MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION Championing Scientific Discovery, Transforming Innovation MOSTI IN THE TENTH MALAYSIA PLAN En. Suhaimi Hamzah Bahagian Dana MOSTI MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION http://www.mosti.gov.my

NANOTECHNOLOGY OCEANOGRAPHY

Innovation Model for Wealth Creation and Societal Well Being 3-5 years Acquisition Income Growth and Jobs MARKET DRIVEN INNOVATION Market Identified Technology Malaysia’s Strategic Positioning and Market Niche Value added products and services Risk Capital Market (to be Identified) TECHNOLOGY DRIVEN INNOVATION Science (Basic Research) Technology Science Grants Technology Grants Risk Capital 10-15 years 3-5 years

a national vision of creating a developed nation in our own mould “The challenge of establishing a scientific and progressive society, a society that is innovative and forward looking, one that is not only a consumer of technology but also a contributor to the scientific and technological civilization”

MOSTI R,D&C Ministry of Science, Technology and Innovation

MOSTI : R,D&C FUNDING CONTINUUM PRE-COMMERCIALISATION TechnoFund ScienceFund Pre-R&D Process Value Analysis Concept/ Idea Basic R Applied R Prototype Development RESEARCH COMMERCIALISATION PRE-R&D PRE-COMMERCIALISATION Incubator/ Early Growth Matured Level Realisation Priority setting, Technology scanning BGF/BSF Pilot Plant / Commercial Ready InnoFund CRDF/TAF/VC Pre-R&D Process – Includes foresight study, forecast and technology road mapping. Value Analysis – Feasibility, Viability, Market, Financial Studies for proposed R&D project. Concept Idea – List down requirement, objectives, scope, methodology of the proposed project. Overview, expected output. Basic R&D – Fundamental research, generate new knowledge, enhance fundamentals in science, theoretical Applied R&D – Lab prototype, apply basic science discovery for potential product/process application Commercially Ready Prototype – prototype ready for pilot scale production. The process include upgrading from lab, engineering to commercial ready prototype. Incubation – Process of mentoring, nurturing, enterpreneurship, preparation of business plan, marketing skills, financial skills. Pilot production – Infant stage. In small quantity to test the quality, standard and acceptance of product. Early Growth Production – Setting up of manufacturing plant. Commencement of commercial scale production. Mature Production – Full scale production. Value Realisation – Make profits, create jobs, mass consumption, social benefits. ScienceFund - To fund basic and applied research in ICT, Biotechnology, Advanced Manufacturing and Advanced Materials which will lead to the discovery of new knowledge that yield publication and intellectual property TechnoFund - To fund research and development of commercial ready prototype and/or early stage commercialisation in ICT, Biotechnology, Advanced Manufacturing, and Advanced Materials TechnoFund and CRDF will fund up to early stage commercialisation. Those IRPA projects which were funded earlier can go to apply for the CRDF. Biotechnology R&D Initiatives (9th MP) MSC Pre-seed Fund (9th MP) DAGS Roll-Out (9th MP) E-Content Fund BIOTECH COMMERCIALISATION FUND CradleFund Strategic Funding For ICT MGS Grant Scheme

FUNDING FOR R,D&C IN 10th MP KPKK (CREATIVE INDUSTRY FUND) IDEATION RESEARCH PRE -COM COMMERCIALISATION KKLW MOHE (FRGS, RU, APEX) MITI (SME Corp) MOF (BGF) CRADLE MOF (BSF) KPKK (CREATIVE INDUSTRY FUND) MAVCAP, MDV KPPK (CESS FUND) This slide gives an overview of the current funding landscape; starting from ideation to R&D, Pre-Com and finally to Commercialisation. We are discussing this morning on the streamlining of the Pre-Com and Commercialisation fundings. The management, disbursement and monitoring of funds reside in different ministries and agencies; making it difficult to track and monitor the overall performance of these fragmented funding schemes. This of course means that there is a possibility of fund disbursement to similar projects and possibly to the same applicant. Then there are also a number of fund applicants/entrepreneurs being confused as to which funds they should apply for. On a positive note, although the funding landscape is less than ideal, the ministries and related agencies managed to put in place well structured guidelines and SOPs for evaluation, disbursement and monitoring of these funds. However there is still room for improvement. MINDEF (STRIDE) KeTTHA (Green Tech) MOA (AGRO BANK) SCIENCEFUND MTDC, Biotech Corp, etc Techno/InnoFund etc MGS

