MIDA Domestic Investment
Accelerator Fund (DIAF)
ESG Grant for SMEs
About MIDA Domestic Investment Accelerator Fund (DIAF) – ESG Grant
DIAF – ESG Grant is a matching grant supporting Malaysian-owned SMEs and Mid-Tier Companies in transitioning to ESG practices.
This is a matching grant of up to RM500,000 for ESG adoption, with the funding ratio of 50:50. The grant covers ESG certification, carbon reporting, ESG systems/software, disclosures, etc.
Eligible Criteria
Who can apply
- Companies incorporated under Companies Act 2016
- At least 51% Malaysian-owned
- In operation for ≥ 3 years
- Must have a valid business licence
Sectors covered
- Manufacturing (with MITI manufacturing licence or exemption)
- Selected services: Hotel & tourism, healthcare, education, oil & gas services, global hub services, R&D, logistics, plus others (shipbuilding, green tech, sterilisation, digital infra, aerospace MRO).
Company size
- SME
- Manufacturing:
Turnover ≤ RM 50m OR ≤ 200 employees - Services:
Turnover ≤ RM 20m OR ≤ 75 employees
- Manufacturing:
- Mid-Tier Company (MTC)
- Manufacturing:
Turnover RM 50m – RM 500m - Services:
Turnover RM 20m – RM 500m
- Manufacturing:
NOT ELIGIBLE IF:
More than 20% owned by PLC (main board), MNC, GLC, GLIC, MOF Inc, or stateowned enterprise
Eligible Expenditures Covered
- Supports costs related to validation, verification, and/or certification for ESG adoption.
- Tracks carbon emissions and ESG disclosures.
- The first year’s subscription of system/software for data collection and tracking of ESG adoption and GHG emissions.
Application Flow
1.Self-Assessment
Complete ESG self assessment on https://www.mida.gov.my/forms-and-guidelines/grants/
2. Engage Service Providers
Obtain quotations from certified/qualified vendors for eligible expenditures.
3. Submit Application
- Fill out form on https://investmalaysia.mida.gov.my/
- Attach self-assessment report and vendor quotations
4. Pay Processing Fee
Pay non-refundable RM3,000 fee via MIDA Payment Channel
5.Receive Acknowledgement
Get Acknowledgement Letter from MIDA upon submission.
6. Receive Offer and Sign Agreement
- Successful applicants get Offer Letter and grant agreement.
- Sign and return grant agreement within 30 days.
7.Execute Project and Reassessment
- Start project within 12 months of Acknowledgement Letters.
- Redo ESG self-assessment after project completion.
8. Claim Disbursement
Submit grant claims for approval and disbursement.
Common Q&A
1. Are there any charges to apply for this grant?
Yes, a non-refundable processing fee of RM3,000 is chargeable for each application.
2. What is the procedure to claim this grant? Do SMEs need to pay upfront for the expenses?
Applicants must pay expenses upfront and submit grant claims for approval and disbursement.
3. What expenses can be claimed under DIAF?
Expenses related to validation, verification, and/or certification for ESG adoption, tracking carbon emissions and ESG disclosures, and the first year’s subscription of system/software for data collection and tracking of ESG adoption and GHG emissions can be claimed.
4. What are the benefits of ESG reporting for SMEs?
ESG reporting can offer strategic advantages such as enhanced reputation, improved access to capital, effective risk management, cost savings, market differentiation, stakeholder engagement, and compliance with regulations.
Eco Sentido’s Services Eligible for DIAF ESG Grant
- ESG Adoption via Eco Office / Eco Hotel / Eco Factory certification
- Life Cycle Assessment (LCA) analysis for Product Carbon Footprint
- Organisation Carbon Footprint Management Platform subscription
- Product Carbon Footprint Management Platform subscription
- Carbon Footprint (CFP) analysis and verification/validation
- ESG Management Platform subscription
- ESG/Sustainability Reporting
- Sustainability Reporting Assurance Service
- Green Event Carbon Footprint (CFP) Management
- Certification (e.g., ISO 14001, ISO 27000, ISO 45001, ISO 37001, SIRIM55, B Corp, cosiri, FSC, PEFC, etc.)
- Energy Efficienty Assessment and many more….
