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Industrial and Commercialisation Funds

Industrial & Commercialisation Funds were established to provide partial grants to qualified R&D projects to stimulate the needs of harnessing technology for wealth creation. It is aimed at enhancing and improving the competitiveness and capacity of the Malaysian industrial sector by promoting the commercialisation of indigenous technology. The funds provided also enables full commercialisation of home-grown R&D, developed by local universities/ research institutions or the private sector.

Incentive TitleFundraising Organization
Business Growth Fund (BGF)Malaysian Technology Development Corporation Sdn.Bhd
Business Start-up Fund (BSF)Malaysian Technology Development Corporation Sdn.Bhd
Technology Acceleration & Commercialisation Scheme (MDV-TACT) Malaysia Debt Ventures Berhad
Biotechnology Commercialisation Fund (BCF 2.0)Malaysian Bioeconomy Development Corporation Sdn Bhd
Bioeconomy Transformation Programme (BTP) FundMalaysian Bioeconomy Development Corporation Sdn Bhd
AXIATA Digital Innovation FundMalaysia Venture Capital Management Berhad
Venture capital FundMalaysia Venture Capital Management Berhad
SME Technology Transformation Fund (STTF)SME BANK
Domestic Investment Strategic Fund (DISF)Malaysian Investment Development Authority
Halal Technology Development FundMalaysian Technology Development Corporation Sdn.Bhd
Grant CIP IgniteCradle Fund Sdn Bhd
Grant CIP AccelerateCradle Fund Sdn Bhd
Commercialisation Financing ProgramMalaysia Debt Ventures Berhad

Research and Development Grants

Grantsand incentives are provided for R&D in science and technology, to encourage Malaysian companies to become more innovative in using and adapting existing technologies and creating new technologies.

Incentive TitleFundraising Organization
MOH Research Grant (MRG)Ministry of Health Malaysia (MOH)
Fundamental Research Grant Scheme (FRGS)Ministry of Higher Education (MOHE)
Long Term Research Grant Scheme (LRGS)Ministry of Higher Education (MOHE)
Prototype Development Research Grant (PRGS)Ministry of Higher Education (MOHE)
Research Pledge Grant (GSP-KPM)Ministry of Higher Education (MOHE)
Research Development Grant Scheme (RAGS)Ministry of Higher Education (MOHE)
Niche Research Grant Scheme of the Ministry of Education (NRGS-KPM)Ministry of Higher Education (MOHE)
Trans-disciplinary Research Grant Scheme (TRGS)Ministry of Higher Education (MOHE)
Research Acculturation Collaboration Effort (RACE)Ministry of Higher Education (MOHE)
Malaysia Laboratories for Academia-Business Collaboration (MyLAB)Ministry of Higher Education (MOHE)
Science and Technology Research GrantMalaysia Toray Science Foundation
CREST R&D GrantColloborative Research in Engineering, Science and Technology (CREST)
Applied Innovation FundMinistry of Science, Technology and Innovation (MOSTI)
Technology Development Fund 1 (TeD 1)Ministry of Science, Technology and Innovation (MOSTI)
Technology Development Fund 2 (TeD 2)Ministry of Science, Technology and Innovation (MOSTI)
Strategic Research Fund (SRF)Ministry of Science, Technology and Innovation (MOSTI)
Fundamental Research Grant Scheme For Research Acculturation Of Early Career Researchers (FRGS-RACER)Ministry of Higher Education (MOHE)
Geran Penyelidikan Jangka Panjang–Jejak Sarjana Ulung (LRGS-JSU) Ministry of Higher Education (MOHE)

Loan and Venture Capital

The Malaysian government through various ministries and agencies, has helped the Small and Medium Enterprises (SMEs) succeed, beginning from start-up and extending through the many phases of growth. In depth, financial assistance are offered to aspiring entrepreneurs wishing to start, expand and/or upgrade their businesses.

These loans are made available through financial institutions such as Malaysia Venture Capital Management Berhad (MAVCAP), Kumpulan Modal Perdana Sdn Bhd (KMP) and Credit Guarantee Corporation Malaysia Berhad enabling entrepreneurs to obtain up to 100% loan and credit facilities to support their business aspirations. Venture Capital is an alternative form of financing. The Government has proven itself in the past to be very supportive of the VC industry and has continued to do so, providing adequate liquidity to meet the industry's needs.

