Malaysia Digital X-Port Grant (MDXG)

The Malaysia Digital Economy Corporation (MDEC) introduced the Malaysia Digital X-Port Grant (MDXG) for businesses to expand globally.

WHAT IS MALAYSIA DIGITAL X-PORT GRANT (MDXG)?

MDXG is focused on supporting Malaysian technology companies that have demonstrated export readiness and are seeking to expand their global market presence.

The grant aims to stimulate high-value digital exports that lead to the development and commercialisation of market-driven, disruptive, innovative, and sustainable products or services for the global market.

OBJECTIVES OF MDXG

  • To facilitate the expansion of Malaysian technology companies operating within Malaysia Digital promoted sectors and technology enablers in their efforts to penetrate the global market. ​
  • To drive the development and commercialisation of cutting-edge, sustainable products and services that have the potential to transform industries and establish Malaysian technology companies as global icons.
  • To elevate the branding of Malaysian technology products and services by supporting their reach beyond domestic borders and establishing themselves as leading players in respective industries.

GRANT AMOUNT

The MDXG grant amount given for is different for local-owned companies and foreign-owned companies.

Local-owned CompanyForeign-owned Company
Grant Percentage of Project CostUp to 50% of total project cost or up to RM1,000,000 (whichever is lower)Up to 30% of total project cost or up to RM1,000,000 (whichever is lower) and its headquarters is to be in Malaysia
Project DurationUp to 1 yearUp to 1 year
*Quantum of funding is applicable for project period of up to 1 year.
Table 1. MDXG grant amount given to local-owned companies and foreign-owned companies

ELIGIBILITY CRITERIA

Business or Company Profile

  1. Local-owned Company
  • Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;​
  • Minimum paid up capital of at least RM50,000 for companies.
  • Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in the SSM.
  • In operation for at least one (1) year
  1. Foreign-owned Company
  • Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016.
  • Active and minimum issued and paid-up capital of RM500,000.
  • Headquarters to be in Malaysia​.
  • In operation for at least one (1) year.

Shareholder or Director’s Declaration

  1. Not the subject of liquidation/winding up /bankruptcy order and has no going concern issue*
    *If the Applicant has going concern issue (as reported in their latest audited account, the Applicant to provide a letter of undertaking by the shareholder and/or director of the Applicant to undertake that in the event that their application is approved, the Applicant shall perform its obligations under the terms & conditions to be issued by MDEC and to provide financial support to the Applicant to enable the Applicant to meet its obligations and/or liabilities under the terms & conditions.​
  2. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare and disclose if there is any business relationship/family relationship with any of MDEC’s director or employee.
  3. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding i.e. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.​
  4. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).​
  5. Applicant/Recipient with common shareholder(s) can only apply for one (1) grant per one (1) project administered by MDEC at any one time (this requirement is not applicable to venture capital investors and registered market operator e.g.: Equity Crowdfunding Platforms).​

Related Grant or Past Government Grant​

If the company previously has received any MDEC/government grant, the Applicant/Recipient must:​

  • Demonstrate the completion of the funded project(s); and​
  • Declare any notice of non-compliance/breach being recorded during the period of the funded project(s).​

If the Applicant/Recipient currently has on-going grant with other government agencies, Applicant/Recipient to prove that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s) (via a letter from grant awarding entity or equivalent).Limited to 5 years records from the of approval of the respective Grant.

Business Nature and Malaysia Digital (MD) Status​

  1. The business nature of company is technology related services and/or MD status company.
  2. The Applicant/Recipient must be MSC Malaysia Status company or Malaysia Digital (MD) Status company. However, if the Applicant/Recipient is not MSC Malaysia Status company or Malaysia Digital (MD) Status company, the Applicant/Recipient must apply for Malaysia Digital (MD) Status during the Availability Period.
    *Copy of MSC/MD Approval Letter if the Applicant has been awarded with MSC/MD Status OR proof of Applicant is applying for MD Status (ie screen shot of the application at Submitted Stage) if applicable​.

