Small And Medium Industries Development Corporation (SMIDEC)

Financial Assistance Scheme for SMEs in The Services Sectors

Objective

To provide assistance to SMEs which facilitate them:

•	in starting-up of business;
•	in obtaining certification/s and quality management systems;
•	in advertising and promotion; and
•	in improving and upgrading of existing sevices and/or processes.

Services Sectors

•	Distributive Trade;
•	Business and Professional Services;
•	Information and Communication technology (ICT);
•	Tourism;
•	Logistics;
•	Education; and
•	Construction.

Qualifying Criteria

•	Business incorporated/registered under the: - Companies Act 1965; or - Registration of Businesses Act 1956; or - Certificate/s of Practice by Professional Regulatory Bodies;
•	Fulfill the definition of SME with an annual sales turnover of not exceeding RM5 mil or full-time employees not exceeding 50;
•	Companies with annual sales turnover of not exceeding RM25 million or full-time employees not exceeding 150 (for Logistics Sector only)
•	At least 60 per cent equity held by Malaysians;
•	Possess valid premise/business licenses.

Financial Assistance

Matching Grant
Assistance is given in the form of matching grant where 50% of the approved project cost is borne by the Government anf the remainder by the applicant.

i.	Business Start-Up
		The maximum grant allocated per application is RM100,000. The grant is available for business in operation less than 12 months.
		Eligible expenses
		• Preperation of business plan • Preparation of marketing plan • Market feasibility studies • Rental of business premise and related equipments up to 24 months • Development of prototype/s (for construction and related activities only) • Purchase of machinery or office equipment • One year broadband subscription fee (for ICT sector)
ii.	Improvement and Upgrading of Existing Services and Processes
		The maximum grant allocated per application is RM500,000. The grant available for ICT, Healthcare and Construction Sectors.
		Eligible expenses
		• Undertake technology feasibility studies • Fees for technology transfer • Development of prototype/s • Initial Intellectual Property (IP) registration
iii.	Certification and Quality Management Systems
		The maximum grant allocated per application is RM250,000
		Eligible expenses
		• Acquisition of certifications and quality management systems for related services • ISO 9000 Series. • Halal certification/s and related expenditure in compliance to the certification requirements.
iv.	Advertisement and Promotion
		The maximum grant allocated per application is RM50,000
		Eligible expenses
		• Production of marketing and promotional materials such as brochures, catalogues, flyers, banners, posters, plastic/paper carrier bags and CD-ROMS. • Electronic media advertisement • Printed media advertisement • Development of an interactive website for e-commerce activities

Application

Download the form here.

Project Proposal

• BUSINESS START-UPS
• IMPROVEMENT AND UPGRADING OF EXISTING SERVICES AND PROCESSES
• CERTIFICATION AND QUALITY MANAGEMENT SYSTEMS
• ADVERTISEMENT AND PROMOTION

Form is in PDF (Acrobat) format. To read PDF files you will need a copy of the (free) Acrobat Reader. Please go to Adobe's website to download the reader.

Enquiry

Jamadilah Salwa Mohamed Jalil (6207 6000 ext 6186)

Small and Medium Industries Development Corporation (SMIDEC)
Aras 20, West Wing, Menara MATRADE
Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur

Tel No: 03-6207 6000
Fax No: 03-6201 6564
E-mail : info@smidec.gov.my
Infoline : 1-300-88-1801
Website www.smidec.gov.my

Malaysia External Trade Development Corporation (MATRADE)

Matching Grant for Market Development

Objective

The scheme is to provide a matching grant to assist Small and Medium Enterprises (SMEs) undertake activities for the development of export markets.

