- Introduces MDAG-AI & SmartMFG+ Incentive Programme
- Applications open to companies with Malaysia Digital or MSC Malaysia status
The Malaysia Digital Economy Corporation (MDEC) has introduced two new grants totalling US$637,000 (RM2.9 million), aimed at accelerating digital transformation in two of Malaysia’s most strategic sectors — artificial intelligence (AI) and manufacturing.
In a statement, the agency said that 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.
The two new grants, namely the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI) and the SmartMFG+ Incentive Programme are designed to support high-potential local companies by promoting innovation, developing export-ready digital solutions, and creating high-skilled employment opportunities.
MDEC CEO Anuar Fariz Fadzil (pic) described the grants as both timely and strategic, providing 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,” Anuar said.
The MDAG-AI grant is designed to support Malaysian digital companies in the commercialisation of AI solutions. It targets high-impact projects aligned with the national AI investment strategy, focusing on capabilities across the foundational, enabling, and application layers of AI.
According to MDEC, the initiative builds upon the momentum generated by previous 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 US$440,000 (RM2 million), for projects of up to one year. Applications are open until 18 July 2025, with successful applicants to be announced at the Malaysia Digital Expo (MDX) in September 2025.
[RM1 = US$0.22]
For more information on eligibility criteria, application procedures and submission guidelines, visit: http://mdec.my/grants/mdag-ai
Tasked by the Ministry of Investment, Trade and Industry, the SmartMFG+ Incentive Programme is a key initiative under the New Industrial Master Plan 2030 (NIMP2030). It aims to accelerate digital adoption in the manufacturing sector by supporting local technology solution providers in scaling digital solutions across 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 solution development costs, capped at RM75,000 per company.
In addition to funding, recipients will be able to test their solutions in simulated manufacturing environments, participate in technical and commercial training, and showcase their innovations.
Applications are open until 13 July 2025, and the programme will run from August to December 2025. 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, visit: https://mdec.my/smartmfg
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