MATRADE Exhibition & Convention Centre 21 April 2015

Innovation Process Research Development Commercialisation To provide scientific information and theories for explanation of the nature and the properties of the World Process of designing, creating and marketing new products or services to benefit customers. Process or cycle of introducing a new product or production method into the market.

Government Financial Assistance – Technology Based Basic Research 1. Exploratory Research Grant Scheme (ERGS) 2. Fundamental Research Grant Scheme (FRGS) 3. Long Term Research Grant Scheme (LRGS) 4. Prototype Research Grant Scheme (PRGS) Applied R&D 1. Science Fund Pre-Commercialisation 1. CIP CIP Catalyst 2. InnoFund 3. TechnoFund 4. Concept to Commercialisation Gap Fund (CCGP) Commercialisation 1. Commercialisation of R&D Fund (CRDF) 2. Technology Acquisition Fund (TAF) 3. Business Start-Up Fund (BSF) 4. Business Growth Fund (BGF) 5. Biotechnology Commercialisation Fund (BCF)

 Grant Management  Soft Loan & Hybrid Fund Programmes  Advisory Services  Nurturing Services  Incubation Management  Grant Management  Soft Loan & Hybrid Fund Programmes  Advisory Services  Nurturing Services  Incubation Management

5 MTDC ECO-SYSTEM MTDC provides an effective technology transfer and commercialisation eco-system that promote proliferation of new start-up companies to undertake commercialisation of indigenous technologies. i -CoE FUNDING TECH INCUBATION UNI/RI LINKAGES LOCAL/ INTERNATIONAL COLLABORATION NURTURING ENTREPRENEUR DEVELOPMENT/ Symbiosis MTDC

An invention remains as invention unless commercialized with economic returns. MTDC

MVF Young Graduates Symbiosis Grant (CRDF & TAF) BSF BGF Others VCs / Loans / Debt Ventures Cubicle Garage Incubators Entrepreneurship Training Nurturing & Mentoring Value-added Services Business Advisory Enterprise SEED GOV. GRANT/ ANGEL/EARLY STAGE FUNDING “SEMI-VC”VC Training & Consultancy

Technology Transfer & Commercialisation  Commercialisation of R&D Fund (CRDF)  Technology Acquisition Fund (TAF) GRANTS

CRDF  Funding for commercialisation activities of locally developed technologies/research and development (R&Ds) undertaken by eligible Malaysian-owned companies.  The technologies can be those developed by the public/private sectors or they can also be the output of in-house R&D activities by the companies. *Commercialisation  A new products or production process by which the results of research projects are converted to marketable products and are commercially produced. CRDF  Funding for commercialisation activities of locally developed technologies/research and development (R&Ds) undertaken by eligible Malaysian-owned companies.  The technologies can be those developed by the public/private sectors or they can also be the output of in-house R&D activities by the companies. *Commercialisation  A new products or production process by which the results of research projects are converted to marketable products and are commercially produced. INTRODUCTION

COMMERCIALISATION OF R&D FUND (CRDF) CATEGORIES OF CRDF

Commercialisation of R&D Fund (CRDF) i.The company is incorporated in Malaysia; ii.The company must be at least 51% owned by Malaysian; iii.The proposed technology to be commercialised must be from one of the Priority Technology Clusters identified by MOSTI, excluding ICT; iv.The R&D must have been completed successfully and commercial-ready prototype is available; v.The proposed project must be tangible in nature or can be incorporated into tangible product; vi.Significant paid-up capital which commensurate with the total project cost (proof of the availability of the fund to finance the project); vii.License from relevant authorities must be available for the proposed project; and viii.Proposed project is recommended by industrial expert. i.The company is incorporated in Malaysia; ii.The company must be at least 51% owned by Malaysian; iii.The proposed technology to be commercialised must be from one of the Priority Technology Clusters identified by MOSTI, excluding ICT; iv.The R&D must have been completed successfully and commercial-ready prototype is available; v.The proposed project must be tangible in nature or can be incorporated into tangible product; vi.Significant paid-up capital which commensurate with the total project cost (proof of the availability of the fund to finance the project); vii.License from relevant authorities must be available for the proposed project; and viii.Proposed project is recommended by industrial expert. COMMON ELIGIBILITY CRITERIA

Commercialisation of R&D Fund (CRDF) ADDITIONAL ELIGIBILITY CRITERIA CRDF 1CRDF 2CRDF 3 (a)CRDF 3 (b) Company Category Spin-off from IHL/GRI Start-upSMENon-SME Source of Technology Public & Private University (IHL) / Government Research Institute (GRI) IHL / GRI IHL / GRI / In- House Public Sector R&D Quantum of Funding 90% of eligible expenses, capped at RM500k 70% of eligible expenses, capped at RM500k 70% of eligible expenses, capped at RM4.0 mil. 50% of eligible expenses, capped at RM4.0 mil.

