Briefing Session

MOSTI R&D FUND 2017

https://www.mosti.gov.my https://edana.mosti.gov.my/edana/ Bahagian Dana, Aras 4, Blok C4, MOSTI

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The value of an idea lies in the using of it
Thomas Edison
NEW FOCUS MOSTI R&D Fund

MP
Demand Driven 11
Economic Growth & Societal Well-being
2 schemes SMART Challenge Fund dan GoFund
3 priority areas
Socio Economic Objective, followed by Field of Research

MP
Innovation Driven
10
Knowledge Generation, Wealth Generation & Societal Well-being
3 schemes - Science Fund dan Pra Pengkomersialan (TechnoFund & InnoFund)
10 priority areas
Field of Research, followed by Socio Economic Objective

FUND Division Briefing on MOSTI R&D Fund

MOSTI R&D FUND 2017

1 SMART
KERTAS STRATEGI 21 (RMKE-11)

Solving
national
Challenge Fund
problem
Societal areas Green Growth
- Strategic
priority - Priority
Demand Driven

Wellbeing for
Sustainable
PRIORITY Development
Research Medical &
STRATEGIC Healthcare

2
Research Water,

Identify
Food &
Energy
GoFund
Nexus
long term - InnoFund
solution - Facilitation Fund
Economic
Growth - Dana Kolaborasi
Antarabangsa

FUND Division Briefing on MOSTI R&D Fund

3 SOCIO-ECONOMIC Priority Areas

Water Food Energy Green Growth

Nexus Medical & Healthcare for Sustainability

FUND Division Briefing on MOSTI R&D Fund

SMART CHALLENGE FUND
(SMART Fund)
SMART CHALLENGE FUND
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.
Eligibility & Payment Mode
Specific, measurable, achievable, realistic and timely (SMART)
Reimbursable Basis
Small & Medium Entreprise
51% equity held by
STRATEGIC PRIORITISED Malaysians.
Minimum paid up capital
To tackle strategic issues that To tackle prioritized issues that RM10,000.
will provide long term solution. need immediate solution.
Spur economic returns for the Improve societal wellbeing. Institution of Higher
country. Technology Readiness Level 6 Learning (Private)
Technology Readiness Level 4 Max: RM3 million
Max: RM1 million Duration: 24 months Disbursement Basis
Duration: 24 months
Government Research
Institution
STI Agencies
Institution of Higher
Learning (Public)

FUND Division Briefing on MOSTI R&D Fund

TECHNOLOGY READINESS LEVEL

FUND Division Briefing on MOSTI R&D Fund

BUSINESS MODEL emphasis

Value
for
Money
Market
konsep
SMART Study &
Technology Venture sejahtera
Technology
rakyat
Analysis Needs Assessment Feasibility
Analysis

Engineeringsejahtera
Strategic
Economic Prototype / rakyatMarketing
Feasibility Pilot Plant Plan
produktiviti

kesan
berganda

FUND Division Briefing on MOSTI R&D Fund

ITEMS FUNDED

SCOPE ITEM FUNDED ITEM NOT FUNDED NOTES

Pilot plant / prototype
Pre-clinical testing/clinical
testing/field trials/stress
test/user acceptance test
Intellectual Properties (IP)
Market testing and evaluation
Regulatory and standards
compliance
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
Screening test
Payment for volunteers
Data analysis
For registration in Malaysia Maintenance
only Patent Cooperation Treaty
IP resulting from the project (PCT)
i) Patent
ii) Industrial Design
Survey development Incentive for respondents Not more than 10%
Data analysis Facility rental and of fund approved
Sample size should follow exhibition fee
the statistical standard
Registration of certification
Product testing and
standard compliance

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FUND Division Briefing on MOSTI R&D Fund
ITEMS FUNDEDcontinued

SCOPE ITEM FUNDED ITEM NOT FUNDED NOTES

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

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FUND Division Briefing on MOSTI R&D Fund
ITEMS FUNDEDcontinued

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

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FUND Division Briefing on MOSTI R&D Fund
SUCCESS criteria

Value
for
Money

societal
SMART wellbeing
concept

Success
Criteria
strategic
collaboration productivity

multiplier
effect

FUND Division Briefing on MOSTI R&D Fund

Technology provides no benefit of its own, it is
the application of technology to business
opportunities that produces ROI
Robert McDowell
Vice President, Microsoft
Past Projects (Pre-Commercialization)

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Past Projects (Pre-Commercialization)
Past Projects (Pre-Commercialization)

Video analytics technology to increase the effectiveness of the

surveillance system by enabling automatic monitoring of the cameras
in the lock up premises. 17
INNO Fund
INNO fund
A fund to promote and enhance innovation through products, processes and systems.
Value can be created for customers, businesses and society.

