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Incentive Category
Scope of Funding

1. The objectives of Technology Development Fund 2 (TeD 2) are to:

1.1 develop existing concepts related to the design of technology, processes or products towards commercialization to reduce the failure gap (Valley of Death); and

1.2 stimulate the growth of research and technological development through a network of cooperation between Government Research Institutes, Government STI Agencies, Institutes of Higher Education, and industry.

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

Application through Conventional Method

1. Applicants must complete the application form together supporting documents such as Appendix 3 through within the stipulated time period.
2. All applications must be reviewed and confirmed by the party authoritative in the applicant's organization such as the Head of Department or Center Research Management. The applicant must declare that the project application submitted was never funded by any of the financiers.
3. Applicants must state proof of concept or a working prototype in the form application. This is evidence to confirm the concept/ theory/ the proposed idea is applicable.
4. Applicants must accompany the project Business Model as in Appendix 4. 
5. Applications submitted will be reviewed by MOSTI for ensure the application and documents submitted are complete and meet the basic qualifications of the TeD Fund application 2.

Applications through the fast-track method are considered with the following conditions:

1. The Final Report of the TeD 1 Project was approved by the panel; 
2. Achieve all TeD 1 project objectives; and
3. Recommendation from the panel to proceed with the project under TeD 2. 

Incomplete applications will be returned to applicant.

Qualification Criteria

1. Small and Medium Companies (PKS) and Start-up Companies (start-up) based on technology and innovation must comply with the conditions below for TeD 2 application:
1.1 Open to Companies and Businesses registered with Companies Commission of Malaysia (SSM) while Business in Sabah and Sarawak needs to be registered with the Local Authority.
1.3 Definition of start-up: A technology- or innovation enabled business at early stage with a scalable business model and a high-growth strategy.
1.4 The eligibility criteria for start-ups are as Following:
i. Registered with the Companies Commission of Malaysia (SSM);
i. Majority ownership of Malaysian citizens (>50%);
ii. Paid-up capital of at least RM10,000.00;
iii. Have at least two (2) directors of the company;
iv. Technology-based/technology-related businesses and
Innovation; And
v. The operation of the company shall not exceed 5 years.

2. For MCC companies or start-up companies, whose ownership does not achieve the majority of Malaysian citizens (<50%), additional conditions should be followed, namely:
i. The applicant must have minimal qualifications in terms of proof of concept (proof of concept, POC) or a prototype that has worked (working prototype),
ii. The Company operates in Malaysia; And
iii. At least 70% of employees are Malaysian

3. 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.

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

5. Applications from Public and Private Institutions of Higher Learning (IPT) should collaborate with start-up companies / corporate companies Small and Medium (MCC) (proof of document is at least
letter of approval (Letter of Acceptance (LoA)) or other documents that equivalent).

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

7. 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).

8. Government Research Institutions/Government STI Agencies are encouraged to collaborate with Start-ups/Small Companies and Simple (MCC) (proof of document is at least a letter approval (Letter of Acceptance, LoA) or other documents that equivalent).

9. All applicants must be registered in Malaysia.

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 consisting of Malaysian citizens can involve project members from international organizations or working expatriates 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 field of expertise and from the same institution. 

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

14. Researchers working under the contract of Government Research Institutions/ Government STI Agencies / Public and Private Institutions of Higher Learning (IPT) shall ensure that the employment contract is still valid throughout duration of the project.

15. The project team should consist of qualified and competent members in the technical aspects of the entire project. Every member of the team must provide a clear curriculum vitae of areas of research, experience and achievements.

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

17. 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.

18. Projects must be implemented in Malaysia unless approved from MOSTI.

19. The proposed project should contain experimental development elements that lead to commercialization.

20. The proposed project should be at the pre-commercialization stage with at least a proof of concept or a prototype that has worked (working prototype).

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

22. 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
26 July 2023