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Technology Readiness Level (TRL 4-7)

Technology Development Fund 2(TeD 2) is open to researchers and companies interested in implementing research and development projects (R&D) to produce new processes and products in the field have been identified by the Government.

  • Peruntukan: RM3,000,000.00

  • Duration: 36 months

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  • To develop existing concepts related to design form of technology, process or product towards commercialization for reduce the failure gap (valley of death); and

  • To stimulate the growth of research and technology development through a network of cooperation between Government Research Institutes, Government STI Agencies, Institutes of Higher Learning, Polytechnics, Colleges Community with industry.

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Incentive Category: Research and Development Grants

  1. Small and Medium Enterprise (SME) and Start-up Companies must comply with the conditions below for TeD 2 application:

    1. Open to Companies and Businesses registered with the Companies Commission of Malaysia (SSM) while Businesses in Sabah and Sarawak need to be registered with the Local Authority

    2. Eligibility criteria for Start-up Companies (start-up) are as follows the following:

      1. Registered with the Companies Commission of Malaysia (SSM);

      2. Majority ownership of Malaysians (> 50%);

      3. Paid-up capital of at least RM10,000.00;

      4. Have at least two (2) company directors;

      5. Technology -based businesses; and

  2. For SME Companies or start-up Companies, whose ownership is not achieve a majority of Malaysian citizens (<50%), additional conditions the following must be complied with, namely:

    1. Applicants have minimum qualifications in terms of proof of concept (proof of concept, POC) or a working prototype),

    2. The company operates in Malaysia; and

    3. At least 70% of employees are Malaysian citizens.

  3. For applications from SME companies, these funds are offered on a grant basis match based on the following merits:

    1. If the company finances part of the funds in the form of in-kind returns (e.g. equivalent value of equipment, facilities and services) up to 50% of the total cost of the application, MOSTI will fund up to 70% of the total the cost of the project applied for; or

    2. If the company finances part of the funds in the form of cash back, MOSTI will fund up to 75% of the total cost of the project applied for.

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

  5. Applications from Public and Private Institutions of Higher Learning (IPT) shall collaborate with the Start -up Company/Enterprise Company Small and Medium (SME) (documentary evidence is minimal letter of acceptance (Letter of Acceptance (LoA)) or other document that equivalent).

  6. 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).

  7. While Polytechnics, Community Colleges, Government Research Institutions/Agencies Government STIs are encouraged to collaborate with Start -up Companies/Companies Small and Medium Enterprises (SMEs) (documentary evidence is at least a Letter of Acceptance (LoA) or other equivalent document).

  8. All applicants must be registered in Malaysia.

  9. 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.

  10. Project Leaders who are Malaysian citizens can involve project members from international organizations or working expatriates from the same institution.

  11. While Project Leaders who are not Malaysian citizens are allowed to apply on condition:

    1. the work permit is valid for the duration of the project implementation; and

    2. project members must be Malaysian citizens who have the same area of expertise and from the same institution.

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

  13. Researchers working under a contract of a Government Research Institution/ Government STI Agency/ Public and Private Institutions of Higher Learning (IPT)/ Polytechnics/ Community Colleges shall ensure that the contract employment is still valid for the duration of the project.

  14. The project team should consist of qualified and competent members in the technical aspects of the entire project. Every team member must provide a clear resume (curriculum vitae) about areas of research, experience and successes that have been achieved.

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

  16. 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.

  17. Projects must be implemented in Malaysia unless approved of MOSTI.

  18. The proposed project must contain development elements experimental (experimental development) which leads to commercialization.

  19. The proposed project should be at the pre-commercialization stage with at least proof of concept (proof of concept) or a working prototype.

  20. The Project Leader must inform MOSTI if already receive funds from other parties for the same project.

  21. Project applications related to security enforcement and defense (police and army) will not be funded under this scheme.


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

  1. Application through Conventional Method

  2. Applicants must complete the application form together supporting documents such as Appendix 3 through within the stipulated time period.

  3. All applications must be reviewed and confirmed by the party authoritative in the applicant’s organization such as the Head of Department or Center Research Management. The applicant must declare that the project application submitted was never funded by any of the financiers.

  4. Applicants must state proof of concept or a working prototype in the form application. This is evidence to confirm the concept/ theory/ the proposed idea is applicable.

  5. Applicants must accompany the project Business Model as in Appendix 4.

  6. Applications submitted will be reviewed by MOSTI for ensure the application and documents submitted are complete and meet the basic qualifications of the TeD Fund application 2.

  7. Applications through the fast track method are considered with the following conditions:

  8. The Final Report of the TeD 1 Project was approved by the panel;

  9. Achieve all TeD 1 project objectives; and

  10. Recommendation from the panel to proceed with the project under TeD 2.

  11. Incomplete applications will be returned to 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)

RM3,000,000 for 36 month

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