10th MP MOSTI R,D&C Priority Areas MOSTI R,D&C FUNDING BIOTECHNOLOGY S2S ICT INDUSTRY S&T CORE ENGINEERING SCIENCES CHEMICAL SCIENCES ENVIRONM. SCIENCES AGRICULTURESCIENCES COMPUTER SCIENCES & ICT LIFE SCIENCES PHYSICAL & MATHEMATICAL SCIENCES ADVANCED MATERIALS SCIENCES SOCIAL SCIENCES & HUMANITIES MEDICAL & HEALTH SCIENCES

SCIENCEFUND  

DEFINITION OF SCIENCEFUND Grant provided by Government to carry out R&D projects that can contribute to the discovery of new ideas and the advancement of knowledge in *applied sciences, focusing on *high impact and innovative research.

OBJECTIVES OF SCIENCEFUND to support research that *can lead to the innovation of products or processes for further development and commercialisation; and/or; ii. to generate *new scientific knowledge and strengthen national research capacity and capability.

The project duration is up to 30 months. SCOPE OF FUNDING ScienceFund covers preliminary research leading to laboratory proof of concept or towards the development of new products or processes. The quantum of fund approved will be determined based on the merit of each application. QUANTUM OF FUNDING The quantum for each project is up to RM500,000.00. PROJECT DURATION The project duration is up to 30 months.

SELECTION CRITERIA OF THE PROJECT i) Scientific and technical merit: The project must be scientifically sound, technically feasible with achievable milestones, and has the potential for further development and commercialisation. ii) Research competence: The research team must have the knowledge and competency to carry out the research successfully to completion. iii) Innovativeness of the research. iv) High impact research: Clear and measureable expected output, outcome and impact in line with National Key Economic Areas / National Key Result Areas (NKEA/NKRA).

INNOFUND  

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

Types Enterprise Innovation Fund (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

Types Community Groups Community Innovation Fund (CIF) - To encourage Community Group to convert knowledge/ idea into innovative products/ process / services that improve the quality of life of communities

Enterprise Innovation Fund

Eligibility Criteria Malaysian individual, sole proprietor, micro or small enterprise Technological innovation leading to commercialisable applications, products or services Technological innovation 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

Scope of Funding Consumables / materials; Equipment (not more than 40% of total grant approved); Expenditure for services (consultancy and testing); Product documentation; Regulatory and standard compliance; and Market testing (including samples, fees and documentation for participation in trade fairs and exhibitions). Scope of Funding

Quantum of Funding and Duration Sole Proprietor/ Individual Micro Enterprise Small Enterprise Up to RM50,000 Up to RM500,000 Up to 12 months Quantum of Funding and Duration Note: Micro: Annual sales turnover of less than RM 0.25 million or less than 5 FTE Small: Annual sales turnover of RM 0.25-10 million or less than 50 FTE

Community Innovation Fund

Eligibility Criteria Registered/Government recognised Malaysian community group Project must contain innovative elements leading to the development of products / services / processes that improve societal well-being. Applicant must show proof that they can fund their share of project cost not covered by InnoFund Project must be undertaken in Malaysia

CIF projects do not have to adhere to the specific clusters CIF projects do not have to adhere to the specific clusters. The emphasis is innovation that improves social well-being of communities Technology Clusters

Scope of Funding Consumables / materials; Equipment (not more than 40% of total grant approved); Expenditure for services (consultancy and testing); Project documentation; Demonstration application (including samples, fees and documentation for participation in exhibitions).

Quantum of Funding Up to RM500,000 Duration 12 to 18 months

TECHNOFUND  

DEFINITION TechnoFund is a grant scheme which aims to stimulate the growth and successful innovation of Malaysian enterprises by increasing the level of R&D and its commercialisation. The scheme provides funding for technology development, up to pre-commercialisation stage, with the commercial potential to create new businesses and generate economic wealth for the nation.