Enterprise InnoFund (EIF) Community InnoFund (CIF)

To encourage Individuals, Micro

and Small Enterprises To encourage Community Group
Objectives To develop existing products, to convert knowledge / idea into
process or services with innovative product / process /
elements of innovation services

Individual, Sole Proprietor, Micro

Eligibility Enterprises, Small Enterprise Community Groups

Duration 12 months 18 months

Up to:
Quantum Sole proprietor/Individual RM50k Up to RM500k per project
Micro & Small Enterprise RM500k

FUND Division Briefing on MOSTI R&D Fund

SCOPE OF FUNDING Enterprise Inno Fund

Consumables /
materials

Market testing
Equipment
APPLIED (including
(not more samples, fees
RESEARCH
than 40%) and trade fairs
and exhibitions)
Scope of
Funding
PRE - (EIF)
Regulatory
COMMERCIALISATIO
Consultancy and standard
compliance
N
Product
documentation

FUND Division Briefing on MOSTI R&D Fund

SCOPE OF FUNDING Community Inno Fund

Consumables
/ materials
APPLIED
RESEARCH
Demonstration
applications Equipment
(including (not more than
samples, fees 40%)
and exhibitions)
Scope of Funding
PRE - (CIF)

COMMERCIALISAT
ION
Expenditure for
Project services
documentation (consultancy
and testing)

FUND Division Briefing on MOSTI R&D Fund

Past Projects (INNO Fund)
eSentral - Electronic Publication Portal With DRM (Digital Right
Management)

Esentral Ebook Portal

B2C: Public consumer, Publisher, authors, online business income generated @RM10,000 per month

eSentral eLibrary System (ELIB)

Digitization of 4,000 book/publication from National/State Libraries income generated @RM450,000

eStudio eBook Authoring Tool - 3 Intellectual Properties

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FUND Division Briefing on MOSTI R&D Fund 2
Past Projects (INNO Fund)
Sistem Kutipan Yuran (SKY) web-based school fees collection system

sistem-maklumat.com
Used by 66 schools /
kindergarten

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FUND Division Briefing on MOSTI R&D Fund 3
APPLICATION PROCESS
https://www.mosti.gov.my https://edana.mosti.gov.my/edana/ Bahagian Dana, Aras 4, MOSTI
APPLICATION process

Stage 2: Stage 3:
Stage 1:
Evaluation and Contracting and
Application
Approval Payment

Application by Reviewed by Fund Letter of acceptance

online system Expert Committee Project Agreement
https://edana. Presentation / (Sign by Applicant)
mosti.gov.my Pitching Session Project Agreement
Administrative Due diligence (Sign by MOSTI)
Vetting Strategic Committee Stamping of Project
Approval Committee Agreement
Notification of result Payment

60 DAYS 30 DAYS

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FUND Division Briefing on MOSTI R&D Fund
APPLICATION PROCESS
ADMINISTRATIVE
K VETTING Criteria (General)

GUIDELINE ON-GOING BLACKLIST TEMPORARY

FREEZE
Compliance to Guideline Lead Researcher/Entity Lead Researcher/Entity Lead Researcher/Entity
Has On-Going Project Blacklisted Temporary Freeze

FUND Division Briefing on MOSTI R&D Fund

ADMINISTRATIVE VETTING Criteria (SME)

Checklist Checklist
No Additional Documentation No Additional Documentation
(Y/N) (Y/N)
Certified Copy by SSM of Memorandum Certified Copy by SSM of Form 9
1 9
and Article of Association (Company Act, 1965) - Collaborator
Certified Copy by SSM of Form 9 Certified Copy by SSM of Form 24
2 10
(Company Act, 1965) (Company Act, 1965) - Collaborator
Certified Copy by SSM of Form 24 Certified Copy by SSM of Form 49
3 11
(Company Act, 1965) (Company Act, 1965) - Collaborator
Certified Copy by SSM of Form 49 IP/ Technology Acquisition Agreement (if
4 12
(Company Act, 1965) applicable)
Latest audited Financial Report (annual
5 turnover, profit, and loss statement, 13 Detailed Curriculum Vitae of project team
balance sheet, cash flow, etc)
Insolvency Search (of company and all
Contract Agreement/Letter of Acceptance 14
6 members in project team)
Between Entity and Consultants
The signed Statutory Declaration Form
Contract Agreement/Letter of Acceptance 15
7 witnessed by a Commissioner for Oaths
Between Entity and Collaborator

Certified Copy by SSM of Memorandum

8
and Article of Association - Collaborator

BAHAGIAN DANA Tadbir Urus Dana MOSTI

ENTITY PERFORMANCE
MOSTI FUND PERFORMANCE (Pre-Commercialization)

APPPLICATION EVALUATED
Approval
Year Approved Value (RM)
Withdraw Rate (%)
Total Approved Rejected
(after approval)
2011 174 42 115 5 24.1 31,575,232

2012 167 38 117 2 22.7 42,845,342

2013 217 56 138 4 25.8 110,334,660

2014 229 61 149 3 26.6 186,524,718

2015 114 61 49 1 53.5 144,077,042

2016 280 27 84 106 9.6 36,549,431

Grand Total
1,181 285 652 121 24.1 551,906,425
(RM)

FUND Division Briefing on MOSTI R&D Fund

USM - MOSTI Grants Snapshot (2011-2016)
Applied vs Approved
5.6% from total application received by MOSTI (SF only)
84 5.4% of total project approved by MOSTI (SF only)
(RM18,730,971)
19.6% approval rate

Applied

Approved

30
Categories
427
(RM118,620,594) 25

20

15

10
Performance 5
2 0

Completed
39 43
Ongoing

Terminated

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the key factor [ in implementing ideas and creating value to realise
innovation ] is people at the heart of global networks. People are the prime
movers of innovation.
YB Datuk Seri Panglima Wilfred Madius Tangau
Minister of Science, Technology and Innovation, Malaysia
 Thank You

https://www.mosti.gov.my https://edana.mosti.gov.my/edana/ Bahagian Dana, Aras 4, Blok C4, MOSTI

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