SME Grants in Malaysia 2027: Digital, Online and Halal
Grants and programmes for Malaysian SMEs in 2027: digital, online selling, halal and export. What Budget 2027 added, what is open, and what has closed.
As of October 2026, Malaysian SMEs have no general digitalisation grant open for new applications. The Geran Digital PMKS MADANI, which paid half of a digital service up to RM5,000, closed to new applications on 6 September 2025. Budget 2027, tabled on 9 October 2026, announced new allocations for halal certification, AI adoption and online selling, but none of them has published application rules yet.
This guide sorts what exists into three groups: grants a business applies for, programme funding that reaches businesses through an agency, and export reimbursement. It shows what each pays, who it is for, and whether you can apply today. Loans and guarantees are listed at the end so you do not mistake them for free money.
Grants and programmes at a glance
| Scheme | Type | What it offers | Status in October 2026 |
|---|---|---|---|
| Geran Digital PMKS MADANI | Direct matching grant | 50% of a digital service, up to RM5,000 | Closed since 6 September 2025 |
| Halal certification matching grant | Direct matching grant | Up to RM5,000 for first-time applicants | Announced in Budget 2027, rules pending |
| Halal MSME grant | Grant | RM25,000 for halal businesses in cosmetics, pharmaceuticals and similar | Announced in Budget 2027, rules pending |
| MDEC AI and automation fund | Programme, form not yet set | RM30 million to help 4,000 MSMEs adopt AI, plus training | Announced in Budget 2027, rules pending |
| NADI | Programme funding | RM142 million to strengthen NADI centres and help young entrepreneurs go online | Funding for centres, not a cash grant |
| JOM Malaysia | Programme funding | RM10 million to bring rural products and services onto digital platforms | Announced in Budget 2027, details pending |
| MATRADE Market Development Grant | Export reimbursement | Reimburses eligible export promotion costs, RM300,000 lifetime cap | Open, subject to available funds |
“Rules pending” means the amount was in the Budget speech but the agency has not published who can apply, how, or when. Do not sign a contract on the assumption you will get one of these.
Geran Digital PMKS MADANI: closed
This is the grant most SMEs mean when they ask about a “digitalisation grant”. It paid 50% of the invoice for a digital service, capped at RM5,000 per business, for up to three services, from providers on MDEC’s panel.
BSN still shows the programme on its website, but the application platform it links to says applications closed effective 6 September 2025, with 5 September 2025 as the final day to apply. Budget 2027 did not announce a new round. A new intake would need an official announcement from BSN or the Ministry of Finance.
If a new round opens, the last round’s rules are a reasonable guide: at least 60% Malaysian-owned, registered with SSM or the equivalent body, operating for at least six months, and average annual sales of at least RM50,000. Our Geran Digital PMKS MADANI guide explains how the last round worked.
Halal certification grants
Budget 2027 announced two halal grants:
- Matching grant of up to RM5,000 for MSMEs applying for halal certification for the first time. Matching means the government covers part of the eligible cost and you pay the rest.
- RM25,000 grant for halal MSMEs in sectors such as cosmetics and pharmaceuticals.
The Halal Development Corporation welcomed the measures, but no application process had been published when we checked in October 2026. If you plan to get certified in 2027, start preparing your documents now and apply for the grant once the window opens rather than delaying certification for it.
MDEC AI and automation fund
RM30 million through MDEC to help 4,000 MSMEs adopt AI and automate operations. The same programme will also train and certify 5,000 AI professionals, so not all of the money goes to businesses. MDEC has not yet said what form the help takes, whether a matching grant, a voucher or a subsidised programme, or how much each business might receive.
If you want to spend on AI tools before the fund opens, cost the project at full price. A company that pays for AI subscriptions deducts them as a business expense in the normal way.
NADI and JOM Malaysia
Two smaller allocations target specific groups:
- NADI, RM142 million. This strengthens the National Information Dissemination Centres, which help young entrepreneurs get into online business. It funds the centres and their services. It is not a cash grant an SME applies for.
- JOM Malaysia, RM10 million. Aimed at bringing rural products and high-value services onto digital platforms and into overseas markets.
Neither is a general grant for an urban SME. They matter if you run a rural or youth-led business, or if you sell products from those businesses.
