Domestic Investment Accelerator Fund for ESG adoption (DIAF-ESG)

Horwath HTL summary

A matching grant for Malaysian-owned SMEs and mid-tier companies adopting recognised environmental, social and governance practices. Hotels and tourism services are expressly included.

Eligibility

SMEs and mid-tier companies that have operated for at least three years, have at least 51% effective Malaysian equity, hold a valid local-authority business licence and conduct an eligible activity. Selected services explicitly include hotel and tourism businesses.

The administering body decides eligibility and support. Check the official programme against your organisation and project before making commitments.

Project timing in the recorded terms

The recorded terms require an application before the project starts.

Support

A 50:50 matching grant reimbursing up to 50% of eligible expenditure, capped at RM500,000 per company, subject to available funds and MIDA assessment.

Maximum support rate recorded

50%

Maximum cap recorded

RM500,000

Application timing

Rolling application; date recorded 31 October 2026

Why a hotel might use it

sustainability, ESG adoption, reporting, certification.

Critical conditions

• MIDA must receive the application by 31 October 2026, subject to the remaining allocation.
• Complete MIDA's ESG self-assessment before applying. Companies with more than 20% ownership by specified listed companies, multinationals, government-linked or government-owned entities are not eligible.
• The project may start only after MIDA issues its acknowledgement letter. Earlier expenditure is not eligible, and the approved project must be completed within 12 months.
• Eligible costs include ESG validation, verification and certification, emissions or disclosure tracking, first-year system or software costs, and related ESG training. Automation equipment, refurbishment, retrofitting and renovation are excluded.

Verification

Last verified

14 September 2026

Official page updated

27 April 2026