SME Digitalisation Grant MADANI: Are You Eligible and How to Claim

If you run a small or medium business in Malaysia and have been putting off digitising your operations because of cost, the MSME Digital Grant MADANI is worth knowing about. It is a 50% matching subsidy — meaning the government pays half, up to RM 5,000 — for approved digital solutions like websites, POS systems, CRM software, and e-Invoice integrations.

Here is a plain-language breakdown of what the grant is, who qualifies, and how the process works.

What the Grant Covers

The MSME Digital Grant MADANI is a matching grant — you pay 50% of the solution cost, and the grant covers the other 50%, capped at RM 5,000. So if your approved digital solution costs RM 8,000, you pay RM 4,000 and the grant covers RM 4,000.

Eligible solution categories typically include:

• Business website and e-commerce
• Point-of-sale (POS) system
• Customer relationship management (CRM) software
• Accounting software and e-Invoice integration
• Inventory management systems
• HR and payroll software

The exact list of approved solutions and vendors is defined by MDEC. Always verify at the official MDEC or BSN portal that a solution qualifies before committing.

Eligibility Criteria

To qualify, your business must meet **all** of the following:

1. 1At least 60% Malaysian-owned
2. 2Registered with SSM, PBT (local authority), or SKM (Co-operative Commission)
3. 3In operation for at least 6 months
4. 4Annual sales of at least RM 50,000
5. 5Has not received a prior digitalisation matching grant under this programme

If you meet all five, you are in scope to apply. If you are unsure about any criterion — particularly the "prior matching grant" condition — confirm with BSN or MDEC directly.

How the Application Works

The grant is administered by BSN (Bank Simpanan Nasional) and disbursed through MDEC-registered solution providers. The general process:

1. 1Identify your digital solution needs — what do you want to digitise? Website? POS? CRM? e-Invoice?
2. 2Find an MDEC-registered partner for that solution — the solution vendor must be registered with MDEC under the grant programme. Not every IT company qualifies.
3. 3Get a quotation from the registered vendor for the approved solution
4. 4Submit your application through BSN with supporting documents (SSM registration, audited accounts or bank statements, quotation)
5. 5Await approval — BSN reviews and approves the grant; this can take several weeks
6. 6Vendor delivers the solution after grant approval
7. 7Grant payment is made to the vendor directly; you pay your 50% portion

Do not pay the full 100% to a vendor before grant approval — the whole point is that the grant covers your half.

Common Pitfalls

• Choosing a solution vendor who is not MDEC-registered — the grant will not apply
• Applying without checking if you have received a prior matching grant (this disqualifies you)
• Confusing the grant with a loan — this is a subsidy, not repayable
• Missing document requirements in your application

How Zutt Can Help

Zutt Solution is not itself an MDEC-registered grant disburser — we do not submit grant applications on your behalf. What we do is help you:

• Understand what digital solutions make sense for your business (website, POS, CRM, e-Invoice)
• Scope the right package at the right budget
• Connect you with an MDEC-registered partner who can handle the grant application

Think of it as getting the right digital roadmap before you engage the official channel.

[Take a free digital checkup →](/digital-checkup) to assess your eligibility and figure out which digital solutions your business actually needs.

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*Grant terms, eligibility criteria, and available budget are set by the Malaysian government through BSN and MDEC. This article reflects publicly available information as of June 2026. Always confirm current programme status at the official BSN or MDEC portal before applying.*