Guide to Grants and Funds for ICT Entrepreneurs

Guide to Grants and Funds for ICT Entrepreneurs Normala Sharom Bahagian Dasar ICT, 11th June 2008 1

Focus in Science, Technology & Innovation of Malaysia 2

Malaysia Moving Towards K-Economy Factor Driven Investment Driven Innovation Driven (e.g. AGRICULTURE/ MINING) (e.g. MANUFACTURING/ REAL ESTATE/BANKING) (e.g. BIOTECH/NANOTECH/ INFOTECH/K-INDUSTRIES) 3

ICT Policies and Priorities National Focus and Priorities

ICT Funding Model in Malaysia for Knowledge Industries & Communities Cradle Fund (Entrepreneurs) Science Fund (Research Institute & Centre) Technology Fund (All) Commercialization of R&D Fund (CRDF) (All) Pre Seeding Fund (Technopreneurs) E-Content Fund (All - SME) Technology Acquisition Fund (All) Demonstrator Applications Grant Scheme (Community Projects) Ministry of Science, Technology and Innovation Venture Capital MDeC MSC Grant Scheme (Enterprise - MSC Status) Innovation Fund [Enterprise(EIF)/Community (CIF)] MTDC

ICT Fund Management Science Fund To support R&D projects which can generate new knowledge in strategic basic and applied sciences, and develop new products or processes necessary for further development and commercialisation in specific research clusters is a competitive funding to undertake development of new and/or cutting edge technologies in six (6) technology clusters - Agriculture, Biotechnology, Information and Communication Technology (ICT), Industry, Sea to Space, and S&T services. These technologies must have the commercial potential to create new businesses and generate economic wealth for Malaysia. 6

ICT Fund Management E-Content To fund the creation of quality content for local and global markets by local companies. To develop a more resilient and competitive local content industry Dag To promote, encourage and facilitate Malaysians in employing ICT and multimedia technologies to address the problem of digital divide, social exclusion and promoting opportunities for economic and social empowerment of all citizens. 7

ICT Fund Management Enterprise Innovation Fund To increase the participation of micro businesses, small businesses and individuals/sole-proprietors, in innovative activities. To develop new or improve existing products, process or services with elements of innovation for commercialization. To encourage technological innovation for product, process and service improvement To contribute towards the growth of the National GDP through the generation of economy To advance innovative activities for intellectual properties generation Community Innovation Fund To assist community groups to convert knowledge and idea into products, processes or services that improves the quality of life of communities 8

What is TECHNOFUND? TechnoFund is a competitive pre-commercialisation funding to undertake the development of new (and/or cutting edge) technologies in Agriculture, Biotechnology, ICT, and Industry Clusters (including newly introduced S2S & S&T Svcs clusters) that create new businesses and economic wealth for Malaysia Pre-commercialisation activities comprise development of (upscaling to) Commercial Ready Prototype /Pilot Plant/Clinical Trial/Field Trial for demonstration and testing purposes but NOT COMMERCIAL EXPLOITATION IP acquisition comprises acquisition of IP (academic/lab scale prototype) from overseas or local sources for further development (up-scaling) up to pre-commercialisation stage. IP acquired must be an OUTRIGHT PURCHASE (whereby IP licensing is not allowed)

Aims of TechnoFund

Funding Objectives To address the FUNDING GAP between laboratory proof of concept and commercialisation (production) Laboratory POC TECHNOFUND Commercialisation To promote commercialisation of products, processes and services developed by local universities/research institutes and industry.

TechnoFund Types Applicants can apply for a combination of the following TechnoFund Types: Option Type Duration 1 A+B 30 mths 2 A only 24 mths

Pre-commercialisation activities comprise development (UP-SCALING)of COMMERCIAL READY PROTOTYPE / PILOT PLANT / CLINICAL TRIAL / FIELD TRIAL for demonstration and testing purposes but NOT COMMERCIAL EXPLOITATION

Type B comprises acquisition of IP (academic / laboratory scale prototype) from overseas or local sources for FURTHER DEVELOPMENT (up-scaling) up to PRE-COMMERCIALISATION stage. IP acquired must be an outright purchase (IP licensing is not allowed)

Target Groups (1) MEDIUM and LARGE MALAYSIAN COMPANIES ~ minimum 51% EQUITY held by Malaysians (2) GOVERNMENT-LINKED COMPANIES and PUBLIC LISTED COMPANIES ~ minimum 51% EQUITY held by Malaysians (3) Malaysian GOVERNMENT RESEARCH INSTITUTION and INSTITUTE of HIGHER LEARNING ~ compulsory COLLABORATION with industry

Collaboration Industry applicants are encouraged to collaborate with one or more GRI / IHL (public or private). GRI/IHL must identify industry partner(s) to undertake joint collaboration. Industry partner(s) should jointly contribute financial or non-financial resources to the project.

Project Proposed in stated technology clusters Technically viable for up-scaling to precommercialisation stage Produce outputs with commercial potential Outcomes to have direct economic benefit to Malaysia (even though project undertaken overseas) Leading to commercialisation of new & cutting-edge technologies IP Acquisition (laboratory scale) - prospective IP is an out-right purchase that requires further development - IP licensing is not allowed

Other Aspects To Be Considered Not CRDF/TAF funded projects The resources of the company Duration & Projected Gantt Chart workable Achievable objectives and Reasonable costings Projects risks and benefits Milestones Project team

Eligible Expenses : Type A (Pre-Commecialization) Pilot Plant & Equipment (if applicable); Clinical trial / field trial (if applicable); Commercial-ready prototype; IP preparation and registration (excluding maintenance) Market testing of commercial-ready prototype (participation in trade fairs and exhibitions); Regulatory and standard compliance (including output documentation); Contract expenditure; and Expenditure for services (market survey, consultancy and testing). Eligible Expenses : Type B (IP Acquisition) Acquisition of IP Training (Technology transfer)

Introduction The econtent fund is a fund announced by the Government of Malaysia in the 9th Malaysian Plan to facilitate the development and growth of Malaysian made digital content and Malaysian content creation companies.

