Malaysia Digital X-Port Grant
Expand your business globally
Malaysia Digital X-Port Grant
Expand your business globally
Malaysia Digital X-Port Grant
Expand your business globally
What is Malaysia Digital X-Port Grant (MDXG)?
MDXG is focused on supporting Malaysian technology companies that have demonstrated export readiness and are seeking to expand their global market presence.
The grant aims to stimulate high-value digital exports that lead to the development and commercialisation of market-driven, disruptive, innovative, and sustainable products or services for the global market.
What is Malaysia Digital X-Port Grant (MDXG)?
MDXG is focused on supporting Malaysian technology companies that have demonstrated export readiness and are seeking to expand their global market presence.
The grant aims to stimulate high-value digital exports that lead to the development and commercialisation of market-driven, disruptive, innovative, and sustainable products or services for the global market.
What is Malaysia Digital X-Port Grant (MDXG)?
MDXG is focused on supporting Malaysian technology companies that have demonstrated export readiness and are seeking to expand their global market presence.
The grant aims to stimulate high-value digital exports that lead to the development and commercialisation of market-driven, disruptive, innovative, and sustainable products or services for the global market.
Key Objectives
To facilitate the expansion of Malaysian technology companies operating within Malaysia Digital promoted sectors and technology enablers in their efforts to penetrate the global market.
To drive the development and commercialisation of cutting-edge, sustainable products and services that have the potential to transform industries and establish Malaysian technology companies as global icons.
To elevate the branding of Malaysian technology products and services by supporting their reach beyond domestic borders and establishing themselves as leading players in respective industries.
GRANT AMOUNT
For Local Owned Company
Up to 50% of total project cost or up to RM1 Million whichever is lower.
Project Duration:
Up to 1 Year
*Quantum of funding is applicable for project period of up to 1 year.
For Majority Foreign Owned Company
Up to 30% of total project cost or up to RM1 Million whichever is lower. Headquarters must be in Malaysia
Project Duration:
Up to 1 Year
*Quantum of funding is applicable for project period of up to 1 year.
Eligibility Criteria
Local Company:
- Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
- Minimum issued share capital of at least RM50,000.00;
- Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM; and
- Majority Foreign owned:
- Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
- Active and minimum issued share capital of RM500,000.00;
- Headquartered in Malaysia.
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 is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the Applicant/Recipient to enable the Applicant/Recipient to meet its obligations and/or liabilities under the terms and 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.
The Director(s) and shareholder(s) of the Applicant/Recipient shall not owe any amounts to MDEC due to clawback issues from previous grants.
Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysian authorities (MACC, Bank Negara Malaysia, Securities Commissions Malaysia and MDEC. In the event, the Director(s) and shareholder(s) are blacklisted, the said Applicant/Recipient shall be disqualified
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 registered and active venture capital investors, accredited angel investor, registered market operator and government agencies e.g.: Equity Crowdfunding Platforms).
- Requirements for Venture Capitals:
- The venture capitals are(is) required to invest its funds actively within a 10-year timeframe and/or be officially registered with local regulatory authorities.
- Requirements for Angel Investors:
- The angel investor(s) MUST be registered, accredited by local association/body (Malaysian Business Angel Network) and hold less than 20% of equity ownership; or
- Individual Angel Investors MUST fully fit into these three (3) criteria:
- Hold less than 20% of equity ownership
- Does(do) not hold any directorship of the company; and
- Non-related party(ies) to the Applicant/Recipient.
- Requirements for Venture Capitals:
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); and
- Past MDEC Grant Recipients can only reapply after one (1) year from the project completion date (grant closure email date) or duration may be determined by the Approval Authority only if required (internal information).
If the Applicant/Recipient currently has an on-going grant with other government agencies, Applicant/Recipient to prove that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s) (via a letter from grant awarding entity or equivalent).
*Limited to five (5) years records from the of approval of the respective grant.
The Applicant/Recipient must be a Malaysia Digital (MD) or MSC Malaysia status company.
