The Malaysian digital landscape is set for a significant uplift as the Malaysia Digital Economy Corporation (MDEC) rolls out two new grants totaling RM2.9 million. These grants are strategically designed to accelerate digital transformation within two of Malaysia’s most crucial sectors: artificial intelligence (AI) and manufacturing.
The two new initiatives, the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI) and the SmartMFG+ Incentive Programme, aim to bolster high-potential local companies. The focus is on fostering innovation, developing digital solutions ready for export, and generating high-skilled employment opportunities within the nation.
Anuar Fariz Fadzil, MDEC Chief Executive Officer, highlighted the timely and strategic nature of these grants, emphasizing their role in advancing Malaysia’s digital transformation agenda. “MDAG-AI establishes a foundational framework for Malaysia to emerge as a preeminent hub for AI innovation, while SmartMFG+ lays the groundwork for widespread digitalisation across the manufacturing industry. Collectively, these initiatives serve as a dual engine to advance our digital ambitions,” said Anuar.
Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI)
The MDAG-AI grant is specifically tailored to support Malaysian digital companies in commercializing AI solutions. It targets high-impact projects aligned with the national AI investment strategy, focusing on companies with capabilities across the foundational, enabling, and application layers of AI. This initiative builds on previous programs, concentrating on AI product commercialization, cross-sector AI application, talent development, and knowledge transfer, aligning strategically with the National AI Roadmap to establish Malaysia as a regional AI powerhouse.
Eligible companies can secure funding for up to 70% of their total project costs, with a maximum cap of RM2 million, for projects lasting up to one year. The application window for MDAG-AI is open until July 18, 2025, and successful applicants will be announced at the Malaysia Digital Expo (MDX) in September 2025. For more details, visit http://mdec.my/grants/mdag-ai.
SmartMFG+ Incentive Programme
Mandated by the Ministry of Investment, Trade and Industry (MITI), the SmartMFG+ Incentive Programme is a key component of the New Industrial Master Plan 2030 (NIMP2030). Its core objective is to accelerate digital adoption within the manufacturing sector by supporting local technology solution providers in scaling digital solutions across various domains, including operational efficiency, predictive maintenance, real-time production intelligence, supply chain analytics, and quality assurance.
Selected Malaysia Digital (MD) status companies can receive funding of up to 70% of their solution development costs, capped at RM75,000 per company. Beyond funding, recipients will have opportunities to validate and test their solutions in simulated manufacturing environments, participate in technical and commercial training, and showcase their innovations.
Applications for the SmartMFG+ Incentive Programme are open until July 13, 2025, with the program running from August to December 2025. Successful applicants will also be announced at the Malaysia Digital Expo (MDX) in September 2025. Further information on eligibility and application procedures can be found at https://mdec.my/smartmfg.
Eligibility for both grants is exclusively extended to companies possessing Malaysia Digital (MD) or MSC Malaysia status, or those with a pending MD status application at the time of applying.
