As the world continues to migrate into the digital realm, it has become crucial for businesses of all sizes to apply digital tools in their daily processes to thrive. Recognising this, the Malaysian government has launched the SME Digitalisation Grant. This initiative aims to equip SMEs with the digital edge they need to stay ahead of the curve in an increasingly tech-savvy world.
Understanding What Is the Malaysia MADANI SME Digitalisation Grant
These grants offer financial assistance to SMEs in their digitalisation efforts that could revolutionise and improve their day-to-day business operations. The two main grants to consider under the Malaysia MADANI umbrella include:
- Geran Digital PMKS MADANI: For micro, small, and medium enterprises. 50% subsidized, capped at RM5,000.
- Geran Digital Penjaja MADANI: This grant caters to hawkers and petty traders. 100% subsidized, capped at RM1,000.
Eligible businesses can apply for the Geran Digital PMKS MADANI and Geran Digital Penjaja MADANI grants directly through the Funding Societies website.
To be eligible for the SME Digitalisation Grant, your business must meet the following criteria:
| Criteria | Geran Digital PMKS MADANI | Geran Digital Penjaja MADANI |
| Citizenship Requirement | At least 60% Malaysian-owned | All partners must be Malaysian citizens |
| Registration | Registered with SSM, PBT, or SKM | Registered with SSM, a Local Authority, or a District Council |
| Operation Time | Operating for at least six months | Not specified |
| Annual Turnover | Minimum annual average turnover of RM50,000 | Not specified |
| Prohibition on Receiving Multiple Grants | Cannot receive both PMKS and Penjaja MADANI grants | Cannot receive both PMKS and Penjaja MADANI grants |
| Previous Matching Grant Recipients | Can reapply specifically to purchase e-invoicing services | Can reapply specifically to purchase e-invoicing services |
Important Note: These are general eligibility criteria. For the most up-to-date and complete information, please visit the grant pages for Geran Digital PMKS MADANI and Geran Digital Penjaja MADANI.
What Documents Are Required to Apply?
Applicants will need to prepare the following documents when submitting their grant application:
- A copy of the sole proprietor’s or partner’s MyKad (Identification Card)
- Business registration documents (SSM certificate, business licence from local authority, or permit from district council)
- Bank statements from the last two months
- A recent electricity or water bill (to confirm business premises)
- Any other supporting documents as may be requested by Bank Simpanan Nasional (BSN) from time to time
What Does the SME Digitalisation Grant Cover?
As mentioned, the grant helps businesses adopt a range of digital tools to improve efficiency, reach new customers, and boost sales. Here are some examples of the key areas covered by the grant:
E-Invoicing Solutions
Tools that automate invoice generation and submission to improve accuracy, speed up payment cycles, and ensure compliance with LHDN requirements.
AI-Powered Business Solutions
Applications that use artificial intelligence to automate tasks, enhance decision-making, or personalise customer experiences.
Cybersecurity
This includes tools to protect against online threats so your business information and customer private data remain secure.
Digital Marketing and Sales Tools
These tools help you connect with potential customers online, build brand awareness, and drive targeted marketing campaigns.
Electronic Point-of-Sale (ePOS) Systems
Replace traditional cash registers with a digital solution that can track sales, manage inventory, and accept various payment methods.
Digital Payment Solutions
Support the adoption of e-wallets, online payment gateways, and mobile payment solutions to offer customers convenient and secure payment options.
Customer Relationship Management (CRM) Systems
Interact with your customers, build relationships, track leads, and improve customer service.
Here is the full list of digital services provided in the grant, including the contact details for each vendor. By utilising these digital tools, SMEs can automate tasks, streamline operations, gain valuable customer insights, and ultimately achieve significant growth and success.
About Funding Societies
Funding Societies is a regional digital financing platform that provides micro and SME financing to underserved businesses across Malaysia and Southeast Asia. In support of the Geran Digital Penjaja MADANI initiative, we offer an online platform and dedicated team to help eligible businesses apply for the grant.
How to Apply for the MADANI Government’s SME Digitalisation Grant with Funding Societies
Funding Societies is a platform that simplifies the application process for the SME Digitalisation Grant. Here’s a step-by-step guide to get you started:
1. Get a Quote from a SME Digitalisation Grant Partner
Before you apply, it’s important to have all the documents required ready, including a quotation from the Digitalisation Partners (DP), from the list of pre-approved vendors. Reach out to the DP directly to get a quotation for your grant application.
2. Check Eligibility
Before applying, identify which grant (Geran Digital PMKS MADANI or Geran Digital Penjaja MADANI) best suits your business needs. You can find the detailed eligibility criteria for both grants on the official government website or Funding Societies’ online platform.
3. Application and Selection
Both MSMEs/cooperatives and street vendors can apply for their respective grants through the Funding Societies online portal. They can select the digital services they need from a list of pre-approved Digitalisation Partners (DPs). Browse through the listed partners and find a provider that aligns with your specific needs, then move on to the next step.
4. Approval Process
Following application submission for the SME Digital Grant, Funding Societies will review all applications for eligibility and suitability. If your application is approved, you will be notified accordingly. The process will differ slightly depending on your business type:
- Geran Digital PMKS MADANI: You will receive a dedicated payment link with a 14-day window to make a balance payment for the chosen digital services.
- Geran Digital Penjaja MADANI: You will be notified of your approval once the review has been completed.
5. Payment and Service Delivery
Following approval, the next steps will depend on your business type:
- Geran Digital PMKS MADANI: Upon successful payment of the balance amount, your chosen DPs will deliver the digital services you selected. The grant will cover 50% of the invoiced amount, up to a maximum of RM5,000.
- Geran Digital Penjaja MADANI: After receiving notification of approval, your chosen DPs will contact you to deliver the digital services. Geran Digital Penjaja MADANI covers up to RM1,000 of the service costs.
Once the services have been dispensed, the next step is to claim and receive the disbursement of your grant funds.
6. Claim and Disbursement
In this step, the DPs are to submit a claim form with proof of delivery. Funding Societies will review the claim form and supporting documentation. Once approved, the appropriate grant amount will be disbursed to the respective DPs.
Do note that the specific timeframe for disbursement may vary depending on Funding Societies’ internal processes.
Why You Should Go Digital Now with the Malaysia MADANI Grant
Going digital is no longer a luxury, it is an absolute necessity for businesses to succeed in the modern world. The SME Digitalisation Grant initiative is one of the first steps in embracing digitalisation as it offers you the opportunity to equip your business with the necessary tools you’ll need to thrive in the digital marketplace. From streamlining operations to reaching new customers, embarking on an adventure into the digital realm is now possible. Using these digital tools, you can position your business for long-term success.
Funding Societies is here to make the process easier. As an official application platform for the Geran Digital PMKS & Penjaja MADANI, we provide a simple online submission process and a dedicated team to guide you every step of the way, from eligibility checks to approval tracking.
Learn more about the Geran Digital PMKS MADANI and Geran Digital Penjaja MADANI today!
