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Eligibility Criteria

• Having a valid MSME Status Certificate

• Annual sales turnover exceeds RM300,000 per year

• At least 60% of local Indian ownership

• Having a valid Business Premise License from Local Authorities

• At least 12 months in operations from the date of application

• Major / common shareholders in 2 or more Private Limited Companies are only eligible to submit 1 application

• Enterprise owned by the same owner in 2 or more enterprises (sole proprietorship or partnership) are only eligible to submit one application

• Companies that have received BAP 3.0 grants are not eligible to apply

• The same project that has been approved under any programme by SME Corp. Malaysia is not eligible

• Open to all economic sectors EXCEPT sectors related to primary agriculture, financial, insurance, real estate, and securities trading sectors (priority will be given to the high growth industries)

Basic Application Documents

1. Superform document from SSM

2. Business Premise License from Local Authorities

3. Audited Financial Statement for the last 3 years or the latest management accounts

4. Bank statements for the last 3 months

5. 2 quotations from preferred and comparison supplier

Eligibility Criteria

Local 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; and

Majority Foreign owned:

• Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
  Active and minimum issued share capital of RM500,000.00;
  Headquartered in Malaysia.

1. In operation for at least one (1) year as of the date of submission.

2. 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.]

3. 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 employee.

4. 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 relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.

5. The Director(s) and shareholder(s) of the Applicant/Recipient shall not owe any amounts to MDEC due to clawback issues from previous grants.

6. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysian authorities (MACC, Bank Negara Malaysia, Securities Commissions Malaysia and MDEC. In the event, the Director(s) and shareholder(s) are blacklisted, the said Applicant/Recipient shall be disqualified

7. 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; and
-Non-related party(ies) to the Applicant/Recipient.

8. If Applicant/Recipient previously has received any *MDEC/government grant, the Applicant/Recipient must

• Demonstrate the completion of the funded project(s);

• Declare any notice of non-compliance/breach being recorded during the period of the funded project(s); and
  Past MDEC Grant Recipients can only reapply after one (1) year from the project completion date (grant closure email date) or duration may be determined by the Approval Authority only if required (internal information).

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 five (5) years records from the of approval of the respective grant.

10. The Applicant/Recipient must be a Malaysia Digital (MD) or MSC Malaysia status company.

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.

• 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.

ELIGIBLE EXPENSES

Salary - limited to personnel involve directly with the project (excluding Applicant/Recipient's directors, shareholders, C-Level, finance, HR, admin and non-tech personnel Eg: intern, despatch and etc); A Creative Director is allowable and it can be from one of the Director/Shareholder of the company. *Note: Not applicable for non Sdn Bhd

• Cost of IT Hardware and IT equipment associated with the development of the project;

• Cost of Software associated with the development of the project;

• Cost associated to obtain IP protection (eg: patents, trademarks, copyright, other forms of IP Protection, legal and professional services);

• Marketing, Commercialisation, Licensing and Distribution cost;

• Outsourcing Cost which (i.e. cost incurred by the third party appointed/engaged by the Applicant/Recipient for the development of the Project) not more than 20% from the grant amount requested. To provide the justification if outsourcing outside of Malaysia;

• Any cash transaction MUST not exceed RM1,000.00 per invoice. Cash transaction is not applicable for salary and outsourcing; and/or

• Any other eligible expenses identified and recommended by GRC and approved by the rightful Approval Committee.

NON-ELIGIBLE EXPENSES

• Any form of taxes and duties;

• Expenses in obtaining certification & accreditation for professional development;

• Maintenance of plant / equipment;

• Mobile phones, Camera, Tablets, laptops and personal computer (including additional accessories not part of hardware bundle i.e. additional mouse, cable; printer and other peripherals) for general use;

• Furniture and Fittings;

• Utilities (phone bills, electricity, internet), printing, office rental, stationaries, secretarial, audit fees;

• Travelling expenses which includes mileage, food and beverage and accommodations;

• 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, costs of guarantees and similar charges;

• Conversion costs, charges and exchange losses;

• Provision for losses or potential future liabilities;

• Any expenses or claims, including outsourcing costs incurred by related parties of the Applicant/Recipient for project development, testing and certification.

• Credits to third parties; and/or

• Any other expenditures non-related to the project.

Criteria

The company must be incorporated under the Companies Act, 2016. Effective equity ownership of the company must be at least 51% Malaysians.  The company possesses a valid Business Licence from the respective Local Authority.

The companies must engage/ undertake any of the following activities:-

1. Manufacturing activities where the company must possess a valid Manufacturing Licence (ML) from MITI or the Confirmation Letter for Exemption from ML from MIDA in compliance with the Industrial Coordination Act, 1975; or

2. Services activities that are governed/ supervised by relevant ministries/ agencies in the following areas: - a) Hotel and Tourism; b) Private Healthcare; c) Private Education; d) Oil & Gas Services; e) Global Establishment - Principal Hub/Global Services Hub; f) R&D Activities; g) Logistics Services; or h) Other Services: - i. Ship Building Ship Repair; ii. Green Technology Project - Business Purpose; iii. Sterilisation Services; iv. Digital Infrastructure; and v. Maintenance, Repair & Overhaul for Aerospace.

3. The company has been in operation for at least 3 years.

Note:  All SMEs and MTCs must be entities registered with the Companies Commission of Malaysia; and