SME Digitalisation & AI Grant Malaysia 2026 — How to Apply
Government funding to help Malaysian SMEs adopt AI, automate processes, and go digital. Learn what's covered, who qualifies, and how to apply.
Malaysian SMEs can access RM5,000 to RM100,000+ in government grants for AI adoption, digital tools, and automation. Eligible companies need 60%+ Malaysian ownership, SSM registration, and SME classification. Apply through MDEC, SME Corp, or MIDA.
2026 Budget: Accelerating SME AI Adoption
The Malaysian government has intensified its push for SME digitalisation and AI adoption with increased budget allocations. Key focus areas include AI-powered automation for manufacturing SMEs, cloud and SaaS adoption for service-sector SMEs, cybersecurity capabilities for digital businesses, and workforce upskilling in AI and data analytics. Multiple agencies now offer overlapping programmes — understanding which grant fits your needs is critical.
What Expenses Are Covered?
| Category | Examples | Coverage |
|---|---|---|
| AI & Digital Tools Training | AI awareness workshops, prompt engineering, data analytics, automation tools training | Up to 100% |
| Software & SaaS Subscriptions | CRM, ERP, accounting software, AI-powered tools (first year) | Up to 50–70% |
| Implementation & Consultation | Digital transformation consulting, system integration, process automation setup | Up to 50% |
| Hardware for AI/Automation | IoT sensors, automation equipment, AI-capable computing hardware | Varies by programme |
| Certification Costs | Industry certifications in AI, cloud computing, cybersecurity | Up to 100% |
*Coverage percentages vary by specific programme and agency. Verify with the issuing agency before applying.
Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Company Registration | Registered with SSM (Companies Commission of Malaysia) |
| Malaysian Ownership | At least 60% Malaysian-owned |
| SME Classification | Annual revenue below RM50 million, OR fewer than 200 employees (manufacturing) / 75 employees (services) |
| Operational Status | Actively operating for at least 1 year |
| Tax Compliance | Up-to-date with LHDN tax filings and SST/GST obligations |
Grant Amounts by Programme Type
Basic Digitalisation
RM5K – RM20K
Cloud software adoption, e-commerce setup, digital accounting tools. Best for micro-SMEs taking first digital steps.
Advanced Digital Tools
RM20K – RM50K
ERP implementation, CRM systems, data analytics platforms, process automation. For SMEs ready to scale digitally.
AI & Automation
RM50K – RM100K+
AI integration, machine learning projects, industrial automation, IoT implementation. For digitally mature SMEs.
MSME Digital Grant MADANI
The MSME Digital Grant MADANI is a government initiative under the MADANI Economy framework to help micro, small, and medium enterprises adopt digital tools. The grant provides a 50% matching subsidy of up to RM5,000 for eligible digital solutions — meaning the government covers half the cost.
Grant Amount
Up to RM5,000
50% matching subsidy — you pay RM5,000, government matches RM5,000
How to Apply
Apply through an authorised Technology Solution Provider (TSP) registered with MDEC. The TSP handles the application on your behalf.
Eligible Sectors
Eligible Digital Solutions
- • Point-of-sale (POS) systems & e-payment solutions
- • Accounting & financial management software
- • Digital marketing & e-commerce platforms
- • ERP, CRM, and HR management tools
- • Procurement & inventory management systems
Malaysia SME Grant Comparison — 2026
| Grant | Amount | For | How to Apply |
|---|---|---|---|
| MSME Digital Grant MADANI | Up to RM5,000 (50% match) | Digital tools & tech solutions | MDEC / TSP |
| HRD Corp Training Grant | Levy-based (1% payroll) | Staff training & upskilling | e-TRiS portal |
| SME Digitalisation Initiative | Up to RM5,000 (50% match) | Digital adoption & e-commerce | BSN / MDEC |
| Selangor SME Digitalisation Grant | Up to RM5,000 (matching) | Digital tools for Selangor SMEs | Invest Selangor / SIDEC |
*Multiple grants can often be stacked — e.g., use MSME Digital Grant for software + HRDF for training. Verify stacking rules with each agency.
Selangor SME Digitalisation Matching Grant
Selangor state offers its own SME Digitalisation Matching Grant separate from federal programmes. Administered through Invest Selangor and SIDEC (Selangor Information Technology & Digital Economy Corporation), this grant targets Selangor-based SMEs looking to adopt digital tools and automate business processes.
