FINANCING SCHEME

Technology Development Fund (TED) 1

Provider

MOSTI

Objective

  • To develop existing concepts related to technology design, processes, or products with the potential for commercialization
  • Stimulate the growth of research and technology development among Government Research Institutes, STI Agencies, Higher Education Institutions, Polytechnics, Community Colleges and industries.

Funding Amount

The maximum of the funding is RM 1,000,000.00 and duration of the project is 24 months.

Claim Method

Based on milestone achievement

Purpose of Financing

Eligibility

Company Registration:

  • Registered with SSM (Malaysian companies) or local authority (Sabah/Sarawak)

Startup Eligibility:

  • Registered with SSM
  • 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

PKS Company Funding: 

  • Matching grant (company funds at least 30% of project cost

 

Collaboration:

  • Encouraged for Startups/PKS with IPTA, IPTS, GRI, or STI agencies (LOA required)
  • Each category company must at least 51% equity which hold by Malaysian citizens.

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
  • 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

Intellectual Property (IP)

  • For registration in Malaysia only, including drafting services
  • IP generated from the project 
  • Patent
  • Industrial Design
  • Incentives

Market Research and Evaluation

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

Regulatory Compliance and Standards

  • Certification registration
  • Compliance with standards (local/international)
  • GMP, HALAL & HACCP.
  • Product testing for the certificates.

Specialized and Special Services

  • Consultation (agreement/letter of intent must be submitted together with the project proposal
  • Consultants for market research and evaluation
  • Publication fee payments
  • 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
  • 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 RM 3000.
    • 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

Not employed by the applicant’s organization.

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 claim other than those mentioned above.
  • Not more than 10% of MOSTI-approved fundsTechnology/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

Application Procedure

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