MDEC Launches RM2.9 Million in Grants to Accelerate AI and Industrial Digitalization in Malaysia. The Malaysia Digital Economy Corporation (MDEC) has announced two new strategic grant initiatives worth a combined RM2.9 million, aimed at fast-tracking digital transformation in Malaysia’s artificial intelligence (AI) and manufacturing sectors. These grants are part of the nation’s ongoing push to solidify its position as a digital leader in the region.
The two programmes — the Malaysia Digital Acceleration Grant – Artificial Intelligence (MDAG-AI) and the SmartMFG+ Incentive Programme — are open exclusively to companies with Malaysia Digital (MD) or MSC Malaysia status, as well as those with pending MD status applications. Both initiatives are designed to support local tech players by promoting innovation, fostering high-skilled employment, and preparing digital solutions for export.
According to MDEC Chief Executive Officer Anuar Fariz Fadzil, the grants are strategically timed to reinforce Malaysia’s digital agenda. “MDAG-AI sets a strong foundation for Malaysia to become a leading hub for AI innovation, while SmartMFG+ supports large-scale digitalisation within the manufacturing sector,” he said. “Together, they serve as a dual catalyst to accelerate our digital economy ambitions.”
The MDAG-AI grant specifically targets high-impact AI projects aligned with Malaysia’s National AI Roadmap. It aims to support local companies involved in foundational, enabling, and application layers of AI by funding up to 70% of project costs, capped at RM2 million. The focus includes commercialisation of AI products, cross-sector application, talent development, and knowledge transfer. Applications are open until 18 July 2025, with successful applicants to be announced during the Malaysia Digital Expo (MDX) in September 2025.
On the other hand, the SmartMFG+ Incentive Programme, under the New Industrial Master Plan 2030 (NIMP2030) and mandated by the Ministry of Investment, Trade and Industry (MITI), seeks to boost digital adoption within the manufacturing sector. It supports MD-status local solution providers with funding of up to 70% of their solution development costs, capped at RM75,000 per company. The programme also includes technical training, solution validation in simulated environments, and commercialisation support. Applications are open until 13 July 2025, and the programme will run from August to December 2025, culminating in the announcement of successful applicants at MDX in September.
For eligibility and application details, visit:
🔹 MDAG-AI Grant
🔹 SmartMFG+ Incentive Programme
These grants represent a bold move by MDEC to empower local companies, stimulate innovation, and prepare Malaysia’s digital economy for future challenges.