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Incentive Category
Fundraising Organization

Research & Development Grants

Grantsand incentives are provided for R&D in science and technology, to encourage Malaysian companies to become more innovative in using and adapting existing technologies and creating new technologies.

Incentive Title Fundraising Organization
Prototype Development Research Grant (PRGS) Ministry of Higher Education (MOHE)
Acculturation Research Grant Scheme (ARGS) Ministry of Higher Education (MOHE)
CREST R&D Grant Colloborative Research in Engineering, Science and Technology (CREST)
Facilitation Fund Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC)
Fundamental Research Grant Scheme (FRGS) Ministry of Higher Education (MOHE)
InnoFund (Community Fund) Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC)
InnoFund (Enterprise Fund) Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC)
Long Term Research Grant Scheme (LRGS) Ministry of Higher Education (MOHE)
Malaysia Laboratories for Academia-Business Collaboration (MyLAB) Ministry of Higher Education (MOHE)
MOH Research Grant Ministry of Health Malaysia (MOH)
Niche Research Grant Scheme of the Ministry of Education (NRGS-KPM) Ministry of Higher Education (MOHE)
Research Development Grant Scheme (RAGS) Ministry of Higher Education (MOHE)
Research Pledge Grant (GSP-KPM) Ministry of Higher Education (MOHE)
Science and Technology Research Grant Malaysia Toray Science Foundation
Smart Challenge Fund (SMART Fund) Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC)
Steinbeis Innovation Voucher National Innovation Agency Malaysia
Trans-disciplinary Research Grant Scheme (TRGS) Ministry of Higher Education (MOHE)

Industrial & Commercialisation Funds

Industrial & Commercialisation Funds were established to provide partial grants to qualified R&D projects to stimulate the needs of harnessing technology for wealth creation. It is aimed at enhancing and improving the competitiveness and capacity of the Malaysian industrial sector by promoting the commercialisation of indigenous technology. The funds provided also enables full commercialisation of home-grown R&D, developed by local universities/ research institutions or the private sector.

Incentive Title Fundraising Organization
1-InnoCERT Certification Programme SME Corporation Malaysia
AXIATA Digital Innovation Fund Malaysia Venture Capital Management Berhad
Bioeconomy Transformation Programme (BTP) Fund Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Biotechnology Commercialisation Fund (BCF 2.0) Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Business Growth Fund (BGF) Malaysian Technology Development Corporation Sdn.Bhd
Business Start-up Fund (BSF) Malaysian Technology Development Corporation Sdn.Bhd
Commercialisation of Research & Development Fund (CRDF 1) Malaysian Technology Development Corporation Sdn.Bhd
Commercialisation of Research & Development Fund (CRDF 2) Malaysian Technology Development Corporation Sdn.Bhd
Commercialisation of Research & Development Fund (CRDF 3) Malaysian Technology Development Corporation Sdn.Bhd
Creative Industry Development Fund (CIDF-SKMM) Malaysian Communications And Multimedia Commission
Domestic Investment Strategic Fund (DISF) Malaysian Investment Development Authority
HIP2 Concept To Commercialisation Gap Fund (CCGF) PlaTCOM Ventures Sdn Bhd
RMK 10 - Pre-Commercialisation Financing Malaysia Debt Ventures Berhad
SME Technology Transformation Fund (STTF) SME BANK
Technology Acquisition Fund (TAF) Malaysian Technology Development Corporation Sdn.Bhd
Venture capital Fund Malaysia Venture Capital Management Berhad

STI Tax Incentives

A vast array of fiscal incentives in the form of tax exemption as well as double deduction for R&D expenses, has been provided by the Malaysian government as an agenda to promote R&D. Studies have shown that R&D tax incentives can be an effective instrument for inducing a certain degree of private sector research. Tax incentives can increase private research spending by an amount equal to the loss in tax revenue on average, depending on their design.

