Digital Content Grant (DCG): The Mini Project Grant

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

ELIGIBLE PROJECT CATEGORIES	ALLOWABLE PROJECT DELIVERABLES
1. ANIMATION (Animated Series, Animated Feature Film, Short Animated Film)	(1) Script; (2) Character and environment design; (3) Animation test or visual test clips; and/or (4) Production pitching materials.
2. DIGITAL GAMES	(1) Game concept design; and (2) Game prototype test; and/or (3) Production pitching materials.
3. CREATIVE TECHNOLOGY (Metaverse, Extended Reality [Virtual Reality/Augment Reality/Mix Reality])	(1) Prototype design; and (2) Prototype test; and/or (3) Production pitching materials.
4. DIGITAL COMIC (Full Story Comic, Comic Anthology)	(1) Script; (2) Character and environment design; and (3) Digital Comic samples; and/or (4) Production pitching materials.

Table 1. Scope of eligible projects for Mini Project Grant under Digital Content Grant (DCG)

EXAMPLE OF ACTIVITIES

Research and Development (“R&D”) on concept, storyline, and pre-development;
Script development;
Concept development;
Cost of optioning (to acquire the rights – book author/publisher);
Character and environment development;
Gameplay, interactive simulation R&D and design;
Prototype R&D and design;
Animation test, clip test, visual test, prototype test (3 to 5-minute pilot pitching);
Production pitching materials; and/or
Other activity identified and recommended by GRC and approved by the approval authority in accordance with MDEC Discretionary Authorization Limit (DAL).

ALLOWABLE PROJECT DURATION

Up to 6 months.

CEILING AMOUNT

RM 150,000.00

GRANT ASSISTANCE

Up to 100% of project cost or the ceiling amount, whichever is lower.

ELIGIBILITY CRITERIA

(a) Company

Incorporated in Malaysia not more than five (5) years as of the date of submission under the Companies Act 1965 or Companies Act 2016; and
Active and a minimum of 51% equity held by Malaysian(s) as per shareholding structure in SSM.

(b) Enterprise / Sole Proprietorship / Partnership

i. Registered in Malaysia not more than five (5) years as of the date of submission under the Registration of Business Act 1956 or The Trades Licensing Ordinance 1948 (Sabah) or The Businesses, Professions and Trading Licensing Ordinance (Sarawak); and
ii. Active and a minimum of 51% ownership belongs to Malaysian(s)

Registered in Malaysia not more than five (5) years as of the date of submission under Limited Liability Partnerships Act 2012; and
Active and a minimum of 51% ownership belongs to Malaysian(s).

The Applicant/Recipient is not the subject of liquidation/winding up/bankruptcy order and has no going concern issue*.
[*If the Applicant/Recipient has 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.]
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. i.e. 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).
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).
(a) If Applicant/Recipient previously has received any MDEC/government grant*, the Applicant/Recipient has:

Demonstrated the completion of the funded project(s); and
Declared any notice of non-compliance/breach being recorded during the period of the funded project(s).

(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.
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.
Not a broadcaster, television networks, over-the-top (OTT) platforms or media company.

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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