8th September 2026 - 7 min read
Starting a tech business takes more than a good idea. Once you have a product to build, test and eventually sell, you’ll need money to get it off the ground, and government-backed funding can be one option for Malaysian startups.
There are several agencies offering funding and support for startups, including Cradle Fund, Malaysia Debt Ventures (MDV), the Malaysian Technology Development Corporation (MTDC) and MRANTI. Each has its own focus, from early-stage grants and business financing to helping companies turn research into products and test them before they reach the market.
For founders, knowing what each agency offers can help you work out which funding or support fits your company.
Cradle Fund Sdn Bhd was set up under the Ministry of Finance in 2003 and now runs under the Ministry of Science, Technology and Innovation (MOSTI). It’s one of the government’s key agencies for startups, and also runs MYStartup and the national startup roadmap.
Cradle runs two programmes under the Cradle Investment Programme (CIP). CIP SPARK is a conditional grant of up to RM150,000 over 18 months for the early stages of turning an idea or prototype into a minimum viable product. It’s open to both individuals and registered companies, so you can apply before you’ve incorporated.
CIP SPRINT provides up to RM600,000 over 18 months for commercialisation, helping a working product reach the market and grow sales. SPRINT is only open to companies (Sdn Bhd), which must be seven years old or younger, have accumulated revenue of no more than RM5 million, and have no other entity holding more than 25% of its shares.
If the project is terminated, Cradle can require the CIP SPARK grant to be repaid. The CIP SPRINT grant on the other hand has a convertible element, which means Cradle can convert it into an ownership stake in your company under certain terms. At least 60% of the CIP SPRINT grant has to go towards activities that help bring the product to market, with the rest going towards product development.
To apply, you submit a pitch deck through the Cradle website using their template. Shortlisted applicants get called to a pitching session, and Cradle estimates roughly two to four months from pitch to approval if your documents are in order.
MDV is different from the other three because it provides financing rather than grants. Set up in 2002 and owned by the Minister of Finance Incorporated (MOF Inc), it provides loans to technology companies that may have difficulty getting financing from commercial banks. It offers both conventional and Shariah-compliant financing.
The product most relevant to startups is venture debt, which can provide up to RM10 million through term or revolving loans with a tenure of 24 to 60 months. These facilities often start with a profit-only period before you begin repaying the principal. Venture debt can give a startup more time before it needs to raise money again, without giving away more shares, which is why MDV expects you to have raised at least one round of venture capital already. You’ll also need to be incorporated in Malaysia with a minimum paid-up capital of RM100,000 and at least five employees.
MDV’s financing is generally more suited to companies that already have revenue or committed contracts to support the repayments. You can start through the MDV website, where the team will review your project during a pre-assessment and advise on the financing structure before you submit a formal application.
The Malaysian Technology Development Corporation (MTDC) has been around since 1992 and is owned by Khazanah Nasional, the sovereign wealth fund. It helps companies turn research and new technology into products they can sell, particularly when they have developed and own the technology themselves.
MTDC offers both funding and grants. Its Business Start-up Fund provides up to RM5 million, or 90% of project costs, through interest-free convertible promissory notes. This means the funding can later be converted into an ownership stake in the company.
It comes with an 18-month grace period and a five-year repayment period. MTDC also provides commercialisation grants covering up to 70% of technology costs and 50% of equipment costs, capped at RM4 million.
MTDC is also one of the agencies administering the National Technology and Innovation Sandbox (NTIS) fund, which supports companies testing products in a live environment, with funding of up to RM4 million for commercialisation.
MTDC tends to favour applicants with a genuine research or innovation angle rather than companies simply adopting existing digital tools. It may be a stronger fit if you’ve developed your product through research and have technology or intellectual property of your own.
You apply through MTDC directly, choosing the programme that best fits what you’re building and where the project is at.
MRANTI, the Malaysian Research Accelerator for Technology and Innovation, runs under MOSTI and focuses on infrastructure and support alongside direct funding.
MRANTI Park in Bukit Jalil offers labs, prototyping facilities and dedicated testbeds for things like drones, robotics and AI. These can be useful for a hardware or deep-tech startup that needs somewhere to build and test a physical product.
On direct funding, MRANTI runs Dana Pengkomersialan, a commercialisation grant of up to RM1 million for the final stretch between a finished R&D output and actual market entry. It comes with a structured 12-month accelerator, plus a further 24-month extension, that pairs the funding with mentorship and market-access support.
MRANTI also leads the National Technology and Innovation Sandbox (NTIS), which helps companies test new products in real-world settings. Some of the funding for these projects is provided through agencies such as MTDC. This makes MRANTI a useful option for startups that need somewhere to test a product, get support with approvals or bring it to market.
To apply for Dana Pengkomersialan, you go through MRANTI’s portal, complete a pre-screening assessment to check eligibility, and then move to a full application if you pass.
| Agency | What It Funds | Typical Stage | Funding |
| Cradle Fund | Early-stage tech products | Very early-stage to early commercialisation | RM150,000–RM600,000 grant |
| MDV | Financing for technology companies | Revenue-generating or venture-capital-backed | Up to RM10 million in financing |
| MTDC | Research and new technology | Developed research to commercialisation | Up to RM4–RM5 million in grants or convertible notes |
| MRANTI | Bringing products to market, testing and facilities | Prototype to market entry | Up to RM1 million grant |
If you’re still developing an idea or working product and haven’t started making money yet, Cradle’s CIP SPARK is a natural place to start because it’s the only one of the four open to individuals who haven’t incorporated yet. Once you have a working product and are ready to sell it, CIP SPRINT and MRANTI’s Dana Pengkomersialan can both be options, with MRANTI also offering accelerator and testbed access.
If you’ve developed your product through research and own the technology behind it, MTDC may be a better fit. If you’re already generating revenue or have signed contracts and need financing to deliver them, MDV may be more relevant.
There is some overlap between the programmes, particularly when a startup is moving from developing a product to selling it. Cradle, MTDC and MRANTI all support commercialisation, while MTDC and MRANTI are both involved in the National Technology and Innovation Sandbox (NTIS). You can also apply to more than one programme and use different grants for different parts of the business, as long as you meet each programme’s requirements.
*Figures current as of September 2026. Government allocations and programme windows change from one budget year to the next, so check each agency’s own site before building an application around a number here.
Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.
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