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FINANCING SCHEME

Applied Innovation Fund (AIF)

Provider

MOSTI

Objective

The AIF Fund scheme aims to enhance the involvement of innovators in innovation activities and encourage innovation in product, process, system or service technology. Potential new ones for commercialization. AIF funds offer funding according to Technology Availability (TRL). Proposals for projects under the AIF fund scheme should be between TRL 2-concept formulation up to TRL 9-grade ready-to-use Commercial.

Funding Amount

  1. Associations/Cooperatives/NGOs/Startups/Public or Private Institutes/Research Institutes: Full funding, maximum RM500,000.
  2. Small and Medium Enterprises (SME): Matching grant (company funds 35%), maximum RM500,000.
  3. Individuals (including youth, women, & disabled): Full funding, capped at RM50,000.
  4. Duration project: 12-18 months

Purpose of Financing

R&D&C&I

Eligibility

Company Registration:

  • Registered with SSM (Malaysia), local authority (Sabah/Sarawak), or professional service provider body

Applicants:

  • Associations/cooperatives/NGOs/startups/PKS companies must be government-registered.
  • All applicants must demonstrate financial capability (bank statements for past 3 months).
  • Individuals must provide supporting letters from referees (authorized bodies/individuals).

Startup Eligibility:

  • Registered with SSM (Malaysia)
  • Majority Malaysian ownership (>50%)
  • Minimum paid capital of RM10,000
  • At least 2 company directors
  • Technology-based business
  • In operation for less than 5 years
  • Minority Ownership Startups (<50% MY):
    • Proof of concept (POC) or working prototype required
    • Malaysian operations
    • At least 70% Malaysian workforce
  • PKS Company Funding: Matching grant (company funds at least 35% of project cost)

Location: All applicants must be registered in Malaysia

Collaboration (Encouraged)

  • Startups/PKS Companies: Collaborate with specialists/researchers from IPTs, GRIs, STI agencies (LOA required)
  • IPTs, GRIs, STI Agencies: Collaborate with associations/cooperatives/NGOs/startups/PKS companies (LOA required)
  • Consultants: Individuals/organizations appointed and paid by the applicant for specific project activities
  • Collaborators: Individuals/organizations working with the applicant (named in application, agreement required)

Scope of Funding

Pilot Plant/Prototype

  • Equipment and support infrastructure directly related to the pilot plant or prototype upscaling
  • Engineering and design activities (man-hours) excluding salaries of workers under the supervision of the applicant
  • Rental/Minor repair of equipment
  • If applicable
  • Not more than 40% of MOSTI-approved funds

Preclinical Testing/Clinical Testing/Nonclinical Testing/Field Testing/Stress Testing/User Acceptance Testing

  • Screening tests
  • Sample tests
  • Payment for volunteers/subjects
  • Data analysis (man-hours) – 20% of approved amount
  • If applicable

Intellectual Property (IP)

  • For registration in Malaysia only, including drafting services
  • IP generated from the project 
    • Patents
    • Industrial Designs
  • IP incentives
  • If applicable

Market Research and Evaluation

  • Sample/market sample development costs
  • Data analysis (man-hours)
  • Market validation costing up to RM15,000
  • Payments to enumerators (fees/samples)
  • If applicable
  • Not more than 10% of MOSTI-approved funds
  • Sample size must comply with statistical standards

Regulatory Compliance and Standards

  • Certification registration
  • Compliance with standards (local/international)
  • Product testing for certification
  • GMP, HALAL, and HACCP
  • If applicable

Specialized and Special Services

  • Consultation (agreement/letter of intent must be submitted together with the project proposal, details of consultation stated)
  • Consultants for market research and evaluation
  • Publication fee payments
  • If applicable
  • Not more than 20% of MOSTI-approved funds
  • Companies applying for a budget for special services (consultants for market research and evaluation) are not eligible to apply for allocation under the market research and evaluation scope

Raw Materials/Consumables Directly Related to the Project

  • Raw materials
  • Consumables
  • If applicable
  • Not more than 20% of MOSTI-approved funds

Applicant Administration from Individuals/Sole Proprietorship/Partnership/Limited Liability Partnership/Start-up Company (start-up)/ PKS/ GRI/STI Agency

  • Appoint Research Officer (RO) directly involved in this project.
  • RO allowance rates are according to academic qualifications as follows:
  • Have a Bachelor’s degree related to the project scope and the allowance rate is RM3,000.
  • Have a Master’s Degree/Doctorate Degree related to the project scope and the allowance rate is RM3,200.

RO definition:

  • Individuals appointed to assist in carrying out research activities.
  • Must have appropriate academic qualifications with implemented R&D projects; and
  • Not employed by the applicant’s organization.

Technology/IP Acquisition

  • Domestic and foreign
  • Upgradable potential
  • Must provide an acquisition agreement/details of the technology & IP acquired
  • Technology transfer-related training conducted domestically
  • Not more than 50% of MOSTI-approved funds

Travel and Transportation Expenses Related to the Project

  • Includes expenses and transportation for domestic travel only directly related to the project.
  • Travel is restricted to economy class using the shortest direct route by the flight service provider except in urgent circumstances.
  • The entity must apply for MOSTI approval if travel and transportation claims other than those mentioned above.
  • Not more than 10% of MOSTI-approved funds

Application Procedure

Fill the form to get the application procedure link

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