STRATEGIC FUND (DISF) MIDA (Maximum Grant RM500k) 

> HIGH IMPACT STRATEGIC FUND (Maximum Grant RM5Mil) (Maximum Grant RM500k) 

Export Promotional Grant :

> SERVICE EXPORT GRANT (Maximum Grant RM5Mil)

MARKET DEVELOPMENT GRANT (Maximum Gran 200k)

Develop new e-commerce website or Apps :

> Business Accelerator Programme (BAP 3.0) (Maximum Grant RM50,000)

Advertising and Promotion Grant : 

> Business Accelerator Programme (BAP 3.0) (Maximum Grant RM200,000)

Digitalize Your Business Grant : 

> MDEC SMART AUTOMATION GRANT (Maximum Grant RM200,000)

Working Capital Grant :

> SUPERB (SKIM PERMULAAN USAHAWAN BUMIPUTERA) (Maximum Grant RM500k)

 

 List of Grants 

 

1. DOMESTIC INVESTMENT STRATEGIC FUND (DISF)

From MIDA (Malaysian Investment Development Authority)
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Objective/Activity

Matching grant 50% of eligible amount up to RM 5 million (3 Years) as follows:

  1. For training and R&D activities

  2. To undertake outsourcing activities

  3. To comply with international standards: and

  4. For licensing / purchasing of technology

 

Manufacturing Sector:

  • Aerospace;

  • Medical Devices;

  • Pharmaceutical;

  • Advanced Electronics;

  • Machinery & Equipment

  • Other industries, on a case by case basis

Services Sector:

  • Design & Development

  • Research & Development

  • Testing / Calibration

  • Quality ? Standard Certificate

  • Engineering Services

  • Technical & Skill Training

  • Logistic (3PL)

  • ICT for Automation

  • Integrated Green Technology Project.

Criteria

  • Incorporated under Companies Act 1965

  • New manufacturing/services with at least 60% Malaysian equity;

  • Existing companies with at least 60% Malaysian equity undertaking reinvestment (expansion, modernization, diversification);

  • Got manufacturing license unless services sector

2. HIGH IMPACT STRATEGIC FUND

From MIDA (Malaysian Investment Development Authority)
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Objective/Activity

For investment more then 100 million

1.      For training and R&D activities

2.      To undertake outsourcing activities

3.      To comply with international standards: and

4.      For licensing / purchasing of technology

Open for all Manufacturing And Service Sector. MIDA will see on Impact of Investment ROI and project potential.

Criteria

  • Incorporated under Companies Act 1965

  • New manufacturing/services OR existing companies undertaking reinvestment (expansion, modernization, diversification);

  • Have manufacturing license 

 

Maximum RM10 million for each section unless services sector

 

3. Business Accelerator Programme (BAP 3.0)

From SME Corporation Malaysia
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Business Accelerator Programme (BAP 3.0) is an integrated assistance programme aimed to enhance the capabilities of small and medium enterprises (SMEs) through business advisory services and financial support. This programme supports a wide range of capability building initiatives to assist SMEs to grow and expand their businesses locally and globally. The grant riven is 50% up to RM400,000

 

Applicable to all sector

Scope’s of grant:

 

RM400,000 of Grant covers:

 

  1. Machinery / Sensor

  2. CRM/ Automation System/ Front-end and back-end System

  3. Retrofitting

  4. Warehousing System

 

 

RM50,000 of Grant cover:

  1. E-Commerce

 

RM200,000 of Grant Covers:

  1. Premise Renovation (for certification requirement only)

  2. Advertising & Promotion

  3. Packaging & Product Packaging

 

PROCESSING FEE

* Processing fee of RM500 for SME

* Processing fee of RM300 for Micro total cost is allowed to be paid directly to the supplier.

(imposed after the applicationis approved)

APPLICATION OPENING DATES

  • June 2021   (Closed)

  • September 2021

Criteria

  • At least 60% Malaysian equity

  • Fulfil SME definition

  • Business license from the Local Authority

  • At least 6 months in operation and full time business operator

  • Has undergone or willing to undergo SCORE / M-CORE assessment

  • NOT ELIGIBLE for Public Listed Companies in the Main Board / Secondary Markets / Large Firms, MNCs, GLCs, MoF Inc. & State Owned Enterprises Companies AND their subsidiaries.