Eligible SMES

To qualify for the Market Development Grant (MDG), Small and Medium Enterprises (SMEs) must be:

•	Incorporated under the Companies Act 1965
•	For professional services (such as accountants, engineers and architects), partnerships and sole proprietors are also eligible
•	At least 60% equity held by Malaysians
•	For manufacturing and agricultural sector, having an annual sales turnover not exceeding RM 25 million (based on the latest financial report) or not more than 150 full-time employees
•	For services sector, having an annual sales turnover not exceeding RM 5 million (based on the latest financial report) or not more than 50 full-time employees. (Financial service and tourism sector are not eligible for MDG)
•	For trading companies that meet the following additional conditions: Having annual sales turnover of between RM 10 million to RM25 million or export sales of at least RM3 million. (Women owned enterprise are exempted from this condition), and Exporting Made In Malaysia products especially those manufactured by SMEs, and Not more than 20% of the company's annual sales is derived from trading in primary commodities. For description of primary commodities, please refer to Annex A of MDG

Application form.
Note: Status of SME will be checked annually based on financial accounts, EPF Statement, Form 24 and 49. Companies must notify the MDG Secretariat if there are any changes to particulars that affect the status of SME. For detail application criteria, please refer to application form MDG Rev 1/06

Form Of Grant

Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible activities. The grant is available for one or more of the eligible activities.

Eligible Activities

The followings activities are eligible for MDG:

• Participation in International Trade Fairs
• Participation in Trade And Investment Mission
• Participation in Specialized Marketing Mission
• Participation in In-Store Promotion Overseas
• Participation in Industry and Professional Related International Conferences Overseas

Note (i): For participation in the same International Trade Fairs , and Industry and Professional Related Conference Overseas , companies are eligible to apply for MDG for up to three(3) repeat participation.

For Local International Trade Fairs, Trade and Investment Mission , Specialized Marketing Mission and In Store Promotion there is no limit on repeat participation for MDG.

Note: Trade and Industry Associations and Professional Bodies are eligible to apply for MDG for the expenses of one secretarial staff for participating in overseas trade fairs and missions organized by the Associations and Professional Bodies. Eligible expenses are cost of air fare (economy class), standard hotel room subject to the same limits extended to SMEs.

• Participation in meetings related to negotiations on Mutual Recognition Agreement (MRA), Free Trade Agreement (FTA), ASEAN, World Trade Organization (WTO) and other market access negotiations by representatives of Trade and Industry Associations and Professional Bodies
• Preparation of Promotional Materials to develop export markets
• Initial cost of setting up office overseas for purpose of:
  - promoting exports of Malaysian product and services
  - seeking opportunity for outsourcing and subcontracting business
  - to undertake market research
  - to undertake and monitor implementation of projects and contracts
• Promotional activities undertaken with Hypermarkets and Retail Outlets overseas
• Participation in Overseas International Tenders
• Overseas cost of conducting Export Market Research for the purpose of :-
  a. Selecting new markets for new products or existing products
  b. Gathering information on existing export market
• For Women Owned Enterprise, additional eligible activities for MDG are:
  - Participation in Malaysia Export Exhibition Centre (MEEC) at MATRADE
  - Participation in Export Training seminars and workshops held locally.

Definition Of Women Owned Enterprise

For companies 100% owned by Malaysian: A woman owns at least 51% of the equity, or Biggest shareholder is a woman and she manages the company, or Managing Director/Chief Executive Officer of the company is a woman and owns at least 10% equity

For companies 60% owned by Malaysian: A woman owns at least 51% of the local equity and the company is managed by her, or Managing Director/Chief Executive Officer of the company is a woman and owns at least 10% of the local equity

Claimable Expenses

1. Participation in International Trade Fairs

•	Participation fee.
•	Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
•	Women Owned Enterprise are eligible for two economy class airfare, with the condition that at least one participant must be a woman participant.
•	One hotel room not exceeding RM200 per night for local international trade fairs and RM750 per night for overseas fairs. Payment will cover the duration of the event and two days before or after the event. Women Owned Enterprise are eligible for 2 hotel rooms. Rental of standard booth which is limited to: - - 18 sqm for small products - 36 sqm for larger products (e.g furniture, machinery equipment), displayed in lifestyle concept or under country pavilion.
•	Construction and enhancement of standard booth or shared cost of construction on group basis. Construction and enhancement of booth cost is limited to 50% of the eligible booth rental cost.
•	Interpreter services for non-English speaking countries, maximum cost of RM800 for the duration of the international trade fair.
•	Shipment of exhibits and promotional materials. Cost does not include items such as import duties, bank guarantee and surcharge.
•	For local international trade fair sending of samples and promotional materials is subject to a maximum grant of RM1,000.
•	Standard advertisement in trade fair show directory. For local international trade fair subject to maximum grant of RM 250

