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Malaysia Government Grants for SMEs & Startups

Malaysia Government Grants for SMEs & Startups

Malaysia Government Grants for SMEs & Startups

IPO Roadmap – Start with Government Funding

Government Schemes

Cradle Fund

Cradle Fund Sdn Bhd (Cradle) is Malaysia’s early stage start-up influencer, and has helped fund over 900 Malaysian tech start-ups and holds the highest commercialisation rate amongst government grants in the country.

Cradle Investment Programme 300 (CIP300) is a pre-commercialisation programme which provides financial and value added assistance up to RM300,000 for entrepreneurs to kick-start innovative technology based business ventures.

DEQ800 is a form of equity investment of up to RM800,000 for local tech start-ups. This programme aims to fund local early stage high potential technology start-ups.

Cradle Seed Ventures (CSV) is the venture capital arm of Cradle. CSV manages an early stage venture fund based out of Malaysia and is always on the lookout for start-ups with high growth potential, led by passionate founders with high levels of enthusiasm.

Coach and Grow Programme (CGP) is a market driven coaching programme intended to bring together key players in the entrepreneurial ecosystem to support and fortify technology entrepreneurs grow their businesses to greater heights.

Angel Tax Incentive. Cradle administers the Angel Tax Incentive, which was designed for Angel Investors to be accorded a tax deduction of up to RM 500,000 in the third year. Its objective is to stimulate and encourage angel investments form the private sector into technology based start-up companies in Malaysia


Malaysia Digital Economy Corporation Sdn. Bhd. (MDEC) is the holistic, government-owned agency launched in 1996 to pioneer the transformation of Malaysia’s digital economy.

MDEC Digital Content Fund, also known as MAC3 Fund, is a government funding designed and created to support local creative content production companies in developing, producing, or co-producing digital content in animations and games.

There are three funds available for interested parties:

Development Fund focuses on the development stage of the Project, the stage where it involves idea generation, production design, market research and marketing analysis.

Production Fund focuses on the production stage of the project.

Co-Production Fund is designed to provide financial assistance to a project within the Eligible Project Categories to be co-produced by a Malaysian company and one or more foreign company(ies).


For 25 years, Malaysian Technology Development Corporation (MTDC) has been the key player in technology commercialization in Malaysia and promoting the adoption of technologies by local companies.

Technology Acquisition Fund (TAF) is for the funding acquisition and commercialisation activities of foreign technologies undertaken by Malaysia-owned companies. The technology to be acquired has to have already been proven in the country of origin. Additionally, the technology can and will be immediately incorporated into the applicant’s production processes.

Commercialisation of Research and Development Fund (CRDF) is for the funding of commercialisation activities of locally developed technologies undertaken by Malaysian-owed companies. The technologies can be those developed by the public sector or an output of in-house research and development (R&D) activities by the companies.

Business Start-up Fund (BSF) is established to fund new start-up technology-based companies. The Fund incorporates elements of loan and equity, offering companies flexible funding via Convertible Promissory Notes and/or Preference Shares.

Business Growth Fund (BGF). A funding program that focuses on growing the company not only on its production output and reach, but also on internal preparedness towards professionalism, corporate governance, and all the necessary tools to escalagte the company to the next level.

Halal Technology Development Fund (HTDF) Specially designed to finance and nurture small and medium enterprises (SMEs) for long-term growth and export through halal compliant activities.

Business Expansion Fund (BEF) it to accelerate the expansion of Bumiputera technology-based companies, especially in developing international markets, by providing financial assistance to qualified companies. It aims to create a group of icons of internationally successful Bumiputera companies.


Malaysia Venture Capital Management Berhad (MAVCAP) raison d’être is to support seed, start-up early stage to late stage companies in the ICT industry as well as other high-growth industries. (including but not limited to content and digital media, IOT, e-commerce, financial tech, etc)



The Malaysian Global Innovation and Creativity Centre (MaGIC) has set its mission of building and growing the entrepreneurship ecosystem in Malaysia including support startups going regional and global.