  • Annual sales turnover exceeds RM300,000 per year

  • A business taxpayer

  • A minimum paid-up capital of RM30,000.00

  • Cash at banks at least 20% of project value

  • Ratio of local workers: foreigner worker at least 70:30

  • Projects with high value added/ contribution to increased products

 

4. SAG (Smart Automation Grant)

From MDEC (Malaysia Digital Economy Corporation (MDEC) Sdn Bhd)
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Introduction

A critical part of Pelan Jana Semula Ekonomi Negara (PENJANA), the #SMART Automation Grant (SAG) is a matching grant for services companies.

SMEs and mid- tier companies in the services sector are now able to kickstart their digital adoption journey and increase their digital capabilities to continue striving forward in this new norm.

Objectives
  • This is a specific matching grant for services companies that will help them automate their business processes and move towards digitalisation.

  • The grant will be used solely for the purpose of kickstarting the development and implementation of projects that push the adoption of technologies to automate business operations.

 
Financing amount (max)

Each successful application will receive up to 50% of the total project cost, subject to a ceiling limit up to RM200,000 or, whichever is the lowest, through this matching grant.

EXPECTED PROJECT OUTCOMES

This matching grant is intended to assist services companies embarking on automation to achieve one of these outcomes:

 

  • Increase in revenue

  • Savings in business cost

  • Reduction of process time cycle

  • Reduce man hours

  • Create new sources of growth

Purpose of Financing

 

SAG is matching grant for services companies to automate their business processes and move towards digitalisation.

The eligible expenses are the approved project costs that are critical to the project success.

 

Expenses include:

 

  • Cost of IT Hardware or IT equipment

  • Cost of Software associated

  • License fee

  • Process redesign

  • Testing and certification costs associated with the development of the project.

  • Training costs associated to the project

Eligibility criteria
  • Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016.

  • Has an issued and paid up capital of at least RM50,000

  • Has a minimum of 51% equity held by Malaysian(s)

  • Not be the subject of a liquidation / winding up order

  • Has no going concern issue and/or not dormant and

  • Has entered into a written contract or a committed arrangement technology partner for the development and implementation of the project

  • If previously has received any MDEC/government grant, the applicant must demonstrate the completion and success of the funded project/s

Application procedure

This matching grant can be applied through:

  • Specific digitalisation programmes under MDEC’s Business Digital Adoption Division; or

  • Direct online Application

 
From MTDC (Malaysian Technology Development Corporation)

Objective/Activity

To facilitate eligible Malaysian companies in the acquisition of foreign technologies for immediate incorporation into the company’s manufacturing activity. TAF’s partial grant enables companies to avoid expensive and often risky technology development stages. The acquisition of technology could be in the form of acquiring know-how / Intellectual Property (IP) exploitation / rights / blueprints via one of the

following methods:

 

  • Licensing of technology

  • Outright purchase of technology

Licensing – RM2.8 million or 70% of eligible expenses

 

Purchase – RM1.2 million of 50% of eligible

Criteria

  • Local SME;

  • Manufacturing (Sales turn over < RM50 million OR fulltime worker <200;

  • Services (Sales turn over < RM20 million OR fulltime worker <75;

  • Incorporated under Companies Act 1965

  • At least 51% Malaysian-owned

  • Technology under MOSTI list

  • Technology provider must  not hold any equity in the applicant’s company


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From MOSTI (Ministry of Science, Technology and Innovation)
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Objective/Activity

The International Collaboration (ICF) is a grant provided by the Government to Malaysian researchers undertaking R&D projects in collaboration with overseas researchers. The fund was created as a platform to expand and enhance international research and collaboration capacity in competitive, innovative and high-impact R&D projects that could contribute to the advancement of science and technology leading to commercialization.

 

In promoting greater international cooperation, the initiative is expected to enhance competitiveness through the discovery of new technologies and strengthen the capacity and capabilities of national research and development.

Criteria

The fund is open to local researchers, scientists and engineers working either on a regular basis or in contract with the following organizations:

 

Government Research Institute

Science, Technology & Innovation Agency

Institute of Higher Education (Public and Private)

 

Maximum RM500,000 in 24 Month

 
From MOSTI (Ministry of Science, Technology and Innovation)
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Objective/Activity

Research and Development (R&D) Fund MESTECC is a government initiative to fund research projects by entrepreneurs and researchers that can boost the country's economic growth and provide for the well-being of the community.

 

The proposed project must be in the proof of concept (Proof of Concept) phase, well designed, scientifically proven and competitive. Projects can also create new products, processes or systems that can be used by entrepreneurs and entrepreneurs.

