SME Government Grants in Malaysia

Malaysia offers 5 types of Government Grants to help small businesses to innovate. If you’re running a business and you have great ideas on how to innovate or bring in technology to your business, you can always apply for these 5 types of grants.

Pre-Seed

Cradle Investment Program (CIP)

  • To fund innovate people with technology oriented ideas
  • Up to RM150k per idea
  • Application: 3-6 months

Multimedia Development Corporation (MDeC)

  • Implementing agency of Ministry of Science, Technology and Innovation (MOSTI)
  • Up to RM150k
  • To fund for MSC status applicants on IT oriented project

Seed

Cradle Investment Program (CIP)

  • A follow-up programme from Pre-Seed status
  • To fund the start-up project / grow the business

Enterprise Innovation Fund (EIF)

  • Run by MOSTI
  • To promote development and innovation for commercialisation
  • Funding between RM20k – RM250k
  • Maximum 18 months tenure

Commercialisation Grants-Seed Fund

  • Run by Malaysian Biotechnology Corporation
  • Exclusively for Biotechnology Related Business
  • Up to RM2.5 million to be disbursed within 2 years

Each grant has its own criteria. They are not hard to apply for when all the criteria are fulfilled. With these additional fundings, your small business will surely get a boost when the fund is being injected.
Below is a story of start-up business from Prathi. She owns an apparel business, recently she wants to invest in technology to expand her business. Smartphone industry and e-commerce industry has long been in Malaysia. However, not many start-ups and business owners have fully utilised the technological gap. Prathi saw this opportunity and wanted to take it.
The first step she got it right, laying out her ideas in detailed plans and presented to the banks. However, bankers didn’t buy it. She then moved on to family members and friends, but they only managed to give her emotional support but not financial support. heavy hearted, she knew that her savings will not allow her to really fund the project, she got slightly depressed.
One day, she learnt about the government grants opened for Malaysians to apply. Excited, she made her move immediately. It was easy to fulfil all criteria but she managed to pull it through. 6 months later, the fund was disbursed and now Prathi and her team can develop the technology at full speed, while she continues to run the conventional brick-and-mortar retail.