Technology Feasibility Studies
Fee for technology transfer (eg. Technical licensing / disclosure / agreement / acquisition and blue print / drawing )
Development of prototypes and system design
Product testing
Product registration
Marking and labeling (eg Bar-coding)
Machine and Equipment testing and calibration
Development & Designing of equipment and machinery (including jigs, moulds and dies as well as ICT- related activities)
Purchase of machinery and equipment subject to maximum matching grant RM 100,000 per application
Initial patent registration / patent search / IP protection
Specific Project Mission (eg Mould & Die)
Cleaner Production and Waste Treatment Project including Energy Efficiency Audit

Maximum matching grant per application - RM 500,000

III. Matching Grant for Productivity and Quality Improvement and Certification

Objective

The scheme provides matching grant for SMEs to obtain certification and quality management system

Eligible expenses

ISO 13485, ISO 14000, ISO 22000
Product certification
Hazard Analysis Critical control Point (HACCP)
Halal certification & MS 1500:2004
TS 16949
Quality improvement Practice eg. 5S, Six- Sigma and productivity Audit
Good manufacturing Practice (GMP)
Occupational, safety and health management system (OSHA)
Restriction of Hazardous Substance (RoHS)
Good Agriculture Practice (GAP)
Good Hygiene Practice (GHP)
Regulatory Impact Assessment (RIA

)

British Retailers' Consortium (BRC)
Other related costs to comply to requirements of standards and certification

Maximum matching grant per application - RM 250,000

IV. Matching Grant for Development and Promotion of Halal Products

The scheme provides matching grant for SMEs to develop and promote Halal products (food and non- food)

Eligible expenses

Product development & Product Formulation
Sample testing
Acquisition of machinery and equipment related to the approved project subject to maximum matching of RM 100,000
Promotional activities
Other related costs for compliance to requirements of Halal certification

Maximum matching grant per application - RM 150,000

V. Matching Grant for Enhancing Product Packaging, Design and Labeling Capabilities of SMEs

Objective

The scheme provides assistance to SMEs to acquire and improve product packaging, design and labeling in improving product appearance and complying with market regulations.

Eligible expenses

Related costs and services for designing, packaging, marking and labeling
Trade mark and Patent registration
Purchase of machinery and equipment subject to maximum matching grant of RM 100,000

Maximum matching grant per application - RM 200,000

VI. Matching Grant for Market Development

Objective

To provide a matching grant to assist small and medium enterprises (SMEs) undertake activities for the development of export markets

Eligibility

Participation in Trade and Investment mission and Specialized marketing mission
Export market study up to a maximum matching grant of RM 30,000
Industry related conference
Participation in local and international trade fairs
In-store Promotion up to a maximum matching grant of RM 30,000
Participation in meetings related to negotiation on Mutual Recognition Agreement (MRA), Free Trade Agreement (FTA), ASEAN, World Trade Organization (WTO) and other market access negotiations by representative of Trade and Industry and Professional Services and Association
Preparation of Promotional items up to a maximum matching grant of RM 15,000
Setting up of Sales promotion office overseas up top a maximum matching grant of RM 50,000

For women-owned enterprise

Participation in Malaysia Export Exhibition Center (MEEC)
Participation in local export training seminars and workshops

Maximum matching grant per application - RM 100,000

2. Technology Acquisition Fund (TAF)

A key thrust of the 9th Malaysian Plan (9MP) is to raise capacity for knowledge and innovation, and nurture first class mentality. Harnessing science, technology and innovation (STI) has been identified as a key driver to achieve this.
Under 9MP, TAF will continue to provide financial assistance to eligible Malaysian SMEs to acquire foreign technologies. The acquisition will fast track domestic technology development capacity and ultimately bypass the expensive and risky developmental stages.
TAF supports the effort undertaken by Malaysian companies to enhance their technology level, production processes and competitiveness.

Objective

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, Nanotechnology, Alternative Energy, Waste to wealth).