MyCreative Ventures

MyCreative Ventures Sdn. Bhd. is a Government investment arm launched in September 2012 to spur Malaysia’s creative industry via strategic and innovative funding through debt or equity investments in Malaysian creative companies. RM200 million was allocated from the 2012 Malaysian Budget to help boost the creative industry’s significance to the Malaysian economy.

Cyberview Living Lab

The accelerator is another government initiative, with multiple partners running the program (used to be run by Watchtower, 1337, and so on). Thus, the mentorship is provided by different people each year or when the vendors change. The website states that they provide Value Added Services Up to RM50k.

1337 Ventures

1337 is a technology accelerator and early stage venture capital focused on pre-seed and seed stage investments in Malaysia as well as South East Asia. Our primary investments are technology solutions (social enterprises, commerce and other out-of-the-box solutions)

Alpha Startups is a pre-accelerator program for idea stage startups. The FREE 5-day intensive bootcamp is open for founders with business ideas, where participants will tackle practical idea validation, product development and go-to-market strategisation exercises.

The 1337 Accelerator (pronounced leet accelerator) was formed to fund aspiring new and existing startups in the app development space. If you think your ideas are breaking grounds, we want to hear them!

Tune Labs

Tune Labs is a venture capital business established to detect, finance and grow startup enterprises that focus on travel, finance and retail.

It is worth mentioning that Tan Sri Tony Fernandes is acting as Co-Founder and Chairman of Tune Labs.

The company aims to grow startups by taking them through all steps of their development, from idea validation to the final go-to-market stage.

To this end, Tune Labs runs an accelerator and an incubator program that are designed to boost the startup growth by offering mentorship and operations support. They look for entrepreneurs who already have a minimum viable product (MVP) focused on mobile, travel, e-commerce and fintech.

Digi Incub8

Digi Incub8 is a pre-accelerator program from Digi Telecommunications that addresses idea stage startups. It has been formed as a partnership with 1337 Ventures and Alpha Startups program.

This workshop is open to entrepreneurs that want to verify and validate their business ideas by undergoing through a process of idea validation, product development and marketing strategies. To reach this end, they have partnered with MaGIC and Uber.

Digi Incub8 provides startups from Malaysia access to mentorship options, networking possibilities and funding for tech startups.

Axiata Digital Innovation Fund

Axiata Digital Innovation Fund has been created by Axiata, MAVCAP and Johor Corporation.

The three public and private companies established and organized a venture capital fund that starts at RM80 million and offers investments of up to RM10 million per company.

The main purpose of the fund is to encourage and develop the digital ecosystem in Malaysia via greater connectivity, latest technologies and local talent.

This common enterprise is looking to find and support innovative high growth companies and target industries from e-commerce, big data, IoT, traditional to cloud services and fintech areas, to mention just a few.

They also offer great access to investment teams, networks of experienced entrepreneurs and telco businesses that sum up over 320 million mobile subscribers.

Sunway iLabs Accelerator

The Sunway iLabs from Sunway Group has been established according to a partnership between Sunway University, Sunway Group and its venture capital division, Sunway Ventures. Sunway runs this accelerator in collaboration with Nexea Angels.

Sunway iLabs Accelerator brings together 20 entrepreneur teams for a one-month sprint before selecting the 10 best teams at the end and offer RM50,000 to each of them for the remaining 5 months of the accelerator program in exchange for 8% in equity.

The startups that will enter the Sunway Group’s program will also have access to the business’ resources spreading across 12 business lines, Sunway University’s labs, researchers and interns. Founders have to attend workshops and mentoring session, while setting-up business KPIs.

At the same time, Sunway iLabs Accelerator recognizes the startups’ need for mentorship, markets and legal advice. As a big plus, their program is open to everybody, not only for individuals from Malaysia.


Accelerators and government funding are very important for Startups in their early phases. Typically, accelerators add value to the company via validation of ideas, validation or market, or validation of growth. Apart from that, some accelerators are also able to add value via networks, mentoring, funding, and also via shared services like Finance, SEO, Marketing, or HR.

Since different businesses come with different needs, there is no one size fits all solutions. Some may need financial support, others may need mentoring and the right connections and others simply lack the necessary technical and marketing resources that can help them grow. Hence, take your time and choose wisely 🙂

Capital Team