WHO CAN APPLY i. Small and Medium Enterprises; ii. Institutions of Higher Learning; iii. Research Institutes; and iv. Science, Technology and Innovation (STI) Agencies.

OBJECTIVES development of new or cutting edge technologies or further develop/value add existing technologies/products in specific areas; ii. undertake market driven R&D towards commercialisation of R&D outputs; iii. encourage institutions, local companies and inventors to capitalise their intellectual work through intellectual property (IP) registration; and iv. stimulate the growth and increase capability and capacity of Malaysian technology-based enterprises, Malaysian Government Research Institutes (GRI) and Institutions of Higher Learning (IHL) through both local and international collaborations.

SCOPE OF FUNDING QUANTUM OF FUNDING PROJECT DURATION The Pre Commercialisation (TechnoFund) will cover: i. the acquisition of technology (foreign and/ or local). ii. the up-scaling of laboratory-scale prototype or the development of commercial ready prototype; and iii. pre-clinical testing/clinical testing/field trials. QUANTUM OF FUNDING The quantum for each project is up to RM3,000,000.00. PROJECT DURATION The project duration is up to 30 months.

SELECTION CRITERIA OF THE PROJECT i. Novelty Uniqueness and novelty aspect of the technology/product. Applicant must conduct a Prior Art Search to verify on the patentability aspect. ii. Technical Feasibility Applicant’s ability to successfully complete the project within the stipulated time. iii. Laboratory Proof of Concept (POC) Evaluation of the Proof of Concept - viability, technical issues, overall direction, and budgeting.

iv. Competency of the Project Team • Project teams - qualified and competent members (technical and commercialisation aspects). • Roles and responsibilities of collaborators involved clearly defined. • Core business of applicant must be related to area of research. • Project leader must be technically fluent & competent in the related project. • Involvement of consultants should be justified and details submitted. • Each member of the team should provide CV clearly stating their previous research as well as highlighting significant successes. v. Credibility of Project Proposal The project proposal must be clear, accurate and consistent with the objectives of the Pre Commercialisation Fund (TechnoFund) and have milestones and project activities that can be completed within the agreed time frame.

vii. Appropriateness of Methodology Should provide sufficient information (clear sequence of stages & phases of the proposed methodology) to achieve the project objectives. vii. Deliverables Should be able to indicate clearly the type of output expected, market size, potential for commercialisation, and/ or new IPs viii. Financial Capability Should show proof of financial capability to finance any portion of project cost not funded by TechnoFund.

ix. Projection of the Project Costs Detailed projection of the project costs must be provided. As for purchase of equipment and acquisition of services, all the relevant documents must be included in the project proposals for evaluation. x. Risk The applicant must state the possible risks (technology risk, financial risk and time risk) that may affect the implementation or completion of the project.

xi. Applicant and collaborator(s) must provide the following documents, where appropriate: a. The applicant if a Company and/or collaborator(s) must provide the latest Forms 9, 24 and 49 (Companies Act 1965) together with the latest Annual Report; and b. Latest Memorandum and Article of Association (MoA). All documents should be certified by the Companies Commission of Malaysia. Foreign collaborators should provide equivalent documents. xii. Others The applicant and collaborator(s) must fulfil other conditions stipulated under the guidelines and policies of the Pre Commercialisation Fund (TechnoFund).

LAST DATE TO SUBMIT APPLICATION Beginning December 2011, evaluation will be done in cycles: CYCLE LAST DATE TO SUBMIT APPLICATION EVALUATION RESULT CLIENT CHARTER 1/2011 31 Dec 2011 1 Jan– 29 Feb 2012 1 Mac 2012 37 working days 1/2012 29 Feb 2012 1 Mac – 10 May 2012 11 May 2012 50 working days 2/2012 31 May 2012 1 June – 9 Aug 2012 10 Aug 2012 3/2012 31 Aug 2012 1 Sept – 14 Nov 2012 16 Nov 2012 4/2012 31 Dec 2012 2 Jan – 18 Mac 2013 19 Mac 2013