The Applicant is required to meet the following specific conditions throughout the Project Period:
- The Grant Recipient shall create job opportunities in the development of the project as may be specified by MDEC. The said jobs must be filled by Malaysians; and
- The Grant Recipient shall ensure that at all times during the Project Duration and the Availability Period more than fifty percent (50%) of the team involved in the project are Malaysian; and
- The project must result in export commercial value.
Application Documents Required:
- 1. Project Proposal Pitch Deck using MDEC template.
- 2. Company’s financial statements (copies of one (1) year latest audited account - year 2021 onwards only). If the Applicant/Recipient has going concern issue (as reported in their latest audited account, the Applicant/Recipient is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) of the Applicant/Recipient’s company to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the company to enable the company to meet its obligations and/or liabilities under the terms and condition.Template of the Letter of Undertaking as per below tab
- 3. Board of Director Resolution to be signed by the majority of directors on the appointment of authorized signatory.
- 4. Copy of award(s) and/or recognition(s) received in the past 5 years (if any)
- 5. Company Profile.
- 6. Project Proposal.
- 7. Outsourcing if applicable (Company only)
- Agreement or quotation from the outsource party(ies);
- Declaration letter of outsourced portion of the project detailing out:
- a) The scope of work of the outsourced portion;
- b) The identity of the outsourcing party(ies);
- c) The amount of outsourcing cost (must be corroborated with quotations and/or agreement);
- d) Declaration if the outsourcing company is a related company, and
- e) The arrangement should at least benefit more to the Applicant/Recipient (including copyright, ownership of IP and a declaration of no relationship in terms of shareholders and assets).
*If outsourcing cost is involved:
- MDEC has the right to conduct background checks on the outsourced parties to ensure there is no conflict of interest.
- Outsourcing party(ies) (including the director(s) or shareholders) shall not be related to the applicant (not including venture capital investors and registered market operator e.g.: ECF platforms).
- Supporting documents evidencing outsourced/ collaboration portion of the project as per project costing. Declaration letter of outsourced portion of the project detailing out declaration of outsourcing which includes scope of work project duration amount, including copyright, ownership of IP and declaration of no relationship in terms of shareholders and assets. The arrangement should benefit the Applicant/Recipient.
- Outsourced work should not exceed 20% of requested grant amount.
- MDEC reserves the right to request additional information from the Applicant/Recipient at any time.
- 8. On-going and past Grants received
- 9. (a) If previously has received any grant from MDEC and/or any other ministries or agencies under the Government of Malaysia, to provide proof of project completion (i.e: closure letter from the ministries/agencies).
- *Limited to five (5) years records from the date of approval of the Grant; or.
- 9. (b) If applicant/recipient has on going grant from any other ministries or agencies under the Government of Malaysia, to provide a letter from grant awarding entity or equivalent as proof that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s).
- 10. MDEC reserves the right to request additional information from the eligible company at any time.
JOIN OUR BRIEFING SESSION
Session 2: 18 September 2024
Session 3: 2 October 2024
JOIN OUR BRIEFING SESSION
Session 2: 18 September 2024
Session 3: 2 October 2024
JOIN OUR BRIEFING SESSION
Session 2: 18 September 2024
Session 3: 2 October 2024
APPLICATION PROCESS
Step 2
Click “New Application“ and select “Grant“
Step 3
Select “Grant Type“ (you can only submit one application)
Step 4
Fill out the online application form and upload all the required supporting documents
Step 5
Submit application
Step 6
Application will be reviewed for completeness and compliance by MDEC
Step 7
Pitching session (by the company)
Step 8
Approval process
Step 9
Application result
MALAYSIA DIGITAL X-Port GRANT
Don't Miss This Opportunity and Expand Your Tech Business Globally
Frequently Asked Questions
- To scale up Malaysian technology companies within the Malaysia Digital promoted sectors and technology enablers into the global market.
- Development and commercialisation of disruptive and innovative sustainable technology products and services towards building Malaysia as a global icon.
- Export promotion activities to elevate the branding of Malaysian technology products/services.
