Malaysia Digital CATALYST GRANT (MDCG)
HARNESSING INNOVATION FOR THE FUTURE
Empowering Malaysia into a progressive, digitally-led economy and shaping a digital future in the tech ecosystem.
What Is Malaysia Digital Catalyst Grant (MDCG)?
Grant MDCG is designed to catalyse the use and development of disruptive and innovative sustainable solutions within Malaysia Digital (MD) promoted sectors that align with the National 4th IR policy.
The grant will be used solely for the purpose of co-creation, problem-solving, development and commercialisation of innovative solutions with an end-user partner.
Our Objectives
To support the scaling up of Malaysian-based technology companies by way of co-creation, problem solving, innovation, development and commercialisation of disruptive or innovative solutions based on Malaysia Digital promoted sectors and tech enablers.
To increase the productivity, product/service quality, and business efficiency within Malaysia Digital (MD) promoted sectors.
Malaysia Digital Promoted Sectors
Digital Agriculture
Digital Services
Digital Cities
Digital Health
Digital Finance
Digital Trade
Digital Content
Digital Tourism
Islamic Digital Economy
Tech Enabler
Internet of Things
Blockchain
Cloud & Data Centre
Cybersecurity
DroneTech
Robotic, Automation & Extended Reality
Artificial Intelligence & Big Data Analytics
Creative Media Technology including extended reality (XR) and/or mixed reality (MR)
Integrated circuit (IC) design and/or embedded software
Advanced network connectivity and/or telecommunication technology
Grant Amount
Local Owned Company
Project Duration
Up to 1 Year
Cloud Space (10GB)
Up to fifty percent (50%) of the total project cost, subject to a ceiling limit of RM1,000,000 whichever is lower
Majority Foreign Owned Company
Project Duration
Up to 1 Year
Cloud Space (10GB)
Up to thirty percent (30%) of the total project cost, subject to a ceiling limit of RM1,000,000 whichever is lower
ELIGIBILITY CRITERIA
Local Owned Company
- Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016.
- Minimum issued share capital of at least RM50,000.00.
- Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM.
Majority Foreign Owned Company
- Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016.
- Active and minimum issued share capital of RM500,000.00.
Other Criteria
- In operation for at least one (1) year as of the date of submission.
- Not the subject of liquidation/winding up/bankruptcy order and has no going concern issue*.[*If the Applicant/Recipient has going concern issue (as reported in their latest audited account), the Applicant/Recipient is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the Applicant/Recipient to enable the Applicant/Recipient to meet its obligations and/or liabilities under the terms and conditions.]
- Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare and disclose if there is any business relationship/family relationship with any of MDEC’s director or employees.
- Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. i.e. litigation/legal proceeding related to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
- Director(s) and shareholder(s) of the eligible Applicant to declare if they are blacklisted by Malaysian authorities/enforcement bodies including but not limited to Malaysian Anti-Corruption Commission (MACC), Bank Negara Malaysia (BNM), Securities Commissions Malaysia (SC) and Malaysia Digital Economy Corporation (MDEC). In the event, the Director(s) and shareholder(s) are blacklisted, the said Applicant shall be disqualified.
- The Applicant/Recipient with common shareholder(s) can only apply for one (1) grant per one (1) project administered by MDEC at any one time (this requirement is not applicable to registered and active venture capital investors, accredited angel investor, registered market operator and government agencies e.g.: Equity Crowdfunding Platforms).
- Requirements for Venture Capitals:
- The venture capitals are(is) required to invest its funds actively within a 10-year timeframe and/or be officially registered with local regulatory authorities.
- Requirements for Angel Investors:
- The angel investor(s) MUST be registered, accredited by local association/body (Malaysian Business Angel Network) and hold less than 20% of equity ownership; or
- Individual Angel Investors MUST fully fit into these three (3) criteria: –
- Hold less than 20% of equity ownership.
- Does(do) not hold any directorship of the company.
- Non-related party(ies) to the Applicant/Recipient.
- Requirements for Venture Capitals:
- If Applicant/Recipient previously has received any MDEC/government grant, the Applicant/Recipient must:
- Demonstrate the completion of the funded project(s); and
- Declare any notice of non-compliance/breach being recorded during the period of the funded project(s).
- Past MDEC Grant Recipients can only reapply after one (1) year from the project completion date (grant closure email date).
If the Applicant/Recipient currently has an on-going grant with other government agencies, Applicant/Recipient to prove that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s) (via a letter from grant awarding entity or equivalent).
*Limited to 5 years records from the of approval of the respective Grant.
- The Applicant/Recipient must be Malaysia Digital (MD) or MSC Malaysia status company.
- The Director(s) and shareholder(s) of the Applicant/Recipient shall not owe any amounts to MDEC due to clawback issues from previous grants.
SPECIFIC CONDITIONS
The Applicant/Recipient is required to meet the following specific condition throughout the project period:
- The Applicant/Recipient must not have any relationship with the end-user, including shared ownership, subsidiary companies, or parent companies.
