MIDF Grant: Matching Grant For Bumiputera Aerospace SMEs


  • To strengthen the supply chain as well as to develop Bumiputera Aerospace SMEs to drive comprehensive and balanced growth in the Malaysian aerospace industry;
  • To transfer high contract values of work packages and services; and
  • To help Bumiputera Aerospace SMEs grow their businesses, enhance the Malaysian aerospace ecosystem as well as to attract new foreign investment to the country

Criteria of Eligible Applicants

  • Applications are open to any Bumiputera Aerospace SMEs in Malaysia incorporated under the Companies Act 1965/2016.
  • The company’s share ownership must be at least 51% Bumiputera owned. 
  • The company must be engaged in the following activities:
  • Manufacturing; and
  • Services

Scope of Grant

The grant is provided to Bumiputera SMEs in the aerospace sector within the framework of the priority areas as follows:

  • Technical training of Malaysians for new projects;
  • R&D which covers jigs & fixtures design fabrication, first article, raw material, engineering wages etc.;
  • CAPEX for new machinery/ equipment/ tooling/ jigs & fixtures/ mould & die/ IT hardware/ software/ other related expenses; 
  • Specific customer’s approval on processes; and
  • First product qualification & approval; accreditation/ certification/ licensing.

Note: The list above is not an exhaustive list. MITI has the prerogative to include any other priority areas that it deems appropriate. 

Eligible Expenditures

Eligible expenditures refer to the overall proposed Project within the framework of the priority areas specified in the Scope of Grant above.
Non-eligible expenditures:

  • Purchase or rental of land / building / office;
  • Maintenance and repair costs including renovation of premise;
  • Wages paid to employees;
  • Employee benefits programmes;
  • Legal and stamp duty fees;
  • Insurance
  • Collateral or loan including its interest paid for purpose other than the approved project scope;
  • Office expenses and supplies including general purpose computers & peripherals and mobile phones;
  • Utility expenses; and
  • Advertising and marketing expenses

Concept of Grant

The Grant will be given on a matching basis of up to a maximum of 80% based on eligible expenditures, subject to maximum of RM2,500,000/-. 

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