TAF Category

TAF is classified as follows:-

TAF 1
TAF 2

Overview of TAF 1

TAF 1 provides funding to eligible Malaysian companies to acquire foreign technology for immediate incorporation into company's manufacturing activity. The acquisition of technology could be in the form of acquiring know-how / patent rights / prototype / design via the following methods:-

Licensing of technology
Purchase of technology; and
Outright purchase of technology

Objectives of TAF 1

Promote technology upgrading via the introduction and exploitation of technologies in the manufacturing and physical development of existing and new products or processes;
Enhance the competitive level of Malaysian companies to compete globally; and
Increase wealth creation and technology content of Malaysian companies via acquisition of foreign technology

Target Group

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

Eligibility Criteria

The company must be an SME/large corporation incorporated in Malaysia;
The company must be at least 51% owned by Malaysian. (The technology provider is not allowed to own any equity in the applicant company );
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;
The proposed technology to be commercialised must be from one of the Priority Technology Clusters;
The technology acquired must be applied for the production of a tangible product; and
The technology acquired must be immediately adopted in the company's manufacturing activity.

Eligible Expenses

Cost of technology acquisition; and
Training.

Funding Quantum

The quantum of funding approved under TAF 1 is up to a maximum of 50% or RM2 million whichever is lower depending on the merits of each application.

Project Duration

The maximum project duration under TAF 1 is 2 years for project implementation and product roll-out and 2 years for project monitoring/impact study.

Overview of TAF 2

TAF 2 provides funding to eligible women entrepreneurs to acquire equipment and machinery for immediate incorporation into company's manufacturing activity. The acquisition of the equipment and machinery must be for the improvement of the current production capacity or process.

Target Group

Incorporated Malaysian majority woman/women manufacturing, manufacturing-related services or K-based companies (SMEs and large corporation) excluding GLCs, public listed companies and their subsidiaries.

Eligibility Criteria

The company must be an SME/large corporation incorporated in Malaysia;
The company must be at least majority owned by Malaysian woman/women for a minimum of 2 years prior to application;
The company must be in operation as a manufacturing/manufacturing-related services company for a minimum period of 2 years;
The CEO/MD/ED must be a woman, holds a minimum equity of 10% in the company and actively participate in the operation and management of the company;
The management, marketing, and technical team must have relevant qualification and/or experience;
The machine acquired is to be immediately adopted in the company's manufacturing activity; and
The proposed project must be from one of the Priority Technology Clusters.

Eligible Expenses

Cost of acquisition of equipment and machinery; and
Training.

Funding Quantum

Up to a maximum of 50% or RM500,000 whichever is lower depending on the merits of each application for 100% woman owned company; and
Up to a maximum of 25% or RM250,000 whichever is lower depending on the merits of each application for majority woman owned company.

Project Duration

The project duration under TAF 2 is a maximum of 1 year for project implementation and product roll-out and 1 year for project monitoring/impact study.

TAF Agreement

A 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 with the Grant Agreement and subject to the satisfactory progress of the project in terms of deliverables and milestones reached.

For further information please visit : http://www.mtdc.com.my/taf_guidelines.php

3. Commercialisation of Research and Development 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
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 spin-off 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

- 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.

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

For further information please visit: http://www.mtdc.com.my/crdf_guidelines.php

4. Bank Negara Malaysia SME Special Unit

Bank Negara Malaysia wishes to announce the setting up of the "Small and Medium Enterprise Special Unit" at Bank Negara Malaysia. The SME Special Unit is a centre to assist viable SMEs in obtaining financing. While the banking system is the main provider of funds to the SMEs, other alternative sources of financing for SMEs include the development financial institutions and the various special funds established by the Government.
The SME Special Unit is to assist the SMEs in the following areas:

to provide information on the various sources of financing available to the SMEs;
to facilitate SMEs in their loan application process;
to address difficulties faced by viable SMEs in securing financing; and
to provide advisory services on other SMEs financial requirements.

For further information please visit : http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=666