- The Recipient shall demonstrate new IP creation and/or project must result in commercial value
Application Documents Required
- Project Proposal Pitch Deck using MDEC template.
- Company’s financial statements (copies of one (1) year latest audited account). If the Applicant/Recipient has going concern issue (as reported in their latest audited account, the Applicant/Recipient is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) of the Applicant/Recipient’s company to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the company to enable the company to meet its obligations and/or liabilities under the terms and condition.
- Board of Director Resolution to be signed by the majority of directors on the appointment of authorized signatory.
- Copy of award(s) and/or recognition(s) received in the past 5 years (if any)
- Company Profile
- Project Proposal
- Integrity Declaration Form (Appendix C) of MDEC’s Integrity Pact.
- Outsourcing if applicable (Company only)
- Agreement or quotation from the outsource party(ies);
- Declaration letter of outsourced portion of the project detailing out:
- The scope of work of the outsourced portion;
- The identity of the outsourcing party(ies);
- The amount of outsourcing cost (must be corroborated with quotations and/or agreement);
- Declaration if the outsourcing company is a related company (reference of related company is based on the applicable laws), and
- The arrangement should at least benefit more to the Applicant/Recipient (including copyright, ownership of IP and a declaration of no relationship in terms of shareholders and assets).
- *If outsourcing costs is involved:
- MDEC has the right to conduct background checks on the outsourced parties to ensure there is no conflict of interest.
- Outsourcing party(ies) (including the director(s) or shareholders) SHALL not be related (reference of related is based on the applicable laws) with the Applicant/Recipient.
- Applicant/Recipient should provide supporting documents evidencing outsourced/ collaboration portion of the project as per project costing. Declaration letter of outsourced portion of the project detailing out declaration of outsourcing which includes scope of work project duration amount, including copyright, ownership of IP and declaration of no relationship in terms of shareholders and assets. The arrangement should benefit the Applicant/Recipient.
- Outsourced work should not exceed 20% of the requested Grant amount.
- MDEC reserves the right to request additional information from the Applicant/Recipient at any time.
- (a) If previously has received any grant from MDEC and/or any other ministries or agencies under the Government of Malaysia, to provide proof of project completion (i.e. closure letter from the ministries/agencies).
- *Limited to five (5) years of records from the date of approval of the Grant.
- (b) If Applicant/Recipient has an on-going grant from any other ministries or agencies under the Government of Malaysia, to provide a letter from grant awarding entity or equivalent as proof that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s).
- Document confirming end-user partner has agreed to fund their share of the project cost or support the proposed project (signed agreement/MOU/LOI/purchase order)
- MDEC reserves the right to request additional information from the Applicant/ Recipient at any time
Application Process
Step 1
“Register” and “Log in” to the Malaysia Digital Platform
Step 2
Click “New Application“ and select “Grant“
Step 3
Select “Grant Type“ (you can only submit one application)
Step 4
Fill out the online application form and upload all the required supporting documents
Step 5
Submit application
Step 6
Application will be reviewed for completeness and compliance by MDEC
Step 7
Pitching session (by the company)
Step 8
Approval process
Step 9
Application result
BUILDING AN INNOVATIVE AND PROGRESSIVE DIGITAL ECONOMY
Get your grant up to RM 1,000,000 with Malaysia Digital Catalyst Grant
Frequently Asked Questions
What is Malaysia Digital Catalyst Grant (MDCG)?
Grant MDCG is designed to catalyse the use and development of disruptive and innovative sustainable solutions within Malaysia Digital (MD) promoted sectors that align with the National 4th IR policy.
What can it be used for?
The grant will be used solely for the purpose of co-creation, problem-solving, development and commercialisation of innovative solutions with an end-user partner.
What are the expected outcomes of Malaysia Digital Catalyst Grant?
- ncreased productivity and/or product/service quality, improved quality of life, preservation of ecological integrity arising from the use of 4th IR technologies;
- Visibility of Malaysian-based tech companies;
- Growth in revenue and exports from Malaysian-based 4th IR tech companies.
Who can apply for this grant?
The Applicant must be a company with the registered business activities comprising primarily in technology development and/or implementation activities aligned with the Malaysia Digital promoted sectors.
What are the eligibility criteria?
Please refer to ‘Eligibility Criteria’ section above
What are the eligible expenses that can be claimed under Malaysia Digital Catalyst Grant?
- The grant may be utilised to undertake the following activities:
- Co-create, problem-solving, innovate, and deploy 4th IR solutions in partnership with an end-user partner.
- The grant may be utilised to undertake the following activities:
- The expenditure eligible as the Approved Claimable Cost are the approved project costs that are critical to the project success as outlined below:
Expenses include:
- Salaries, limited to individuals directly contributing to the project, including, sales, and marketing personnel, with exclusions for the directors, shareholders, C-level executives, finance, human resources, admin and non-tech personnel (e.g. interns, despatch, driver, clerk etc).
