Key Points for MSME Digital Grant 2025
- Grant value: 50% of eligible invoice (max RM5,000) per MSME.
- Eligibility: 60% Malaysian-owned, registered, ≥6 months operation, ≥RM50k turnover, no prior digital grant.
- Digital areas: digital marketing/sales, cashless payment & e-POS, HR payroll & CRM, ERP/accounting & tax, digital signature, cybersecurity, IoT/intelligent systems, artificial intelligence, and e-invoice.
- Application: Apply via an approved service provider. Provider submits to BSN. After approval you pay 50%; the grant pays the other 50%.
Comprehensive Guide to MSME Digital Grant 2025
The MSME Digital Grant 2025, officially known as Geran Digital PMKS Madani, is a Malaysian government initiative under the MADANI Budget 2025, with a RM50 million allocation to support Micro, Small, and Medium Enterprises (MSMEs) in adopting digital solutions.
Administered by the Ministry of Finance (MOF), Malaysia Digital Economy Corporation (MDEC), Bank Simpanan Nasional (BSN), and the Malaysian Communications and Multimedia Commission (MCMC), the grant covers 50% of approved digital service costs, up to RM5,000 per company.
Eligible MSMEs can use it for many categories of technology – including ERP/accounting systems, e‑Point-of-Sale, HR/CRM, digital marketing, cybersecurity, IoT/smart systems, and now e-invoicing (as explicitly listed by MDEC)
In practice, this means your business can get subsidized digital tools to streamline operations and meet new regulatory requirements, like the Inland Revenue’s e-invoice mandate which this article will be focus more on.
MSME Digital Grant 2025 Covered Digitalisation Areas:
- Digital Marketing / Sales
- Digital Payment (Cashless) / Electronic Point of Sales (e-POS)
- HR Payroll System / CRM
- ERP / Accounting & Tax
- Digital Signature
- Cybersecurity
- Internet of Things (IoT) / Intelligent Systems
- Artificial Intelligence
- E-Invoice
MSME Digital Grant 2025 Eligibility Criteria
To qualify for the MSME Digital Grant 2025, businesses must meet the following criteria:
| Criteria | Details |
| Ownership | At least 60% owned by Malaysian citizens. |
| Registration | Registered with Companies Commission of Malaysia (SSM), Local Authorities (PBT), or Malaysia Co-operative Societies Commission (SKM). |
| Operation Duration | In operation for at least six months. |
| Annual Turnover | Minimum average annual sales turnover of RM50,000. |
| Previous Grants | Must not have received prior Digitalisation Matching Grants, except for e-invoicing or AI solutions (double confirm with DP), where previous recipients can reapply. |
Additional Notes:
- MSMEs with an annual turnover below RM500,000 are exempt from mandatory e-invoicing but can apply for the grant to adopt these systems voluntarily.
- Applicants cannot apply for both the MSME Digital Grant and the Penjaja Digital Grant (a RM5 million allocation for street vendors).
Application Process for MSME Digital Grant 2025
The application process for the MSME Digital Grant 2025 involves coordination with MDEC-registered Digitalisation Partners (DPs). Below is a detailed step-by-step guide, adapted from multiple sources.
- Verify Eligibility:
- Confirm that your business meets all eligibility criteria (see above).
- Ensure you have not received prior digitalization grants.
- Prepare Required Documents:
- Completed MSME Digital Grant application form (available through DPs usually).
- Copy of identity card or passport of director(s), partner(s), or proprietor(s).
- Business registration documents (SSM business profile, SKM registration certificate, or equivalent).
- Latest audited accounts, management accounts, or two-month bank statements.
- Quotation or invoice from an MDEC-registered DP for the selected digital services.
- Any additional documents as required by the bank or platform.
- Select a Digitalisation Partner (DP):
- Choose an MDEC-registered DP offering e-invoicing or accounting system services.
- Obtain a quotation for the desired services, ensuring they are eligible for the grant.
- Submit Application:
- Contact the chosen DP, who most likely will be assisting in submitting the application to BSN.
- The DP submits the application and supporting documents to the bank on your behalf.
- Most likely through Funding Societies platform.
- Await Approval:
- The approval process typically takes up to three working days.
