Digital Content Grant (DCG): The Development Grant

The Development Grant is a type of grant (Type B) under the Digital Content Grant (DCG) introduced by the Malaysia Digital Economy Corporation (MDEC). It focuses on the development stage of the Project, where it involves idea generation, production design, market research and marketing analysis. The development stage is defined as the planning phase of the Project.

This includes development of the idea into working script, research and development (R&D) of the concept, business plans, and preparation of documents which are investor-friendly.

SCOPE OF PROJECTS

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;
• Animation test, clip test, visual test, prototype test (3 to 5 minutes pilot pitching);
• Production pitching materials; and/or
• Other activity and recommended by GRC and approved by the approval authority in accordance with MDEC Discretionary Authorization Limit (DAL).

ALLOWABLE PROJECT DURATION

Up to 9 months.

CEILING AMOUNT

RM 500,000.00

GRANT ASSISTANCE

Up to 100% of project cost or the ceiling.

ELIGIBILITY CRITERIA

1. In operation for at least one (1) year as of the date of submission.
2. Local and registered company
   • Incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016;
   • Active and minimum of 51% equity held by Malaysian(s) as per shareholding structure in SSM; and
   • Minimum issued and paid-up capital of RM20,000.00.
3. The Applicant/Recipient is not the subject of liquidation/winding up order and has no going concern issues*.
   [*If the Applicant/Recipient has a going concern issue (as reported in their latest audited account), the Applicant/Recipient is to provide a letter of undertaking by the shareholder and/or authorised director (whichever applicable as per the Applicant/Recipient’s level of authority) of the Applicant/Recipient’s company to undertake that in the event that their application is approved, the Applicant/Recipient shall perform its obligations under the terms and conditions to be issued by MDEC and the said shareholder and/or authorised director to provide financial support to the company to enable the company to meet its obligations and/or liabilities under the terms and condition.]
4. Company revenue not more than RM5 Million.
5. 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.
6. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are under any litigation or legal proceeding. i.e. litigation/legal proceeding relating to criminal offences, offences under any applicable laws, insolvency, or cases related to MDEC.
7. Director(s) and shareholder(s) of the eligible Applicant/Recipient to declare if they are blacklisted by Malaysia Anti-Corruption Commission (MACC).
8. Applicant/Recipient with common shareholder(s) can only apply for one (1) grant per one (1) project administered by MDEC at any one time (this requirement is not applicable to venture capital investors and registered market operator e.g. Equity Crowdfunding Platforms).
9. (a) If the company previously has received any MDEC/government grant*, the Applicant/Recipient must:
   • Demonstrate the completion of the funded project(s); and
   • Declare any notice of non-compliance/breach being recorded during the period of the funded project(s).

9. (b) If the Applicant/Recipient currently has on-going grant with other government agencies, Applicant/Recipient to prove that the project is different (not overlap with the proposed project under MDEC’s grant) and has no non-compliance/breach issues being recorded during the period of the funded project(s) (via a letter from grant awarding entity or equivalent).
   *Limited to 5 years records from the of approval of the respective Grant.
10. The business nature of the Applicant/Recipient – Animation, Games Development, Digital Comic and Creative Technology related services include but not limited to multi-sensory experiences made using computer graphics, video production, digital cinematography, virtual reality, augmented reality, video editing etc.
11. Not a broadcaster, television networks, OTT platforms or media company.
12. The Applicant/Recipient must be MSC Malaysia status company or Malaysia Digital (MD) status company. However, if the Applicant/Recipient is not MSC Malaysia Status company or Malaysia Digital (MD) Status company, the Applicant/Recipient must apply for Malaysia Digital (MD) Status during the Availability Period.

Read more about Digital Content Grant (DCG), the types of grants under it, and its application process here.

Disclaimer: The information stated in this article is the most accurate and best information available as of 24/05/2023.

Source: MDEC

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