Top 6 Malaysia SME Government Grant

Covid-19 outbreak is significantly impacting all businesses and the economy globally, especially SMEs out there taking major hits at the beginning of 2020 due to the rapid spread of coronavirus. Such as facing declining sales, challenges in production, issues caused by supply chain disruptions and the inability to physically engage with customers. 

2020 has seen shifts in the way businesses and organizations operate in the wake of the deadly virus. In order to let all the businesses transition toward the next normal, here are the 2020 top 4 Malaysia SME government grants which are Cradle grant, Digital Transformation Acceleration Programme (DTAP), Smart Automation Grant (SAG), SME Digitalisation Grant, Industry 4.0 (Industry4WRD) Incentives and Sandbox that support and encourage more local businesses to move rapidly into the technology sphere and use it as a tools to help leaders respond to the pandemic.

Select Your Preferred Grant


CIP Ignite – Programme that provides a conditional grant and value added assistance up to RM500,000 for tech based start-ups, local SMEs or spinoff companies from Universities and Research Institutes.

CIP Ignite is divided into two (2) – Ignite (i) and Ignite (ii) where both assists early stage tech based companies at different Technology Readiness Level (TRL).

CIP Accelerate – Programme that provides funding of up to RM2,000,000 and value-added assistance that specifically caters to deep tech startups, SMEs and spinoffs from Universities and Research Institutes.

Digital Transformation Acceleration Programme

A healthy Digital Economy ensures that the nation’s industry has the agility to adapt to global digital disruption. The Digital Transformation Acceleration Programme (DTAP) will help futureproof Malaysian companies.

An outcome-driven programme, the DTAP aims to provide Malaysian companies with the necessary tools to help kickstart their digital transformation journey. The goal of the programme – to help businesses achieve their digital transformation goals.

Smart Automation Grant (SAG)

A critical part of Pelan Jana Semula Ekonomi Negara (PENJANA), the #SMART Automation Grant (SAG) is a matching grant for services companies. 

SMEs and mid-tier companies in the services sector are now able to kickstart their digital adoption journey and increase their digital capabilities to continue striving forward in this new norm. 

Each successful application will receive up to 50% of the total project cost, subject to a ceiling limit up to RM200,000 or, whichever is the lowest, through this matching grant

SME Digitalisation Grant

The favourable provisions for digital adoption set out in the 2020 Budget denotes the government is actively encouraging more local businesses to move rapidly into the technology sphere. 

The Government will provide a 50% matching grant of up to RM5,000 per company for the subscription of the above services. The matching grant will be worth RM500 million over 5 years, limited to the first 100,000 SMEs applying to upgrade their systems

Industry 4.0
(Industry4WRD) Incentives

The fund will be provided on matching basis (70:30) based on eligible expenditures, up to a maximum grant of Ringgit Malaysia Five Hundred Thousand (RM500,000.00) only. Maximum 30% of the matching amount (70% of total grant) will be provided in upfront to the companies subject to the approval by Intervention Fund Approval Committee at MITI, whereby the balance of the remaining grant will be on reimbursable basis which will be deliberated at MIDA.

Sand Box

The National Innovation and Technology (NTIS) Sandbox is a facility that enables researchers, innovators, start-ups and high-tech entrepreneurs to test products, services, business models and delivery mechanisms in a live environment.

Benefit Of Riding The Digital Wave

MDEC has driven significant digital transformation and adaption across the public and private sectors in Malaysia since our establishment in 1996. As the world moves rapidly into Fourth IR, MDEC will lead Malaysia digital economy forward for the nation by boosting:

Digital-Skilled Malaysians
Upskilling all Malaysians to be digitally savvy and contribute to the growth of the leading digital economy Asian.

Digitally-Powered Business
Clear end-to-end support for business; Growing startups, digitalising SMEs and globalising scale ups

Digital Investments
Recognised globally for; -Animation, Game development & esports; -Suitable location and environment for Data Centre -Malaysia is a proven global test bed for ICT and digital for nearly 23 years

Digitalisation increases competitiveness

  • Streamline workflow
  • Automated business processes
  • Reduce cost
  • Increased customer satisfaction or employee satisfaction 
  • Improved revenue 

Start Your Digital Journey With Easy Steps

100 go digital

DTAP 2.0


Create excitement and build
awareness on digital adaption


Nurture and enable businesses to
identify and adopt digital opportunities

Digital Transformation
Acceleration Programme 2.0

Provide structured approach for
businesses to adopt digital with
outcome-based results

SME Business Digitalisation Grant


Digitisation VS Digitalisation

Digitalisation is when you use digital technologies to change a business model and provide new revenue and value-producing opportunities

Digitisation is the process of changing from analog to digital form 


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