Criteria

Small and Medium Enterprises 

 

Maximum RM3,000,000 in 24 Month

 
From TERAJU
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Objective/Activity

This year, Superb is based on six main themes of the Shared Prosperity Vision 2030, which focuses on 15 key economic growth activities: digital economy, IR4.0, social enterprise, shared economy, arts and creative, health, food innovation and agriculture.

Online applications for Superb will be open from Aug 1 to 31.2020

The "Road Pitch Superb 2020" roadshow will start in Kedah, and move on to Terengganu, Sabah, Sarawak and Kuala Lumpur.

Business or prototype-formation and development phase winners will walk away with a business development grant worth up to RM100,000. Winners for businesses at the pre-commercial or commercialisation phase will get a business development grant of up to RM500,000.

Criteria

  • Malaysian Bumiputera 21-40 years.

  • Can apply indivadual or under company which is less then 3 years when apply.

  • only on the following themes 

  1. Digital economy,

  2. IR4.0,

  3. Social enterprise, shared economy,

  4. Arts and creative, health,

  5. Food innovation and

  6. Agriculture.​

 
From MATRADE (Malaysia External Trade Development Corporation)
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Objective/Activity

Assist the small and medium enterprises (SMEs), service providers and trade & industry associations/chambers of commerce & professional bodies in undertaking export promotional activities. Companies can apply for a reimbursable grant on the eligible export promotional activities undertaken.

 

Oil-Gas, Aerospace, Logistic, Legal, Accounting, Franchising, Business Service, Construction, MTO, ICT, EMS, Maritime, Education, Health Care, Manufacturing (Need to have Manufacturing License)

Criteria

  • Incorporated under Companies Act 1965

  • At least 60% Malaysian equity

  • In operation at least 1 year

  • Not government link companies

  • Register with Matrade

  • Exporting Malaysia Product / Service

  • Must Be Malaysian Brand (Made in Malaysia)

 

RM 5 Million for period of 3 Years

 
From MPC (Malaysia Productivity Corporation)
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Objective/Activity

Industry4WRD Readiness Assessment (Industry4WRD-RA) is a comprehensive programme to help firm assess their capabilities and readiness to adopt Industry 4.0 technologies and processes. The assessment uses a pre-determined set of indicators to understand their present capabilities and gaps, from which will enable firms to prepare to prepare feasible strategies and plans to move towards Industry 4.0. The Industry4WRD-RA will help firms to:

Determine their state of readiness in the adoption of Industry 4.0 technologies

Identify the gaps and areas of improvement for Industry 4.0 adoption as well as opportunities for productivity improvement and growth and

Develop feasible strategies and plans to perform outcome-based intervention projects

Criteria

  • Incorporated under Companies Act 1965

  • Only for SME Company

  • At least 60% Malaysian equity

  • Obtain Manufacturing License & Business License

  • Grant of maximum RM 500,000 if success or; Tax deduction of RM27,000 if not success. Can go for  Industry4WRD Domestic Investment Strategic Fund (DISF) provides matching grant in the form of 60:40 ratio maximum up to RM 5mil grant

 
From MATRADE (Malaysia External Trade Development Corporation)
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Objective/Activity

The Market Development Grant (MDG) is a financial support facility in the form of a reimbursable grant to assist Malaysian Small and Medium Enterprises (SMEs), Professional Service Providers, Trade & Industry Associations, Chambers of Commerce and Professional Bodies in undertaking eligible export promotional activities.

Criteria

  • Incorporated under Companies Act 1965

  • At least 60% Malaysian equity

  • In operation at least 1 year

  • Not government link companies

  • Register with Matrade

  • Exporting Malaysia Product / Service

  • Must Be Malaysian Brand (Made in Malaysia)

  • Maximum RM500,000

 
 
From Mosti (Minister of Science, Technology and Innovation)
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Objective/Activity

NTIS is a facility that allows researchers, innovators, startups and high-tech entrepreneurs to test their products, services, business models and delivery mechanisms in a live environment.

Target Sectors

 

Opens to technologies, products, solutions and R&D for these prioritised sectors as below:

  • Medical and Healthcare Technology.

  • Manufacturing

  • Agriculture

  • Travel & Tourism

  • Education

Focused Technologies

It is open to all technologies, with priority given to the followings:

1. 5G/6G
2. Sensor Tech
3. 4d/5d printing
4. Advanced Material  
5. Advanced Intelligent Systems
6. Augmented Analytics & Data Recovery
7. Blockchain  
8. Neuro Tech  
9. Bioscience Tech
10. Robotic
11. Manufacturing Tech
12. Electrical & Electronics
13. Cybersecurity & Encryption
14. Drones

Criteria

  • Malaysian individuals or Malaysian-owned companies. The primary applicant must be a Malaysian citizen above 18 years old and residing in Malaysia.

