Technology Development Fund 2 (TeD 2)

Ministry of Science, Technology and Innovation
21/06/2024
Research and Development Grants
Small and Medium Enterprises (SMEs) and Start-up companies that are technology- or innovation-based/related must meet the following criteria for TeD 2 applications: 1.1. Open to companies and businesses registered with the Companies Commission of Malaysia (SSM), while businesses in Sabah and Sarawak must be registered with the Local Authorities. 1.2. Definition of a Start-up: A technology- or innovation-enabled business at an early stage with a scalable business model and a high-growth strategy. 1.3. Eligibility criteria for Start-ups:i. Registered with the Companies Commission of Malaysia (SSM);ii. Majority ownership by Malaysian citizens (>50%);iii. Minimum paid-up capital of RM10,000.00;iv. At least two (2) company directors;v. Technology-based or technology and innovation-related business; andvi. Company operations not exceeding 5 years. For SMEs or Start-ups with less than 50% Malaysian ownership, the following additional criteria must be met:2.1. The applicant must have at minimum a proof of concept (POC) or a working prototype;2.2. The company must operate in Malaysia; and2.3. At least 70% of employees must be Malaysian citizens. For applications from SMEs, the fund is offered as a matching grant, where the company must contribute at least 40% (monetary or in-kind) of the total project cost. STI Agencies refer to agencies performing research and STI-related services under MOSTI. Applications from Public and Private Higher Learning Institutions (IPT) must collaborate with Start-ups or SMEs (documentary evidence must include at least a Letter of Acceptance (LoA) or equivalent documentation). Applications from Start-ups and SMEs are encouraged to collaborate with public universities (IPTA), private universities (IPTS), Government Research Institutes (GRI), or STI Agencies. Applicants collaborating with IPTA, IPTS, GRI, or STI Agencies must appoint a Research Officer (RO) or Graduate Research Assistant (GRA) (supported by a Letter of Acceptance (LoA) or equivalent documentation). Government Research Institutions or STI Agencies are encouraged to collaborate with Start-ups or SMEs (supported by a Letter of Acceptance (LoA) or equivalent documentation). Collaborators are individuals or organisations who work with the Entity, are named in the application, and have an agreement with the Entity. Consultants are individuals or organisations appointed and paid by the Entity and are responsible for specific activities during project implementation. All applicants must be registered in Malaysia. Company directors or project team members must not have been convicted of fraud, nor have their companies declared bankrupt, under dissolution, or receivership. Project Leaders who are Malaysian citizens may include project team members from international organisations or expatriates working in the same institution. Non-Malaysian Project Leaders are permitted to apply provided that:i. The work permit remains valid throughout the project duration; andii. The project team must consist of Malaysian citizens with relevant expertise from the same institution. A Project Leader may only lead one project under MOSTI approval at any given time. Researchers working under contract with Government Research Institutes, STI Agencies, or Public and Private IPTs must ensure their employment contract remains valid throughout the project period. Project teams must consist of members who are technically qualified and competent. Each team member must submit a detailed curriculum vitae outlining their research area, experience, and achievements. If project team members are from different institutions, a letter of permission from the Head of Department must be submitted. Applicants may submit multiple applications for different projects, provided they have sufficient human and financial resources. Projects must be implemented in Malaysia unless approval is obtained from MOSTI. Proposed projects must include elements of experimental development leading towards commercialisation. Proposed projects must be at a pre-commercialisation stage, with at least a proof of concept (POC) or a working prototype. The Project Leader must inform MOSTI if funding has already been received from other parties for the same project. Applications for projects related to security and defence enforcement (police and military) will not be funded under this scheme.
Conventional Method i. Applicants must complete the application form along with supporting documents as outlined in Appendix 3 via https://sdb.mosti.gov.my within the stipulated timeframe. ii. All applications must be reviewed and certified by an authorised party within the applicant’s organisation, such as the Head of Department or Research Management Centre. Applicants must declare that the submitted project application has not been previously funded by any financing party. iii. Applicants must indicate the proof of concept (POC) or a working prototype in the application form. This serves as evidence to validate that the proposed concept/theory/idea is feasible. iv. Applicants must also include the project’s Business Model as specified in Appendix 4. v. Applicants must identify whether the project application includes Environmental, Social, and Governance (ESG) elements either directly or indirectly. vi. Submitted applications will be reviewed by MOSTI to ensure that the application and documents provided are complete and meet the basic eligibility criteria for the TeD 2 Fund. Incomplete applications will be returned to the applicant. Fast Track Method(A special pathway for TeD 1 projects that have successfully met their objectives within the project implementation period). Applications through the fast track method will be considered under the following conditions: The Final Report for the TeD 1 Project has been verified by the panel; All objectives of the TeD 1 project have been achieved; and There is a recommendation from the panel to proceed with the project under TeD 2.
Objective: i. To develop existing concepts related to the design of technology, processes, or products towards commercialisation, in order to reduce the failure gap (Valley of Death); and ii. To stimulate the growth of research and technological development through collaborative networks among Government Research Institutes, Government STI Agencies, Institutions of Higher Learning, and industry. Scope of Funding G01: Pilot plant/prototype G02: Pre-clinical trials / clinical trials / non-clinical trials / field testing / stress testing / user acceptance testing G03: Intellectual Property (IP) G04: Market research and evaluation G05: Regulatory and standards compliance G06: Specialised and professional services G07: Raw materials / consumables directly related to the project G08: Administration G09: Technology/IP acquisition
Bahagian Dana, Kementerian Sains, Teknologi, & Inovasi (MOSTI) Aras 4, Blok C4, Kompleks C, Pusat Pentadbiran Kerajaan Persekutuan, 62662 Putrajaya
urusetia.ted2@mosti.gov.my helpdesk-sdb@mosti.gov.my
03 – 8885 8325/8302