Malaysia Digital Economy Corporation’s Digital Content Grant Program

Deadline: 1-Jun-23

Applications are now open for the Digital Content Grant (DCG) Program to support local creative content companies in developing, producing, and marketing their digital content in animation, digital games, digital comic and creative technology content.

Purpose

The Purpose of This Grant is to:

• Develop sustainable ecosystems for job creation (including female empowerment in the workplace), business planning, and market expansion.
• Enhance local creative, technical and human capital competencies by leveraging on international partners.
• Create Malaysian-owned or Malaysian-shared intellectual property.
• Quality IP is developed and monetised to its maximum potential from development to commercialisation.

Grant Types

• The Mini Project Grant
  • Focuses on the development stage of the project involving idea generation and production design for the studios in operation less than 5 years.
    • Allowable project duration: Up to 6 months.
    • Ceiling Amount: RM 150,000.00
  • Eligibility
    • Company
      • Incorporated in Malaysia not more than 5 years as of the date of submission under the Companies Act 1965 or Companies Act 2016; and
      • Active and a minimum of fifty-one percent (51%) equity held by Malaysian(s) as per shareholding structure in SSM.
    • Enterprise / Sole Proprietorship / Partnership
      • Active and a minimum of fifty-one percent (51%) ownership belongs to Malaysian(s)
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare any business relationship/family relationship with any of MDEC’s director or employee.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. ie. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
  • Example of Activities
    • Research and Development (“R&D”) on concept, storyline, pre-development;
    • Script development;
    • Concept development;
    • Cost of optioning (to acquire the rights – book author/publisher);
    • Character and environment development;
    • Game play, interactive simulation R&D and design;
    • Prototype R&D and design;
• The Development Grant
  • Focuses on the development stage of the project involving idea generation and production design for the companies in operation for more than 1 year.
    • Allowable project duration: Up to 9 months.
    • Ceiling Amount: RM 500,000.00
  • Eligibility
    • In operation for at least one (1) year as of the date of submission.
    • Local and registered company
      • Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
      • Active and minimum of fifty-one percent (51%) equity held by Malaysian(s) as per shareholding structure in SSM; and
      • Minimum issued and paid-up capital of RM20,000.00.
    • Company revenue not more than RM5 Million.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare any business relationship/family relationship with any of MDEC’s director or employee.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. ie. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
  • Example of Activities
    • Research and Development (“R&D”) on concept, storyline, pre-development;
    • Script development;
    • Concept development;
    • Cost of optioning (to acquire the rights – book author/publisher);
    • Character and environment development;
    • Game play, interactive simulation R&D and design;
    • Prototype R&D and design;
• The Production Grant
  • Focuses on the production stage of the project which involves the activity of creating, assembling, aggregating and generally producing or generating content.
    • Allowable project duration: Up to 18 months.
    • Ceiling Amount: RM 2,000,000.00
  • Eligibility
    • In operation for at least one (1) year as of the date of submission.
      • Local and registered company
      • Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
      • Active and minimum of fifty-one percent (51%) equity held by Malaysian(s) as per shareholding structure in SSM; and
      • Minimum issued and paid-up capital of RM50,000.00.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare any business relationship/family relationship with any of MDEC’s director or employee.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. ie. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
  • Example of Activities
    • Production – Animation, VFX, film shooting, game level development, content development, interactive development, simulator;
    • Post-production – editing, music scoring, audio, sound effect, voice over, film transfer, compositing; and/or
    • Other activity identified and recommended by GRC and approved by the approval authority in accordance with MDEC Discretionary Authorisation Limit (DAL)
• The Marketing and Commercialisation Grant
  • Financial assistance provided to IP creators with a market-ready product.
    • Allowable project duration: Up to 9 months.
    • Ceiling Amount: RM 300,000.00
  • Eligibility
    • Incorporated for at least one (1) year as of the date of submission.
      • Local and registered company
      • Incorporated in Malaysia under Companies Act 1965 or the Companies Act 2016;
      • Active and minimum of fifty-one (51%) equity held by Malaysian(s) as per shareholding structure in the SSM; and
      • Minimum issued and paid-up capital of RM20,000.00
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare any business relationship/family relationship with any of MDEC’s director or employee.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. ie. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
    • Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
  • Example of Activities
    • Cost of dubbing to other languages;
    • Production of marketing materials – printing brochures, sales kit, flyer, bunting, mascot game trailer etc.;
    • IP extensions such as animation, apps games, comic, artbook, related media (soundtrack, songs) developed as marketing tools;
    • IP registration in Malaysia and outside Malaysia — trademark and copyright;
    • Media buy cost – ie airtime, print advertisements, digital or social streamers, influencers, etc;
    • PR & communications — branding and product placement strategy;
    • Festivals and awards related cost;

Terms & Conditions

• Each applicant must meet all the Eligibility Criteria for each type of grant
• Each applicant is allowed to apply only for 1 (one) project for all categories (Animation, Interactive Media and Innovation in Creative Technology)
• For Production Fund application, applicant must already have animation teaser/trailer, animation episode, developed game/product prototype or game/product demo.

Specific Conditions

• The Grant Recipient shall create a minimum number of new job opportunities in the production and development component process of the project (“Job KPI”) as may be specified by MDEC. The said new jobs must be filled by Malaysians;
• The Grant Recipient shall ensure that at all times during the Availability Period more than Fifty Percent (50%) of the team involved in the project are Malaysians;
• If outsourcing cost is involved, MDEC has the right to conduct background checking to the outsource parties to ensure there is no conflict of interest. Outsourcing parties MUST not be related with the applicant (not including venture capital investors and registered market operator, eg ECF platforms).
• Outsourced work should not exceed twenty percent (20%) of the Project cost or Grant amount (whichever is lower).

Evaluation Criteria

• Strength of the Applicant’s capability to complete the Project;
• Strength of the Project being in line with the objective of the Grant(s);
• Strength of the Project from the project output, outcome perspective;
• Strength of the Project being completed given the resources allocated;
• Strength of the sources of funds available to fund the balance of the Project cost and Applicant’s funding commitment to the Project;
• Strength of the commercial viability of the Project;
• Merit of Applicant’s financial stability i.e. cashflow, profitability of the company etc.; and
• Merit of the overall proposed Project.

For more information, visit Malaysia Digital Economy Corporation (MDEC).