In 2025, the Malaysian government continues its commitment to digital transformation with the introduction of the MSME Digital Grant MADANI. This grant is designed to support Micro, Small, and Medium Enterprises (MSMEs) in enhancing their digital capabilities, ensuring that no business is left behind in the country’s digital economy agenda.
As digitalisation becomes increasingly essential in today’s competitive environment, the MSME Digital Grant MADANI offers timely support to help businesses adopt new technologies and stay resilient. Here’s a comprehensive overview of what this grant entails.
What Is the MSME Digital Grant MADANI?
The MSME Digital Grant MADANI is a financial assistance program initiated under the MADANI economic framework. The term “MADANI” reflects the Malaysian government’s values-based approach to development, focusing on inclusivity, sustainability, and digital empowerment.
The primary objective of the grant is to accelerate digital adoption among MSMEs by subsidising the cost of digital solutions. This includes tools and services such as e-commerce platforms, digital marketing, payment gateways, accounting software, cloud-based systems, cybersecurity services, and more.
Eligibility Criteria
The grant is aimed at Malaysian-registered MSMEs and cooperatives that meet the following conditions:
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Must be registered with the Companies Commission of Malaysia (SSM), PBT, or SKM.
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Owned by at least 60% Malaysian citizens.
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In operation for at least six months.
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Annual sales turnover of less than RM5 million.
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Not a recipient of previous government digital grants within a defined period.
These conditions ensure the grant is targeted at truly small and medium businesses in need of support.
How the Grant Works
The MSME Digital Grant MADANI provides a 50% matching grant of up to RM5,000 per business. This means that the government will subsidise half the cost of the chosen digital solution, while the business covers the remaining amount.
The grant applies only to digital solutions offered by pre-approved digital service providers (DSPs). This ensures that businesses receive high-quality and reliable services that align with the government’s standards.
Some of the digital solutions covered under this scheme include:
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E-commerce website development
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Point-of-Sale (POS) systems
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Digital marketing services
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Inventory and accounting software
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Human Resource (HR) management tools
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Cybersecurity enhancements
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Cloud computing and data storage
Application Process
The application process for the MSME Digital Grant MADANI is straightforward and designed to be user-friendly:
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Identify the required digital solution that fits the business’s needs.
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Choose a pre-approved DSP from the official list provided by the grant administrators.
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Submit an application online, including necessary documents such as:
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Business registration certificate
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Bank statements
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Owner’s MyKad copy
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Business profile and quotation from the DSP
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Await approval, which usually takes a few working days to a few weeks depending on application volume.
Once approved, the business pays its 50% share directly to the DSP, and the grant covers the rest.
Benefits of the MSME Digital Grant MADANI
The grant is more than just financial assistance—it’s a push toward digital transformation and long-term business sustainability. Some of the benefits include:
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Improved operational efficiency through automation
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Better customer engagement via digital platforms
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Increased sales opportunities through online presence
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Enhanced data management and analytics
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Improved compliance and security
By empowering businesses to digitise, the grant helps build a more competitive and resilient MSME sector that can thrive in the digital economy.
Conclusion
The MSME Digital Grant MADANI 2025 represents a significant step in Malaysia’s digitalisation journey. By lowering the barriers to adopting modern technologies, it gives smaller businesses the tools they need to grow, innovate, and contribute meaningfully to the national economy.
With the right digital strategies and support, MSMEs can not only survive but also thrive in today’s rapidly evolving marketplace. The MSME Digital Grant MADANI is a valuable opportunity to embrace change and secure a future-ready business.
