Overview of Fund #1
It provides funding to eligible Malaysian companies to acquire foreign technology for immediate incorporation into company's manufacturing activity. The acquisition of technology could be in the form of acquiring know-how / patent / design via the following methods:-
- Licensing of technology
- Purchase of technology; and
- Outright purchase of technology
Objectives of The Fund
- Promote technology upgrading via the introduction and exploitation of technologies in the manufacturing and physical development of existing and new products or processes;
- Enhance the competitive level of Malaysian companies to compete globally; and
- Increase wealth creation and technology content of Malaysian companies via acquisition of foreign technology
- Incorporated Malaysian manufacturing companies (SMEs and large corporation) excluding GLCs, public listed companies and their subsidiaries.
- The company must be an SME/large corporation incorporated in Malaysia;
- The company must be at least 51% owned by Malaysian. (The technology provider is not allowed to own any equity in the applicant company);
- The management, marketing, and technical team must have relevant qualification and experience;
- The proposed technology to be acquired must have been proven and commercially produced in the country of origin;
- The proposed technology to be commercialised must be from one of the Priority Technology Clusters;
- The technology acquired must be applied for the production of a tangible product; and
- The technology acquired must be immediately adopted in the company's manufacturing activity.
The eligible expenditures under The Fund are as following:-
- Cost of Technology Acquisition;
- Cost of training;
- Purchase of core equipment related to commercialisation;
- Standard and Regulatory Compliance;
- Process optimisation costs;
- Intellectual Property Protection (IPP); and
- Marketing & promotion related costs.
The quantum of funding approved under The Fund is up to a maximum of 50% or RM4 million whichever is lower depending on the merits of each application.
The maximum project duration under The Fund is 2 years for project implementation, product roll-out and project monitoring/impact study.
An agreement will be signed between the Malaysian Government Agency (MGA) (on behalf of the government) and grant recipient detailing the terms and conditions of the funding.
Disbursement of Grant
Disbursement of grant will be made in accordance to the following:-
o Approved grant will be disbursed either on a matching or reimbursement basis according to the claims submitted by the grant recipient; and
o Approved grant will be disbursed in stages in accordance with the Grant Agreement and subject to the satisfactory progress of the project in terms of deliverables and milestones reached.