Introduction
In today’s competitive business landscape, securing funding remains a pivotal challenge for many startups. Interestingly, while venture capital and angel investments are often highlighted, grants present a unique and often underutilized avenue for obtaining financial support. Therefore, this comprehensive guide aims to shed light on various grant opportunities available for startups, offering insights on how to navigate the application process, maximize eligibility, and leverage these funds to propel your business to new heights. So, dive in to discover how your startup can tap into this invaluable resource and set the foundation for sustained growth.
MDEC
-Updated by 15 September 2023, this grant no longer accepts applications-
MDEC (Malaysia Digital Economy Corporation) is dedicated to fostering the expansion of Malaysia’s digital economy. Their ambition is for Malaysia to emerge as a global epicenter for top-tier digital enterprises and professionals.
Global Tech Fund
The Global Tech Fund (GTF) aim is to support the following three focus pillars which are Nurturing Global Champions, Driving Investments, and Catalysing Digital Innovation Ecosystem. This grant focused on tech-based technologies such as Big Data Analytics, the Internet of Things(IoT), Artificial Intelligence/Deep Learning, Blockchain, Cybersecurity, Robotics, Drone Technology, and Virtual Reality/ Augmented Reality.
Nurturing Global Champions
GTF aims to support Malaysian tech companies scaling up and venturing into their initial or expanding global markets through innovative, market-driven products/services. We aspire to foster potential Malaysian unicorns and encourage local tech firms to establish Centers of Excellence to enrich the ecosystem.
Amount
Up to 50% of total project cost, undisclosed ceiling limit
Duration
2 years
Eligibility
- Local Tech Company
- 51% Malaysian equity
- Paid-up capital of at least RM 20,000
Driving Investment
GTF encourages international tech firms to establish Centers of Excellence, focusing on high-value innovation and R&D The aim is to foster the creation and commercialization of globally appealing products or services while also enhancing the overall ecosystem.
Amount
Up to 30% of total project cost, undisclosed ceiling limit
Duration
2 years
Eligibility
- Foreign Tech Company incorporated in Malaysia
- Paid-up capital of at least RM 50,000
Catalyzing Digital Innovation Ecosystem
To improve the prospects of innovative, high-growth Malaysian technology startups achieving commercial success in international markets as well as scaling up the start-ups
Amount
Up to 30% of total project cost, undisclosed ceiling limit
Duration
2 years
Eligibility
- Tech accelerator incorporated in Malaysia
- Paid-up capital of at least RM 50,000
For all 3 Pillars, the application criteria (KPIs) include:
- Investment value (RM) – your portion of investment for the project.
- Export value (RM).
- Number of new Job Creation in identified technology areas with an average pay of RM6,000/month.
- Number of talent developed in identified technology areas.
- Number of Centre of Excellence (COE) (mandatory for foreign technology companies).
- Number of innovative, commercial products.
- Number of Intellectual Property filed (at least one IP filed during project duration).
- Propose at most two Ecosystem KPIs that measure the outcomes of ecosystem development strategies.
- Maintain a project team composition of at least 50% Malaysians throughout the proposed project funding duration
Check Eligibility For Global Tech Fund
Cradle Fund
Established with a vision to be the go-to partner for budding entrepreneurs, Cradle Fund has been at the forefront of driving the growth of innovative startups through its robust grant programs. In contrast to traditional investors, Cradle Fund’s approach is holistic. They don’t just provide financial assistance; they offer a cradle-to-grave support system, ensuring that startups are equipped with the right tools, mentorship, and resources to navigate the challenging early stages of business. Currently, they are offering CIP SPARK and CIP SPRINT.
CIP SPARK
CIP SPARK covers the development and pre-commercialization of Technology Startups. Once onboarded, CIP SPARK beneficiaries not just gain access to capital but also a wealth of business networking events and additional services. These perks are designed to guide them in refining their business strategies, validating their market presence, and expanding their reach. These perks include:
- Networking Opportunities
- Assistance with Business Model Development
- Market Validation Skills training
- Market Access
Grant Type
Conditional Development / Pre-Seed Grant
Amount
RM 150,000
Duration
18 months
Check Eligibility For CIP SPARK
CIP SPRINT
Furthermore, the difference between CIP SPARK and CIP SPRINT is that the former provides grants for pre-seed or early-stage startups, while the latter provides for SMEs or later-stage startups. Upon receiving the fund, CIP SPRINT recipients are supported with value-added services that can help nurture, develop, and prepare them with Business Model development, market validation, and market access.