For claims related to participation in Local International Trade Fair, company must submit a copy of the event report from the fair organizer, which has been certified by an external auditor. The report must certify that the fair has fulfilled the criteria of an international trade fair, as follows:

•	minimum space occupied for the fair must be at least 1000 sq meters gross, and
•	at least 10% of visitors must be foreign visitors, or
•	at least 20% net space is rented to foreign exhibitors, or
•	at least 20% of exhibitors are foreign exhibitors.

Note (ii): Companies are not eligible for the grant if 50% of the cost of eligible expenses is already born by the organizer e.g booth rental, airfare and accommodation (package)

2. Participation in Trade and Investment Missions and Specialized Marketing Missions

•	Participation fee
•	Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
•	One hotel room not exceeding RM750 per night. Payment will cover the duration of the event and two days before or after the event

Note (iii): Trade and Investment Missions organized to promote exports of Malaysian made products and services by Government Agencies, Trade and Industry Associations and Professional Bodies are eligible for MDG. The trade mission programme must be submitted to MATRADE at least one month before the event for approval of the programme. Once approved, companies participating in the programme must apply for MDG individually and will be subjected to the qualifying criteria for MDG.

3. Participation in In-store Promotion Overseas

•	Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
•	Women Owned Enterprise are eligible for two economy class airfare, with the condition that at least one participant must be a woman participant.
•	One hotel room not exceeding RM750 per night for overseas fairs. Payment will cover the duration of the event and two days before or after the event.
•	Women entrepreneurs are eligible for 2 hotel rooms.
•	Interpreter services for non-English speaking countries, maximum of cost of RM800 for the duration of the promotion.
•	Shipment of exhibits and promotional materials.

4. Participation in Industry Related International Conferences Overseas

•	Participation or registration fee.
•	Economy class airfare for one person. Cost does not include items such as visa fees, excess baggage and insurance premium.
•	One hotel room not exceeding RM750 per night. Payment will cover the duration of the conference and two days before or after the conference

5. Participation in meetings related to negotiations on Mutual Recognition Agreement (MRA), Free Trade Agreement (FTA), ASEAN, World Trade Organization (WTO) and other market access negotiations by representatives of Trade and Industry Associations and Professional Bodies

•	Economy class airfare for on person
•	One hotel room not exceeding RM750 per night covering the duration of the meeting and two days before or after the meeting.

6. Preparation of Promotional Materials

•	Companies are eligible for a maximum grant of RM15,000 for preparation of export promotion materials.
•	Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM. Eligible expenses include: For printed materials Design concept Finished Artwork Colour separation Printing Re-printing (For Trade fairs or Trade mission only)
•	Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM.
•	Companies must use the services of local printing and CD-ROM companies to benefit from this grant.
•	Cost incurred in relation to the production of promotional materials such as brochures, catalogues, flyers, banners, posters and CD-ROM.
•	Production of CD ROM and Video can be considered for MDG only if it is part of the company's participation in trade fairs or trade missions. Content of text, audio, video, photography, graphic, animation, etc. Design Development Replication and Production CD-ROM packaging
•	Companies must use the services of local printing and CD-ROM companies to benefit from this grant.

Note (iv) : Application for the grant must be one month before the printing or production of material. The approval of the claim is subject to the acceptance of the promotional materials by the MDG Approval Committee. Companies that have utilized the maximum grant of RM15,000 prior to 1st Jun 2006 , are not eligible to apply for MDG for this activity.

7. Initial Cost of Setting Up Office Overseas.

•	Companies are eligible for a maximum grant of RM50,000 per office set up overseas
•	Eligible expenses are: Rental of office and; Utilities (water/electricity)

8. Promotional activities undertaken with Hypermarkets and Retail Stores Overseas

•	Companies are eligible for a maximum grant of RM30,000 per activity.
•	Eligible expenses are: Listing fee and; Joint Advertising and Promotion

Note (vi) : For repeat applications , promotional activities must be in a different hypermarket or retail store . For promotion activities with the same hypermarket or retail store it must be in a different location .