- Creation of IP
- Number of high value jobs created related to the technology area
- Number of competitive and innovative technology product(s)/service(s) developed
- Number of competitive and innovative technology product(s)/service(s) with commercial value
- Commercial value and export revenue of competitive and innovative technology product(s)/service(s)
- The project must create job opportunities for Malaysians.
- At least 50% of the project team must be Malaysian.
- The project must generate export commercial value.
- Eligible Expenses:
- Salaries are limited to individuals directly contributing to the project, including, sales, and marketing personnel, with exclusions for the directors, shareholders, C-level executives, finance, human resources, admin and non-tech personnel (e.g. interns, dispatch, driver, clerk, etc.);
- The Chief Technology Officer (CTO) is eligible for claims. However, if the CTO concurrently holds the position of a director/shareholder within the company, the CTO’s salary as director/shareholder is not allowable for claims;
- Cost of IT hardware and/or equipment associated with the development of the project, particularly for core usage/functions of the proposed projects (e.g., components of a computer such as CPU and GPU). This includes eligibility for a maximum of two (2) laptops/desktops/tablets/phones for development purposes only (subject to approval);
- Cost of software associated with the development of the project;
- Outsourcing Cost which (i.e. cost incurred by the third party appointed/engaged by the Applicant/Recipient for the development of the project, including testing and certification costs) shall not exceed 20% for outsourcing from the Grant amount requested;
- Warehousing/factory/workspace expenses (i.e. rental, maintenance) associated with development of the project (outside Malaysia only) *excluding items stated in Non-eligible expenses (e)
- Cost associated to obtaining IP protection (e.g. patents, trademarks, copyright, other forms of IP protection, legal and professional services);
- Marketing cost must not exceed 20% of the grant amount, to be utilized specified for development of the project as outlined to items below:
- Exhibitions, conferences, virtual/ physical international trade fair, marketing/promotions, virtual/ physical business to business (B2B) meetings in Malaysia or overseas, etc.
- Business Intelligence Report.
- Business Licence Fee, e.g business registration outside 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 rightful Approval Authority.
- Salaries are limited to individuals directly contributing to the project, including, sales, and marketing personnel, with exclusions for the directors, shareholders, C-level executives, finance, human resources, admin and non-tech personnel (e.g. interns, dispatch, driver, clerk, etc.);
- Non-Eligible Expenses:
- Any form of taxes and duties.
- Expenses in obtaining certification and accreditation for professional development;
- Mobile phones, camera, tablets, personal computer and/or any electronic device (including additional accessories not part of hardware bundle i.e. additional mouse, cable, printer, and other peripherals) for general use;
- Furniture and Fittings.
- Applicant’s operating expenditures including but not limited to phone bills, electricity, utilities, internet, printing, insurance, stationaries, secretarial and audit fees;
- Travelling expenses which include rental, mileage, food and beverage and accommodation;
- Any insurance claims associated with the project or project personnel are not eligible for reimbursement;
- Incentives that support political campaigns and/or of political nature.
- Incentives for faith-based activities such as political, religious, etc;
- Depreciation costs;
- Debts and debt service charges;
- Fines, financial penalties and expenses of litigation;
- Bank charges, cost of guarantees and similar charges;
- Conversion costs, charges and exchange losses;
- Provision costs, charges and exchange losses;
- Credits to third parties;
- Applicants/Recipients are prohibited from seeking retrospective reimbursement for projects that have commenced prior to receiving approval;
- Any expenses or claims, including outsourcing costs incurred by Related Parties of the Applicant/Recipient for project development, testing, and certification; and/or
- Any other expenditures not related to the project.
- Any form of taxes and duties.
- Local owned company:
- Up to 50% of total project cost or up to RM1 Million whichever is lower.
- Up to 50% of total project cost or up to RM1 Million whichever is lower.
- Majority Foreign owned company:
- Up to 30% of total project cost or up to RM1 Million whichever is lower.
- Headquarters to be in Malaysia.
- 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.