1. Commercialisation & Funding Universiti Malaysia Terengganu

2. Background of MTDC Incorporated by the Government on 10 March 1992.
Ministry of Industry Trade and International (MITI) to Ministry of Science, Technology and Innovation (MOSTI) to Khazanah
The establishment was initiated by National Council for Scientific Research and Development (NCSRD).

3. Background of MTDC
Main objective of establishment was to promote technology transfer through the following :-
Commercialisation of local research results;
Introduction of strategic technologies to the country;
Manufacture of products widely used as industrial inputs.

4. The Complete Equation Funding Technology Incubation Symbiosis CSR
Graduate Entrpreneurship
CSR
Advisory Services
Linkages
Value-added services
The Complete Equation

5. MTDC’s Technology Commercialisation Pathway
SEED
ANGEL
“SEMI-VC” VC
MVF
Young Graduates
Symbiosis
Grant
(CRDF)
BSF
BGF
Others
VCs /
Loans /
Debt Ventures
Training & Consultancy
Cubicle
Garage
Enterprise
Entrepreneurship Training
Nurturing & Mentoring
Value-added Services
Business Advisory
Incubators

6. Technology Transfer & Commercialisation
FUNDING AVAILABLE
Grants
Promissory Notes
Hybrid – Grant and Equity

7. GRANTS

8. Technology Transfer & Commercialisation
Commercialisation of R&D Fund (CRDF)
Technology Acquisition Fund (TAF)

9. Commercialisation of R&D Fund
CRDF
Commercialisation of R&D Fund

10. INTRODUCTION For commercialisation activities
Commercialisation of R&D Fund (CRDF)
INTRODUCTION
For commercialisation activities
On locally developed technologies ie research and development (R&Ds)
By eligible Malaysian-owned companies.

11. INTRODUCTION Commercialisation
Commercialisation of R&D Fund (CRDF)
INTRODUCTION
Commercialisation
~ a new products or production process by which the results of research projects are converted to marketable products and are commercially produced.

12. Commercialisation of R&D Fund (CRDF)
OBJECTIVES
To leverage on Science, Technology and Innovation (STI) for national development;
To increase the commercialisation of STI products & processes developed by local U/RI/companies;

13. Commercialisation of R&D Fund (CRDF)
OBJECTIVES
To increase wealth creation & technology content of SMEs/large corporations via commercialisation of R&D done by local U/RI/companies; and
To foster greater collaboration between universities/research institutions and industry.

14. Commercialisation of R&D Fund (CRDF)
CATEGORIES

15. Commercialisation of R&D Fund (CRDF)
COMMON ELIGIBILITY CRITERIA
The company is incorporated in Malaysia;
The company must be at least 51% owned by Malaysian;

16. Commercialisation of R&D Fund (CRDF)
COMMON ELIGIBILITY CRITERIA
The R&D must have been completed successfully and commercial-ready prototype is available; and
The proposed project must be tangible in nature

17. Commercialisation of R&D Fund (CRDF)
ADDITIONAL ELIGIBILITY CRITERIA
CRDF 1
CRDF 2
CRDF 3 (a)
CRDF 3 (b)
Company Category
Spin-off
Start-up
SME
Non-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.

18. Commercialisation of R&D Fund (CRDF)
ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2
Equipments
Equipment for Quality Control and production
Maintenance of equipments
Technology
Cost of technology/ consultation/ training

19. Commercialisation of R&D Fund (CRDF)
ELIGIBILE ACTIVITIES FOR CRDF1 & CRDF2
Administration and Overhead
Allowance for management and technical personnel
Rental at technology centre
Utilities
Services
Core raw materials
Advertisement and promotion
Certification and standard
IP registration and protection
Production out-sourcing

20. Commercialisation of R&D Fund (CRDF)
ELIGIBILE ACTIVITIES FOR CRDF3
Equipment
Equipment for Quality Control and Production
Technology
Technology/ consultation/ training
Advertisement and Promotion
Advertisement and promotion

21. Commercialisation of R&D Fund (CRDF)
ELIGIBILE ACTIVITIES FOR CRDF3
Services
IP registration and protection
Product testing and standards
Registration of certification

22. Technology Acquisition Fund
TAF
Technology Acquisition Fund

23. Technology Acquisition Fund (TAF)
INTRODUCTION
For eligible Malaysian companies
To acquire foreign technologies for immediate incorporation into the company’s manufacturing activity.
To avoid expensive and often risky technology development stages.