9. Participation in International tenders overseas

•	Expenses incurred for purchase of international tender documents for supply of Malaysian products or services.

10. Export Market Research

•	Companies are eligible for a maximum grant of RM30,000 per export market study conducted overseas.
•	Eligible expenses are: Research fees Cost of publication of initial report

Note (vii): Application for the grant must be made one month before undertaking the activity. For repeat application, market research must be for a different market, product or services.

11. For Women Owned Enterprise, additional eligible expenses:

•	Participation in Malaysia Export Exhibition Center (MEEC)
•	Eligible expenses are: Participation fees Cost of transport of exhibits Participation in local Export Training Seminars/ Workshops

MDG Application & Claim Procedure

•	Application for the grant is made using the application form MDG Rev 1/06 which is available free of charge at MATRADE or can be downloaded from MATRADE's website: www.matrade.gov.my/exportsupport/mdg.htm. All companies are encourage to apply for MDG at least one month before undertaking the activity . This is to ascertain if the activity is eligible for the grant.
•	Claims for reimbursement for all eligible activities must be submitted within 3 months of completion of the activity with the invoices and original receipts or copies certified by External Auditors.
•	All application and claim supporting documents that companies must provide when applying for the grant is described in the MDG application form and the checklist attached to the form. Companies are advised to submit all the relevant documents when applying for MDG.

Application for the grant is made using the application form (BPG1/03) which is available free of charge at MATRADE or can be downloaded from MATRADE's website.

www.matrade.gov.my

Application Form

Download MDG Form (SME)

Download MDG Form (Organisation)

Download MDG Form (Association)

Direct Enquiry

MATRADE
Market Development Grant Unit
Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta.
50480 Kuala Lumpur,
MALAYSIA
Telephone: 603-6207 7077
Facsimile: 603-6203 7037 / 7033
E-mail: info@hq.matrade.gov.my
Web-site: www.matrade.gov.my

Malaysia External Trade Development Corporation (MATRADE)

Brand Promotion Grant (BPG)

Objectives

The objective of the Brand Promotion Grant (BPG) is to develop and promote in the international market, brand names owned by Malaysian companies for products and services originating from Malaysia.

Selection Of Brand

The Brand Promotion Grant will only be granted to eligible brands identified to be assisted by the Brand Grant Approval Committee. Evaluation of brands to be selected for the grant will be based on several considerations including:-

•	Branding strategy and Plan.
•	Business and Marketing Plan.
•	Resources invested by the company on branding and its commitment to the branding programme.
•	Activities undertaken to promote the brand.
•	Trend in overall sales and exports over past 3 years.
•	Market share both local and overseas.
•	Potential for the brand to further expand in the international market.
•	How the brand will help project Malaysia's image as supplier of quality products and services.

Form Of Grant

Companies can apply for either one of the following forms of grant:-

•

A 100% reimbursable grant for the development and promotion of brand subject to maximum grant of RM 1 million. Small and Medium-Sized Enterprises are eligible to apply for the 100% reimbursable grant. For the 100% reimbursable grant, only up to a maximum 10% of total grant approved will be disbursed in the form of "advance payment" , while the remaining 90% of grant approved will be disbursed as 100% reimbursable grant . Advance payment will be considered for activities approved in the Branding Plan subject to relevant documentary evidence of the activities to be undertaken by company.

•

A 50% reimbursable grant for non-SMEs subject to maximum grant of RM 2 million.

To encourage companies to promote the brand overseas, not more than 10% of the total grant approved should be spent on promotion of the brand in the domestic market.