Grant Type
Conditional Convertible Commercialization Grant
Amount
RM 600,000
Duration
18 months
Check Eligibility For CIP SPRINT
MOSTI
APPLIED INNOVATION FUND (AIF)
AIF aims to increase the participation of innovators in innovation activities and encourage technological innovation of new products, processes, systems, or services that have the potential to be commercialized.
Grant Type
Research and development
Amount
RM 500,000
Sector
- Energy
- Education
- Water and Food
- Agriculture and Forestry
- Environment and Biodiversity
- Smart Cities and Transportation
- Medical and Healthcare
- Culture, Arts and Tourism
- Business and Financial Services
- Smart Technology and Systems (Next-Generation Engineering and Manufacturing)
Application Method
Applicants must complete the application form along with the supporting documents via https://sdb.mosti.gov.my/sdbcms/en/ within the stipulated period. The applicant must declare that the project application submitted was never funded by any party financiers. Applications submitted will be reviewed by MOSTI to ensure the application and documents submitted are complete and meet the basic qualifications of the AIF application. Incomplete applications will be returned to the applicant.
Strategic Research Fund (SRF)
The SRF-APP financing is designed to bolster the growth of Science, Technology, Innovation, and Economy (STIE), emphasizing impactful research and innovations that resonate with societal, economic, and national priorities as defined in the DSTIN. Additionally, this scheme targets addressing pressing issues highlighted in the Malaysian Grand Challenges (MGC) and the nation’s strategic concerns.
Grant Type
Research and development
Amount
SRF-APP(Applied Research Grant): Up to RM 500,000
SRF-FRGS(Fundamental Research Grant Scheme): Up to RM 200,000
Duration
Maximum of 24 months
Application Method
Applicants must apply for the appointed Agensi Pelaksana dan Pemantau (APP). A list of APP can be referred to https://sdb.mosti.gov.my/sdbcms/en/garispanduan/
Technology Development Fund 1 (TeD 1)
The Technology Development Fund 1 (TeD 1)aims to refine technology-related concepts with commercialization potential and foster research and technological advancement across Government Research Institutes, STI Agencies, Higher Education Institutions, Polytechnics, Community Colleges, and industries.
Grant Type
Research and Development
Amount
RM 1,000,000
Sector
Technology & Innovation, with a Technology Readiness level of 2 to 4
Application Method
- Applicants must complete the application form along with supporting documents such as Appendix 3 via https://sdb.mosti.gov.my/sdbcms/en/ within the stipulated time.
- All applications must be reviewed and verified by an authority in the applicant’s organization such as the Head of Department or the Research Management Center. The applicant must declare that the project application submitted has never been funded by any financier.
- Applicants must enclose the project Business Model as in Appendix 4.
- The submitted application will be reviewed by MOSTI to ensure that the application and documents submitted are complete and meet the basic qualifications of the TeD 1 Fund application. Incomplete applications will be returned to the applicant.
Check Eligibility For TED1
Technology Development Fund 2 (TeD 2)
The Technology Development Fund 2 (TeD 2) aims to advance existing technological concepts towards commercialization, bridging the prevalent “Valley of Death” failure gap. Additionally, it seeks to boost research and technological growth by fostering collaboration among Government Research Institutes, STI Agencies, Higher Education Institutions, and the industry.
Grant Type
Research and development
Amount
Companies: RM 4,000,000
Start-ups: RM 2,000,000
STI Agencies: RM 500,000
Sector
Technology & Innovation, with a Technology Readiness level of 4 to 7
Application Method
- Must have proof of concept or working prototype
- Must accompany the project Business Model
- Applications through the fast-track method are considered under certain conditions
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Bridging Fund
The Bridging Fund aims to minimize the “valley of death” gap between pre-commercialization and actual commercialization phases, while also enhancing the market readiness of R&D products.
