FAQs: TAF

Q1: How long does it take to process an application?

The processing of grant takes approximately 12 weeks until approval.

Q2: What if the company applying is a dormant company?

A dormant company cannot apply for grants. Only active company is allowed to apply.

Q3: What if the CEO/Managing Director of the company is not a Malaysian?

This is not an issue as long as the company's local equity is equals to/more than 51%.

Q4: Can a company collate a supporting letter from the Minister/Deputy Minister/Agencies to show proof of support for the proposed project?

A company can provide any supporting letters or documents deemed necessary to support its application however the success of its application depends primarily on the merit of the proposal.

Q5: Paid Up Capital?

Company's paid up capital should be reasonable and commensurate with the project cost.

Q6: Does the company need to pay any service charge to MTDC for the services rendered during application stage?

A: No.

Q7: Can a company engage a consultant to act and apply on its behalf?

A: No, company must apply directly to MTDC .Kindly take note that MTDC has never appointed anyone or any company to act on its behalf.

Q8: How to apply for TAF or CRDF?

A: Company can fill up the form via on-line or manually submit application and documents by hand to MTDC during office hours. If application is made on-line then all documents must be submitted separately by hand within 7 days to MTDC's office.

Q9: How can the company check the status of its application after submission?

A: Company can check its application status by calling the Grant Evaluation Department at 03-21726032 or call/email the assigned Evaluation Officer.

Q10: Can a company apply for more than one grant?

A Company can only apply for one grant at one time from MTDC. Company can only apply for another grant after their current project is successfully closed.

Q11: Is the grant repayable?

No, because a grant is not a loan.

Q12: How long is the agreement period between MTDC and company?

2 years (Implementation and Monitoring)

Q13: What if the approved project is not successfully commercialised?

MTDC will monitor all projects closely so that the projects are commecialised successfully according to plan. However if the project fails, MTDC has the right to revoke and retrieve the amount disbursed to the company through legal channel.

Q14: How does MTDC disburse the grant to the company?

All disbursements to the grant recipient or its vendor/supplier are made via cheque or TT.

Q15: Can the company ask for an upfront payment?

No.

Q16: How long will the company get the fund after the application is approved?

Company can forward their claim to MTDC after they have signed the fund agreement.

 

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FAQs: CRDF

Q1: How long does it take to process an application?

The processing of grant takes approximately 12 weeks until approval.

Q2: What if the company applying is a dormant company?

A dormant company cannot apply for grants. Only active company is allowed to apply.

Q3: What if the CEO/Managing Director of the company is not a Malaysian?

This is not an issue as long as the company's local equity is equals to/more than 51%.

Q4: Can a company collate a supporting letter from the Minister/Deputy Minister/Agencies to show proof of support for the proposed project?

A company can provide any supporting letters or documents deemed necessary to support its application however the success of its application depends primarily on the merit of the proposal.

Q5: Paid Up Capital?

Company's paid up capital should be reasonable and commensurate with the project cost.

Q6: Does the company need to pay any service charge to MTDC for the services rendered during application stage?

A: No.

Q7: Can a company engage a consultant to act and apply on its behalf?

A: No, company must apply directly to MTDC .Kindly take note that MTDC has never appointed anyone or any company to act on its behalf.

Q8: How to apply for TAF or CRDF?

A: Company can fill up the form via on-line or manually submit application and documents by hand to MTDC during office hours. If application is made on-line then all documents must be submitted separately by hand within 7 days to MTDC's office.

Q9: How can the company check the status of its application after submission?

A: Company can check its application status by calling the Grant Evaluation Department at 03-21726032 or call/email the assigned Evaluation Officer.

Q10: Can a company apply for more than one grant?

A Company can only apply for one grant at one time from MTDC. Company can only apply for another grant after their current project is successfully closed.

Q11: Is the grant repayable?

No, because a grant is not a loan.

Q12: How long is the agreement period between MTDC and company?

2 years (Implementation and Monitoring)

Q13: What if the approved project is not successfully commercialised?

