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Top Government Grants for Digital Transformation in Malaysia

In an increasingly digital world, embracing digital transformation isn’t just an option—it’s essential for businesses to stay competitive. 

The Malaysian government recognises this, offering numerous grant programmes to help SMEs adopt modern technology—from cloud software and e‑commerce platforms to AI-driven tools and cybersecurity solutions.

This guide explores the top government grants available, their eligibility criteria, and tips to help you successfully secure funding for your data transformation initiatives.

1. SME Digitalisation Matching Grant (BSN/MDEC)

The SME Digitalisation Grant, introduced under the 2020 Budget (Madani), helps MSMEs adopt digital tools. It offers:

  • 50% co-funding, up to RM5,000 per SME
  • Covers areas like e-commerce, ERP, accounting/tax systems, POS, CRM, cybersecurity, digital marketing, and digital signature

The scheme is administered via Bank Simpanan Nasional (BSN) and MDEC, and will fund up to 100,000 SMEs with a total allocation of RM500 million.

Tip: Choose MDEC-approved service providers to avoid delays in your claim.

2. Micro, Small & Medium Enterprise Digital Grant (MSME Madani)

The MSME Digital Grant Madani, a continuation of the SME scheme, provides:

  • Up to 50% support, max RM5,000
  • For MSMEs and cooperatives registered in Malaysia and in operation for at least 6 months
It covers similar digital solutions and is processed through MDEC-certified providers.

3. MDEC Digital Content Grant (DCG)

The DCG supports creative businesses:

  • Aims to assist digital content startups in production and development
  • Ideal for companies producing videos, games, AR/VR, and animation
  • Typically funds up to 50% of eligible digital content costs

4. Malaysia Digital X-Port Grant (MDXG)

For tech companies exporting solutions:

  • Co-funds up to 50% of project costs (local companies) or 30% (foreign-owned), up to RM1 million
  • Supports internationalisation of products and services

5. Malaysia Digital Acceleration Grant (MDAG)

Meant for mature, revenue-generating tech firms:

  • Designed to accelerate scale-up of AI, cloud, fintech, smart services, etc.
  • Supports commercialisation and expansion initiatives

6. Penjaja Digital Grant (MCMC)

A grant for street vendors to digitise operations:

  • One-time RM1,000 grant to adopt cashless payments and e-POS
  • Managed by MCMC; eligible to SSM-registered hawkers

7. Business Digitalisation Initiative (BDI)

MDEC’s initiative combines grants, advisory, and technology adoption:

  • Offers free digital maturity assessment and access to financing and advisory services
  • Helps businesses integrate solutions like AI, blockchain, and cloud

8. Budget 2025 Digital Support for MSMEs

Under Malaysia’s 2025 Budget, RM50 million was allocated to Digital Matching Grants for SMEs and vendors via BSN, and another RM100 million through MCMC over five years Wolters Kluwer.

Add-on tax incentives like accelerated allowances for ICT expenditures also support digital investment.

9. State-Level Grants

Various Malaysian states provide additional digital grants, such as Selangor’s:

  • 50% co-funding up to RM5,000 for digital platforms and AI tools offered through approved providers

10. Malaysia Debt Ventures (MDV) Funding

While not a grant, MDV offers financing (debt) for tech-driven businesses and startups:

  • Provides growth loans specifically for ICT, green tech, biotech, and innovation Wikipedia

Benefits of These Grants

Investing in digital tools through these grants can lead to:

  • Increased operational efficiency
  • Cost savings through automation
  • Better market reach via e-commerce expansion
  • Improved data-driven decision making
  • Enhanced cybersecurity and compliance readiness

How to Apply and Maximise Success

  1. Assess Your Needs – Identify whether you need CRM, ERP, cybersecurity, or AI.
  2. Choose the Right Grant – Match your needs with suitable programmes (e.g. Penjaja Digital for street vendors).
  3. Use Approved Providers – For matched grants, work with MDEC/BSN-certified vendors.
  4. Prepare Documentation – Include SSM registration, invoices, quotes, financial statements.
  5. Submit Early – Some schemes are first-come-first-served.
  6. Follow Post-Grant Rules – Keep documentation, report milestones, and meet audit requirements.

Integrating With Data Transformation Strategy

Digital transformation fuels data transformation, enabling:

  • Insightful customer analytics
  • Real-time financial reporting
  • Automated compliance and audit trails
ShineWing TY Teoh offers end-to-end digital advisory services in Malaysia to help you carry out successful transformation. Learn more from our blogs:

Final Thoughts

Malaysia offers a robust ecosystem of government support for digital transformation, enabling businesses to digitalise operations, improve competitiveness, and access new markets. The ideal approach is to:
  1. Explore grant options suited to your business size and industry
  2. Plan holistically across technology, data, and financial strategy
  3. Engage with advisors like ShineWing TY Teoh to navigate regulations and reporting
With the right support, digital transformation can be a smooth, strategic journey—not a cost burden.

Quick Takeaways

  • A variety of grants available—from RM1,000 to RM1 million—support different digital needs
  • Focus on eligibility, approved providers, and compliance
  • Digital transformation sets the foundation for data transformation
  • ShineWing TY Teoh provides comprehensive advisory services to help you flourish in Malaysia’s digital economy
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