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Incentive Category
Scope of Funding

1. The purpose of the Technology Development Fund 1 (TeD 1) is to;

1.1 develop existing concepts related to the design of technology, processes or products that have the potential to be commercialized; And

1.2 stimulate the growth of research and technology development among Government Research Institutes, STI Agencies, Higher Education Institutions, Polytechnics, Community Colleges and industries.

Scope of Funding

G01: Pilot plant/prototype
G02: Pre-clinical trial/clinical trial/non-clinical trial/field trial/stress test/user acceptance test
G03: Intellectual Property (IP)
G04: Market study and evaluation
G05: Compliance with regulations and standards
G06: Special services
G07: Raw materials/ consumables directly related to the project
G08: Administration
G09: Technology/IP acquisition

Application Method

1. Applicants must complete the application form along with supporting documents such as Appendix 3 via within the stipulated time.

2. All applications must be reviewed and verified by an authority in the applicant's organization such as the Head of Department or the Research Management Center. The applicant must declare that the project application submitted has never been funded by any financier.
3. Applicants must enclose the project Business Model as in Appendix 4.
4. The submitted application will be reviewed by MOSTI to ensure that the application and documents submitted are complete and meet the basic qualifications of the TeD 1 Fund application. Incomplete applications will be returned to the applicant.

Qualification Criteria

1. Small and Medium Enterprise Companies (PKS) and Start-up Companies (start-up) based on technology and innovation must comply with the following requirements:
a. Open to Companies and Businesses registered with the Companies Commission of Malaysia (SSM) while Businesses in Sabah and Sarawak are required to be registered with Local Authorities. SMEs too must be registered with the statutory body of a professional service provider.

2. Definition of start-up: A technology- or innovation-enabled business at early stage with a scalable business model and a high-growth strategy.

3. Eligibility criteria for start-ups are as following:
i. Registered with the Malaysian Companies Commission (SSM); 
ii. Majority ownership of Malaysian citizens (>50%);
iii. Paid-up capital of at least RM10,000.00;
iv. Have at least two (2) directors of the company;
v. Technology-based/technology-related businesses and innovations; And
vi. Company operations not exceeding 5 years.

4. For applications from SMEs, this fund is offered by grant matching in which the company must finance at least 30% (monetary or in-kind) of the total cost of the project.

5. STI agencies refer to agencies that perform functions research and services related to STI under MOSTI.

6. Applications from IPTA, IPTS, GRI and STI Agencies are encouraged to collaborate with Start-up Companies or PKS (proof of document is at least a letter of approval (Letter of Acceptance, LoA) or other equivalent documents).

7. Applications from Start-ups and MCCs are encouraged to collaborate with IPTA, IPTS, GRI or STI Agencies.

8.Applicants collaborating with IPTA, IPTS, GRI or STI Agencies, should appoint a Research Officer (RO) / Graduate Research Assistant (GRA) (proof of document is at least a letter of approval (Letter of Acceptance, LoA) or other equivalent documents).

9. All categories of companies must own a minimum of 51% equity held by Malaysians.

10. Company directors or project team members must not have never been convicted on fraudulent activities or have the company declared bankrupt, or in dissolution or under receivership.

11. Project Heads who are Malaysian citizens, can lead projects but may involve project members from international organizations or expatriates working from the same institution.

12. Project Leaders, who are not Malaysian citizens, are allowed to apply provided:
i. A work permit is valid throughout the project implementation period; And
ii. Project members must be Malaysian citizens with the same area of expertise and from the same institution.

13. Researchers working under the contract of Government Research Institution/STI Agency / IPT shall ensure that the employment contract is still valid throughout the project period.

14. The project team members should consist of qualified and competent members in the technical aspects. Each member of the team should provide a clear resume (curriculum vitae) on the field of research, experience and achievement.

15. If the project member is from a different institution, an authorization letter from the head of the department should be submitted.

16. Applicants are allowed to submit several applications for different projects provided that the applicant has the ability to meet the requirement in terms of strong human resources and finance.

17. Project Leaders are only allowed to lead one project at one time, as per agree by MOSTI.

18. Projects must be implemented in Malaysia.

19. The proposed project should contain elements of commercialize experimental development.

20. Project Leader must inform the MOSTI if he has received funds from other parties for the same project.

21. Project applications related to security and defense enforcement (police and military) will not be funded under this scheme.

Contact Information

Fund Division, Ministry of Science, Technology, & Innovation (MOSTI) Level 4, Block C4, Parcel C, Federal Government Administrative Centre, 62662 Putrajaya

Last modified
01 August 2023