MATRADE Market Development Grant
Not new, but still the main export grant. The MDG reimburses eligible export promotion activities up to a lifetime limit of RM300,000 per company, and reimbursement depends on government funds being available. Applications go through the MADANI Digital Trade platform.
MATRADE’s guidelines list which activities qualify. We could not confirm that website builds or online advertising are among them, so check the current guidelines before you plan any digital spend around the MDG.
Which scheme fits which spend
| You want to | What to look at | O2O service |
|---|---|---|
| Build or rebuild a company website | No grant open. Budget for full price and claim capital allowances | Web design |
| Launch an online store | NADI support if you are a young entrepreneur | E-commerce |
| Start selling on TikTok Shop or a marketplace | NADI support if eligible; see our TikTok Shop guide | E-commerce |
| Run digital marketing or ads | No grant open. Ad spend is a deductible business expense | SEO and SEM |
| Adopt AI tools or automation | MDEC AI fund when its rules are published | AI search optimisation |
| Get halal certified | Halal matching grant when it opens | Not an O2O service |
| Promote exports | MATRADE MDG for activities its guidelines list | Check MATRADE’s guidelines first |
Grants and tax allowances together
When a grant pays part of a capital cost, such as a website build, the grant and the capital allowance can both matter. How the grant affects the amount you claim depends on the grant’s terms and how it is recorded in your accounts, so ask your tax agent to look at both together.
For the website build itself, Budget 2027 proposed extending the Accelerated Capital Allowance on ICT equipment and software to 31 December 2030. Our website tax deduction guide explains which allowance rules a website can fall under.
What is not a grant
Budget 2027 raises the total value of loan facilities and financing guarantees from RM50 billion to RM57 billion, including up to RM32 billion in SJPP and CGC guarantees, and RM6.6 billion in microfinancing through AIM, TEKUN Nasional and BSN. These are loans. A guarantee makes a bank more willing to lend to you, and microfinancing is still repaid with interest or profit rate.
HRD Corp is also not a grant. Employers with ten or more Malaysian staff pay a 1% levy on wages and can use the levy balance for approved training. If you pay the levy and have not used it, it can fund staff training on your new systems.
Mistakes that cost SMEs money
- Believing a provider who says the Geran Digital is open. Check the official application page. The last round closed on 5 September 2025.
- Treating a Budget announcement as an open grant. The halal, MDEC, NADI and JOM Malaysia allocations have no application rules yet.
- Treating programme funding as cash. NADI funds centres and services. It does not pay your invoices.
- Assuming any export spend is MDG-eligible. Only activities in MATRADE’s guidelines are reimbursed.
- Treating a guarantee as free money. SJPP and CGC guarantees reduce the bank’s risk, not your repayment.
What to do before 31 December 2026
- Plan digital projects at full price. There is no general digitalisation grant to wait for.
- Prepare halal documents if you plan to certify in 2027, so you can apply as soon as the matching grant opens.
- Write down what you would automate if the MDEC fund covered part of it, and get a quotation, so you are ready when the rules appear.
- Use the tax allowances that do exist. Budget 2027 proposed a higher small-value asset limit and an ACA extension to 2030.
Talk to us if you want a website or online store quotation with the capital and running costs already separated for your tax agent. Our Budget 2027 guide for SMEs covers the tax cut, minimum wage and the E-Commerce Bill alongside these schemes.
Frequently asked questions
Is the Geran Digital PMKS MADANI open?
No. Applications closed effective 6 September 2025, according to the application platform BSN links to. Budget 2027 did not announce a new round.
Is there a new digitalisation grant in Budget 2027?
No general one. The new money is targeted: RM30 million through MDEC for AI adoption, RM142 million for NADI centres and RM10 million for JOM Malaysia.
Does the halal grant cover the full certification cost?
No. It is a matching grant of up to RM5,000, so the government pays part and you pay the rest. The exact share has not been published.
Can MATRADE’s MDG pay for a website or Google Ads?
Not that we could confirm. The MDG reimburses export promotion activities listed in MATRADE’s guidelines. Check the current guidelines before you spend.
Are grants taxable?
It depends on what the grant pays for and its terms. Confirm the treatment with your tax agent before you file.
Sources: Ministry of Finance, Budget 2027 speech; BSN, Geran Digital PMKS MADANI and its application page; MATRADE, Market Development Grant. Checked 18 October 2026.