Incentive Title Fundraising Organization
A company of an individual (that carry on business) investing in a BioNexus Status company is eligible for a tax deduction equivalent to the total investment made in initiating commercialization stage financing. Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Angel Tax Incentive Malaysian Business Angel Network
Bionexus Status Company (Tax Incentives) Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Double deduction on expenditure incurred for R&D. Inland Revenue Board of Malaysia (IRB)
Double deduction on expenditure incurred for the promotion of exports Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Import duty exemption on Imported raw materials, components, machinery and equipment. Malaysian Investment Development Authority
Incentives for Acquiring a Foreign Company for High Technology Malaysian Investment Development Authority
MSC Malaysia Status Multimedia Development Corporation
Research Incentive Scheme for Enterprises Multimedia Development Corporation
Tax exemption on 100% statutory income derived from a new business or an expansion project that is equivalent to an allowance of 100% of qualifying capital expenditure incurred for a period of 5 years. Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Tax exemption on 100% statutory income for a period of 10 consecutive years from the first year the company derived its statutory income from the new business. Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Tax exemption on 100% statutory income for a period of 5 consecutive years from the first year the company derived its statutory income from the existing business AND expansion project. Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
Tax exemption on dividends distributed by a BioNexus Status company Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp)
 Incentives for High Technology Projects Malaysian Investment Development Authority

HCD Funds

The rapid development and enhancement of S&T since the millennium, has transformed socio-economic throughout the world. New skills and ability is therefore required to correspond with the ever-growing knowledge-intensive and skills based industries. The Human Capital Development Fund Programme in S&T is an effort by the Government to encourage and strengthen the human capacity and capability for the enhancement of S&T in Malaysia.

This programme is introduced to increase the critical mass of scientist and researchers in the country besides strengthening the R&D functions in institutions of higher learning and public research institutions. It also committed to enhance the country's competitiveness through the development of trained, innovative and creative human resource.

Incentive Title Fundraising Organization
Biasiswa MyBrainSc Ministry of Higher Education (MOHE)
Skim Bantuan Latihan (SBL) KWPSM Pembangunan Sumber Manusia Berhad
SME Expert Advisory Panel (SEAP) Programme SME Corporation Malaysia
Tunas Usahawan Belia Bumiputera (TUBE) SME Corporation Malaysia

Other

Incentive Title Fundraising Organization
Bumiputera Enterprise Enhancement Programme (BEEP) SME Corporation Malaysia
Coach & Grow Programme (CGP) Ministry of Finance
Galakan Eksport Bumiputera (GEB) SME Corporation Malaysia

Loan and Venture Capital

The Malaysian government through various ministries and agencies, has helped the Small and Medium Enterprises (SMEs) succeed, beginning from start-up and extending through the many phases of growth. In depth, financial assistance are offered to aspiring entrepreneurs wishing to start, expand and/or upgrade their businesses.

These loans are made available through financial institutions such as Malaysia Venture Capital Management Berhad (MAVCAP), Kumpulan Modal Perdana Sdn Bhd (KMP) and Credit Guarantee Corporation Malaysia Berhad enabling entrepreneurs to obtain up to 100% loan and credit facilities to support their business aspirations. Venture Capital is an alternative form of financing. The Government has proven itself in the past to be very supportive of the VC industry and has continued to do so, providing adequate liquidity to meet the industry's needs.

Incentive Title Fundraising Organization
Bumiputra, Biotechnology & Bio-Industry Development Fund (B3DF) Malaysia Debt Ventures Berhad
Business Accelerator Programme 2.0 (BAP 2.0) SME Corporation Malaysia
Business Expansion Fund (BEF) Malaysian Technology Development Corporation Sdn.Bhd
Electronics & Electrical Fund (E&E Fund) Kumpulan Modal Perdana Sdn. Bhd.
Green Technology Financing Scheme Malaysian Green Technology Corporation
Intellectual Property Financing Scheme (IPFS) Malaysia Debt Ventures Berhad
Perdana Fund Kumpulan Modal Perdana Sdn. Bhd.
Perdana International Fund Kumpulan Modal Perdana Sdn. Bhd.
Plug & Play Technology Fund Kumpulan Modal Perdana Sdn. Bhd.
Services Export Fund (SEF) MATRADE
Shariah-compliant SME Financing Scheme (SSFS) 2.0 SME Corporation Malaysia
SME Emergency Fund (SMEEF) SME Corporation Malaysia
Soft Loan Scheme for Automation and Modernisation (SLSAM) Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Bumiputera Automotive Entrepreneurs (SLBAE) Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Capacity Development (SLSCD) Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Exports (SLSSE) Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Services Sector (SLSSS) Malaysian Industrial Development Finance Berhad (MIDF)
Soft Loan Scheme for Small & Medium Enterprises (SLSME) Malaysian Industrial Development Finance Berhad (MIDF)
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