REVOLUTION OF FUTURE MALAYSIA’S DIGITAL CONTENT

Digital Content Grant (DCG) is the government’s initiative started in 2016 which is designed and created to support local creative content companies in developing, producing, or co-producing and marketing their digital content in animation, digital games and interactive media content.



The three main objectives are:

Create and develop sustainable ecosystems for job creation, business planning, and market expansion.
Develop and enhance local creative, technical and human capital competencies by leveraging on international partners.
Create Malaysian-owned or Malaysian-shared intellectual property.

LIST OF OFFERED GRANTS



THE DEVELOPMENT GRANT

Development Grant focuses on the development stage of the Project, the stage where it involves idea generation, production design, market research and marketing analysis. The development stage is defined as a planning phase of the Project.

This includes development of the idea into working script, research and development (R&D) of the concept, business plans, and preparation of documents which are investor-friendly. Applicants with new project/IP/idea within the Eligible Project Categories are encouraged to apply for funding under the Development Grant.


ELIGIBILITY CRITERIA


  1. A company incorporated in Malaysia for at least 1 year under the Companies Act 1965 or the Companies Act 2016.
  2. Minimum issued and paid-up capital of RM20,000.
  3. Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM.
  4. Not the subject of liquidation/winding up /bankruptcy order and has no going concern issue*. (*If the Applicant has going concern issue (as reported in their latest audited account, the Applicant to provide a letter of undertaking by the shareholder and/or director of the Applicant to undertake that in the event that their application is approved, the Applicant shall perform its obligations under the terms & conditions to be issued by MDEC and to provide financial support to the Applicant to enable the Applicant to meet its obligations and/or liabilities under the terms & conditions.)
  5. Company director/ shareholder to declare and disclose if there is any close business relationship/close family relationship with any of MDEC’s director or employee.
  6. Company director/ shareholder to declare if they are under any litigation.
  7. Company director/ shareholder to declare if they are blacklisted by Malaysian Anti-Corruption Commission (MACC).
  8. Companies with common shareholder/s can only submit one application for grant applied within MDEC (not including venture capital investors and registered market operator, e.g Equity Crowdfunding (ECF) platforms).
  9. If company previously has received any MDEC/government grant, the applicant must:
    • demonstrate the completion and success of the funded project/s.
    • declare any notice of non-compliance/breach being recorded during the period of the funded project/s.
  10. The business nature of the company – Technology related services

ALLOWABLE PROJECT DURATION


Up to 8 months.


SCOPE OF PROJECTS


ELIGIBLE PROJECT CATEGORIESALLOWABLE PROJECT DELIVERABLES
ANIMATION
Animated Series
Animated Feature Film
Beyond Entertainment
(a) R&D report
(b) script;
(c)  character and environment design;
(d) animation test or visual test clips;
(e)production pitching materials.
INTERACTIVE MEDIA
Digital Games
Gamification
Extended Reality
Beyond Entertainment
(a) R&D report on game play.
(b) Game concept design.
(c) Game prototype test; and/or
(d) Production pitching materials.
INNOVATION IN CREATIVE TECHNOLOGY (a) R&D report on content design;
(b) prototype design;
(c)  prototype test; and/or
(d) production pitching materials.

EXAMPLE OF ACTIVITIES


  • R&D on concept, storyline, pre-development;
  • Script development;
  • Concept development;
  • Cost of optioning (to acquire the rights – book author/publisher);
  • Character and environment development;
  • Game play, interactive simulation R&D and design;
  • Prototype R&D and design;
  • Animation test, clip test, visual test, prototype test (3-5 minutes pilot pitching);
  • Production pitching materials; and/or
  • Any other activities which constitute “development” according to acceptable industry practice.

REGISTRATION & APPLICATION


Register and apply now before the closing date on 8th May 2022





IP MARKETING & LICENSING GRANT

IP Marketing & Licensing Grant is a financial assistance provided to IP creators with market ready product (s). This includes IP extension, IP registration, development of style guide and other activities related to marketing, promotion, localization, commercialization, licensing or distribution.