Others

  1. Applicants who do not meet the eligibility criteria will be rejected immediately.​​​
  2. Applicants are not allowed to submit multiple applications within the same window​.​
  3. The Applicant is required to meet the following specific conditions throughout the project period​
    • If outsourcing cost is involved, MDEC has the right to conduct background checks on the outsourcing parties to ensure there is no conflict of interest.​​​
    • The project under application must be new and limited to one (1) single project per Grant. Project in progress will not qualify (Improvements or additions of functionality is considered as new).​​​

APPLICATION DOCUMENTS REQUIRED

  1. Project Proposal Pitch Deck using MDEC template.​
  2. A fully completed and signed MDXG application form.
  3. Company’s financial statements (copies of one (1) year latest audited account). If the Applicant/Recipient has a going concern issue (as reported in their latest audited account) the Applicant/Recipient is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) of the Applicant/Recipient’s company to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the company to enable the company to meet its obligations and/or liabilities under the terms and conditions.​
  4. Board of Directors Resolution is to be signed by the majority of directors on the appointment of an authorised signatory. ​
  5. Copy of award(s) and/or recognition(s) received in the past 5 years (if any).​​​
  6. Company Profile.​
  7. Project proposal.
  8. Outsourcing if applicable (Company only)
    • Agreement or quotation from the outsource party(ies);
    • Declaration letter of outsourced portion of the project detailing out:
      1. The scope of work of the outsourced portion;
      2. The identity of the outsourcing party(ies);
      3. The amount of outsourcing cost (must be corroborated with quotations and/or agreement);
      4. Declaration if the outsourcing company is a related company, and
      5. The arrangement should at least benefit more to the Applicant/Recipient (including copyright, ownership of IP and a declaration of no relationship in terms of shareholders and assets).*If outsourcing cost is involved:
    • MDEC has the right to conduct background checks on the outsourced parties to ensure there is no conflict of interest.
    • Outsourcing party(ies) (including the director(s) or shareholders) shall not be related to the applicant (not including venture capital investors and registered market operator e.g.: ECF platforms).
    • Supporting documents evidencing outsourced/ collaboration portion of the project as per project costing. Declaration letter of outsourced portion of the project detailing out declaration of outsourcing which includes scope of work project duration amount, including copyright, ownership of IP and declaration of no relationship in terms of shareholders and assets. The arrangement should benefit the Applicant/Recipient.
    • Outsourced work should not exceed 20% of requested grant amount.
    • MDEC reserves the right to request additional information from the Applicant/Recipient at any time.
  9. (a) If previously has received any grant from MDEC and/or any other ministries or agencies under the Government of Malaysia, to provide proof of project completion (i.e. closure letter from the ministries/agencies).
    *Limited to five (5) years of records from the date of approval of the grant.
    (b) If Applicant/Recipient has an on-going grant from any other ministries or agencies under the Government of Malaysia, to provide a letter from grant awarding entity or equivalent as proof that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s).​
  10. Copy of MSC/MD Approval Letter if the Applicant/Recipient has been awarded with MSC/MD Status OR proof of Applicant/ Recipient is applying for MD Status (i.e.: screen shot of the application at Submitted Stage) if applicable.
  11. MDEC reserves the right to request additional information from the Applicant/Recipient at any time.

APPLICATION PROCESS

Step 1:
“Register” and “Log In” with your credentials to GAIN Awards Platform.

Step 2:
Click “Start Application” under “My Applications”.

Step 3:
Select department “Grants and Funding”.

Step 4:
Select the programme “Malaysia Digital X-port Grant”.

Step 5:
Provide your company details and upload your application form with supporting documents.

Step 6:
Click “Submit Application” once completed (deadline by 1st June 2023 11:59PM).

Step 7:
Completeness and compliance-checking by MDEC (2 weeks).

Step 8:
Pitching session by the application (2 weeks).

Step 9:
Approval process (2 weeks).

Step 10:
Application result.

Disclaimer: The information stated in this article is the most accurate and best information available as of 23/05/2023.

Source: MDEC

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