MTDC will monitor all projects closely so that the projects are commecialised successfully according to plan. However if the project fails, MTDC has the right to revoke and retrieve the amount disbursed to the company through legal channel.

Q14: How does MTDC disburse the grant to the company?

All disbursements to the grant recipient or its vendor/supplier are made via cheque or TT.

Q15: Can the company ask for an upfront payment?

No.

Q16: How long will the company get the fund after the application is approved?

Company can forward their claim to MTDC after they have signed the fund agreement.

 

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FAQs: BSF

Q1: What is BSF?
BSF is a funding scheme under MTDC to fund new start-up technology based companies.  The objective of the fund is to support and encourage entrepreneurship and creation of new strategic businesses that are scalable and to support companies within a promoted technology area.

Q2: When to apply BSF and at which commercialisation stage?
The R&D must have been completed successfully and commercial-ready prototype is available.

Q3: How to apply BSF?
The applicant is required to submit its application form and business plan based on guidelines provided in MTDC website.  The application must be in the form of hardcopy and softcopy.  MTDC may return an incomplete submission.

Q4: Which technologies are eligible to apply?
Technology based companies with high novelty or innovative products.

Q5: We are a newly established company. Due to that nature, we are unable to provide certain documents that are required in the application form’s checklist. How can we proceed?
All application are required to complete the document checklist however in case to case basis MTDC may consider exemption base on merit.

Q6: Are we required to pay back the money once the project is completed?
BSF funding scheme offers promissory notes convertible to Redeemable Cummulative Convertible Preference Shares (RCCPS). The maximum tenure of promissory notes is 8 years inclusive of 3 years grace period.  Should MTDC decided not to convert to RCCPS, the repayment starts on the first month of the 4th year on monthly basis over 5 years period. The repayment includes 3.5% interest per annum.

Q7: What is Convertible Promissory Notes?
Convertible Promissory Notes (CPN) is an investment instrument that is directly convertible to shares.  Under BSF funding scheme, MTDC has an option to convert BSF fund into RCCPS.

Q8: How will MTDC convert the promissory notes to RCCPS?
CPN is convertible to RCCPS is convertible based on the followings in addition to original principal value of CPN:
(i) If at the option of the company, the amount will include 30% premium; or
(ii) If at the option of MTDC, the amount will include 20% premium. 
The coupon rate on the RCCPS will be decided between the parties.

Q9: How long is the application approval process?
The processing will take 45 working days include from the date of full receipt of required documentations until being approved by Technical Committee (TC). Subsequently, the process will go through final approval by the Approval Committee (AC).  Both TC and AC are held on monthly basis.

Q10: What is mechanism for disbursement?
Disbursement will be made in stages based on Milestone Schedule stated in Convertible Promissory Notes (CPN). First disbursement will be made upon the completion of CPN (signed and stamped) and the company has submitted a drawdown notice.
Subsequence payment will be made upon completion of each milestones within 24 months or earlier. MTDC will identify the recommended amount to be disbursed according to the physical progress and financial performance of the project.

Q11: How long does MTDC take to process the disbursement of the fund?
MTDC will in each stage of disbursement take not more than 21 working days from the date of disbursement application after completion of project milestone.

Q12: Is it compulsory to engage Collaborator from University?
It is an advantage to have a collaboration with University/RI’s. However, company must provide proof of IP, sufficient report on product testing or certification from relevant research institute, authorised certification body or local university.  In the absent of these requirements a company may produce internal report which is endorsed by recognised third party/institutions.    

Q13: What are the eligible costs that can be considered under BSF?
BSF covered all cost related to the operating expenses and capital expenses except for the purchase of building and land.  The details of the recognized cost are provided in MTDC website.

Q14: What is the funding amount eligible under BSF?
BSF only funds 90% of the total project cost or maximum of RM5.0 million whichever is lower.  For the remaining 10% the company must show proof of the fund availability prior to the disbursement.

 

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