ELIGIBILITY CRITERIA


  1. A company incorporated in Malaysia for at least 1 year under the Companies Act 1965 or the Companies Act 2016.
  2. Minimum issued and paid-up capital of RM20,000.
  3. Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM.
  4. Not the subject of liquidation/winding up /bankruptcy order and has no going concern issue*. (*If the Applicant has going concern issue (as reported in their latest audited account, the Applicant to provide a letter of undertaking by the shareholder and/or director of the Applicant to undertake that in the event that their application is approved, the Applicant shall perform its obligations under the terms & conditions to be issued by MDEC and to provide financial support to the Applicant to enable the Applicant to meet its obligations and/or liabilities under the terms & conditions.)
  5. Company director/ shareholder to declare and disclose if there is any close business relationship/close family relationship with any of MDEC’s director or employee.
  6. Company director/ shareholder to declare if they are under any litigation.
  7. Company director/ shareholder to declare if they are blacklisted by Malaysian Anti-Corruption Commission (MACC).
  8. Companies with common shareholder/s can only submit one application for grant applied within MDEC (not including venture capital investors and registered market operator, e.g Equity Crowdfunding (ECF) platforms).
  9. If company previously has received any MDEC/government grant, the applicant must:
    • demonstrate the completion and success of the funded project/s.
    • declare any notice of non-compliance/breach being recorded during the period of the funded project/s.
  10. The business nature of the company – Technology related services

ALLOWABLE PROJECT DURATION


Up to 12 months.


SCOPE OF PROJECTS


ELIGIBLE PROJECT CATEGORIESREQUIRED OUTPUT INCLUDING:
ANIMATION
Animated Series
Animated Feature Film
Beyond Entertainment
(a)  Marketing & promotional execution
(b)  Potential opportunities
(c)   Letter of Intent
(d)  Minimum of 2 pitching sessions to buyers /investors
(e) Media coverage
INTERACTIVE MEDIA
Digital Games
Gamification
Extended Reality
Beyond Entertainment
(a) Marketing & promotional execution
(b) Potential opportunities
(c)  Publisher Deal
(d) Minimum of 2 pitching sessions to buyers /investors
(e) Media coverage

EXAMPLE OF ACTIVITIES


  • Cost of dubbing to other languages.
  • Production of marketing materials -printing brochures, sales kit, flyer, bunting, mascot, game trailer etc.
  • IP extensions such animation, apps games, comic, artbook, related media (soundtrack, songs) developed as marketing tools.
  • IP registration in Malaysia and outside Malaysia –trademark and copyright.
  • Media buy cost. ie airtime, print advertisements, digital, social, streamers, influencers etc.
  • PR & communications -branding and product placement strategy.
  • Festivals and awards related cost.
  • Events -launching, press conference, road shows, showcases.
  • Style guide.
  • POSM –point of sales materials.
  • Any other activities which constitute “marketing and licensing” according to acceptable industry practice.

REGISTRATION


Register now before the closing date on 8th May 2022




OTHER INFORMATION


Claimable Cost

  • Manpower
  • Hardware and Software
  • Outsourcing Cost
  • IP Protection, Marketing, Commercialization, Licensing & Distribution cost (specific for IP Marketing & Licensing Grant only and/or
  • ing for other costs to be claimable, the applicant shall be required to specify the purpose of such costs


  • Non claimable Cost

    • Any form of taxes
    • Company’s operating expenditures ie; utilities (phone bills, electricity), printing, office rental, stationaries, secretarial, audit fees are non-claimable
    • Travelling expenses which includes mileage, food and beverage and accommodation; and/or
    • Expenditures non-related to the project.

    Application Processes

    MDEC will be promoting Digital Content Grant (DCG) on MDEC’s corporate website and social media platforms with links to an online application form.