Commercialisation of R&D Fund (CRDF) Equipments i.Cost of the purchase of equipments for Quality Control and production ii.Cost of maintenance of equipments Technology Cost of technology/ consultation/ training Equipments i.Cost of the purchase of equipments for Quality Control and production ii.Cost of maintenance of equipments Technology Cost of technology/ consultation/ training Administration and Overhead i.Cost of allowance for management and technical personnel ii.Cost of rental at technology centre iii.Cost of utilities Services i.Cost of core raw materials ii.Cost of advertisement and promotion iii.Cost of certification and standard iv.Cost of IP registration and protection v.Cost of production out-sourcing ELIGIBILE ACTIVITIES CRDF 1 & CRDF 2

Commercialisation of R&D Fund (CRDF) Equipment  Cost of the purchase of equipments for Quality Control and Production Technology  Cost of technology/ consultation/ training Advertisement and Promotion  Cost of advertisement and promotion Services i.Cost of IP registration and protection ii.Cost of product testing and standards iii.Cost of registration of certification Equipment  Cost of the purchase of equipments for Quality Control and Production Technology  Cost of technology/ consultation/ training Advertisement and Promotion  Cost of advertisement and promotion Services i.Cost of IP registration and protection ii.Cost of product testing and standards iii.Cost of registration of certification ELIGIBILE ACTIVITIES CRDF 3

Commercialisation of R&D Fund (CRDF)  Business plan i.Itemised costing ii.Manufacturing and operational plan iii.Marketing plan iv.Financial projection v.Commercialisation plan  Secretarial documents  Curriculum Vitae of Management and Technical team  Audited Account / Management Account  Supporting documents  Technology Transfer Agreement with U/RI  Business plan i.Itemised costing ii.Manufacturing and operational plan iii.Marketing plan iv.Financial projection v.Commercialisation plan  Secretarial documents  Curriculum Vitae of Management and Technical team  Audited Account / Management Account  Supporting documents  Technology Transfer Agreement with U/RI ESSENTIAL INFORMATION FOR APPLICATION

TAF Technology Acquisition Fund

Technology Acquisition Fund (TAF) INTRODUCTION TAF is established to facilitate eligible Malaysian companies in the acquisition of foreign technologies for immediate incorporation into the company’s manufacturing activity. TAF’s partial grant enables companies to avoid expensive and often risky technology development stages. The acquisition of technology could be in the form of acquiring know-how / IP exploitation / rights / blueprints via one of the following methods: i.Licensing of technology; and ii.Outright purchase of technology

Technology Acquisition Fund (TAF) i.Companies incorporated in Malaysia; ii.The company must be at least 51% owned by Malaysian ; iii.The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume ; iv.The proposed technology acquisition must be from one of the Priority Technology Clusters identified by MOSTI; v.The technology provider must not hold any equity in the applicant’s company; vi.The proposed project must be tangible in nature or can be incorporated into tangible product; vii.The company must have already been involved in the production, fabrication and manufacturing of relevant products ; and viii.Significant paid-up capital which commensurate with the total project cost (proof of the availability of the fund to finance the project. i.Companies incorporated in Malaysia; ii.The company must be at least 51% owned by Malaysian ; iii.The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume ; iv.The proposed technology acquisition must be from one of the Priority Technology Clusters identified by MOSTI; v.The technology provider must not hold any equity in the applicant’s company; vi.The proposed project must be tangible in nature or can be incorporated into tangible product; vii.The company must have already been involved in the production, fabrication and manufacturing of relevant products ; and viii.Significant paid-up capital which commensurate with the total project cost (proof of the availability of the fund to finance the project. ELIGIBILITY CRITERIA

Technology Acquisition Fund (TAF)  Funding types:- i. Cost of Technology Acquisition ; or ii.Cost of Technology Acquisition + Acquisition of M&E  Cost of Technology Acquisition i.e. for Licensing or Outright Purchase of Technology  Acquisition of Machine & Equipment (M&E)  Engagement of foreign individual within a specific area of expertise on process or product improvement  Training  Funding types:- i. Cost of Technology Acquisition ; or ii.Cost of Technology Acquisition + Acquisition of M&E  Cost of Technology Acquisition i.e. for Licensing or Outright Purchase of Technology  Acquisition of Machine & Equipment (M&E)  Engagement of foreign individual within a specific area of expertise on process or product improvement  Training ELIGIBILE ACTIVITIES

Technology Acquisition Fund (TAF) i. Cost of Technology Acquisition ; or  Quantum Funding of up to of 70% or RM2.8million, whichever is lower ii.Cost of Technology Acquisition + Acquisition of M&E *Maximum quantum to be approved for IP is capped at RM 2.4mil as 70% and M&E is capped at RM 1.6mil as 50% grant. i. Cost of Technology Acquisition ; or  Quantum Funding of up to of 70% or RM2.8million, whichever is lower ii.Cost of Technology Acquisition + Acquisition of M&E *Maximum quantum to be approved for IP is capped at RM 2.4mil as 70% and M&E is capped at RM 1.6mil as 50% grant. FUNDING STRUCTURE