- You will receive a notification via email regarding the application status.
- Most likely through Funding Societies platform with payment instruction.
- Make Payment:
- Upon approval, pay the remaining invoice amount (after deducting the grant) within 14 days as instructed.
- Failure to pay within 14 days may result in grant cancellation, requiring reapplication.
- Service Activation:
- After payment, the DP activates the digital services, typically within three working days.
- The DP submits a claim form and proof of delivery to receive the grant amount (50% of the invoice or up to RM5,000) from the authorities.
Additional Notes:
- Funding Societies seem to still be the main application platform for MSME Digital Grant 2025 at MSME Digital Grant Madani
- Currently is closed with notice confirming application of Digital Grant will begin on 1st August 2025.
Recommended Service Providers
The following MDEC-registered Digitalisation Partners offer e-invoicing and accounting solutions eligible for the MSME Digital Grant 2025:
| Provider | Services Offered | Website |
| AutoCount | LHDN-compliant e-invoicing (standard, consolidated, self-billed invoices) and accounting software. | AutoCount |
| Bukku | Cloud-based accounting with LHDN e-invoice-ready plans (Grow, Prime, Elite). | Bukku |
| SQL Account | Comprehensive accounting software, supporting e-invoicing features. | SQL Account |
| QNE Software | AI-driven cloud accounting software, including e-invoicing. | QNE Software |
| AISoftBox | e-Invoicing Middleware with Automation, POS (Point of Sales) App & Accounting FMS | AISoftBox |
Additional Notes:
- MSMEs should verify with providers to ensure their services are eligible for the grant.
- Other providers may offer ERP systems with e-invoicing integration, but eligibility should be confirmed with MDEC or the provider.
- List of panels listed by MDEC (abit outdated from BSN, best confirm with DP of choice.
Frequently Asked Questions (FAQs)
It is a government initiative providing up to 50% or RM5,000 of the invoice amount to support MSMEs in adopting digital solutions:
- Digital Marketing / Sales
- Digital Payment (Cashless) / Electronic Point of Sales (e-POS)
- HR Payroll System / CRM
- ERP / Accounting & Tax
- Digital Signature
- Cybersecurity
- Internet of Things (IoT) / Intelligent Systems
- Artificial Intelligence
- E-Invoice
MSMEs that are at least 60% Malaysian-owned, registered with SSM/PBT/SKM, operational for at least six months, with a minimum annual turnover of RM50,000.
Previous grant recipients are not eligible unless applying for e-invoicing or AI solutions. (Best double confirm with DP)
Services include digital marketing, e-POS systems, HR payroll systems, CRM, ERP, accounting and tax software, digital signatures, IoT, and cybersecurity, also on e-invoicing.
Contact an MDEC-registered DP, obtain a quotation, and submit the application through the DP, often with DP assistance.
Application form, copy of IC/passport, business registration documents, financial statements or two-month bank statements, and a quotation from the DP.
Typically, up to three working days.
Yes, up to three different digital services.
Generally, no, but those applying for e-invoicing or AI solutions seem like can reapply for those services type. Do double confirm with the DP on this better.
The grant covers 50% of the invoice or up to RM5,000, paid directly to the DP after service delivery.
Being a past grant recipient (unless eligible), incomplete or incorrect documentation (e.g., incomplete SSM profile, unclear/watermarked IC copy), or not meeting eligibility criteria.
Application Start Date and Availability
MSME Digital Grant 2025 seem to have started around 17 July 2025. The grant is allocated on a first-come, first-served basis until the RM50 million budget is exhausted.
Update: Most DP started gathering interest on 17 July 2025, while launch supposed to be on 20 July 2025. However, currently gotten news it might have been delayed to 1 August 2025.
Our Recommendations
The MSME Digital Grant 2025 offers a significant opportunity for Malaysian MSMEs to adopt e-invoicing and accounting systems, ensuring LHDN compliance.
By partnering with MDEC-registered providers like AutoCount, Bukku, SQL Account, QNE Software, AISoftBox and others verified DP, MSMEs can leverage up to RM5,000 in funding. Early submission is crucial due to the first-come, first-served nature of the grant.
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