    1. Interested companies can visit the DCG website for more information
    2. Register and fill in the form in the MDEC Platform (#SayaDigital)
    3. Download the application form from the MDEC Platform (#SayaDigital)
    4. Applicant to complete the DCG application form and submit the application form together with the required supporting documents and upload it to the MDEC Platform (#SayaDigital)


PREVIOUS GRANT RECIPIENT


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FAQ

Digital Content Grant (DCG) 2022 consists of two (2) types as per following:

  • Type 1 – Development Grant
    Development Grant focuses on the development stage of the Project, the stage where it involves idea generation, production design, market research and marketing analysis. The development stage is defined as a planning phase of the Project. This includes development of the idea into working script, research and development (R&D) of the concept, business plans, and preparation of documents which are investor-friendly.
  • Type 2 – IP Marketing & Licensing Grant
    IP Marketing & Licensing Grant is a financial assistance provided to IP creators with market ready product (s). This includes IP extension, IP registration, development of style guide and other activities related to marketing, promotion, localization, commercialization, licensing or distribution.
  • Number of digital content projects created; and
  • Number of job creation for Malaysians.

The Applicant must be a company incorporated at least 1 year in Malaysia with minimum paid-up capital RM20,000 and the registered business activities comprising primarily in technology activities and/or creation of digital creative content.

The Applicant is required to meet the following criteria at all times and to continuously meet the criteria throughout the project period:

  1. Eligible Expenses
    • Manpower
    • Hardware and Software;
    • Outsourcing Cost;
    • IP Protection, Marketing, Commercialization, Licensing & Distribution cost (specific for IP Marketing & Licensing Grant only and/or
    • Other costs – If the applicant is requesting for other costs to be claimable, the applicant shall be required to specify the purpose of such costs.
  2. Non-Eligible Expenses
    • Any form of taxes;
    • Company’s operating expenditures ie; utilities (phone bills, electricity), printing, office rental, stationaries, secretarial, audit fees are non-claimable;
    • Travelling expenses which includes mileage, food and beverage and accommodation; and/or
    • Expenditures non-related to the project.
  • Development Grant – Up to RM300,000
  • Development Grant (Animated Feature Film) – Up to RM500,000
  • IP Marketing & Licensing Grant – Up to 50% of the total marketing, commercialization & distribution cost or up to RM500,000, whichever is the lower
  • Development Grant – Up to eight (8) months.
  • IP Marketing & Licensing Grant – Up to twelve (12) months.

Yes, below are the specific conditions for the grant:

  1. The Grant Recipient shall create a minimum number of new job opportunities in the production development component process of the project (“Job KPI”) as may be specified by MDEC. The said new jobs must be filled by Malaysians; and
  2. The Grant Recipient shall ensure that at all times during the Availability Period more than Fifty Percent (50%) of the team involved in the project are Malaysians;
  3. If outsourcing cost is involved, MDEC has the right to conduct background checking to the outsource parties to ensure there is no conflict of interest.
  4. Outsourced work should not exceed 20% of the requested grant amount.

MDEC will be promoting Digital Content Grant (DCG) on MDEC’s corporate website and social media platforms with links to an online application form.

  1. Interested companies can visit the DCG website for more information
  2. Register and fill in the form in the MDEC Platform
  3. Download the application form from the MDEC Platform
  4. Applicant to complete the DCG application form and submit the application form together with the required supporting documents and upload it to the MDEC Platform

5th April – 8th May 2022

MDEC verifies application based on the eligibility criteria and will notify the applicants via email.
Should you have any enquiries with regards to the application, kindly contact our MSC Malaysia Client Contact Centre at 1-800-88-8338 or [email protected]

MDEC will acknowledge receipt of the complete submission in term of application form and supporting documents.
MDEC verifies application based on the eligibility criteria and will notify the applicants via email to participate in the pitching session.

The grant shall be cancelled or terminated if the DCG recipients:

  • Fails to submit a claim for disbursement by specified due dates or upon expiry of the specified availability period for the incentive;
  • Fails to deliver any of the deliverables specified in the terms & conditions issued by MDEC; or
  • Fails to meet any eligibility criteria for any reason whatsoever during the specified availability period for the incentive which shall commence from the date of the terms & conditions issued by MDEC; and/or
  • Fails to perform or comply with or commits a breach on any of the obligations specified in the terms & conditions issued by MDEC.

In the event of breach and/or the incentive is being cancelled or terminated, the Applicant:

  • May be subject to clawback on the amount already disbursed or such other smaller amount as MDEC may specify; and/or
  • MDEC has the right to blacklist the Applicant.

REGISTER NOW BEFORE THE CLOSING DATE ON 8th MAY 2022