Key Details
- • Amount: Up to RM5,000 matching grant (50% subsidy)
- • Eligibility: SMEs registered and operating in Selangor with valid SSM, at least 60% Malaysian-owned
- • Covers: Cloud-based software, POS systems, e-commerce platforms, digital accounting tools, CRM systems
- • Application: Through authorised TSPs in Selangor. Check with SIDEC for the latest list of approved solution providers
- • Can be combined: Stackable with federal HRDF training grants for a comprehensive digital upgrade
Note: Selangor-based SMEs may be eligible for both the federal MSME Digital Grant MADANI and the state-level Selangor grant, subject to programme terms. Apply to both to maximise your funding.
How to Apply — Step by Step
Assess Your Digital Readiness
Evaluate your current digital maturity level. Identify specific areas where AI or digital tools could improve efficiency — e.g., automating invoicing, using AI for customer service, or implementing data analytics.
Identify the Right Grant Programme
Multiple government agencies offer digitalisation grants (MDEC, SME Corp, MIDA, HRD Corp). Each has different focus areas and amounts. Research which programme best matches your needs.
Prepare Documentation
Gather SSM registration, company financial statements, tax compliance certificates, a digital transformation plan, and vendor quotations for the technology or training you plan to adopt.
Submit Application
Apply through the relevant agency portal. Ensure all documents are complete and your proposal clearly articulates the business impact of the digitalisation project.
Implementation & Reporting
Once approved, implement the project within the stipulated timeframe (typically 6–12 months). Keep receipts and documentation for reimbursement claims and progress reporting.
Smart Strategy: Combine AI Grant + HRDF Training
Use the AI grant for technology — software licenses, AI tools, automation hardware, and implementation consulting.
Use your HRDF levy for training — upskill employees on the new tools through SBL-Khas claimable courses.
This dual approach maximises your total funding. For example: use a RM30,000 digitalisation grant to implement a CRM with AI features, then use RM5,000 from your HRDF levy to train your sales team on the new system.
Official Sources & Agencies
Frequently Asked Questions
What is the SME Digitalisation & AI Grant?
It is a Malaysian government initiative to accelerate AI adoption and digital transformation among SMEs. The grant covers training, software, implementation, and hardware costs. Multiple programmes exist under different agencies including MDEC, SME Corp, MIDA, and HRD Corp, each targeting different aspects of digitalisation.
Who is eligible for the SME AI grant?
Malaysian-registered SMEs with at least 60% Malaysian ownership are eligible. Your company must have annual revenue below RM50 million or fewer than 200 employees (manufacturing) / 75 employees (services). You need valid SSM registration, at least 1 year of operations, and up-to-date tax compliance.
How much funding can SMEs receive?
Grant amounts vary by programme and agency. Typical ranges are RM5,000 to RM50,000 for basic digitalisation grants (e.g., adopting cloud software). AI-specific and comprehensive digital transformation programmes may offer RM50,000 to RM100,000 or more for qualifying projects.
What expenses does the grant cover?
Covered expenses typically include AI and digital tools training, software and SaaS subscriptions (usually first year), implementation and consultation fees, hardware for AI/automation projects, and professional certification costs. Each programme has specific eligible expense categories.
Can the AI grant be combined with HRDF training?
In many cases, yes. The digitalisation grant covers technology adoption and implementation costs, while your HRDF levy balance can be used separately for employee upskilling on the adopted tools. This is a cost-effective strategy — use the grant for tech, and HRDF for training. Always check specific programme terms for stacking restrictions.
How long does the application process take?
Typical processing time is 4–8 weeks from complete submission. Incomplete applications or missing documents can cause significant delays. Some programmes have rolling applications throughout the year while others have fixed intake periods. Start the process well before your planned implementation date.
Find AI & Digital Training Providers
Browse HRDF-registered providers offering AI, data analytics, and digital skills training. Claimable via your HRDF levy.
Browse HRDF Providers →Ringkasan dalam Bahasa Melayu — Geran Pendigitalan & AI untuk PKS
Kerajaan Malaysia menyediakan geran untuk membantu Perusahaan Kecil dan Sederhana (PKS) mengamalkan teknologi digital dan Kecerdasan Buatan (AI). Geran ini meliputi kos latihan AI, perisian dan langganan SaaS, pelaksanaan dan perundingan, serta perkakasan automasi.
PKS yang layak mestilah berdaftar dengan SSM, sekurang-kurangnya 60% dimiliki rakyat Malaysia, dan memenuhi klasifikasi PKS (pendapatan tahunan bawah RM50 juta). Jumlah geran berkisar antara RM5,000 hingga RM100,000+ bergantung kepada program. Permohonan boleh dibuat melalui agensi seperti MDEC, SME Corp, MIDA, dan HRD Corp.
Related Resources
Last verified: March 2026