  • Foreign companies -  JV plans / incorporation of Malaysian-owned entity upon approval of application

  • Technology Readiness Level (TRL) of 6 (Commercial Ready Prototype) and above

  • Have proof of technology ownership / permission to use the technology

  • Problems & Issues relating to market access / regulation

Financing schemes

4 types of funding schemes are available under NTIS:

 

  1. Single Site Sandbox – Maximum financing amount of RM250,000 in Full Grant to fund a single site sandbox solution

  2. Multi-Site Sandbox – Maximum financing amount of RM500,000 in the form of a Partial Grant (70%) to fund multiple site sandbox solutions

  3. Commercialisation – Maximum financing of RM4 million in the form of a Hybrid Fund; Grants and Convertible Promissory Notes to finance the commercialisation of the sandbox solution

  4. Matching fund with investors/corporates – Maximum allocation of RM15 million as a matching fund with investors and corporate companies. The financing instrument will be subject to agreement between MTDC and the participating investors and corporates

 
From Cradle Fund Sdn bhd (Deep Tech R&D and Non Deep tech commercialize Grant)
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Objective/Activity

CIP Ignite is designed as a conditional grant of up to RM500,000 to support early-stage tech-based start-ups, tech-based small and medium enterprises or spin-off companies from universities or research institutes.

The grant comprises two components, namely CIP Ignite (i) for deep tech innovations and CIP Ignite (ii) for other innovative tech-based companies.

Ignite (i) is specifically for deep tech startup at Technology Readiness Level (TRL) 5 to 7 to validate, convert validated prototype to market ready products and/or refine their prototype. for validation, conversion and refinement of products.

Ignite (ii) is for innovative tech based startup at Technology Readiness Level (TRL) 8 to 9 for the commercialisation of the product.

Target Sectors

Sectors covered under these programmes include information and communications technology, advanced manufacturing and engineering, food security and technology and socioeconomic drivers.

Criteria

  • Deep tech companies at Technology Readiness Level (TRL) 5 to 7

  • Sdn Bhd (including uni spinoff & SME Categories)

  • Accumulated revenue not more than RM5 Million

  • 51% Malaysian owned

  • Minimum 2 directors (at least one must be Malaysian)

  • Minimum paid-up capital is RM10,000

  • Not a subsidiary of a company and the company should have less than 25% shareholding of any entity
    For universities, the company must comply with the prerequisite conditions to settle the rights issues with the universities to avoid difficulties in the future. Agreement will be signed between the company and Cradle only.

  • Must have IP rights (rights i.e. licensing for commercialisation)
    For universities, the company must comply with the prerequisite conditions to settle the rights issues with the universities to avoid difficulties in the future. Agreement will be signed between the company and Cradle only.

From Cradle Fund Sdn bhd (Deep Tech Commercialization Grant)

Objective/Activity

CIP Accelerate is a programme that provides funding of up to RM2,000,000 and value-added assistance that specifically caters to deep tech startups, SMEs and spinoffs from Universities and Research Institutes.

CIP Accelerate assists these early stage deep tech companies to commercialise their proven system and ready product at Technology Readiness Level (TRL) 8 and above.

Target Sectors

 

Sectors covered under these programmes include information and communications technology, advanced manufacturing and engineering, food security and technology and socioeconomic drivers.

Criteria

  • Deep tech companies at Technology Readiness Level (TRL) 8 and above

  • Sdn Bhd (including uni spinoff & SME Categories)

  • Accumulated revenue not more than RM5 Million

  • 51% Malaysian owned

  • Minimum 2 directors (at least one must be Malaysian)

  • Minimum paid-up capital is RM10,000

  • Not a subsidiary of a company and the company should have less than 25% shareholding of any entity
    For universities, the company must comply with the prerequisite conditions to settle the rights issues with the universities to avoid difficulties in the future. Agreement will be signed between the company and Cradle only.

  • Must have IP rights (rights i.e. licensing for commercialisation)
    For universities, the company must comply with the prerequisite conditions to settle the rights issues with the universities to avoid difficulties in the future. Agreement will be signed between the company and Cradle only.

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From MIDA (Malaysian Investment Development Authority)
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Objective/Activity

Under Penjana the Smart Automation Grant scheme, Government has allocated RM100 million, capped at up to RM1 million per company and on Mar 2021 additional RM50 million have added.

Objective is  to assist SME and MTC to automise and digitalise operations, to improve efficienc