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RESEARCH & DEVELOPMENT AND INNOVATION

Malaysia supports innovation-led growth through generous tax deductions and targeted R&D commercialisation grants.

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Programmes

R&D Double Deduction

Type:
Tax Deduction

Agency:
MIDA / LHDN

Target Group:
SME

Description:
Double deduction on qualifying R&D expenditure for approved research projects undertaken in Malaysia.

Sector:
All sectors (R&D)

Eligibility:
SMEs, Mid‑Tier, Large companies

Amount / Benefit:
200% deduction on eligible R&D expenditure

How to Apply:
Obtain project approval from MIDA; claim via tax return.

CIP SPARK (Cradle Fund)

Type:
Grant

Agency:
Cradle Fund

Target Group:
Micro

Description:
Pre‑commercialisation grant for tech startups and early‑stage SMEs with innovative ideas, focusing on technology‑driven solutions.

Sector:
Tech startups

Eligibility:
Micro enterprises, SMEs (startups)

Amount / Benefit:
Up to RM150,000

How to Apply:
Apply via the Cradle Fund portal.

CIP SPRINT (Cradle Fund)

Type:
Grant

Agency:
Cradle Fund

Target Group:
SME (Growth stage)

Description:
Commercialisation grant for tech startups transitioning from prototype to market, including support for go‑to‑market activities.

Sector:
Tech startups

Eligibility:
SMEs (growth stage)

Amount / Benefit:
Up to RM500,000

How to Apply:
Apply via the Cradle Fund portal.

National Spin‑Off Fund

Type:
Grant

Agency:
Ministry of Finance (MOF)

Target Group:
Research Institutions / Spin‑Offs

Description:
A grant supporting the commercialisation of R&D conducted by public universities through the creation and growth of spin‑off companies.

Sector:
University R&D commercialisation

Eligibility:
Research institutions, university spin‑off companies

Amount / Benefit:
RM10 million total allocation (Budget 2026)

How to Apply:
Apply through university technology transfer offices.

Accelerated Capital Allowance (Automation)

Type:
Tax Allowance

Agency:
LHDN / MIDA

Target Group:
SME

Description:
Accelerated capital allowance on qualifying automation expenditure, providing enhanced tax relief for investments in automation.

Sector:
Manufacturing, Services

Eligibility:
SMEs, Mid‑Tier, Large companies

Amount / Benefit:
200% capital allowance on the first RM10 million qualifying expenditure per year of assessment (2023–2027)

How to Apply:
Claim via tax return; qualifying assets must meet eligibility criteria.