Technology Acquisition Fund (TAF) iii.Additional activity a.Engagement of foreign experts from abroad or sending local technical staff(s) for process or product improvement. Quantum of funding shall cover travelling & lodging of up to RM200,000 per person and period of stay of up to 6 (six) months. b.Eligible activities for cost of pre-production. Quantum of funding shall cover of up to RM250,000 or 70% from the total eligible cost, whichever is lower. iii.Additional activity a.Engagement of foreign experts from abroad or sending local technical staff(s) for process or product improvement. Quantum of funding shall cover travelling & lodging of up to RM200,000 per person and period of stay of up to 6 (six) months. b.Eligible activities for cost of pre-production. Quantum of funding shall cover of up to RM250,000 or 70% from the total eligible cost, whichever is lower. FUNDING STRUCTURE

Technology Acquisition Fund (TAF)  Business plan i.Itemised costing ii.Manufacturing and operational plan iii.Marketing plan iv.Financial projection v.Commercialisation plan  Secretarial documents  Curriculum Vitae of Management and Technical team  Audited Account / Management Account  Supporting documents  Technology Transfer Agreement (Licensing / Outright purchase) i.Amount of Licensing v. Exclusivity ii.Market territory vi. Payment schedule iii.Royalty vii. Project milestone iv.Duration  Business plan i.Itemised costing ii.Manufacturing and operational plan iii.Marketing plan iv.Financial projection v.Commercialisation plan  Secretarial documents  Curriculum Vitae of Management and Technical team  Audited Account / Management Account  Supporting documents  Technology Transfer Agreement (Licensing / Outright purchase) i.Amount of Licensing v. Exclusivity ii.Market territory vi. Payment schedule iii.Royalty vii. Project milestone iv.Duration ESSENTIAL INFORMATION FOR APPLICATION

BSF Business Start-up Fund 24

Business Start-Up Fund 25 Name :Business Start-up Fund (BSF) Focus :Technology Based Companies Funding Per Company :Maximum of 90% of total project cost or RM5.0 million whichever is lower Fund Structure :Promissory Notes Convertible to RCCPS (Redeemable Convertible Cumulative Preference Shares) Coupon Rate :3.5% Repayment : Maximum of 8 years inclusive of first 3 years payment free period Repayment shall commence on the first month of the 4 th year on monthly basis over 5 years

Eligibility Criteria Business Start-Up Fund

The BSF does NOT cover the followings : Purchase of Land Purchase of Building Activities or equipment already funded by banks or other grants Project Cost Covered Business Start-Up Fund

BGF Business Growth Fund 28

Eligibility & Funding Amount  Open to all companies with business activities in any sector i.e. manufacturing, O&G, agriculture, healthcare etc.  Must be able to show the novelty of the technology and the growth potential  The maximum funding - RM7.0 million  Hybrid structure - Grant (up to RM1.0m) - Equity; RCPS  Funding period - 5 years  Exit by way of share buy-back, trade sale, or via IPO with minimum IRR of 10%  Open to all companies with business activities in any sector i.e. manufacturing, O&G, agriculture, healthcare etc.  Must be able to show the novelty of the technology and the growth potential  The maximum funding - RM7.0 million  Hybrid structure - Grant (up to RM1.0m) - Equity; RCPS  Funding period - 5 years  Exit by way of share buy-back, trade sale, or via IPO with minimum IRR of 10% 29 Business Growth Fund

Fund Structure Equity Participation  Up to RM7.0 million (minus the grant portion)  Subscription instrument – RCPS Convertible into ordinary shares (up to 20%) No payment of fixed dividend Two Board seats for MTDC Exit – Redeemable by the Shareholders; offer to buyback; or the proceeds of a new issue, trade sale, IPO, etc. Internal Rate of Return (IRR) : 10% Equity Participation  Up to RM7.0 million (minus the grant portion)  Subscription instrument – RCPS Convertible into ordinary shares (up to 20%) No payment of fixed dividend Two Board seats for MTDC Exit – Redeemable by the Shareholders; offer to buyback; or the proceeds of a new issue, trade sale, IPO, etc. Internal Rate of Return (IRR) : 10% 30 Business Growth Fund

PRIORITY TECHNOLOGY CLUSTERS UNDER MOSTI INDUSTRIAL TECHNOLOGY Advanced Manufacturing Advanced Material Renewal Energy Nanotechnology Machinery and Equipment Food Processing and Production BIOTECHNOLOGY Agro Biotechnology Healthcare Industrial SEA TO SPACE Meteorology & Geophysics Oceanography Remote Sensing & GIS Communication Space Technology S&T Core Environmental Sciences

FOR MORE INFORMATION, PLEASE VISIT: CONTACT US: CRDF & TAF - BGF – BSF –