Objectives To fund the creation of quality content for local and global markets by local companies. To develop a more resilient and competitive local content industry

Outcome National Interest Increase in quality of local content for the masses. Promoting local culture/heritage and stories to the masses. Malaysian Intellectual Property (IP) Economic Interest Strong Malaysian content industry Resilient local content companies Skilled local content developers Employment Global demand for local content and skills

Definition of Digital Content The definition of digital content within context of econtent Fund is works/ intellectual property created using digital technologies and disseminated using digital means *sumber: econtent Fund

e-content Scope Focus Areas Entertainment Education and Training Culture and Heritage Informationbased Content Technology Implementation Animation Games Simulation/ Virtual Reality Portal/Webbased Media Mobile phone PDA TV PC

Technologies of econtent Content Technologies Examples of technology to create, process, aggregate, repurpose & customize content to the environments that require them Animation Digital Mastering Special & Visual Effects 2D/3D Technology Games Development Filmed Content (with CGI) Interactive Technology Virtual Reality/Simulations Digital Intermediate Technology Mobile Content Technology 29

econtent Fund Who Can Apply? Team (at least 2 persons) Micro-Enterprise SME Quantum Team: up to RM 90K Micro-Enterprise : up to RM 500K SME : up to RM 1 million RM1m - RM 6 million (have commercial agreement with 3rd party)

Applicant Eligibility Team Malaysian. Age : 21 60. Minimum Level of Education: Diploma in relevant disciplines. Not a bankrupt. Not involved in any litigation/ criminal proceedings. Applicants are only eligible to one successful project application only. Company Malaysian Majority owned company. Registered with SSM Not involved in any litigation/bankruptcy/ criminal proceedings. Can apply the fund for one project within a same time period and apply for additional projects upon successful completion of the prior project if the prior grant approved is not more than RM 1 million.

Basic Criteria/Terms Innovative project in terms of content, technology and methodologies used Within the focus areas and technology implementation outlined by Project must be completed within 24 months Projects proposed for more than RM1 million is subject to the following requirements:- - Pre-sales/commercial contract

Successful Projects of econtent Fund Eldorado - Heru 3D fantasy action platform game based on the ancient times of Egypt, Greece, Babylon, The Amazons and fabled Atlantis. Paradise Island & Beaches Of Malaysia - Internet, Mobile Version Using the Internet and mobile to provide a comprehensive guide to Malaysian islands and beaches. Blue Karipap Mini Series Animated mini series that follows a bunch of youths with a big dreams who hang out at a small urban cafe called the Blue Karipap. Upin & Ipin Animated mini series of the adventures of a naughty pair of twins and their friends in a kampung setup

ICT Funding Model in Malaysia for Knowledge Industries & Communities Cradle Fund (Entrepreneurs) Science Fund (Research Institute & Centre) Technology Fund (All) Commercialization of R&D Fund (CRDF) (All) Pre Seeding Fund (Technopreneurs) E-Content Fund (All) Technology Acquisition Fund (All) Demonstrator Applications Grant Scheme (Community Projects) Ministry of Science, Technology and Innovation Venture Capital MDeC MSC Grant Scheme (Enterprise - MSC Status) Innovation Fund [Enterprise(EIF)/Community (CIF)] MTDC

InnovationFund (InnoFund)

What is InnoFund Fund to promote and enhance innovation through products, processes and systems by which value can be created for customers, businesses and society

Types of InnoFund Enterprise InnoFund (EIF) Individual Sole Proprietor Micro Enterprises Small Enterprises - To encourage Individuals, Micro and Small Enterprises to develop new or improve existing products, process or services with elements of innovation Community InnoFund (CIF) Community Groups - To encourage Community Groups to convert knowledge/idea into innovative products/ process / services that improve the quality of life of communities

Definitions of Micro & Small Enterprise Primary Agriculture Manufacturing Services (including ICT) Micro < 5 full time employees Or Annual sales turnover <RM 200,000 < 5 full time employees Or Annual sales turnover < RM 250,000 < 5 full time employees Or Annual sales turnover <RM 200,000 Small 5-19 full time employees Or Annual sales turnover RM 200,000 - < RM 1 million 5-5050 full time employees Or Annual sales turnover RM 250,000- < RM 10 million 5-19 full time employees Or Annual sales turnover RM 200,000-< < RM 1 million

Eligibility Criteria for EIF Malaysian sole proprietor, individual, micro or small enterprise Contain elements of technological innovation leading to commercialisable applications, products or services in the technology cluster identified. Technological innovation refers to product/process and services that can be derived from: Re-combination / fusion / integration Replication / refinement Applicant must show proof that they can fund their share of eligible project cost Project must be undertaken in Malaysia. Project must still be within the pre-commercialization stage.

Technology Clusters for EIF ICT Biotechnology Agriculture Industry

EIF Quantum of Funding and Duration EIF Applicant Individual / Sole Proprietor Micro Enterprise Small Enterprise Quantum of Funding Up to RM20,000 Up to RM50,000 Up to RM250,000 Duration Up to 12 months Up to 12 months Up to 18 months

Thank You MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION Block C4 & C5, Complex C, Federal Government Administrative Centre, 62662, PUTRAJAYA www.mosti.gov.my 42