Malaysian Government Grants

          The incentive schemes administered by the Ministry of International Trade and Industry (MITI) through its agencies includes:

             i Grants                                 i Soft Loans                           i Venture Capital

          In this issue, we will focus on grants relevant to the textile & apparel industry only. Available grants are as follows:

             Grant for Business Planning and Development (ITAF 1)

        Grant for Product and Process Improvement (ITAF 2)

        Grant for Productivity and Quality Improvement and Certification (ITAF 3)

        Market Development Grant (MDG) (Formerly known as ITAF 4)

        Technology Acquisition Fund (TAF)

        Commercialisation of Research and Development Fund (CRDF)

       Other grants not directly relevant to the textile and apparel industry include Engineering Design Grant, Product Development Grant , RosettaNet Grant, Women Entrepreneur Grant.

                                                          Various Types of Government Grants


Eligible Activities


Qualifying Criteria

Funding Unit


Undertake studies in business planning, technology and market development.

 50% matching grants of the project

Maximum grant/company is RM40,000.

   I.     SMEs incoporate under the Companies Act 1965.

II.     A manufacturing company or companies providing manufacturing related services with an annual sales turnover not exceeding RM25 million and with full time employees not exceeding 150.

III.     At least 60%  equity is held by Malaysian.

IV.     Company must be operating in an approved premise. (with business license issued by local authority)

V.     Priority to activities related to manufacturing under PIA, & participated in ILP.


Small Medium Industries Development Corporation (SMIDEC)

Aras 20, West Wing,
Jalan Khidmat Usaha,
Off Jalan Duta,
50480 Kuala Lumpur

Infoline : 1-300-88-1801
Tel: 603- 6207 6000
Fax : 603- 6207 6564
E-mail :


Improve and upgrade existing product, product design and process. For cost of: -
1.   Technical expertise
2.      Acquiring technology & skills
3.      Testing & calibration
4.      Testing materials & equipment
5.      Designing & prototyping

Maximum grant/company is RM500,000.


Productivity and quality improvement. For activity like:-
1.      Quality Development System (5s, QCC, TPM)
2.      Occupational and safety measures
3.      Quality Series: ISO 9000, ISO 14000, ISO 18000
4.      Technical expertise

Maximum grant/company is RM250,000.

Market Development Grant (MDG) 

1. Participation in trade mission

2. Participation at international trade fairs

3. Preparation of promotional items including brochures

4. Promotion of brands overseas

50% matching grant on the approved costs of activities. Maximum grant per company is RM60,000.


GF, Wisma PKNS, Jalan Raja Laut, 50300 Kuala Lumpur.

Tel: 03-2692 8122

Fax: 03-2698 4812






1.      Purchase of High-Tech Equipment & Machinery.


A maximum of 50% of the total cost

- Technology proposed must be on the approved list of high technology as outlined in the Promotion of Investment Act (PIA) 1986 & other strategic technologies as approved by the Government;

- Company is locally incorporated & has at least 51% Malaysian equity/ownership;

- Company must produce evidence of signed technology agreement.


Malaysian Technology Center

University Research Park 43400 Serdang,

Tel: 03-8941 2000

Fax: 03-8941 1100

2.      Technology Licensing.

A maximum 70% of the cost


3.      Acquisition of Patent Right, Prototypes & Design.

4.      Placement of Malaysian in Foreign Technology Based Companies or Institutes. Funding for 3 persons airfare, accommodation & allowance for 3 months.

A maximum of 50% of the total cost or RM30,000, whichever is lower for each person.

5.      Expert Sourcing Programme cost of bringing foreign experts includes professional fees, airfare & accommodation

A maximum of 50% of the total cost or RM30,000, whichever is lower.







4 Phase of Commercialisation of Research and Development Projects:

Phase I: Market Survey & Research

Cost to engage an independent market survey company to conduct the market survey & research

Cost of drafting commercialization strategy plan

Cost to conduct patent search

Phase II: Product/Process Design & Development

Phase III: Standards & Regulatory Compliances & Intellectual Property Protection

Phase IV: Demonstration of Technology

Phase I & Phase IV:
A maximum of 50% or RM50,000 whichever is lower.

Phase II:
i. A maximum of 50% or RM1,700,000 whichever is lower.
ii Most important core  equipment, not exceeding 40% of the approved amount for Phase II.

Phase III:
A maximum of 70% or RM200,000 whichever is lower.

- Company incorporates under the Companies Act 1965.

- At least 60% of the equity held by Malaysians

- The proposed activity must be in the commercialization of tangible and manufacture products.

- The proposed project must be involve a technical collaboration with local universities or institute or R & D company.