TECHNOFUND

INTRODUCTION
TechnoFund is a grant scheme which aims to stimulate the growth and successful
innovation of Malaysian enterprises by increasing the level of R&D and its
commercialisation. The scheme provides funding for technology development, up to
pre-commercialisation stage, with the commercial potential to create new businesses
and generate economic wealth for the nation.

OBJECTIVES

to undertake the development of new or cutting edge technologies or further

develop/value add existing technologies/products in specific areas for the
creation of new businesses and generation of economic wealth for Malaysia;
to undertake market driven R&D towards commercialisation of R&D outputs;
to encourage institutions, local companies and inventors to capitalise their
intellectual work through intellectual property (IP) registration; and
to stimulate the growth and increase capability and capacity of Malaysian
technology-based enterprises, Malaysian Government Research Institutes (GRI)
and Institutions of Higher Learning (IHL) through both local and international
collaborations.

ELIGIBILITY CRITERIA

All categories of companies must have a minimum of 51% equity held by

Malaysians;
Applicant or collaborator under the small and medium company category must
have minimum paid up capital in cash of RM10,000.00. However, start-up
companies are exempted from this stipulation but must provide justification and
supporting documents on the ability to sustain itself;
None of the company directors or project team members have been convicted of
any fraudulent activities or the company been declared bankrupt, under
liquidation or placed under receivership
The proposed project must contain elements of technological innovation leading
to commercialisation of innovative products, processes and services;
The proposed project should be in the pre commercialisation stage with
established Proof of Concept (POC);
The project leader and team members must be competent to undertake the
proposed project. The resume and supporting documents of the project leader
and each project team member must also be submitted.
The following are not eligible for funding under the Pre Commercialisation Fund
(TechnoFund):
projects under the scope, responsibility or portfolio of certain Ministry,
Department or Agency other than MOSTI; and
applications from Research Institutes with internal research funding such
as CESS Fund.

SCOPE OF FUNDING
1. The Pre Commercialisation (TechnoFund) will cover:
the acquisition of technology (foreign and/ or local). Applicants should
provide the acquisition agreement or if such an agreement is not in place,
applicants shall provide details of the technology to be acquired;
the up-scaling of laboratory-scale prototype or the development of
commercial ready prototype; and
pre-clinical testing/clinical testing/field trials.
2. The funding can be used for the following:
pilot plant/ prototype equipment and supporting infrastructure which is
directly related to the pilot plant;
IP Preparation and Registration in Malaysia only (excluding
maintenance)- existing and new IP;
market testing / assessment and/or evaluation;
regulatory and standards compliance;
expenditure for services (consultancy/ testing) not exceeding 20% of
project cost;
contract expenditure applicable to IHLs and GRIs only (research
assistant);
raw materials/consumables; and
technology/IP acquisition (if applicable).
3. The funding cannot be used for the following:
purchase or rental of capital assets such as building, vehicles and
furniture;
construction of infrastructure which is not directly related to the pilot plant;
utilities;
travelling costs;
salary or allowances of any personnel (except as stated for IHLs and
GRIs); and
collateral or loan for any purpose.

PROJECT DURATION
The project duration is up to 30 months.
Additional 6 months is permitted for application involving IP acquisition.
An additional of 24 months from the maximum project duration of 30 months will
be added for the post-evaluation purposes.

QUANTUM OF FUNDING
The quantum for each project is between RM1,500,000.00 to RM3,000,000.00
depending on the merit of the proposal.

APPLICATION PROCESS
Applicant for TechnoFund should be submitted in hard copy (two set) and soft copy to
TechnoFund Secretariat
Fund
Application

Site Visit

Internal
Screening
(AV)

Monitoring

Technical And
Financial
Committee
Evaluation
Fund
Disbursement

FOR FURTHER INFORMATION

Pre Commercialisation Fund (TechnoFund) Secretariat
Fund Division
Ministry of Science, Technology and Innovation (MOSTI)
Level 3, Block C5, Complex C
Federal Government Administrative Centre
62662 PUTRAJAYA.
Tel: 03 - 8885 8753 / 8143 / 8820 / 8163 / 8896 / 8754
Fax: 03 - 8889 2994
www.mosti.gov.my

Fund Approval
Committee
Meeting

Approval