Malaysia digital grants for SMEs
As of 4 November 2026, no government programme we checked pays a Malaysian SME cash to buy general business software. Geran Digital PMKS MADANI closed on 6 September 2025. Budget 2027 sets aside RM100 million for a new round and RM30 million for an MDEC AI programme, but neither has terms or an opening date yet.
What you can use today is a tax allowance on software, including some fees for custom software, until 31 December 2026, and bank financing for digital and automation projects. Every row below links to its official source.
Grant size chart
Up to RM5,000
Up to RM1 million
Up to RM10 million
No per-business amount published
Amounts are the per-business caps each official source states. Loans and financing must be paid back.
Quick picks: what are you?
Under 6 months old and need ready-made software
Sdn Bhd, 51% to 59% Malaysian-owned, over 3 years, buying ESG software
SME over 3 years old with a custom system to build
Business that wants to adopt AI
Manufacturer automating a line
Which programmes fit your business?
Answer the three questions to see which programmes can fit.
Every programme, with its status
MADANI MSME & Hawker Digital Grant (2027)
Geran Digital PMKS & Penjaja Madani
BSN
Budget 2027 (9 October 2026) sets aside RM100 million. No terms, amounts or opening date are published yet.
Best for
- Ready-made software
- AI for your business
What it covers. Digital services for small businesses, cooperatives, professional service providers and hawkers. The 2025 round paid for subscriptions such as e-POS, payroll, accounting, e-invoice and AI, but the 2027 rules are not out.
Amount. RM100 million in total. Per-business amount not published.
Who can apply
- Not published for 2027. Do not assume the 2025 rules carry over.
In 2025 the grant was paid only to approved providers. The 2027 vendor rules are not published.
Source: Budget 2027 speech and annex (MOF), Budget 2027 speech, BM (MOF)
AI Enablement Programme
Program Pendayaan AI
MDEC
Budget 2027 (9 October 2026) gives MDEC RM30 million to help 4,000 MSMEs adopt AI and automation. No programme page, terms or launch date yet.
Best for
- AI for your business
- A custom system or app
What it covers. Helping micro, small and medium businesses adopt AI and automate their work. The same fund also trains and certifies 5,000 AI professionals.
Amount. RM30 million in total, for 4,000 MSMEs. Per-business amount not published.
Who can apply
- Not published.
Source: Budget 2027 speech and annex (MOF), MDEC initiatives and grants
Accelerated Capital Allowance on ICT and software
Elaun Modal Dipercepatkan (ACA)
MOF and LHDN
Applies to qualifying spend from 11 October 2025 to 31 December 2026. Budget 2027 proposes to extend it to 2030, which is not law yet.
Best for
- Ready-made software
- A custom system or app
- AI for your business
What it covers. A tax allowance, not cash: ICT equipment, software packages, and the consultation, licensing and incidental fees for custom software development.
Amount. Initial allowance 20% plus annual allowance 40%, so the qualifying cost is claimed within 2 years.
Who can apply
- Companies with qualifying capital expenditure.
- Claimed in the company tax return. There is no application.
- Limits and conditions sit in the gazetted rules. Ask your tax agent.
Domestic Investment Accelerator Fund, ESG Adoption (DIAF-ESG)
MIDA
MIDA considers applications received until 30 November 2026, subject to funds.
Best for
- ESG and emissions-tracking software only, for manufacturing and listed service sectors.
- Ready-made software
What it covers. ESG adoption, including the first-year subscription of software that collects and tracks ESG and emissions data. Not general business software, automation machines or computers.
Amount. 50:50 matching, up to RM500,000 per company, paid back after approval.
Who can apply
- A company incorporated under the Companies Act 2016 and registered with SSM.
- At least 51% effective Malaysian equity.
- At least 3 years in operation, with a valid local authority licence.
- Manufacturing, or a listed service sector such as hotels, private healthcare, private education or logistics.
- An ESG self-assessment on sustainability.mida.gov.my before applying.
Source: MIDA grants, DIAF-ESG guidelines, 19 October 2026 (MIDA) · Where to apply
BNM-CGC Guarantee Scheme
Bank Negara Malaysia and CGC
Open through participating banks. Budget 2027 names businesses doing automation and digitalisation as a target group.
Best for
- Ready-made software
- A custom system or app
- AI for your business
What it covers. A guarantee on bank financing, not a grant. It makes a loan for a system or automation project easier to get.
Amount. Up to RM10 billion in total. Financing from RM100,000 to RM10 million per business, with 60% to 85% guarantee cover.
Who can apply
- Small and medium businesses, including micro businesses.
- Apply through a participating bank, which does the credit check.
