DAGS (Demonstrator Application Grant Scheme) was officially launched on 21st April 1998. DAGS is a key initiative for the realization of objectives set out in NITA (National IT Agenda). Additionally, DAGS enabled all Malaysians the opportunity to be acculturated and involved in ICT-based and related activities. The grant scheme can also be considered as platform to build human capacity and capability through ICT applications.

Ministry of Science, Technology and Innovation (MOSTI) has appointed MIMOS Berhad to manage DAGS, essentially to administer and award the grants to projects accredited as Demonstrator Application (DA). DAs are small, focused and short-term projects, aimed at creating, developing and promoting new applications using Information and Communication Technologies (ICT) which create new value of content for community development within specified contexts.

Initially, the scheme was granted RM50 million under the 7th Malaysia Plan, which ended in December 2000. Under 8th Malaysia Plan (Jan 2001 – Dec 2005), the government has allocated RM100 million to DAGS.

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Objectives of DAGS

DAGS seeks to improve and enhance all aspects in order to narrow the digital divide, and streamline criteria for DAs (Demonstrator Applications) in line with NITA’s (National IT Agenda) goal to transform Malaysian society into a knowledge-based society and economy. The key word here is “digital inclusion”. DAGS aims to develop all three sectors – the public, private and community – through revolutionary and focused ICT-based transformations.

  The 3W2R1A tri-sectoral partnership model continues to play a role here, advocating win-win-win (3W), risk taking and reward sharing (2R), and one common action (1A).

The objectives of DAGS are:

• To enhance quality of life through 'Digital Inclusion';
• To encourage meaningful participation in ICT-based projects; and
• To encourage the use of knowledge for value creation.

DAs remain pilot projects that can be tried out in a community for a short period, with the intent of replication, up scaling and commercialization.

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