Incentive TitleFundraising Organization
Soft Loan Scheme for Small & Medium Enterprises (SLSME)Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Capacity Development (SLSCD)Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Sector (SLSSS)Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Automation and Modernisation (SLSAM)Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE)Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Exports (SLSSE)Malaysian Industrial Development Finance Berhad (MIDF)
Deep Tech / Electronics & Electrical Fund (E&E Fund)Kumpulan Modal Perdana Sdn. Bhd.
Intellectual Property Financing Scheme (IPFS)Malaysia Debt Ventures Berhad
Bumiputra, Biotechnology & Bio-Industry Development Fund (B3DF)Malaysia Debt Ventures Berhad
Green Technology Financing SchemeMalaysian Green Technology Corporation
Business Accelerator Programme 2.0 (BAP 2.0)SME Corporation Malaysia
Services Export Fund (SEF)MATRADE
Shariah-compliant SME Financing Scheme (SSFS) 2.0SME Corporation Malaysia
SME Emergency Fund (SMEEF)SME Corporation Malaysia
Venture FinancingMalaysia Debt Ventures Berhad
Project Financing: Term Financing, Revolving Financing and Guarantee/Trade FacilityMalaysia Debt Ventures Berhad
Energy Efficiency FinancingMalaysia Debt Ventures Berhad
MDV Liquidity Financing for Tech Start-upsMalaysia Debt Ventures Berhad

STI Tax Incentives

A vast array of fiscal incentives in the form of tax exemption as well as double deduction for R&D expenses, has been provided by the Malaysian government as an agenda to promote R&D. Studies have shown that R&D tax incentives can be an effective instrument for inducing a certain degree of private sector research. Tax incentives can increase private research spending by an amount equal to the loss in tax revenue on average, depending on their design.

Incentive TitleFundraising Organization
Tax exemption on 100% statutory income for a period of 10 consecutive years from the first year the company derived its statutory income from the new business.Malaysian Bioeconomy Development Corporation Sdn Bhd
Tax exemption on 100% statutory income for a period of 5 consecutive years from the first year the company derived its statutory income from the existing business and expansion project.Malaysian Bioeconomy Development Corporation Sdn Bhd
Tax exemption on 100% statutory income derived from a new business or an expansion project that is equivalent to an allowance of 100% of qualifying capital expenditure incurred for a period of 5 years.Malaysian Bioeconomy Development Corporation Sdn Bhd
Import duty exemption on Imported raw materials, components, machinery and equipment.Malaysian Bioeconomy Development Corporation Sdn Bhd
Double deduction on expenditure incurred for R&D.Inland Revenue Board of Malaysia (IRB)
A company of an individual (that carry on business) investing in a BioNexus Status company is eligible for a tax deduction equivalent to the total investment made in initiating commercialization stage financing.Malaysian Bioeconomy Development Corporation Sdn Bhd
Domestic Investment Strategic FundMalaysian Investment Development Authority
 Incentives for High Technology ProjectsMalaysian Investment Development Authority
MSC Malaysia StatusMultimedia Development Corporation
Bionexus Status Company (Tax Incentives)Malaysian Bioeconomy Development Corporation Sdn Bhd
Tax exemption on dividends distributed by a BioNexus Status companyMalaysian Bioeconomy Development Corporation Sdn Bhd
Double deduction on expenditure incurred for the promotion of exportsMalaysian Bioeconomy Development Corporation Sdn Bhd
Research Incentive Scheme for EnterprisesMultimedia Development Corporation
Angel Tax IncentivesCradle Fund Sdn Bhd
INCENTIVES FOR PRODUCTION OF HALAL FOOD Malaysian Investment Development Authority

HCD Funds

The rapid development and enhancement of S&T since the millennium, has transformed socio-economic throughout the world. New skills and ability is therefore required to correspond with the ever-growing knowledge-intensive and skills based industries. The Human Capital Development Fund Programme in S&T is an effort by the Government to encourage and strengthen the human capacity and capability for the enhancement of S&T in Malaysia.

This programme is introduced to increase the critical mass of scientist and researchers in the country besides strengthening the R&D functions in institutions of higher learning and public research institutions. It also committed to enhance the country's competitiveness through the development of trained, innovative and creative human resource.

Incentive TitleFundraising Organization
Biasiswa MyBrainScMinistry of Education
SME Expert Advisory Panel (SEAP) ProgrammeSME Corporation Malaysia
Tunas Usahawan Belia Bumiputera (TUBE)SME Corporation Malaysia
Coach & Grow Programme (CGP)Cradle Fund Sdn Bhd

Other

Incentive TitleFundraising Organization
Galakan Eksport Bumiputera (GEB)SME Corporation Malaysia
Bumiputera Enterprise Enhancement Programme (BEEP)SME Corporation Malaysia
MTDC-microLEAP Peer-to-Peer (P2P) Financing ProgrammeMalaysian Technology Development Corporation Sdn.Bhd
MTDC-pitchIN Equity Crowdfunding (ECF) ProgrammeMalaysian Technology Development Corporation Sdn.Bhd
Entrepreneurship for the FutureMalaysian Global Innovation and Creativity Centre (MAGIC)
Entrepreneurship for Social ImpactMalaysian Global Innovation and Creativity Centre (MAGIC)
Alliance Investment Bank COVID Crowd funding InitiativeMalaysian Global Innovation and Creativity Centre (MAGIC)
CO9P - Center of 9 PillarsMalaysian Technology Development Corporation Sdn.Bhd
Technology IncubatorMalaysian Technology Development Corporation Sdn.Bhd
TENTRA - Technopreneur Training AcademyMalaysian Technology Development Corporation Sdn.Bhd
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