MSME Digitalization Grant MADANI

The previous SME Digitalisation Grant was introduced as part of Budget 2020 to encourage SMEs to embrace digitlisation and boost competitiveness and productivity.

Now under the Balanjawan MADANI 2023 initiative, the MSME Digital Grant (also known as Geran Digital Perusahaan Mikro Kecil dan Sederhana PMKS).

As a collaboration between the Malaysian government, Malaysian Digital Economy Corporation (MDEC), Bank Simpanan Nasional (BSN Bank) and the Malaysian Communications of Multimedia Commission (MCMC) the grant helps MSMEs acquire digital tools and services from Digitalisation Partners (DP) which is associated with the MDEC.

The MSME Digital Grant MADANI offers 50% or up to RM5,000 from the total invoice amount and limited to a first-come first-served basis.

Areas of digitalisation services available

If you want to digitalise your business with this matching grant, these are the digitalisation areas and services to choose from:

SERVICES	DEFINITION
Electronic Point of Sale (e-POS) system	An e-POS system allows you to record sales, accept payments in multiple currencies, centrally monitor your stock movements across the globe in real-time and generate reports using a computerised system.
Customer Relationship Management (CRM)	A CRM system will help you track your customers' communications, preferences, details, and past purchases, which can be sorted by region and markets in one database for easy access and referrals. This would allow you to examine local trends wherever your business is based and plan a targeted marketing strategy.
HR Payroll system	A digital payroll system allows easy calculation of your employee’s working hours, salaries, country-specific deductions for taxes, mandatory retirement funds like the EPF, Social Security (Socso) and such, for ease of operations across multiple markets.
Digital marketing and sales	Your digital marketing strategy can include tools to promote and increase your store's online visibility within the local target market, including purchasing Google Ads and contracting for Search Engine Optimisation (SEO).
Enterprise Resource Planning (ERP)	ERP software is a business management system that integrates and automates various core functions and processes such as financial transactions with operational details.
Internet of Things (IoT)/Intelligent system	This is a primary goal of Industry 4.0. Intelligent technology enables you to connect and optimise business operations to enhance efficiency and make informed decisions based on data.
Accounting and taxation	Virtual accounting will help you manage day-to-day financial transactions, including ensuring local compliance with tax regulations in all countries your business operates, expense and revenue management, account receivables, accounts payable, and reporting and analytics.
Cybersecurity	Protecting sensitive data, customer information, and financial assets is essential to maintain business continuity, preserve customer trust, and prevent potential financial and reputational damage.

Eligibility Criteria

To take advantage of this grant, you must meet the following eligibility criteria:

CRITERIA	DEFINITION
Malaysian-Owned	MSMEs/Cooperatives must be at least 60% owned by Malaysian citizens.
Registration Requirements	Must be registered with the Companies Commission of Malaysia (SSM)/Local Authorities (PBT) or Malaysia Co-operative Societies Commission (SKM).
Operating Duration	The business should be operating for at least six months.
Annual Turnover	Must have an annual turnover of an average of at least RM50,000.
Previous Grants	MSMEs/Cooperatives must not have received previous Digitalisation Matching Grants.

Required Documents

To apply for the grant, you’ll need the following documents:

DOCUMENTS	DEFINITION
Identification	Copy of the identity card or passport of director(s)/partner(s)/proprietor(s), whichever is applicable.
Business License	Business registration documents/SSM business profile/SKM registration documents.
Financial Documents	Provide your latest audited accounts, management accounts, or the latest two-month bank statements.
Invoice/Quotation	Include the invoice or quotation issued by Digitalization Partners for the services you intend to subscribe to.

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