MDEC opens application for 2024 digital grants in boost to creative firms and MD/MSC status companies

By Digital News Asia September 10, 2024

Launched in 2016, DCG has been key in supporting creative content firms
Malaysia Digital Catalyst Grant offers up to US$230k or 50% of project costs

Mechamato, created by Animonsta Studios, received a Digital Content Grant in 2019 for the development of the hit series.

The Malaysia Digital Economy Corporation (MDEC), an agency under the purview of the Ministry of Digital Malaysia, has announced the opening of applications for three key grants: the Digital Content Grant (DCG) for 2024/2025, the Malaysia Digital Catalyst Grant (MDCG), and the Malaysia Digital Export Grant (MDXG). These grants, available from 9 Sept, are part of the MADANI government's ongoing commitment to enhance Malaysia's digital economy. MDEC did not reveal how much has been allocated for the three grants.

Introduced in 2016, MDEC had, up to 2021, approved 94 projects worth US$8.38 million (RM36.4 million), according to Annuar Musa in June 2022 when he was Minister of Communications and Multimedia. However it should be noted that Annuar's predecessor, Saifuddin Abdullah, who helmed the role from March 2020 to July 2021, said in June 2021 that US$10.82 million (RM46.99 million) from the Digital Content Grant had been allocated to 81 companies in 2021. The grant at that time was not purely for digital companies and comprised four categories, namely film grants, documentary film grants, marketing grant, and the TV/OTT Programme grant in special collaboration with Astro. Saifuddin explained that the Digital Content Grant for 2021 was an extension of the Malaysian Creative Industry Stimulus Package launched on Feb 5 to ensure the survival of the country’s creative industry during the Covid-19 pandemic.

Among the companies that have benefited from the grants is Animonsta Studios Sdn Bhd which received a grant in 2019 for its hit animation series Mechamato, which ran on Cartoon Network and is currently available on Netflix. Another recipient that parlayed the grant into a successful series was WAU Animation Sdn Bhd which received teh grant in 2018 and 2019 for its Ejen Ali and Ejen Ali Season 2 series. The full list of recipients since 2016 is available here.

The lead characters from Ejen Ali Season 2.

Digital Content Grant (DCG) 2024/2025

Since 2016, the DCG has been instrumental in supporting Malaysian creative content companies, enabling the development, production, and commercialisation of digital content across various sectors, including animation, digital games, digital comics, and creative technology.

The DCG 2024/2025 consists of three types of different grants aimed at various digital content producers:

Mini Grant: This grant is aimed to support the development, production, and commercialisation of digital content products with a ceiling amount of US$34,545 (RM150,000) per grant recipient.
Prime Grant: This grant supports the development, production, and commercialisation of digital content products, with a ceiling amount of US$115,156 (RM500,000) per grant recipient.
Marketing & Commercialisation Grant: This grant supports commercialising digital content products, with a ceiling amount of RM300,000 per grant recipient. [RM1 = US$0.230]

Eligible applicants for the Mini Grant include local digital content companies, enterprises, sole proprietorships, partnerships, and limited liability partnerships. Prime and Marketing & Commercialisation Grants are available for any local company incorporated in Malaysia with a minimum of 51% Malaysian, issued share capital of RM20,000.00 and with the Malaysia Digital (MD) Status and/or the Multimedia Super Corridor (MSC) Status. Details of the full eligibility criteria can be found on the website: https://mdec.my/grants/dcg.

Malaysia Digital Catalyst Grant (MDCG)

The MDCG offers up to RM1 million or 50% of project costs, whichever is lower, to drive innovation in Malaysia’s digital sector. Focused on fostering scalable, high- impact solutions, the grant supports projects within the Malaysia Digital (MD) Promoted Sectors for up to one year.

Since 2021, MDCG has been awarded to 59 companies, leading to advancements such as a cloud-based defect management system and a manufacturing resource plan that boosted Small and Medium Enterprises (SME) operations. These projects highlight digital innovation’s transformative impact on Malaysia’s digital champions.

Malaysia Digital Export Grant (MDXG)

The MDXG, which also offers up to RM1 million or 50% of project costs, supports Malaysian companies poised for global expansion through high-value technological activities. With a project duration of up to one year, MDXG has facilitated international growth, including promoting a local homegrown company with blockchain-based electric vehicle app across Southeast Asia and deploying 5G network-powered IoT solutions for ATM protection in global markets.

MDCG and MDXG are exclusively available to local or foreign-owned companies with the MD status. Companies that have yet to attain MD status are encouraged to apply, as this recognition opens the door to numerous strategic advantages.

By securing MD status, companies gain prioritised access to MDEC’s comprehensive support network, greater visibility within the digital economy, and valuable opportunities for collaboration and growth within Malaysia’s forward-looking digital ecosystem.

To provide further information, MDEC will host two briefing sessions for the DCG on 11 and 24 Sept, and three sessions for the MDCG and MDXG on 12 and 18 Sept, and the last one on 2 Oct.

Applications opened yesterday, 9 Sept and will remain open until the funds are fully committed. Interested parties can submit their applications online at https://malaysiadigital.mdec.my/.