Eligible Criteria

To be eligible for the grant companies must fulfill the following conditions:-

•	Incorporated under the Companies Act 1965.
•	At least 60% equity is owned by Malaysians.
•	Company owns the brand and is the registered approved owner of the trademark registered in any country and has rights to it.
•	Annual sales turnover of not more than RM 250 million (based on the latest financial report).
•	For 100% reimbursable grant:- manufacturing company's - annual sales turnover must not exceed RM25 million or with not more than 150 full time employees. services sectors enterprises - annual sales turnover not exceeding RM 5 million or with full time employees not exceeding 50.
•	Product/services are already exported with least 20% of the sales from export.
•	For companies that do not meet the 20% export condition, the application may be considered based on the export potential and commitment of the company to develop the brand into an international brand. Factors to be considered:- Resources invested on branding and company's commitment to the branding programme. Promotion programmes and activities undertaken by company to promote brand. Indication of market penetration and consumer acceptance (e.g. share of market) both local and overseas. Trend in overall sales and export growth. Awards and recognitions received. International quality certifications obtained such as HACCP, ISO or Quality Improvement Programme, GMP or approved the use of the 'Malaysia's Best' quality seal.
•	Products/services should originate from Malaysia. For products manufactured offshore , the brand can be considered if the company undertakes value added activities in Malaysia such as research and development, designing, packaging, marketing, distribution and invoicing.

Branding & Marketing Plans

Companies interested in applying for the grant must submit the following document and information:-

(a) Comprehensive proposal for the development and promotion of the brand including:-

• Background of the brand, the brand concept, its values, current market position.
• Measures already undertaken to develop and promote brand.
• Detailed costing on the activities for which the grant is required.
• Detailed schedules of implementation of branding activities to be undertaken
• Proposed performance report on the implementation of the branding activities including milestones and key performance indicators.
• How the brand will benefit the company and country's image.
• Resources allocated to the brand development and promotion strategy.
• Key Performance Indicators to measure the brand performance based on intended marketing strategies.

b) Business and Marketing Plans for 2 years outlining:-

• Target markets.
• Marketing strategies to penetrate the target markets.
• Brand Communication Plan.
• Allocation of company's financial resources to implement the plans.
• Current and projected sales both locally and overseas of the brand.

c) Corporate profile, organisational structure, profile of management and branding team.

Eligible Expenses

The grant will cover the cost of developing and promoting only one brand per company. Companies can apply for the grant for the following expenses involved in brand development and promotion:-

Branding/Marketing Strategy Consultancy (not more than 10% of grant):

• Brand Strategy, creation and development
• Marketing strategy and implementation
• Media Strategy
• Brand Communication Strategy
• Brand Management System
• Brand Manual & Information System

Brand Development:

• Logo design and redesign
• Product design and redesign
• Packaging design and redesign
• Intellectual property matters, including registration and trademark works.
  (not including renewal of trademark and patent)

Brand Promotion:

• Customer relationship management system to monitor brand
• Advertising and Promotion (maximum 50% of grant)
• Enhancement of Brand Website
  (maximum grant RM50,000)

Brand Market Research/Service:

• Brand Audit/Valuation
• Research
• Brand Tracking

Note:- Expenses listed are only a guide. Not all activities may be relevant to the company. Companies should apply for the grant only for expenses relevant to the branding plan.

Application Procedure

Companies are encouraged to apply for the grant at least three months before undertaking the activity for which the grant is required. Grant approved is based on the projected spending over the next 2 years.

Application for the grant is made using the application form BPG (1/04) which is available free of charge at MATRADE or can be downloaded from MATRADE or can be downloaded from MATRADE's website at www.matrade.gov.my

All supporting documents that companies must provide when applying for the grant are described in the BPG application form and the checklist attached to the form. Companies are advised to submit all the relevant documents when applying for the BPG.

Companies are required to submit all claims for the grant within 3 months of undertaking the activity. Claims must be accompanied with original receipts and invoices or copies certified by external auditors with relevant supporting documentary evidence related to the implementation of the activities concerned or work undertaken for making claims.

Contractual Obligation And Reporting

Companies approved the grant will be required to:-

• Sign a Letter of Acceptance with MATRADE indicating that if the company fails to fulfill its obligation in implementing the branding plan, MATRADE has the right to cancel the approval of the brand promotion grant and seek reimbursement of the grant already disbursed.
• Submit quarterly based on the format as in Annex 1 or progress report base on the implementation milestone (whichever is earlier) of the activities implemented for which the grant is disbursed.

