MDEC provides $6.84 M in strategic grants to promote industrial digitalization, AI
Two new grants totalling MYR 2.9 million ($6.84 million) are being introduced by the Malaysia Digital Economy Corporation (MDEC) on Tuesday with the goal of accelerating digital transformation in manufacturing and artificial intelligence (AI), two of Malaysia’s most strategic industries.
According to a statement from the state-owned organization, the two new grants, the SmartMFG+ Incentive Program and the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI), are intended to help high-potential local businesses by encouraging innovation, producing digital solutions that are ready for export, and generating high-skilled job opportunities.
Companies with Malaysia Digital (MD) or MSC Malaysia status, or those with an MD status application pending at the time of grant application, are the only ones eligible for these grants.
The grants, according to MDEC Chief Executive Officer Anuar Fariz Fadzil, are strategic and timely, significantly advancing 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,” he noted.
The MDAG-AI grant was created especially to help Malaysian digital businesses commercialize AI solutions.
It focuses on businesses with capabilities across the foundational, enabling, and application layers of AI and targets high-impact projects that align with the national AI investment strategy.
By focusing on AI product commercialization, cross-sector AI application, talent development, and knowledge transfer, this initiative builds on the momentum created by previous programs.
It supports Malaysia’s aspirations to become a regional AI powerhouse and is strategically aligned with the National AI Roadmap.
For projects lasting up to a year, qualified businesses may apply for funding up to 70% of the total project costs, with a maximum of MYR 2 million ($470,000).
The deadline for applications is July 18, 2025, and the winners will be revealed at the Malaysia Digital Expo (MDX) in September of the same year.
A key project in the New Industrial Master Plan 2030 (NIMP2030), the SmartMFG+ Incentive Program is overseen by the Ministry of Investment, Trade, and Industry (MITI).
By helping regional technology solution providers scale digital solutions across a range of domains, including supply chain analytics, operational efficiency, predictive maintenance, real-time production intelligence, and quality assurance, it seeks to accelerate the adoption of digital technology in the manufacturing sector.