*The Chief Technology Officer (CTO) is eligible for claims. However, if the CTO concurrently holds the position of a director/shareholder within the company, their salary is not allowable for claims. - Cost of IT hardware and/or equipment associated with the development of the project, particularly for core usage/functions of the proposed projects (e.g., components of a computer such as CPU and GPU).
- Cost of Software associated with the development of the project
- Cost associated to obtaining IP protection (eg.: patents, trademarks, copyright, other forms of IP Protection, legal and professional services)
- Outsourcing Cost which (i.e. cost incurred by the third party appointed/engaged by the Applicant/Recipient for the development of the Project, including testing and certification costs) shall not exceed 20% for outsourcing from the grant amount requested.
- Any cash transaction MUST not exceed RM1,000 per invoice. Cash transaction is not applicable for salary and outsourcing.
- Any other eligible expenses identified and recommended by GRC and approved by the rightful approval authority.
- Salaries, limited to individuals directly contributing to the project, including, sales, and marketing personnel, with exclusions for the directors, shareholders, C-level executives, finance, human resources, admin and non-tech personnel (e.g. interns, despatch, driver, clerk etc).
- The following are non-eligible expenses to be claimed under the Approved Claimable Cost:
Non-eligible expenses:
- Any form of taxes and duties
- Expenses in obtaining certification and accreditation for professional development.
- Maintenance of plant / equipment
- Mobile phones, cameras, tablets, laptops and personal computers (including additional accessories not part of hardware bundle i.e. additional mouse, cable; printer and other peripherals) for general use.
- Furniture and fittings.
- Applicant’s operating expenditures (phone bills, electricity, internet), printing, office rental, stationaries, secretarial, audit fees are non-claimable.
- Any insurance claims associated with the project or project personnel are not eligible for reimbursement.
- Incentives that support political campaigns and/or of political nature.
- Incentives for faith-based activities.
- Depreciation costs
- Debts and debt service charges
- Fines, financial penalties, and expenses of litigation.
- Bank charges, cost of guarantees and similar charges.
- Conversion costs, charges, and exchange losses.
- Provision for losses or potential future liabilities.
- Credits to third parties.
- Travelling expenses which includes mileage, food and beverage and accommodation which includes Cost related to meeting potential clients.
- Applicants/Recipients are prohibited from seeking retrospective reimbursement for projects that have commenced prior to receiving approval.
- Any expenses or claims, including outsourcing costs incurred from third-party entities engaged by the Applicant/Recipient for project development, testing, and certification, cannot be made by related parties.
- Any other expenditures non-related to the project.
What is the reimbursement process of this grant?
Local owned company:
Up to 50% of total project cost or up to RM1 Million whichever is lower.
Majority Foreign owned company:
Up to 30% of total project cost or up to RM1 Million whichever is lower.
What is the project duration under this grant?
- MDEC to reimburse and pay to the Applicant/Recipient the amount of the approved claimable cost incurred by the Applicant/Recipient upon satisfactory of completion of each project deliverables and submission of relevant supporting documents within the timeline specified in the terms and conditions to be issued by MDEC.
- The submission of the reimbursement by the Applicant/Recipient shall include the financial details relating to the project (in such format as may be specified by MDEC) which have been duly verified by an independent external auditor, to be appointed by the Applicant/Recipient at the Applicant’s/Recipient’s own costs, together with evidence acceptable to MDEC, confirming among other things, the amount of approved claimable costs incurred and requested by the Applicant/Recipient.
Are there any other specific conditions for the grant?
Project development period: Up to twelve (12) months.
How to apply?
The Applicant/Recipient is required to meet the following specific condition throughout the project period:
- The Applicant/Recipient must not have any relationship with the end-user, including shared ownership, subsidiary companies, or parent companies.
- The Recipient shall demonstrate new IP creation and/or project must result in commercial value.
What are the steps to submit and upload the application form and supporting documents?
- MDEC will be promoting Malaysia Digital Catalyst Grant (MDCG) on MDEC’s corporate website and social media platforms with links to an online application platform.
- Applicants should complete the MDCG application form, submit it together with the required supporting documents, and upload it to the Malaysia Digital Platform.
When is the opening and the closing date of the grant?
Please refer to ‘Application Process’ section above.
What is the process after the submission?
The grants opens on 9 September 2024 and will remain available throughout the year, subject to the availability of funds.
Is there an appeal process for the Grant?
MDEC verifies applications based on the eligibility criteria and will notify the applicants via email to participate in the pitching session. Should you have any enquiries with regards to your application, please contact +6010 – 276 0878
What are the mechanisms of awarding grants?
The approval given is subject to a mutually agreed time-bound deliverables/milestones and as specified in the terms & conditions to be issued by MDEC.