Application for the grant is made using the application form (BPG1/03) which is available free of charge at MATRADE or can be downloaded from MATRADE's website.

www.matrade.gov.my

Download Application Form

Brand Promotion Grant Form

Brand Promotion Grant Checklist

Brand Promotion Grant Quarterly Reporting Format

Contact

MATRADE
Menara MATRADE,
Jalan Khidmat Usaha,
Off Jalan Duta.
50480 Kuala Lumpur,
MALAYSIA
Telephone: 603-6207 7077
Facsimile: 603-6203 7037 / 7033
E-mail: info@hq.matrade.gov.my
Web-site: www.matrade.gov.my

MINISTRY OF SCIENCE, TECHNOLOGY & ENVIROMENT (MOSTI)

Techno-Fund

Techno-Fund aims to:

•	stimulate the growth and successful innovation of Malaysian medium and large enterprises by increasing the level of R&D and its commercialisation;
•	increase capability and capacity of Malaysian Government Research Institutes (GRI) and Institutions of Higher Learning (IHL) to undertake market driven R&D and to commercialise the R&D findings through spin-offs/licensing;
•	enhance global competitiveness and R&D culture among Malaysian medium and large enterprises;
•	increase contribution to Malaysia 's GDP through economic wealth creation and exports; and
•	foster greater collaboration between Malaysian enterprises and GRI/IHL.

Types of Techno-fund

There are two types of funding:

Applicants can apply for a combination of Types A and B or Type A only.

•	Type A - Pre-Commercialisation; and
•	Type B - IP Acquisition.

Note: IGS, DAGS, IRPA-EAR, IRPA-PR and IRPA-SR funded projects are not eligible for Type B.
MGS, CRDF and TAF funded projects are not eligible for any Type including MSC Status companies.

TYPE A: Pre-Commercialisation

Pre-commercialisation activities comprise development of commercial ready prototypes/ pilot plants/clinical trials/upscaling for demonstration and testing purposes but not commercial exploitation.

TYPE B: Intellectual Property (IP) Acquisition

Type B comprises acquisition of IP (academic/laboratory scale prototype) from overseas or local sources for further development up to pre-commercialisation stage.

Target Group

•	Medium and Large Malaysian Companies (minimum 51% equity held by Malaysian) including Government Linked Companies (GLC) and Public Listed Companies (PLC); and
•	Malaysian GRI and IHL.

(Note: A medium or large Malaysian company is defined as a business entity with an annual sales turnover of more than RM10 million or more than 50 full-time employees)

Collaboration

•	Industry applicants are encouraged to collaborate with one or more GRI/IHL(public or private); and
•	GRI/IHL must identify industry partner(s) to undertake joint collaboration. In the collaboration, industry partner(s) should jointly contribute financial or non-financial resources to the project.

Technology Clusters

Project proposals eligible for consideration must fall under any of the technology clusters listed below:

� Agriculture Cluster;
� Biotechnology Cluster;
� Information and Communication Technology (ICT) Cluster;
� Industry.

Approval Criteria

Approval of application takes into consideration the following criteria:

•	applicants must submit project proposals in the technology clusters listed above leading to commercialisation of new, cutting edge and breakthrough technologies;
•	applicants must belong to any of the target groups listed above;
•	project teams should consist of appropriate mix of suitable and qualified members in technical and commercialization aspects;
•	applicants must show proof of financial capability to finance the project portion not funded by the Techno-Fund;
•	project proposals must lead to outputs that are technically and commercially viable within the stated technology clusters;
•	project proposals must show evidence that the project outcome has direct economic benefit to Malaysia and enhancement of Malaysia 's competitiveness;
•	for Type B: IP Acquisition funding, applicants must additionally show that their prospective IP is an outright purchase (IP licensing is not allowed) that requires further development; and
•	applicants must fulfill other conditions stipulated under the guidelines and policies of the TechnoFund.

