Technology Development Fund 2 (TeD 2)

Incentive Category

Research and Development Grants

Scope of Funding

To develop existing concepts related to design form of technology, process or product towards commercialization for reduce the failure gap (valley of death); and
To stimulate the growth of research and technology development through a network of cooperation between Government Research Institutes, Government STI Agencies, Institutes of Higher Learning, Polytechnics, Colleges Community with industry.

Application Method

Application through Conventional Method

Applicants must complete the application form together supporting documents such as Appendix 3 through https://sdb.mosti.gov.my/sdbcms/en/ within the stipulated time period.
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.
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.
Applicants must accompany the project Business Model as in Appendix 4.
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:

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

Incomplete applications will be returned to applicant.

Qualification Criteria

Small and Medium Enterprise (SME) and Start-up Companies must comply with the conditions below for TeD 2 application:
1. Open to Companies and Businesses registered with the Companies Commission of Malaysia (SSM) while Businesses in Sabah and Sarawak need to be registered with the Local Authority
2. Eligibility criteria for Start-up Companies (start-up) are as follows the following:
  1. Registered with the Companies Commission of Malaysia (SSM);
  2. Majority ownership of Malaysians (> 50%);
  3. Paid-up capital of at least RM10,000.00;
  4. Have at least two (2) company directors;
  5. Technology -based businesses; and
  6. The operation of the company does not exceed 5 years.
For SME Companies or start-up Companies, whose ownership is not achieve a majority of Malaysian citizens (<50%), additional conditions the following must be complied with, namely:
1. Applicants have minimum qualifications in terms of proof of concept (proof of concept, POC) or a working prototype),
2. The company operates in Malaysia; and
3. At least 70% of employees are Malaysian citizens.
For applications from SME companies, these funds are offered on a grant basis match based on the following merits:
1. If the company finances part of the funds in the form of in-kind returns (e.g. equivalent value of equipment, facilities and services) up to 50% of the total cost of the application, MOSTI will fund up to 70% of the total the cost of the project applied for; or
2. If the company finances part of the funds in the form of cash back, MOSTI will fund up to 90% of the total cost of the project applied for.
An STI agency refers to an agency that performs a function STI -related research and services under MOSTI.
Applications from Public and Private Institutions of Higher Learning (IPT) shall collaborate with the Start -up Company/Enterprise Company Small and Medium (SME) (documentary evidence is minimal letter of acceptance (Letter of Acceptance (LoA)) or other document that equivalent).
Applications from Start -up Companies and SMEs are encouraged collaborate with IPTA, IPTS, GRI or STI Agency. If the applicant intends to appoint an RO, the applicant shall collaborate with IPTA or IPTS (documentary evidence is at least a letter of approval (Letter of Acceptance, LoA) or other equivalent document).
While Polytechnics, Community Colleges, Government Research Institutions/Agencies Government STIs are encouraged to collaborate with Start -up Companies/Companies Small and Medium Enterprises (SMEs) (documentary evidence is at least a Letter of Acceptance (LoA) or other equivalent document).
All applicants must be registered in Malaysia.
Company directors or project team members have never been convicted for fraudulent activities or the company is declared bankrupt, or in dissolution or under receivership.
Project Leaders who are Malaysian citizens can involve project members from international organizations or working expatriates from the same institution.
While Project Leaders who are not Malaysian citizens are allowed to apply on condition:
1. the work permit is valid for the duration of the project implementation; and
2. project members must be Malaysian citizens who have the same area of expertise and from the same institution.
Project Leaders are only allowed to lead one project below MOSTI approval at one time.
Researchers working under a contract of a Government Research Institution/ Government STI Agency/ Public and Private Institutions of Higher Learning (IPT)/ Polytechnics/ Community Colleges shall ensure that the contract employment is still valid for the duration of the project.
The project team should consist of qualified and competent members in the technical aspects of the entire project. Every team member must provide a clear resume (curriculum vitae) about areas of research, experience and successes that have been achieved.
If the project member is from a different institution, a letter of permission from the head of department shall be submitted.
Applicants are allowed to submit several applications for different projects provided the applicant has the ability from in terms of strong human and financial resources.
Projects must be implemented in Malaysia unless approved of MOSTI.
The proposed project must contain development elements experimental (experimental development) which leads to commercialization.
The proposed project should be at the pre-commercialization stage with at least proof of concept (proof of concept) or a working prototype.
The Project Leader must inform MOSTI if already receive funds from other parties for the same project.
Project applications related to security enforcement and defense (police and army) will not be funded under this scheme.