AEEIF Grant
Aerospace and Electrical & Electronic Investment Fund.
The Aerospace and Electrical & Electronic Investment Fund (AEEIF) in Malaysia is a pioneering investment vehicle strategically positioned to harness the dynamic growth potential within the aerospace and electrical & electronic sectors of the country. AEEIF operates with a visionary outlook, capitalizing on Malaysia’s burgeoning reputation as a regional hub for technological innovation and high-tech manufacturing. With a focus on nurturing and amplifying the impact of these interrelated industries, the fund strategically allocates capital into companies at the forefront of aerospace technology, encompassing areas such as aircraft manufacturing, satellite development, and space exploration equipment
- To spur investment in high technology industries particularly in the Research and Development (R&D) field including Industry 4.0 adaptation in the aerospace and Electrical & Electronic (E&E) industries to achieve the targets set in the 12th Malaysia Plan under the Aerospace Industry Framework and Industry 4WRD initiatives; and
- To facilitate aerospace and Electrical & Electronic (E&E) companies in making investments to increase their capacity to become leading manufacturers/ service providers in the global supply chain.
The grant is provided to companies in the aerospace and E&E sectors to undertake the following R&D activities:
- Pilot plant/ prototype;
- Pre-clinical testing/ clinical testing/ field trials/ stress test/ user acceptance test;
- Intellectual Properties (IP);
- Market testing and evaluation;
- Regulatory and standards compliance;
- Special Services;
- Raw materials/ consumables;
- Administration; and
- Technology/ IP Acquisition
- Note: The list above is not an exhaustive list and shall be subject to review from time to time.
The proposed projects must be within the framework of the priority areas as follows:
- Aerospace,
- Additive Manufacturing
- Smart Materials
- Cold Spray Process
- Bio-sourced Materials
- Electron Beam Welding
- Bio-Jet Fuel
- Horizontal Forging
- Hydrogen Fuel
- Digital Connectivity
- Green Technology
- Automation & Robotics
- Electric Aircraft
- Sensor Technologies
- Autonomous Flight Systems
- Artificial Intelligence
- Urban Air Mobility
- Virtual/Augmented Reality
- UAV/Drone
- Simulated Data
- eVTOLs
- Multiphysics Simulations
- Satellite/Rocket
- Advanced MRO Technologies
- Airframe Enhancement
- Smart Airport Systems
- Aircraft Cabin Parts
- Air Traffic / Radar Systems
- Aircraft Recycling/Remanufacturing
- Chemical Milling
The grant shall also include fixed assets acquisition and working capital to support the implementation of the project. However, standalone working capital financing is not allowed.
- Applications are open to any aerospace and E&E company in Malaysia incorporated under the Companies Act, 1965/2016.
- The company must be at least 51% Malaysian owned.
- The company must be engaged in the following activities:
- Manufacturing
- Services.
- Minimum: Ringgit Malaysia One Hundred Thousand (RM100,000) only
- Maximum: Ringgit Malaysia Forty Million (RM40.0 million) only
Eligible expenditures refer to the overall proposed Project within the framework of the priority areas specified in the Scope of Grant above.
Non-eligible expenditures:
- Maintenance and repair costs including renovation of premise;
- Wages paid to employees;
- Employee benefits programmes;
- Legal and stamp duty fees;
- Insurance;
- Collateral or loan including its interest paid for purpose other than the approved project scope;
- Office expenses and supplies including general purpose computers & peripherals and mobile phones;
- Utility expenses; and
- Advertising and marketing expenses
The Grant will be given on a matching basis of up to a maximum of 80% based on eligible expenditures.