Location of Proposed Project

Approved proposals under Techno-Fund must be undertaken in Malaysia or overseas (if justified)

Funding Quantum

The quantum of funding and percentage of funding support under TechnoFund will be determined on the merit of each application.

Scop Of Funding

The eligible expenditure are:
Type Scope of Funding
Type A: Pre-Commercialisation:
� Pilot plant set up/commercial ready prototype development/clinical trial;
� IP preparation and registration excluding maintenance of IP;
� Market testing of commercial ready prototypes (participation in trade fairs and exhibitions);
� Regulatory and standard compliance;
� Product documentation;
� Equipment and materials for pre-commercialisation;*
� Contract expenditure; and
� Expenditure for services (market survey, consultancy and testing).

Type B: IP Acquisition
� Acquisition of IP; and
� Training (technology transfer).
*Not more than 40% of total project cost.

FOR MORE INFORMATION, PLEASE CONTACT:

Technology Development Unit,
Ministry of Science, Technology and Innovations (MOSTI)
Aras 1 - 7, Blok C5,
Pusat Pentadbiran Kerajaan Persekutuan,
62662 Putrajaya , Malaysia
Tel: 603 - 8885 8810 / 8163 (Helpdesk)
Fax: 603 - 8888 4284
E-mail: technofund@mosti.gov.my
Web Site: http://www.mosti.gov.my

Malaysian Technology Development Corporation (MTDC)

Technology Acquisition Fund (TAF)

The Technology Acquisition Fund (TAF) is intended to facilitate the acquisition of strategic and relevant technology by the Malaysian companies. TAF provides partial grant to further promote efforts by the private sector to enhance their technology level and production processes. The objectives of TAF are as follows :

• to promote technology upgrading through the introduction and utilisation of technologies in the manufacturing and physical development of existing and new products or processes;
• to enhance the competitiveness level of Malaysian companies to compete globally; and
• to increase wealth creation and technology content of Malaysian companies via acquisition of foreign technology.

PRIORITY TECHNOLOGY CLUSTERS
Project proposals eligible for consideration must be listed in the following Priority Technology Clusters :

• Biotechnology;
• Agriculture;
• ICT; and
• Industrial (advanced materials, advanced manufacturing, manutechnology, alternative energy, waste to wealth).

ELIGIBLE ACTIVITIES UNDER TAF

TAF will fund Acquisition of technology (know-how/patent rights/prototype/design) via the following methods:

• licensing;
• non-exclusive purchase of technology; and
• outright purchase of technology.

TARGET GROUP
Incorporated Malaysian manufacturing companies (SMEs and large corporation) excluding GLCs, public listed companies and their subsidiaries.

ELIGIBLE CRITERIA
Eligibility criteria for companies applying for TAF:

• the company must be incorporated in Malaysia;
• the company must be 51% owned by Malaysian;
• the management, marketing, and technical team must have relevant qualification and experience;
• the proposed technology to be acquired must have been proven and commercially produced in the country of origin; and
• the technology acquired is to be immediately adopted in the company's manufacturing activity.

Note: Malaysian companies are eligible (excluding GLCs, listed companies and their subsidiaries)

ELIGIBLE EXPENSES

• Cost of technology acquisition; and
• Training

FUNDING QUANTUM
The quantum of funding approved under TAF is up to a maximum of 50% or RM2,000,000 whichever is lower depending on the merits of each application.

TAF Agreement

TAF agreement will be signed between MTDC (on behalf of the government) and grant recipient detailing the terms and conditions of the funding.

DISBURSEMENT OF GRANT
Disbursement of grant will be made in accordance to the following:-

• approved grant will be disbursed either on a matching or reimbursement basis according to the claims submitted by the grant recipient; and
• approved grant will be disbursed in stages in accordance to Schedule 2 of the Grant Agreement and subject to the satisfactory progress of the project in terms of deliverables and milestones reached.

DURATION
The project duration for each activity under TAF is up to 2 years for project implementation and 2 years for project monitoring.