24. Technology Acquisition Fund (TAF)
INTRODUCTION
Acquisition of know-how / IP exploitation / rights / blueprints via one of the following methods:-
Licensing of technology; and
Outright purchase of technology

25. Technology Acquisition Fund (TAF)
OBJECTIVES
To promote technology upgrading through the introduction & utilisation of technologies in the manufacturing & physical development of existing & new products or processes;

26. Technology Acquisition Fund (TAF)
OBJECTIVES
To enhance the competitiveness level of Malaysian companies to compete globally; and
To increase wealth creation & technology content of Malaysian companies via acquisition of foreign technology.

27. Technology Acquisition Fund (TAF)
ELIGIBILITY CRITERIA
Companies incorporated in Malaysia;
The company must be at least 51% owned by Malaysian;
The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume;

28. Technology Acquisition Fund (TAF)
ELIGIBILITY CRITERIA
iv. The technology provider must not hold any equity in the applicant’s company;
The proposed project must be tangible in nature; and
The company must have already been involved in the production, fabrication and manufacturing of relevant products.

29. Technology Acquisition Fund (TAF)
Eligibile Activities
Funding types
Cost of Technology Acquisition; or
Cost of Technology Acquisition + Acquisition of M&E
Cost of Technology Acquisition

30. Technology Acquisition Fund (TAF)
Eligibile Activities
Acquisition of Machine & Equipment (M&E)
Engagement of foreign individual within a specific area of expertise on process or product improvement
Training

31. Technology Acquisition Fund (TAF)
Funding Structure
Cost of Technology Acquisition; or
Quantum Funding of up to of 70% or RM2.8million, whichever is lower
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.

32. PROMISSORY NOTES

33. Business Start-up Fund (BSF)
For start-up funding of technology-based start-up ie:-
New university spin off companies;
Companies started and self-funded by entrepreneurs, but without significant revenue;
Companies with high novelty/innovative products and have potential market; and/or
New companies set up with collaborative research and established market overseas.

34. Business Start-up Fund (BSF)
ELIGIBILITY CRITERIA
Start-up business with individual shareholders control 70% or more of the company’s equity.
Proposed project must contain elements of development leading to commercialisation of products, processes or services.

35. Business Start-up Fund (BSF)
ELIGIBILITY CRITERIA
Persons involved in the project should have suitable qualification or experience; management, marketing and technical.
Applicants must show proof of financial capability that they can fund the portion cost not funded by BSF.

36. Business Start-up Fund (BSF)
ELIGIBILITY CRITERIA
Project must be undertaken in Malaysia.
vi. Business must be owner-operated on fulltime basis.

37. HYBRID FUND

38. Business Growth Fund (BGF)
Objective
Accelerate the development of local high technology companies by providing business funding to qualified grant recipients companies.
Provides funding for the “last mile” of the R&D&C value chain.
Ensures that qualified grant recipients are adequately capitalised during their crucial formative years to build a business track record

39. Business Growth Fund (BGF)
Objective
Build enough “commercial” value in the company to make companies attractive for follow-on financing by VCs & other financing institutions.
To demonstrate that grant recipients which have received strong market validation for their products/services are further supported to become full-fledged commercial enterprises.

40. Business Growth Fund (BGF)
Offers Hybrid type of funding for the following types of company:-
Early stage
Successful Grant Graduates
Possesses high technology content
Exhibits potential for growth.

41. Business Growth Fund (BGF)
Structure of BGF is RM1m in the form of grant and RM3m as equity.
Exit plan will be in 3 – 5 years via buy back, trade sale, IPO etc.

42. Hockey Stick Growth BGF Phase Grant Phase VC Phase Exponential Growth
Inflection Point

43. Summary

44. Contact Details Mariatini Othman
Advisory & Value-added Services Division