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.

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.

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.

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.

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.

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