MOSTI R&D Fund. 12 th MEXPA Seminar on Government Financial Assistance For Malaysian Companies and Its Application Procedures 25 April 2018

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1 MOSTI R&D Fund 12 th MEXPA Seminar on Government Financial Assistance For Malaysian Companies and Its Application Procedures 25 April

2 Content Introduction MOSTI R&D Fund Criteria of a Successful Application Main Areas for Improvement What s next? 2

3 Introduction STI Excellence Through Demand Driven R&D Financing Demand Driven Economic Growth & Societal Well-being 2 schemes SMART Challenge Fund and GoFund 3 priority areas Socio Economic Objective, followed by Field of Research MP 11 MP 10 Innovation Driven Knowledge Generation, Wealth Generation & Societal Well-being 3 schemes - Science Fund and Pre Commercialization (TechnoFund & InnoFund) 10 priority areas Field of Research, followed by Socio Economic Objective 3

4 KERTAS STRATEGI 21 (RMKE-11) Introduction STI Excellence Through Demand Driven R&D Financing Demand Driven Solving national problem Societal Wellbeing PRIORITY Research STRATEGIC Research Identify long term solution Economic Growth areas priority Medical & Healthcare Green Growth for Sustainable Development Water, Food & Energy Nexus 1 2 SMART Challenge Fund - Strategic - Priority GoFund - InnoFund - Facilitation Fund - International Collaboration Fund 4

5 Content Introduction MOSTI R&D Fund Criteria of a Successful Application Main Areas for Improvement What s next? 5

6 MOSTI R&D Fund MOSTI s Funding Landscape Technology Readiness Level Basic principle Formulation of concept Experimental proof of concept Lab validation Validation in real environment Demonstration In real environment Demonstration of prototype System complete and qualified System proven INNOVATION FUND INTERNATIONAL COLLABORATION FUND SMART CHALLENGE FUND FACILITATION FUND 6

7 MOSTI R&D Fund SMARTFund - Introduction Pre-commercialisation project that is highly innovative to spur economy and societal benefit. Open to businesses and researchers. To solve national problems and identify long term solutions. Specific, measurable, achievable, realistic and timely (SMART) STRATEGIC To tackle strategic issues that will provide long term solution. Spur economic returns for the country. Technology Readiness Level 4 Max: RM1 million Duration: 24 months PRIORITISED To tackle prioritized issues that need immediate solution. Improve societal wellbeing. Technology Readiness Level 6 Max: RM3 million Duration: 24 months Eligibility & Payment Mode Reimbursable Basis Small & Medium Entreprise 51% equity held by Malaysians. Minimum paid up capital RM10,000. Institution of Higher Learning (Private) Disbursement Basis Government Research Institution STI Agencies Institution of Higher Learning (Public) 7

8 MOSTI R&D Fund SMARTFund - Scope of Funding SCOPE ITEM FUNDED ITEM NOT FUNDED NOTES Pilot plant / prototype Only equipment directly Capital asset such as land, Not more than 40% related to the pilot building, vehicle and of total approved plant/prototype furniture project cost Lab apparatus Equipment maintenance Pre-clinical testing/clinical Screening test testing/field trials/stress Payment for volunteers test/user acceptance test Data analysis Intellectual Properties (IP) For registration in Malaysia Maintenance only IP resulting from the project i) Patent ii) Industrial Design Market testing and evaluation Survey development Data analysis Sample size should follow the statistical standard Regulatory and standards Registration of certification compliance Product testing and standard compliance Patent Cooperation Treaty (PCT) Incentive for respondents Facility rental and exhibition fee Not more than 10% of fund approved 8

9 MOSTI R&D Fund SMARTFund - Scope of Funding SCOPE ITEM FUNDED ITEM NOT FUNDED NOTES Special Services Consultancy (agreement / Production out-sourcing Not more than 20% letter of intent must be Travelling and of total fund project submitted together with the transportation cost project proposal, details of Organizing meeting the consultancy to be Stationery such as paper, stated) books, etc Consultant for market Personal computer, laptop, testing and evaluation printer, scanners, toner, etc Sample testing and Subscription to journals analysis Conference fee Data processing Exhibition fee IP incentive Administration Up to two Research Management fees RM 2,500 per Assistant (RA) allowed Allowance / bonus for month/ per RA and only for wages and management and technical inclusive of SOCSO allowances. (Applicable staff / EPF for IHL & GRI only) Office rental Utilities such as telephone, broadband, water and electricity bill 9

