SC Invites Applications for Digital Innovation Fund (DIGID)

1.   Introduction of DIGID 

The Securities Commission Malaysia (“SC”) had in October last year announced several digital-related initiatives to bolster Malaysia’s capital market, including the establishment of a RM30 million Digital Innovative Fund (“DIGID”) to co-fund innovative projects that demonstrate the use of technology to allow new and competitive propositions in Malaysia’s capital market.  

The objectives of DIGID are to:

(a) assist and catalyse smaller capital market players in their digital transformation journey; 

(b) spur further innovation in capital market products and services; 

(c) drive further efficiency and productivity in capital raising and investment activities; and

(d) spur greater inclusion to serve markets or segments which are underserved.

2.    Application for DIGID

SC-regulated capital market players with a headcount of up to 75 staff or revenue up to RM20 million are eligible to submit applications for DIGID from 1 January 2023 to 30 November 2023, or until funds are fully utilised (whichever is earlier).

3. Eligible projects

Only projects which intend to adopt technology and digital solutions that: 

(a) contribute towards novel or improved capital market products and services in Malaysia; and/or

(b) address inefficiencies and pain points faced in any of the following capital market focus areas:

• trading or post-trade;
• portfolio development and management;
• financial planning / investment advisory;
• customer profiling and analysis;
• valuation and onboarding;
• due diligence and credit scoring;
• other supporting capital market activities approved by the SC

are eligible to be funded by DIGID.

4. Funding granted to successful DIGID applicant

DIGID will be administered on a co-funding basis, up to 70% of the approved qualifying expenses per project. The total amount of disbursements per project will be capped at RM500,000.

The funds will be disbursed on a reimbursement basis in accordance with the following:

DIGID recipients are required to submit three (3) agreed project milestones reports and relevant supporting documents prior to each respective tranche disbursement (in such form and manner as specified by the SC).

For more details on DIGID and to access a copy of the relevant application form, please visit:

https://www.sc.com.my/development/digital/digid.