PROCESSING Ministry of Science, Technology and Innovation Fund Section, MOSTI

R&D&C EVALUATION PROCESS 50 Working Days Yes Administrative Vetting Evaluation Approval Notification Fund Section Evaluation Committee Fund Approval Committee 14 Days 30 Days 3 Days Receipt of application Technical Committee Meeting Verification Yes Strategic Committee Meeting Fund Approval Committee Meeting Reject Circulation to Fund Approval Committee Members Notification to applicant Compilation of Evaluation Reports Classification according to field of research & identifying panel of experts Approve Site Visit/ Additional Information No Administrative Vetting Receipt of Application (2 days) (3 days) (2 days) (3 days) (9 days) (10 days) (2 days) (5 days) (1 hari) No (2 days) 50 Working Days (6 days) R&D&C (5 days)

SUCCESSFUL APPLICATION FACTORS Management Novelty – technology Competitor Financial Projection Cash Flow Profit & Loss IRR ROI & SROI Marketing Market Validation Business Model Competency & Competitor Analysis

ACHIEVEMENTS Ministry of Science, Technology and Innovation Fund Section, MOSTI

GENG: THE ADVENTURE BEGINS” ICT GENG: THE ADVENTURE BEGINS” 45

Number of Projects completed Biotechnology Number of Projects completed Outputs Outcomes Measure Biopharmacy/ Medical (20 completed projects) Molecular techniques in cancer New constituents of palm oil for cosmeceuticals Profiling Standard for Essential oil from gaharu Improve oral and breast cancer treatment Value addedness to palm oil application in pharmaceutical industry Increase quality of essential oil for high market value Patents Filed: 2 Publications: 27 Commersialisation: Industrial collaboration with Caroted Bhd (a subsidiary of Hovid) Discussion with Vivantis Technologies & Geneflux Sdn Bhd Industrial/ Environment (17 completed projects) Bioprotein from agricultural waste and cheap carbon source New Methods for waste water treatment Enable new market for agricultural waste Efficient management of waste water Patents: 8 Publications: 31 Agricultural Biotechnology (10 completed projects) Methods for culturing algae strain as a feed for fish larvae Increase productivity of fish industry Publications: 3

Industry Key Indicator Achievements Completed Projects 147 Machine developed used for profiling groove for piping in petrochemical industry Pilot Plant for production of water-soluble polymer for industrial waste treatment Development of bio-fuel engine for ferry/boat Development of mobile incinerator Key Indicator Achievements Completed Projects 147 Potential for Commercialization 3 Patents filed 60 RSE Created 476 Knowledge Worker Generated 135 Employment Created 107 Innovation Output 34 Licensing/Spin-off Company Development of wifi antenna for transmitting information up to 3 km Automation for making “keria”

Integrated Geospatial Database and Planning System (IGDP System) S2S CTI Head of States Summit Tsunami early warning system RAZAKSAT® Integrated Geospatial Database and Planning System (IGDP System) ANGKASAWAN Programme

InnoYOUTH (Innovative Youth) Empowering Kajang Prison Inmates (Youths) in Digital Micro- Enterprises is a social project to empower 250 inmates of Kajang Prison in multimedia and desktop publishing skill as to enable them to become microentrepreneurs once they are released. The project aims to give guidance, hope, skills and confidence for the inmates to start afresh a new lease of life - using ICT skills to earn a living. InnoYouth project will provide hope and instil sense of self-respect for the inmates and help to reduce 're-offending' cases. 250 inmates are being selected for this project comprising mainly youths aged between 19-39 years old. ICT will be used as a creative tool to prepare, train and enhance the target group's ability to offer niche services in multimedia and desktop publishing. Project Location : Kajang Prison, Selangor S&T Core

PROGRAM APLIKASI TEKNOLOGI MOSTI BERSAMA KOMUNITI CSR TAPMOSTI@COMMUNITY PROGRAM APLIKASI TEKNOLOGI MOSTI BERSAMA KOMUNITI

GUIDELINES AND APPLICATION FORMS???? Please visit our website: http://www.mosti.gov.my suhaimi@mosti.gov.my O19-3805707 Ministry of Science, Technology and Innovation

THANK YOU Ministry of Science, Technology and Innovation