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  About DAGS


Demonstrator Applications are projects with the following characteristics:

  1. Meet the objectives and conditions of the Scheme, especially the realisation of the NITA objectives.
  2. Contribute to acculturation of Malaysians in ICT and multimedia applications.
  3. Information and Communication Technology based projects.
  4. Has a specific and identifiable target community.
  5. Clear value proposition to the target community.
  6. Focus on content and people development (not product development)
  7. Must have 'Smart Partnership' elements in implementing the project.
  8. Need to be culturally and socially compatible.
  9. Have the potential to be scaled up at later stage and prospects for early commercialisation.
  10. Small, focus and short term projects (not exceeding 12 months)

What are the benefits?

  • Benefits to society

    In general, DA projects have benefited a wide range of communities that lack necessary ICT skills and knowledge.
    DAGS has so far funded a total of 64 projects with total funding of RM89.03 million which covers different target communities. The majority of these projects focused on community development. This indicates that these projects have a wide and common appeal, and are not esoteric in nature.
    From these 64 projects, an estimated 1.8 million people from different target communities will potentially benefit from ICT exposure in various ways.

    The target communities include:

    Social Digital Inclusion

    • Rural & Indigenous communities
    • Urban poor
    • Women
    • Youth
    • People with Disabilities
    • Senior citizens
    • Small & medium enterprises

    Economic Competitiveness

    • Manufacturing
    • Agriculture
    • Services

    e-Public Services

    • Government agencies
    • Government related companies

    DAGS model has thus far been able to create a number of information-based application that address specific opportunities as well as problems in target communities and providing these communities with a stake in Malaysia’s endeavor to transform into a knowledge economy and values-based society. The deployment of DAGS has been a positive step towards encouraging digital inclusion in Malaysia and this indicates that DAGS is one of the key instruments in dispersing the digital divide in Malaysia. Identification of pockets of creativity and innovativeness in terms of ICT and nurturing the environment to stimulate growth would lead to the commercialization of Demonstrator Application and greater IT awareness and appreciation at the community level.

  • Benefits to promoter/applicant

    DAGS is a grant scheme that will finance up to 70% of the total estimated project cost. No repayment is required. Project funding is based on reimbursement of cost or forward financing mechanisms.


Strategic Priority Area

Each DAGS project should be aligned to any one of three Strategic Priority Areas (SPA). The Strategic Priority Areas are:

  1. Social Digital Inclusion (SDI)
    • This SPA aims to enhance community participation and ensure the development of an inclusive community through the use of life-changing ICT solutions.

    Within SDI, the needs of these three priority target groups should be addressed:

    • Marginalized/underserved communities, including people with disabilities
    • Women
    • Youth.

    The desired outcome would be the enhancement of the role, position and status of women, youth and marginalized groups through ICT acculturation and development. Other desired outcomes would be the fostering of harmonious living, the nurturing of a spirit of charity among the various communities and the inculcation of positive values towards ICT-based and facilitated development.

  2. Economic Competitiveness
    •"The competitiveness of a nation depends on the competitiveness of its companies," said the economist/technologist, Peter Drucker. DAGS seeks to encourage firms to adopt ICT in order to innovate new methodology and systems, as well as modify existing processes in order to gain and sustain economic competitiveness in the global arena.

    The priority sectors and sub-sectors are: -

    • Manufacturing (electrical & electronic cluster)
    • Agriculture (food cluster)
    • Services (financial services cluster).

    The desired outcome would be Malaysian SMIs moving up the k-value chain and becoming global suppliers. Another desired effect is the eradication of negative social issues afflicting the workers and communities within the sectors.

  3. e-Public Services (e-PS)
    •This SPA aims to ensure the effective and efficient delivery of public goods and services.

    The two foci within this strategic area are:

    • To support and integrate initiatives under the other two SPAs
      - This focus area seeks to support and integrate the implementation of initiatives under the Economic Competitiveness SPA and the Social Digital Inclusion SPA. The desired outcome would be the creation of concrete action plans and budgets by relevant government agencies for business process reengineering. Implementation should be carried out by 2002.

    • To initiate an e-PS DA that can be replicated and upscaled at national level.
      - There are no systematic means to support and service grassroots schemes by government agencies in current electronic government initiatives. A Demonstrator Application at local council level which can achieve this has great potential for replication in over 140 local authority areas.


Eligibility criteria for applicant:

The project initiator or promoter of a DA project should be:

  • A Malaysian citizen
  • A company or locally registered organisation, at least 51% Malaysian-owned
  • A governmental agency
  • A non-governmental organization (NGO) or
  • A non-profit organisation (NPO)

Eligibility criteria for project:

Generally, a DA project should meet the following criteria:

  • Possesses a committed project promoter/champion -takes full ownership to develop the project.
  • Demonstrates tri-sectoral partnership - consists members from the public, private and community sectors and adopts the 3W,2R,1A model.
  • Demonstrates community participation from the start of the project till the end phase of project implementation.
  • Indicates clarity in goals, roles and deliverables -Clear processes must be in place to achieve objectives. A solid operational model is needed to ensure all datelines and milestones are met.
  • Demonstrates the innovative use of ICT
  • Contains a unique value proposition - demonstrates measurable changes to ensure that the fund is leveraged for maximum effectiveness.
  • Demonstrates sustainability - clear sustainability and a realistic commercialization plan must be built into the business model from the inception of the project.
  • Demonstrates quick realization (short term) - funding will only be given for one year.


  • Up to a maximum of 70% of the total project cost. However, the amount of grant support approved will be determined on a case-to-case basis.
  • Only 30% of the DAGS funding can be allocated towards the cost of hardware, software, installation, utilities and rentals.
  • Costs covered are directly related to the development of the project. Priority will be given to the costs involved for the development of content and community activities.
  • The utilisation of open-source application software is highly recommended.


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