KUALA LUMPUR, 8 July 2025 — The Malaysia Digital Economy Corporation (MDEC) is introducing two new grants totalling RM2.9 million, aimed at accelerating digital transformation in two of Malaysia’s most strategic sectors — artificial intelligence (AI) and manufacturing.

Eligibility for these grants is exclusively extended to companies possessing Malaysia Digital (MD) or MSC Malaysia status, or to those with a pending MD status application at the time of applying for the grant. The two new grants — the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI) and SmartMFG+ Incentive Programme – have been designed to support high-potential local companies by promoting innovation, developing export-ready digital solutions and creating high-skilled employment opportunities.

MDEC Chief Executive Officer Anuar Fariz Fadzil described the grants as both timely and strategic, giving a significant boost to 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 designed to support Malaysian digital companies in the commercialisation of AI solutions. It targets high-impact projects that correspond with the national AI investment strategy, focusing on companies with capabilities across the foundational, enabling, and application layers of AI.

This initiative builds upon the momentum generated by prior programmes, concentrating on AI product commercialisation, cross-sector AI application, talent development and knowledge transfer. It is strategically aligned with the National AI Roadmap, reinforcing Malaysia’s ambitions to become a regional AI powerhouse.

Eligible companies may apply for funding of up to 70% of total project costs, capped at RM2 million, for projects spanning a duration of up to one year.

Application is now open till 18 July 2025, and successful applicants will be announced at the Malaysia Digital Expo (MDX) in September 2025.

For more information on eligibility criteria, application procedures and submission guidelines, please visit http://mdec.my/grants/mdag-ai

SmartMFG+ Incentive Programme

Tasked by the Ministry of Investment, Trade and Industry (MITI), the SmartMFG+ Incentive Programme is a vital initiative within the New Industrial Master Plan 2030 (NIMP2030). Its objective is to expedite digital adoption within the manufacturing sector by providing support to local technology solution providers in scaling digital solutions across various domains such as operational efficiency, predictive maintenance, real-time production intelligence, supply chain analytics, and quality assurance.

Selected MD-status companies will receive funding of up to 70% of their solution development costs, with the maximum amount capped at RM75,000 per company. In addition to funding, selected recipients can validate and test their solutions in simulated manufacturing settings, engage in technical and commercial training, and showcase their innovations.

Application is now open till 13^th July 2025, and the programme will operate from August to December 2025. Successful applicants will be announced at the Malaysia Digital Expo (MDX) in September 2025.

For further information regarding eligibility criteria, application procedures and submission guidelines, please visit https://mdec.my/smartmfg.

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Issued by:

Corporate Communications Division

Malaysia Digital Economy Corporation (MDEC)