INVESTMENT GRANT BY MIDA-ESG ADOPTION-FOR SMES/MTCS-MALAYSIA

The Domestic Investment Accelerator Fund (DIAF) ESG Adoption Grant is a forward-thinking initiative introduced by the Malaysian Investment Development Authority (MIDA) to support Malaysian-owned Small and Medium Enterprises (SMEs) and Mid-Tier Companies (MTCs). This matching grant specifically aims to encourage the adoption of Environmental, Social, and Governance (ESG) practices, fostering the transition of these businesses into more sustainable and responsible operations, particularly in the manufacturing and selected services sectors

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Overview of the Domestic Investment Accelerator Fund (DIAF)

The DIAF ESG Adoption Fund provides critical financial assistance to SMEs and MTCs engaged in manufacturing activities, where the company must possess a valid manufacturing license and comply with the relevant Industrial Coordination Act 1975. This initiative is a part of Malaysia's broader strategy to enhance investment in sustainable business practices and ensure that local companies can adopt ESG principles effectively. The fund aims to bridge the gap for Malaysian SMEs and MTCs in their efforts to integrate ESG practices into their operations.

Matching Grant Structure: 50% or 70% Contribution

Under the DIAF ESG Adoption Fund, MIDA provides a matching grant, where the government typically covers 50% or 70% of the costs associated with ESG adoption. The matching grant is designed to support companies in integrating ESG measures across their business models. The specific match ratio (50/70) is dependent on factors such as the scale of the company and its ESG commitment, with larger or more impactful projects potentially qualifying for a more favourable contribution from the fund.

SMI FUNDING's Official Page for DIAF

Please visit here to view Grant

Please visit here to view Loans

Please click here for immediate response

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Key Eligibility Criteria for SMEs and Mid-Tier Companies (MTCs)

To be eligible for the Domestic Investment Accelerator Fund, companies must meet the following key criteria:

• Manufacturing Activities: The business must engage in manufacturing activities and possess a valid manufacturing license issued by the relevant authorities.

• SMEs and MTCs: The fund specifically targets small and medium enterprises and mid-tier companies (MTCs), with a focus on those that are Malaysian-owned and operate in sectors that align with the ESG objectives.

• Services Activities: Companies involved in services activities must be governed and supervised by the relevant ministries and agencies, ensuring compliance with national regulations.

SMI FUNDING's Official Page for DIAF

Please visit here to view Grant

Please visit here to view Loans

Please click here for immediate response

Grant Amount and Coverage

The DIAF ESG Adoption Fund provides up to RM500,000 per company, supporting a wide range of projects that contribute to the adoption of ESG practices. This financial support helps SMEs and MTCs transition into more sustainable operations, ensuring that they can compete in the global market with strong ESG credentials

Application Process and Documentation

For businesses seeking support under this fund, it is crucial to submit an application to MIDA, along with the required documentation. One key document is the confirmation letter for exemption, which must be obtained from the relevant authorities. The process also requires the company to demonstrate a clear commitment to adopting ESG practices and to outline the specific activities they will undertake to improve their ESG performance.

The Role of MIDA in Supporting ESG Adoption

As the lead agency for investment promotion and development in Malaysia, MIDA plays a pivotal role in helping Malaysian SMEs and MTCs unlock the benefits of ESG adoption. Through this initiative, MIDA not only provides financial support but also guides businesses in navigating the complexities of ESG implementation. The fund is part of MIDA's broader strategy to ensure that Malaysian SMEs and mid-tier companies remain competitive in an increasingly sustainability-conscious global marketplace.

In conclusion, the Domestic Investment Accelerator Fund (DIAF) offers a vital opportunity for small and medium enterprises (SMEs) and mid-tier companies (MTCs) in Malaysia to accelerate their transition to ESG practices. With the backing of MIDA, this grant supports the nation's goal of sustainable development and helps businesses in the manufacturing and services sectors enhance their environmental, social, and governance standards. By leveraging this fund, Malaysian SMEs and MTCs can future-proof their operations and contribute positively to the nation's long-term economic and environmental sustainability.