ENQUIRY

For further information please contact:

Malaysian Technology Development Corporation (MTDC)
Level 3-4, MIDF Building , 195A, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 603-2161 2000
Fax: 603-2163 7549
E-mail: grant@mtdc.com.my
Website: www.mtdc.com.my

Malaysian Technology Development Corporation (MTDC)

Commercialisation of R&D Fund (CRDF)

The Government has been investing significantly in research and development (R&D) activities in an effort to strengthen the technological capability and capacity of the nation. Under the 9th Malaysia Plan (9MP), the Government is giving priority to market-oriented. R&D and increasing the rate of commercialisation. In tandem with the 9MP, the Commercialisation of R&D Fund (CRDF) has been redesigned to provide financial assistance to universities/research institutions and eligible Malaysian companies to undertake full commercialisation.

Note: Under CRDF, commercialisation refers to a process by which the results of research projects are converted to marketable products and commercially produced.

OBJECTIVES
The objectives of CRDF are as follows:

• to leverage on science, technology and innovation (STI) for national development;
• to increase the commercialisation of STI products and processes developed by local universities/research institutions/companies;
• to increase wealth creation and technology content of SMEs/Large Corporation via commercialisation of R&D done by local universities/research institutions/companies; and
• to foster greater collaboration between universities/research institutions and industry.

PRIORITY TECHNOLOGY CLUSTERS

Project proposals eligible for consideration must be listed in the following Priority Technology Clusters:

• biotechnology;
• agriculture;
• ICT; and
• industrial (Advanced Materials, Advanced Manufacturing, Nanotechnology, Alternative Energy, Waste to wealth).

CRDF CATEGORY

• CRDF for Universities/Research Institutions; and
• CRDF for SME/Large Corporation/Public Listed Company.

ELIGIBLE ACTIVITIES UNDER CRDF
CRDF for Universities/Research Institutions :

• CRDF 1

Feasibility Study on public sector R&D results for university/research institution's commercialisation office.

• CRDF 2

Commercialisation of public sector R&D results via university/research institution's spinoff company.
CRDF for SME/Large Corporation/Public Listed Company

• CRDF 3

Commercialisation of public sector R&D results undertaken by SME via Start-up Company

• CRDF 4

CRDF 4 comprises 3 sub-categories:-

• CRDF 4(a)
  Commercial Production of Any Locally Generated R&D Results by SME;
• CRDF 4(b)
  Commercial Production of Public Sector R&D Results by Large Corporation; and
• CRDF 4(c)
  Commercial Production of Public Sector R&D Results by Public Listed Company.

CRDF AGREEMENT
A CRDF Agreement will be signed between MTDC (on behalf of the government) and grant recipient detailing the terms and conditions of the funding.

ELIGIBLE EXPENSES

• Cost of technology acquisition; and
• Training

DISBURSEMENT OF GRANT
Disbursement of grant will be made in accordance with the following:

• approved grant will be disbursed either on a matching or reimbursement basis according to the claims submitted by the grant recipient; and
• approved grant will be disbursed in stages in accordance to Schedule 2 of the Grant Agreement and subject to the satisfactory progress of the project in terms of deliverables and milestones reached.

ENQUIRY

For further information please contact:

Malaysian Technology Development Corporation (MTDC)
Level 3-4, MIDF Building , 195A, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 603-2161 2000
Fax: 603-2163 7549
E-mail: grant@mtdc.com.my
Website: www.mtdc.com.my

Malaysia Venture Capital Management Berhad (MAVCAP)

Venture Capital Financing

OBJECTIVE
To provide venture capital financing

MINIMUM INVESTMENT LIMIT
RM 50,000

MAXIMUM INVESTMENT LIMIT
RM 40 million

PRIORITY SECTOR

• Communication and Network;
• medical and health services;
• bio­technology and life sciences;
• internet; and
• electronics and semi­conductors.

APPLICATION PROCEDURE
Application to be submitted to MAVCAP

ENQUIRY

For further information please contact:

Malaysia Venture Capital Management Berhad (MAVCAP)
Level 11, Bangunan Bank Industri
1016 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 603 2050 3000
Fax: 603 2698 3800

website: www.mavcap.com