MDCG is designed to catalyse the use and development of disruptive and innovative sustainable solutions within Malaysia Digital (MD) promoted sectors that align with the National 4th IR policy.

The grant will be used solely for the purpose of co-creation, problem-solving, development and commercialisation of innovative solutions with an end-user partner.

• Increased productivity and/or product/service quality, improve quality of life, preservation of ecological integrity arising from the use of 4th IR technologies;
• Visibility of Malaysian-based tech companies;
• Growth in revenue and exports from Malaysian-based 4th IR tech companies.

The Applicant must be a company with the registered business activities comprising primarily in technology development and/or implementation activities.

The Applicant is required to always meet the following criteria and to continuously meet the criteria throughout the project period:

• Local Company:

  • Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
  • Minimum paid up capital of at least RM50,000 for companies;
  • Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM.

  Foreign owned:

  • Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
  • Active and minimum issued and paid up capital of RM500,000.


• 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 to provide a letter of undertaking by the shareholder and/or director of the Applicant/Recipient to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms & conditions to be issued by MDEC and to provide financial support to the Applicant/Recipient to enable the Applicant/Recipient to meet its obligations and/or liabilities under the terms & 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 employee.
• 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..
• Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
• 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 venture capital investors and registered market operator e.g.: Equity Crowdfunding Platforms).​
• 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).
• *Applicable for R&D grant only.
• *Limited to 5 years records.
• The business nature of company is technology related services and/or MD status company (to provide MD certification number).​
• The Applicant/Recipient must be MSC Malaysia status company or Malaysia Digital (MD) status company. However, if the Applicant/Recipient is not MSC Malaysia Status company or Malaysia Digital (MD) status company, the Applicant/Recipient  must apply for Malaysia Digital (MD) status during the Availability Period.

• The grant may be utilised to undertake the following activities:
  • Co-create, problem-solving, innovate, and deploy 4th IR solutions in partnership with an end-user partner.


• The expenditure eligible as the Approved Claimable Cost are the approved project costs that are critical to the project success as follows:

Expenses include:

• Salary limited to personnel involve directly with the project (excluding Applicant’s/Recipient’s directors, shareholders, *C-level, finance HR, admin and on tech personnel I.e intern, despatch and etc) * Chief Technology Officer is allowable
• Cost of IT Hardware and or IT equipment associated with the development of the project (For specific core usage/functions of the proposed projects. Eg: Components of computer, CPU and GPU)
• Cost of Software associated with the development of the project
• Testing and certification costs associated in the development of the project (pay to the awarding body/authority).
• Cost associated to obtaining IP protection (eg.: patents, trademarks, copyright, other forms of IP Protection, legal and professional services)
• 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% of the grant amount requested. To provide the justification if outsourcing outside of Malaysia.
• Any cash transaction MUST not exceed RM1,000 per invoice. Cash transaction is not applicable for salary and outsourcing.
• Any other eligible expenses identified and recommended by GRC and approved by the approval authority.


• The following are non-eligible expenses to be claimed under the Approved Claimable Cost:

Non-eligible expenses:

• Any form of taxes
• 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 ie 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 are non-claimable;
• Travelling expenses which includes mileage, food and beverage and accommodation; and/or
• Any other expenditures non-related to the project.

Local owned company:

Up to 50% of total project cost or up to RM1 Million whichever is lower.

Foreign owned company:

Up to 30% of total project cost or up to RM1 Million whichever is lower.

• MDEC to reimburse and pay to the Applicant/Recipient the amount of the approved claimable cost incurred by the Applicant/Recipient upon satisfactory of completion of each project deliverables and submission of relevant supporting documents within the timeline specified in the terms and conditions to be issued by MDEC.
• The submission of the reimbursement by the Applicant/Recipient shall include the financial details relating to the project (in such format as may be specified by MDEC) which have been duly verified by an independent external auditor, to be appointed by the Applicant/Recipient at the Applicant's/Recipient's own costs, together with evidence acceptable to MDEC, confirming among other things, the amount of approved claimable costs incurred and requested by the Applicant/Recipient.

Project development period: Up to twelve (12) months.

The Applicant is required to meet the following specific conditions throughout the project period:

• The project under application must be new and limited to one (1) single project per company. Project in progress will not qualify (Improvements or additions of functionality is considered as new)
• The Applicant/Recipient must demonstrate that it has secured the commitment of the end-user to fund their share of the project cost at the time of application (Agreement/LOI/MOU/PO)
• The Applicant/Recipient must procure approved cost items from Malaysian incorporated organisations for ecosystem development purpose unless there is valid justification provided such as no local supplier, or is counter productive
• End-users are to come from the following verticals as outlined in the Malaysia Digital promoted sectors in alignment with National 4th IR Policy:
• MD promoted sectors: Digital Agriculture, Digital Services, Digital Cities, Digital Health, Digital Finance, Digital Trade, Digital Content, Digital Tourism and Islamic Digital Economy.
• Technology solutions to embed any combination elements of the following tech enablers:
• Artificial Intelligence & Big Data Analytics, Blockchain, Cloud & Data Centre, Cybersecurity, Dronetech, Internet of Things, Robotic/Automation, Virtual, Augmented, mixed & Extended Reality, Creative Media Technology including extended reality (XR) and/or mixed reality (MR), Integrated circuit (IC) designed and/or embedded software, Advanced network connectivity and/or telecommunication technology.
• The Applicant/Recipient must not have any relationship with the end-user, including shared ownership, subsidiary companies, or parent companies.

• MDEC will be promoting Malaysia Digital Catalyst Grant (MDCG) on MDEC’s corporate website and social media platforms with links to an online application form.
• Applicant to complete the MDCG application form and submit the application form together with the required supporting documents and upload it at https://gainmdec.awardsplatform.com/

• "Register" and "Log In" with your credentials to GAIN Awards Platform
• Click “Start Application” under "My Applications"
• Select department “Grants and Funding”
• Select programme “Malaysia Digital Catalyst Grant 2023 (MDCG)”
• Provide your company details and upload your application form with supporting documents
• Click “Submit Application” once completed (Deadline by 1 June 2023 at 11:59pm)

2 May 2023 – 1 June 2023 at 11:59pm​

MDEC verifies application based on the eligibility criteria and will notify the applicants via email to participate in the pitching session.

Should you have any enquiries with regards to your application, kindly contact our Client Contact Centre at 1-800-88-8338 or clic@mdec.com.my

The approval given is subject to a mutually agreed time-bound deliverables/milestones and as specified in the terms & conditions to be issued by MDEC.