MDEC offered AI companies up to RM2 million in 2025. The application window is closed

Malaysia Digital Economy Corporation introduced the Malaysia Digital Acceleration Grant – Artificial Intelligence, or MDAG-AI, on 8 July 2025. The scheme targeted Malaysian digital companies commercialising AI across foundation infrastructure, enabling tools and end-user applications, with a funding ceiling of RM2 million.[1][2]

That ceiling was only the top boundary. MDEC said support was limited to 70% of approved project cost, applications closed ten days after the launch, and proposals were assessed on company track record, Malaysian economic spillovers, export and job potential, AI ownership, development maturity, research capability, impact and differentiation.[1][2]

MDEC described MDAG-AI as performance-based funding. An eligible project could receive up to 70% of total approved cost or RM2 million, whichever was lower, over a funding period of up to one year. A company seeking the full ceiling therefore needed a sufficiently large eligible project budget and the capacity to finance the balance rather than treating the grant as complete project funding.[2][1]

The published list of claimable costs included qualifying business-premise or data-centre rent, external staff training, AI research and development, salaries of full-time employees directly tied to contracted KPIs, sales enablement and certain third-party design, manufacturing, testing or certification services. General operating costs, travel, mobile phones and most outsourcing were among the exclusions shown on the grant page.[2]

The core company tests went beyond being an AI startup in name. MDEC listed Malaysian incorporation, at least RM50,000 in issued share capital and at least one year in operation. The applicant also needed MD or MSC Malaysia status, or an active submitted MD status application when applying, and had to retain the required status through the grant period or final disbursement condition.[2]

The proposed product or service had to fit at least one of three AI layers: foundation infrastructure and core technology; enabling models, APIs or deployment tools; or application-layer solutions and integration. MDEC also required declarations around litigation, blacklisting, relationships and previous public grants, and stated that a company could not have another ongoing MDEC or government grant at the same time.[2]

MDEC's evaluation scope covered company background and track record, value to Malaysia through local spending and ecosystem spillovers, projected exports and knowledge-worker creation, and the substance of the AI itself. The AI review included technology ownership, maturity, in-house research and development, solution category, impact and differentiation, with academic links also listed as a possible consideration.[2]

The published process moved from downloading the application kit and submitting company evidence through the GAIN Awards Platform to completeness checks, an applicant pitching session, approval and the final result. That sequence matters for future grant planning: meeting the minimum eligibility rules did not guarantee selection, and a strong proposal needed both technical evidence and a credible commercial and Malaysian-impact case.[2]

At MDX Summit 2025 on 17 September, MDEC named 13 MDAG-AI recipients: Elliance, AAE Solution, Ventionex Innovations, SmartPeep, Hexa IOT, Vulsan X Cydef, Jess Technology, Cuscapi Innovation Lab, Cargo4u, Macro Kiosk, Health4u Solutions, Caction and Clazzy. MACROKIOSK separately said its award would support the BOLD.AI component of its enterprise platform.[3][4]

The recipient announcement proved that the selection cycle concluded, not that every project had already delivered its promised commercial, export, employment or knowledge-transfer results. The public release did not break down individual award amounts or publish a recipient-by-recipient KPI dashboard, so later outcome reporting would be needed before judging the programme's return.[3][2]