Source: BNM SME financing, Budget 2027 speech and annex (MOF) · Where to apply
Business Digitalisation Initiative
MDEC
Open. MDEC says the fund is partner financing on commercial terms, not a government grant.
Best for
- Ready-made software
- A custom system or app
- AI for your business
What it covers. A digital readiness check, guidance, and referrals to partner financing for digitalisation.
Amount. Set by each financing partner, on commercial terms.
Who can apply
- Set by each financing partner (for example SSM registration, months in operation and yearly revenue).
Source: MDEC Business Digitalisation Initiative, MDEC clarification on the RM1.5 billion fund · Where to apply
Technology Adoption Fund (TECHAD)
SME Bank (BPMB Group)
Budget 2027 lists RM500 million for it. We could not open the SME Bank product page to confirm current terms.
Best for
- A custom system or app
- AI for your business
- Machines or factory automation
What it covers. Financing for companies adopting technology, digitalisation and automation.
Amount. Up to RM10 million per company, up to 15 years, with a 1% rate subsidy for the first 3 years (Budget 2027 annex).
Who can apply
- Check with SME Bank.
Smart Automation Financing Programme (SAFP)
MIDF
Budget 2027 lists RM10 million for it. We could not confirm current terms on MIDF.
Best for
- Manufacturing only.
- Machines or factory automation
What it covers. Financing for automation in manufacturing.
Amount. Up to RM5 million per company, at a financing rate up to 3%, subsidised for 5 years.
Who can apply
- Manufacturing and manufacturing-related services companies.
Geran Digital PMKS MADANI (2025 round)
Geran Digital PMKS MADANI
BSN, MOF and MDEC
Applications closed on 6 September 2025.
Best for
- Ready-made software
- AI for your business
What it covers. Subscriptions from appointed providers in 9 categories: e-POS, payroll and CRM, digital marketing, cybersecurity, ERP and accounting, digital signature, IoT, AI and e-invoice.
Amount. 50% of the invoice, up to RM5,000 per business, paid by BSN to the provider.
Who can apply
- Registered with SSM, a local authority licence, SKM (cooperatives) or a professional body.
- At least 60% owned by Malaysian citizens.
- At least 6 months in operation, with average yearly sales of RM50,000 or more.
Paid only to approved providers.
MADANI Smart Automation Grant (SAG)
MIDA
Registration closed on 15 December 2023 when the fund was used up.
Best for
- Machines or factory automation
What it covers. Automation projects in manufacturing and services.
Amount. 70:30 matching, up to RM1 million per company.
Who can apply
- See the 2023 MIDA guidelines.
Source: MIDA Smart Automation Grant
We are a software studio, not a grant agent or a tax adviser. This page lists what official sources say on the date above, and we update it when they change. Confirm on the official page before you apply.
Planning a system before the 2027 rounds open?
Most of the work in a funded project is knowing what you want built and what it costs. We can scope it with you now, so the quote and the plan are ready when the terms come out. For a first idea of the budget, see what apps and systems cost in Malaysia. See how we build AI systems and booking systems.
Questions
- Is Geran Digital PMKS MADANI open in 2026?
- No. The 2025 round closed on 6 September 2025. Budget 2027 sets aside RM100 million for a new round, the Geran Digital PMKS & Penjaja Madani under BSN, but as of 4 November 2026 no terms or opening date are published.
- How much did Geran Digital PMKS MADANI pay?
- In the 2025 round it paid 50% of the invoice, up to RM5,000 per business, for subscriptions from approved providers. BSN paid the grant share directly to the provider after delivery.
- Is there a government grant for AI for SMEs in Malaysia?
- Budget 2027 gives MDEC RM30 million to help 4,000 micro, small and medium businesses adopt AI and automation, called the AI Enablement Programme (Program Pendayaan AI). As of 4 November 2026 there is no programme page, eligibility or launch date.
- Can I claim tax relief on custom software in Malaysia?
- Companies can claim an accelerated capital allowance on ICT equipment, software packages, and the consultation, licensing and incidental fees for developing custom software, for spend from 11 October 2025 to 31 December 2026. It gives a 20% initial and 40% annual allowance. Budget 2027 proposes to extend it to 2030. Confirm the conditions with your tax agent.
- What can a Malaysian SME use today to fund a system?
- As of 4 November 2026, no programme we checked pays cash for general business software. What is open: the accelerated capital allowance, bank financing backed by the BNM-CGC Guarantee Scheme, MDEC's partner financing, and, for manufacturing and listed service sectors, MIDA's DIAF-ESG for ESG software until 30 November 2026.
Send a note with what the system needs to do. We will tell you honestly what it takes and whether it is worth building now or after the grant terms are out.