Funding for

Commercialisation

BIO MALAYSIA 2015

18 AUGUST 2015

PWTC, KL

Haryati Naharuddin

Appointed by the Government since 1997 to manage Government (MOSTI) grants under the Technology Development Programme (TDP).

The type of grants are :

i. Commercialisation of R&D Fund (CRDF)

ii. Technology Acquisition Fund (TAF)

Since the 10th Malaysian Plan, MOF has entrusted MTDC to manage two new funds for further commercialisation support and business expansion:-

i. Business Start-up Fund (BSF)- Convertible loans

ii. Business Growth Fund (BGF)- Hybrid fund

Roles:-

• To identify, finance and develop potential companies in strategic technology areas;

• To focus on commercialisation of public sector

research results; and • To identify and transfer emerging and strategic

technologies for adoption by industries.

Grant Management

• CRDF

• TAF

Convertible Loan &Hybrid Fund Programmes

• BSF

• BGF

Advisory and Nurturing Services

Incubation Management Centre

- FRIM

- UTM, Skudai

- UKM

- UPM

- UITM

Name : Commercialisation & Research Development Fund (CRDF)

Focus : Commercialisation activities of locally new developed technologies/research and development undertaken by eligible Malaysian-owned companies

CATEGORIES OF CRDF

FOCUS GROUP QUANTUM OF FUNDING

CRDF 1 for the commercialisation of R&D output from public and private University (PPU)/ Government Research Institute (GRI) by a Spin-off company

90% of eligible expenses, capped at RM500k

CRDF 2 for the commercialisation of R&D output from public and private University (PPU)/ Government Research Institute (GRI) by a Start-up company

70% of eligible expenses, capped at RM500k

CRDF 3(a) for the commercialisation of any local R&D by SME 70% of eligible expenses, capped at RM4.0 mil.

CRDF 3(b) for the commercialisation of any local R&D by NON-SME 50% of eligible expenses, capped at RM4.0 mil.

Name : Technology Acquisition Fund (TAF)

Focus : Acquisition of foreign technologies for immediate incorporation/adoption into the company’s manufacturing activity

Funding Structure :

:

Up to RM4.0 million

• 70% for IP and 50% for M&E

• Cost of Technology Acquisition (Licensing/ Outright purchase of technology);

• Cost of Technology Acquisition (70%)+ Acquisition of M&E

• Engagement of foreign experts from abroad or sending local technical staff(s) for process or product improvement

• Training

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 : Convertible Promissory Notes (CPN)

Rate : 3.5%

Repayment : • Maximum of 8 years inclusive of 3 years

grace period

• Repayment shall commence on the first

month of the 4th year on monthly basis over

5 years

Name : Business Growth Fund (BGF)

Focus : Technology Based Companies

Funding Per

Company

: Up to RM7.0 million

Fund Structure : • Equity participation via subscription instrument

(RCPS)

• No payment of fixed dividend

• Two Board seats for MTDC

Exit : • 5 years

• Redeemable by the Shareholders; or

• Proceeds of a new issue, trade sale, IPO, etc.

Internal Rate of

Return (IRR)

: 10%

In increasing the success probability of commercialisation activities, advisory and nurturing services are provided for:-

MTDC Fund Recipients

MTDC Tenants

University/Research Institutes

Industry

Lettable: 260,942 sqft

Lettable: 61,130 sqft

Lettable: 57,840 sqft

Lettable: 47,500 sqft

Lettable: 80,000 sqft

MTDC’s Technology Centres are developed and managed under the Technology Development Clusters (TDCs) programme.

FOR MORE INFORMATION, PLEASE VISIT:

http://www.mtdc.com.my

CONTACT US:

+6 03 2172-6000

CRDF & TAF - imran@mtdc.com.my

BGF – idjarmidzuan@mtdc.com.my

BSF – mansor@mtdc.com.my / haryati@mtdc.com.my

twitter.com/mtdcmalaysia facebook.com/mtdcmalaysia