10 Business Grants For SMEs in Malaysia That You Must Know

In Malaysia's vibrant business landscape, small and medium enterprises (SMEs) are pivotal economic growth and innovation drivers. Yet, SMEs often face hurdles such as limited access to funding and resources. To address these challenges and empower SMEs, government agencies and organisations have established various grant and financial assistance programmes. This article delves into the essential grants available for Malaysian SMEs, offering insights into how these initiatives support business expansion and innovation. You may also refer to this article, 8 Types of Business Insurance that Every Malaysian SME Must Know. 

Discover the Remarkable 10 Business Grants For SMEs in Malaysia that You Absolutely Must Know

These grants offer invaluable support to entrepreneurs and SMEs, facilitating growth, innovation, and international expansion in Malaysia's dynamic business landscape. 

1. CIP Sprint

The CIP Sprint is a conditional grant requiring repayment if terminated or as per the funding agreement terms. It aids entrepreneurs in financing technology-based ventures, covering expenses for product enhancement, market access, and expansion. Funds are disbursed via advance payment and reimbursement, with business networking opportunities and value-added services provided.

Application Deadline: Available throughout the year 2024

Funding Utilisation for the CIP Sprint:

• At least 60% of commercialisation expenses.
• Up to 40% for other expenses like product development and enhancements.
• Funding up to RM600,000 is available for up to 18 months, covering technology commercialisation and supporting SMEs.

To apply for this grant as an Sdn Bhd, the company must fulfil several criteria, as below: 

For more information, refer to the Cradle Fund website.

2. CIP Spark

CIP SPARK provides up to RM150,000 in funding for eighteen months to support the development and pre-commercialization of technology start-ups. This conditional grant aids early-stage entrepreneurs in developing and commercialising their products, with funds disbursed via advance payment and reimbursement. Recipients benefit from business networking and value-added services, with repayment required in case of termination or as specified in the funding agreement.

Application Deadline: Available throughout the year 2024

Funding Utilisation for CIP Spark:

• At least 60% allocated for developmental expenses
• Up to 40% for non-developmental expenses, including commercialisation costs
• Up to RM150,000 in funding is available for a maximum of 18 months. This opportunity is open to both companies and individuals.

To apply for this grant, the individual and company must fulfil several criteria, as below: 

 For more information, refer to the Cradle Fund website. 

3. eTRADE Programme 2.0

The eTRADE Programme 2.0 is an upgraded version of the previous eTRADE Programme, developed under the RMK-11. Its goal is to accelerate export activities by encouraging sustained participation in cross-border eCommerce platforms. The programme assists new and existing companies in joining these export platforms. 

The objectives of this programme include providing incentives for continuous engagement, supporting Malaysian SMEs to establish a sustainable presence, and helping companies maintain their online businesses through digital marketing, eCommerce training, and promotions. For more information, refer to the eTRADE 2.0 Guidelines and Application Procedure for eTRADE Programme 2.0. 

Application Deadline: The application will end in 2025. Applicants are encouraged to apply in 2024 to claim incentives in 2025.

Funding Utilisation for eTRADE Programme 2.0: 

a. Onboarding Scheme:
RM5,000* for onboarding any cross-border eCommerce platform or multiple platforms.

b. Digital Marketing & Training (DMT) Scheme:
RM20,000* for digital marketing activities and/or attending eCommerce training programmes.

This limit applies *per company for a one-year subscription or one-year activities.

To apply for this grant, the company must fulfil several criteria, as below: 

For more information, refer to the eTRADE Programme 2.0 website. 

4. Program Agropreneur Muda (PAM)

The Program Agropreneur Muda (PAM) is tailored for individuals aged 18 to 40, aiming to encourage their involvement in agricultural entrepreneurship. It provides two main types of assistance: the Geran Agropreneur Muda (GAM) offers a non-repayable aid of up to RM 20,000 per person and Technical Advisory Services and Training, which include personalised guidance and intensive training sessions. Second Chance Assistance is also available to help recipients resume projects affected by disasters, ensuring continuity and resilience in their agricultural ventures.

Application Deadline: Available throughout the year 2024

Funding Utilisation for Program Agropreneur Muda (PAM): 

• Offers merchandise assistance of up to RM20,000 per individual without repayment required.
• Individuals who have experienced property damage are eligible for a second chance to apply for this subsidy.
• Technical consulting and training services are available through scheduled slots in each state.

For more information, refer to the Kementerian Pertanian dan Keterjaminan Makanan website. 

5. MSME Digital Grant

The MSME Digital Grant supports small and medium enterprises (MSMEs) aiming to upgrade their digital capabilities. It provides a matching grant of 50%, or up to RM5,000, for eligible businesses. 

MSMEs can choose from seven digitalisation areas, including digital marketing/sales, digital payment systems, HR payroll management, customer relationship management (CRM), enterprise resource planning (ERP), digital signature implementation, cybersecurity measures, and Internet of Things (IoT) integration. Each area targets specific aspects of daily business operations, facilitating efficiency and competitiveness in the digital age.

Application Deadline: Available throughout the year 2024. 

*Funding allocation is currently fully claimed. (Please stay tuned for the next round.)

Funding Utilisation for MSME Digital Grant: 

• Eligible businesses can receive a matching grant of 50% or up to RM5,000.

To apply for this grant, the company must fulfil several criteria, as below: 

 For more information, refer to the Funding Societies website. 

6. Market Development Grant (MDG)

The Market Development Grant (MDG) provides reimbursable grants to assist Malaysian SMEs, professional service providers, trade associations, chambers of commerce, professional bodies, and cooperatives in promoting Malaysian products and services globally. Eligible activities include participation in physical and virtual events such as international trade fairs, trade missions, and B2B meetings. 

