MIDF Grant: Aerospace and Electrical & Electronic Investment Fund (AEEIF)


  • To spur investment in high technology industries particularly in the Research and Development (R&D) field including Industry 4.0 adaptation in the aerospace and Electrical & Electronic (E&E) industries to achieve the targets set in the 12th Malaysia Plan under the Aerospace Industry Framework and Industry 4WRD initiatives; and 
  • To facilitate aerospace and Electrical & Electronic (E&E) companies in making investments to increase their capacity to become leading manufacturers/ service providers in the global supply chain.

Criteria of Eligible Applicants

  • Applications are open to any aerospace and E&E company in Malaysia incorporated under the Companies Act, 1965/2016.
  • The company must be at least 51% Malaysian owned. 
  • The company must be engaged in the following activities:
    1. Manufacturing; and
    2. Services.

Scope of Grant

The grant is provided to companies in the aerospace and E&E sectors to undertake the following R&D activities:  

  • Pilot plant/ prototype;
  • Pre-clinical testing/ clinical testing/ field trials/ stress test/ user acceptance test;
  • Intellectual Properties (IP);
  • Market testing and evaluation;
  • Regulatory and standards compliance;
  • Special Services;
  • Raw materials/ consumables;
  • Administration; and
  • Technology/ IP Acquisition.

Note: The list above is not an exhaustive list and shall be subject to review from time to time.

The proposed projects must be within the framework of the priority areas as follows

1. Aerospace

– Additive Manufacturing – Bio-sourced Materials
– Cold Spray Process– Bio-Jet Fuel
– Electron Beam Welding – Hydrogen Fuel
– Horizontal Forging – Green Technology
– Digital Connectivity – Electric Aircraft
– Automation and Robotics– Autonomous Flight Systems
– Sensor Technologies– Urban Air Mobility
– Artificial Intelligence – UAV/Drone
– Virtual/Augmented Reality – eVTOLs
– Simulated Data – Satellite/Rocket
– Multiphysics Simulations– Airframe Enhancement
– Advanced MRO Technologies – Aircraft Cabin Parts
– Smart Airport Systems– Aircraft Recycling/Remanufacturing
– Air Traffic/ Radar Systems – Chemical Milling
– Smart Materials

2. Electrical and Electronics (E&E)

(i) Embedded System and IOT

  • Advanced Wireless Communication
  • Data Analytics, Big Data Science
  • Energy System Harvesting, Market Focus – Healthcare, Transportation, Manufacturing, Retail, Smart City, Agriculture
  • Organic, printable electronic
  • Sensors & Sensing
  • Wearables

(ii) IE Design, Test and Validation

  • Advanced Testing (IC/ Board/ SW)- Probe cards, JTAG
  • IC Design Automation (cell library, IP library, Al)
  • UI/UX specific/ defined SoC/IC/FPGA
  • Advance Logic Emulation

(iii) Smart Manufacturing

  • Computer Integrated Manufacturing; Efficient Manufacturing/ Scheduling System
  • Industrial Automation & Robotics
  • Integrated Design to Manufacturing, Supplier in Design
  • Smart Factory, loT in manufacturing
  • Addictive Manufacturing & 3D Printing Technology
  • Connected Supply Chain
  • Low Volume, High Mix (adaptable manufacturing)

The grant shall also include fixed assets acquisition and working capital to support the implementation of the project. However, standalone working capital financing is not allowed.

Limit of Grant Amount per Application


  • Minimum: Ringgit Malaysia One Hundred Thousand (RM100,000) only
  • Maximum: Ringgit Malaysia Forty Million (RM40.0 million) only 


  • Minimum: Ringgit Malaysia One Hundred Thousand (RM100,000) only
  • Maximum: Ringgit Malaysia Twenty Million (RM20.0 million)

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:

  • 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.

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