10 MOSTI R&D Fund SMARTFund - Scope of Funding SCOPE ITEM FUNDED ITEM NOT FUNDED NOTES Raw materials /consumables Raw material Product and packaging directly related to the project Consumable design Brochure Advertisement Web design and development Product launching Technology/ IP Acquisition Local and foreign Not more than 50% Must be further enhanced of total approved Must provide acquisition project cost agreement / details of the technology & IP acquired Training related to technology transfer conducted locally 10

11 MOSTI R&D Fund MD2 Pineapple Tissue Culture 11

12 MOSTI R&D Fund Trackless Automated Guided Vehicle 12

13 MOSTI R&D Fund INNOFund - Introduction A fund to promote and enhance innovation through products, processes and systems. Value can be created for customers, businesses and society. Objectives Eligibility Enterprise InnoFund (EIF) To encourage Individuals, Micro and Small Enterprises To develop existing products, process or services with elements of innovation Individual, Sole Proprietor, Micro Enterprises, Small Enterprise Community InnoFund (CIF) To encourage Community Group to convert knowledge / idea into innovative product / process / services Community Groups Duration 12 months 18 months Quantum Up to: Individual RM50k Sole proprietor RM150k Micro & Small Enterprise RM500k Up to RM500k per project 13

14 MOSTI R&D Fund INNOFund - Scope of Funding Consumables / materials Market testing (including samples, fees and trade fairs and exhibitions) Regulatory and standard compliance Product documentation Consultancy Equipment (not more than 40%) EIF CIF 14

15 MOSTI R&D Fund Sistem Kutipan Yuran (SKY) web-based school fees collection system sistem-maklumat.com Used by 66 schools / kindergarten 15

16 MOSTI R&D Fund esentral - Electronic Publication Portal With DRM (Digital Right Management) Esentral Ebook Portal B2C: Public consumer, Publisher, authors, online business income per month esentral elibrary System (ELIB) Digitization of 4,000 book/publication from National/State Libraries income estudio ebook Authoring Tool - 3 Intellectual Properties 16

17 MOSTI R&D Fund Facilitation Fund : Introduction A follow on financial assistance to expedite commercialisation of R&D projects to spur economy and societal benefit. Increase preparedness and facilitation towards commercialisation. Utilizing expertise of the appointed Agensi Pelaksana (MIMOS, TPM, SIRIM, BioEconomy, Majlis Rekabentuk Malaysia, CyberSecurity Malaysia) Open to all local SMEs 51% Malaysian owned Max Funding Quantum of RM500,000 incl. 6% GST Project duration 18 months. Fund to be channeled to Agensi Pelaksana. Entity will only receive services rendered equivalent to the value of approved allocation. 17

18 MOSTI R&D Fund Scope of Work that Expedites Commercialization Accreditation Up Scaling Incubation Special Packaging Entity can apply for more than one scope of work Subject to Max funding quantum of RM500k + 6% GST Capacity Building 18

19 Content Introduction MOSTI R&D Fund Criteria of a Successful Application Main Areas for Improvement What s next? 19

20 Bahagian Dana, Aras 4, MOSTI

21 APPLICATION PROCESS

22 Criteria of a Successful Application Online Application Stage 1: Application Stage 2: Evaluation and Approval Stage 3: Contracting and Payment Application by online system mosti.gov.my Administrative Vetting Reviewed by Fund Expert Committee Presentation / Pitching Session Due diligence Strategic Committee Approval Committee Notification of result Letter of acceptance Project Agreement (Sign by Applicant) Project Agreement (Sign by MOSTI) Stamping of Project Agreement Payment 60 DAYS 30 DAYS 22

23 Criteria of a Successful Application Evaluation that is focusing on Sustainability, Relevance and Feasibility of the Projects Benefit / Importance Technology Identifying the benefit project can bring in terms of creating economic growth and societal wellbeing. Relevance Sustainability Feasibility Clarity in terms of objectives & output expected, methodology, technology readiness, compliance to regulatory / ethical requirement, manufacturability etc Project Management Demonstrated ability of the team to successfully achieve the objectives, identifying and mitigating risk etc. Commercialization Potential Established an understanding in relevant business model, appropriateness of project in the market, potential, diffusion rate, compliance to standard etc 23

24 Content Introduction MOSTI R&D Fund Criteria of a Successful Application Main Areas for Improvement What s next? 24

25 Main Areas of Improvement for Proposals The most common gaps revolve around technical and business information Business Model / Market information Technology Benchmarking Technology Readiness Level Prior Art Search 25

26 Content Introduction MOSTI R&D Fund Criteria of a Successful Application Main Areas for Improvement What s next? 26

27 What s next? Moving Up the Commercialization Value Chain by participating in MCY

28 What s next? Do you require more info? / 8367/ 8704/ 8322 helpdesk-edana@mosti.gov.my 28

29 Thank You Bahagian Dana, Aras 4, Blok C4, MOSTI 29

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