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From Mosti (Minister of Science, Technology and Innovation)

Technology Development Fund (TeD 1) is open to researchers and companies interested in implementing research and development (R&D) projects to produce new processes and products in areas that have been identified by the Government.


The proposed project better be at least follow the concept of  formulation level; that is, a plan or production design of new technologies, processes or products carry potential meant to be commercialized. The outcome of the project is a new prototype technology, process or product

Paper Abstract


Small and Medium Enterprise (SME) companies need to comply with the requirements the following:

  • Open to Companies and Businesses registered with Companies Commission of Malaysia (SSM) while Business in Sabah and Sarawak needs to be registered with the Local Authority. SMEs too shall be registered with the statutory body for the service provider professional.

Eligibility criteria for start-up companies are as follows:

  • Registered with the Companies Commission of Malaysia (SSM);

  • Majority ownership of Malaysians (> 50%);

  • Paid-up capital of at least RM10,000.00;

  • Have at least two (2) company directors;

  • Technology -based businesses; and

  • The operation of the company does not exceed 5 years.

  1. An STI agency refers to an agency that performs a function STI -related research and services under MOSTI.

  2. Applications from IPTA, IPTS, Polytechnics, Community Colleges, GRI and STI agencies are encouraged to collaborate with Start -up Companies or SMEs documentary evidence is at least a letter of consent Acceptance, LoA) or other equivalent document).

  3. 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).

  4. All categories of companies must own a minimum of 51% equity held by Malaysians.

  5. 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.

  6. Only Project Leaders who are Malaysian citizens can lead the project but may involve project members from the organization internationals or expatriates working from the same institution.

  7. Researchers working under the contract of a Government Research Institution/ STI / IPT agencies must ensure that the employment contract is still valid for the duration of the project.

  8. Project team members should consist of qualified members and efficient in technical aspects. Each team member must prepare a clear resume (curriculum vitae) on the field of research, experience and success that has been achieved.

  9. If the project member is from a different institution, a letter of permission from the head of department shall be submitted.

  10. 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.

Project Leaders are only allowed to lead one project below MOSTI approval at one time.

  • The project must be implemented in Malaysia.

  • The proposed project must contain development elements experimental development that can be commercialized.

  • The Project Leader must inform MOSTI if he has 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.

  • Applications received from STI and GRI Agencies for improvements to existing concepts i.e. from scientific publication journals can be considered and the project should:

    • Be innovative;

    • The project leader will need to submit the relevant proof documents views from the original researcher regarding the appropriateness of the concept such before submitting the application; and

    • Applicants must submit proof of intellectual property search for ensure the technologies and innovations to be implemented are something new and of commercial value.


SMI FUNDING is here to fully assist in meeting following application procedures:

  1. Applicants must complete the application form along with supporting documents such as Appendix 3 via within the stipulated time.

  2. All applications must be reviewed and verified by an authority in the applicant's organization such as the Head of Department or the Research Management Center. The applicant must declare that the project application submitted has never been funded by any financier.

  3. Applicants must enclose the project Business Model as in Appendix 4.

  4. The submitted application will be reviewed by MOSTI to ensure that the application and documents submitted are complete and meet the basic qualifications of the TeD 1 Fund application. Incomplete applications will be returned to the applicant.

Coverage of Expenses

The grant cover the expenses of​


  • Peralatan dan infrastruktur sokongan yang berkait langsung dengan loji perintis atau prototaip untuk peningkatan (up scale)

  • Aktiviti kejuruteraan dan reka bentuk (manhour)

  • Penyewaan / Pembaikan peralatan kecil

  • Ujian saringan

  • Ujian sampel

  • Bayaran untuk sukarelawan / individu • Analisis data (manhour) - 20% dari jumlah yang diluluskan

  • Untuk pendaftaran di Malaysia sahaja, termasuk perkhidmatan penggubalan IP yang dihasilkan dari projek i) Paten ii) Rekabentuk Perindustrian iii) Insentif

  • Kos Pembangunan sampel pasaran

  • Analisis data (manhour)

  • Pengesahan pasaran berharga sehingga RM15,000

  • Pembayaran untuk pembanci (caj / sampel)

  • Pendaftaran pensijilan

  • Pematuhan standard (tempatan / antarabangsa)

  • Ujian produk untuk pensijilan


  • Konsultasi (perjanjian / surat niat mesti diserahkan bersama dengan cadangan projek, perincian konsultasi yang akan dinyatakan)

  • Perunding untuk kajian dan penilaian pasaran

  • Bayaran yuran penerbitan

  • Bahan mentah

  • Bahan guna habis (consumable)


 RM1,000,000 for 24 month

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