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Accelerating ESG Adoption with MIDA DIAF-ESG Grant-Malaysia

Updated: Mar 19

SMI FUNDING is your trusted financial advisor, offering comprehensive assistance for Domestic Investment Accelerator Fund (DIAF) and ESG Adoption Grant applications

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We specialize in guiding businesses through the complex documentation and submission process, ensuring seamless approval and disbursement. Whether you are applying for the Foreign Investment Accelerator Fund (FIAF) or seeking support from the Malaysian Investment Development Authority (MIDA), we provide expert insights to help you secure funding efficiently.

Long-term financial strategies

With a strong focus on ESG principles, SMI FUNDING assists businesses in adopting sustainable practices that align with global environmental, social, and governance (ESG) factors. Institutional investors and stakeholders are increasingly prioritizing socially responsible investments, and our expertise ensures that your funding application meets the highest ESG standards. By integrating ESG elements into your business model, you not only enhance your brand reputation but also strengthen your position in the supply chain.


At SMI FUNDING, we recognize the importance of long-term financial strategies and work closely with businesses to secure funding from the Investment Development Authority. Whether you need assistance with the Investment Accelerator Fund or navigating government incentives, we take care of every step, from documentation to approval. Our goal is to help businesses access essential financial resources while ensuring compliance with ESG regulations, enabling them to attract institutional investors and thrive in a competitive market.


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Fundamental aspect of corporate decision-making

Malaysia's corporate landscape is undergoing a notable transformation, driven by the growing integration of Environmental, Social, and Governance (ESG) principles into business strategies. ESG considerations have evolved from being a niche focus to a fundamental aspect of corporate decision-making across various industries. Over the past year, The Carbon Collective Company has collaborated with a diverse range of Malaysian businesses and observed that the ESG market has become too substantial for both investors and enterprises to ignore.


Do ESG & Sustainable in malaysia?

 

Yes, ESG (Environmental, Social, and Governance) and sustainability are gaining strong momentum in Malaysia, driven by regulatory frameworks, investor interest, and corporate initiatives. The Malaysian government and financial institutions are actively promoting ESG adoption through policies, incentives, and grants.


Key ESG & Sustainability Developments in Malaysia

  1. Government & Regulatory Support

    • The Malaysian Investment Development Authority (MIDA) and Securities Commission Malaysia (SC) have introduced guidelines to encourage ESG adoption.

    • The Bank Negara Malaysia (BNM) promotes sustainable finance, ensuring financial institutions integrate ESG factors into their risk assessments.

    • Bursa Malaysia has made ESG reporting mandatory for public-listed companies, reinforcing transparency and accountability.

  2. ESG Funding & Incentives

    • The Investment Accelerator Fund (IAF) and Foreign Investment Accelerator Fund (FIAF) support businesses in integrating ESG practices.

    • The ESG Adoption Grant helps companies align with environmental, social, and governance (ESG) principles, making them more attractive to institutional investors.

    • Incentives are available for businesses improving sustainability in their supply chain and operations.

  3. Corporate & Market Trends

    • Companies in Malaysia are increasingly focusing on socially responsible business models to attract investors and improve long-term resilience.

    • ESG-compliant firms see greater investment interest as global markets prioritize sustainability and governance.

    • Businesses integrating ESG factors enhance their competitive advantage, reduce risks, and improve stakeholder trust.


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Why ESG Matters in Malaysia?

With the global push for sustainable business practices, Malaysian companies must embrace ESG to remain competitive. Aligning with ESG standards not only ensures compliance but also strengthens reputation, operational efficiency, and access to long-term investment opportunities.


MIDA - DIAF-ESG Grant - RM500,000

The Domestic Investment Accelerator Fund (DIAF) – ESG Adoption is a matching grant to support Malaysian-owned SMEs and Mid-Tier Companies in transitioning to ESG practices.Matching grant ratio: 50:50 or 70:30 based on the case.Amount: Up to RM500,000 per company.


  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:

  • Ship Building Ship Repair;

  • Green Technology Project – Business Purpose;

  • Sterilisation Services;

  • Digital Infrastructure; and

  • Maintenance, Repair & Overhaul for Aerospace.

 
 
 

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