Grant Type
Research and development
Amount
RM 500,000
Duration
18 months
Check Eligibility For Bridging Fund
MATRADE
Dedicated to assisting Malaysian businesses highlight their strengths and establish a name for quality, dependability, and credibility, MATRADE’s mission is to bolster and champion Malaysia’s exports, ensuring their triumph in the international arena.
SERVICE EXPORT FUND
SEF provides assistance to Malaysian Service Providers (MSPs) to undertake activities to expand and venture into the international market. The assistance is extended in the form of a reimbursable grant. The grant disbursed is according to the maximum amount of each activity for the duration of the period 2021-2025.
| Type of Activity | Criteria / Requirements | Amount |
| Activity 1 | Promoting Malaysian expertise as a provider of services at international events held overseas, such as a speaker/panelist/moderator at conferences/forums/workshops/seminars; or as a participant at an international competition for the services industry held abroad. | RM 50,000 |
| Activity 2 | Travelling expenses to international destinations for tender bidding; or purchasing tender documents for projects overseas. | RM 50,000 |
| Activity 3 | Conducting presentations to potential clients for assessing business and projects overseas | M 100,000 |
| Activity 5 | Rendering services for projects undertaken overseas | M 100,000 |
| Activity 6 | Conducting a feasibility study for a specific international project overseas. (Note: The application for Activity 5 Services Export Fund (SEF) is temporarily suspended until further notice | M 3,000,000 |
| Activity 7 | Procuring commercial intelligence/market reports for assessing business opportunities or projects in international markets. | RM 50,000 |
| Activity 8 | Preparation of prototype, system customization/localization to meet project requirements overseas. | RM 50,000 |
| Activity 9 | Participation fees in training programs held overseas by certified bodies/institutions for exporting services | M 50,000 |
| Activity 10 | Registration fees for overseas industry certification including compliance to sustainability for exporting services | RM 100,000 |
| Activity 11 | Purchasing/hire purchase/renting of software, machinery, and equipment for exporting services overseas | M 200,000 |
| Activity 12 | Logistic costs involved in sending Malaysian products and/or equipment abroad (port to port), for overseas projects awarded to and implemented by Malaysian service companies | RM 350,000 |
MTDC
The Malaysian Technology Development Corporation (MTDC) is a central force in advancing Malaysia’s tech sector. Established to support tech enterprises, MTDC offers funding and advisory services to startups and SMEs. With a commitment to innovation and technology commercialization, it aims to position Malaysia as a leading high-tech industrialized nation.
Business Startup Fund
BSF aims to provide funding to scalable and viable tech-based early-stage companies to remove the financial blockage in achieving the business goals and matching the business standard and high level of competition.
Grant Type
Funding for early-stage business
Amount
Maximum of RM 5,000,000 or 90% of total project cost, whichever is lower
Duration
18 months
SME Corporation Malaysia
SME Corporation Malaysia, under the Ministry of Entrepreneur Development and Cooperatives (MEDAC), serves as the primary coordinating body for small and medium enterprises (SMEs) development programs across various ministries and agencies. It functions as a hub for SME research, and data sharing, and offers essential business advisory services.
Bumiputera Enterprise Enhancement Programme (BEEP)
BEEP aims to create and develop competitive, resilient, and dynamic Bumiputera SMEs through integrated assistance to strengthen SMEs’ core business, build capacity and capability, increase productivity, and facilitate their access to financing.
Amount
50% of the total project cost up to RM 200,000
Categories
- Productivity and Automation;
- Online Applications, e-Commerce, e-Payment and ICT Applications; and
- Enhancing Packaging;
- Branding Development and Promotion;
- Certification and Quality Management System (QMS);
- Product Development and Innovation; and
- Listing on the LEAP market.
Conclusion
In conclusion, you now know what grant is suitable for your startup but do you want to find out more on how to get funding and how to apply? If so, click here to learn more or join our events at our event page to network with potential venture capitalists for funding.