Application Deadline: Available throughout the year 2024

Funding Utilisation for Market Development Grant (MDG): 

• Grant reimbursement is available up to a lifetime limit of RM300,000.

Interested entities can refer to the MDG guidelines 2024 for eligibility and claiming procedures.

For more information, refer to the MATRADE website. 

7. Program Geran Padanan High Impact Product (HIP)

The Program Geran Padanan High Impact Product (HIP) helps SME entrepreneurs enhance production and marketability through matching grants. Specifically, the Program Geran Padanan High Impact Product (HIP) targets entrepreneurs in the food and agriculture industry with annual gross sales between RM300,000 and RM5 million. The programme offers financial assistance for product development, packaging design, capacity enhancement, and premises improvement, with the government covering 50% of project costs up to RM200,000. For more application eligibility information, refer to Guidelines for Geran Padanan High Impact Product (HIP) - 2021.

Application Deadline: Available throughout the year 2024

Funding Utilisation for Program Geran Padanan High Impact Product (HIP): 

• The matching grant provides a 50% ratio for the entrepreneur, with the maximum government assistance capped at RM200,000.

For more information, refer to the Jabatan Pertanian website. 

8. Program Geran Padanan Change Upgrade Product (CUP)

The Geran Padanan Change Upgrade Product (CUP) program helps SME entrepreneurs enhance production, employability, and product sales. Specifically, the Program targets small-scale entrepreneurs in the food industry and basic agriculture sectors with annual gross sales below RM300,000. 

It offers support in various areas, such as product quality studies, packaging design, production capacity enhancement, premises improvement, and business signage acquisition. The government subsidises project costs, covering 100% up to a maximum of RM1,000 for product quality studies and 70% up to RM60,000 for other eligible scopes. For more application eligibility information, refer to Guidelines for Program Geran Pemadanan Change Upgrade Product Bagi Usahawan Industri Makanan Dan Asas Tani.

Application Deadline: Available throughout the year 2024

Funding Utilisation for Program Geran Padanan Change Upgrade Product (CUP):

• The matching grant provides a 30% ratio for the entrepreneur, with the maximum government assistance capped at RM60,000.

For more information, refer to the Jabatan Pertanian website. 

9. National Technology & Innovation Sandbox (NTIS)

The National Technology & Innovation Sandbox (NTIS) was initiated under the PENJANA plan in June 2020 and officially launched in August 2020 by the Prime Minister. It provides researchers, innovators, and entrepreneurs a platform to test their products and qualify for grants to bring them to market, relaxing regulatory requirements to accelerate innovation. With a budget of RM100 million, overseen by MOSTI and led by MaGIC, NTIS aims to boost job creation, GDP, GNI, and private sector research investment and collaboration while fostering an innovation-driven economy. 

Companies eligible for government funding under the National Technology and Innovation Sandbox (NTIS) must be Malaysian-owned entities with at least 51% Malaysian equity and have been successfully accepted into the NTIS programme. Additionally, foreign companies can apply for the Sandbox programme but are not entitled to government funding. However, they can access other support provided by NTIS. Foreign technology is allowed, but preference is given to local technology, and there's an option for joint ventures or incorporation of Malaysian-owned entities upon approval. 

Application Deadline: Available throughout the year 2024

Funding Utilisation for National Technology & Innovation Sandbox (NTIS):

• Sandbox Fund 1 (Single Site Sandbox): Grants 100% coverage for all eligible costs*.
• Sandbox Fund 2 (Multiple Site Sandbox): Offers a 70% grant for all eligible costs* up to a predetermined maximum.
• Sandbox Fund 3 (Commercialisation Sandbox): Provides 70% funding, including grants and Convertible Promissory Notes, for all eligible costs* up to a predetermined maximum.
• Sandbox Fund 4 (Corporate Sandbox): The funding mechanism will be determined collaboratively between MTDC and the corporate investor/entity.
• Funding amounts range from RM250,000 to RM5 million depending on the funding scheme.

There are 4 Sandbox stages for this National Technology and Innovation Sandbox (NTIS). 

For more information, refer to the Sandbox website.

10. Service Export Fund (SEF)

The Service Export Fund (SEF) supports Malaysian Service Providers (MSPs) seeking to expand into global markets, providing a reimbursable grant for various activities from 2021 to 2025. The objectives include enhancing MSPs' competitiveness abroad, broadening market access, promoting exports, and elevating Malaysia's reputation internationally as a leading service provider. For more information on the application process and eligibility, refer to the SEF Guidelines.

Application Deadline: Available from 2021 to 2025

Funding Utilisation for Service Export Fund (SEF):

• Reimbursable grants are available, with a maximum allocation of RM 4.3 million per business entity.

To access the SEF grant, companies must become MATRADE members and enrol in the MyExport service. 

You can visit this link to register with MATRADE according to your business-based type.  

Once logged into MyExport, applicants can proceed to the SEF tab, where they can submit their grant application by clicking the "Apply" button. 

For more information, refer to the SEF website. 

Conclusion

In conclusion, Malaysia's diverse array of grants and financial assistance programmes underscores the government's commitment to fostering SME growth and innovation. These grants are crucial in enhancing competitiveness and driving economic progress, from initiatives like the CIP Sprint facilitating technology commercialisation to programmes such as the Service Export Fund (SEF) supporting Malaysian service providers in global markets. By leveraging these resources, Malaysian SMEs can unlock new growth opportunities, expand their reach globally, and contribute significantly to the nation's economic prosperity.