Technology Acquisition Fund (TAF)

TAF is established to facilitate eligible Malaysian companies in the acquisition of foreign technologies for immediate incorporation into the company's manufacturing activity. TAF's partial grant enables companies to avoid expensive and often risky technology development stages.

The acquisition of technology could be in the form of acquiring know-how / IP exploitation / rights / blueprints via one of the following methods:

  • Licensing of technology; and
  • Outright purchase of technology

A draft agreement outlaying clearly the clauses (for e.g. licensing fees, royalty, exclusivity, market territories, arbitrary, duration, payment schedule, project milestones and exit clause etc.) between the Technology Provider and the Company (Technology Recipient) is mandatory before applying for the TAF grant.

Target Group

  • Small & Medium Enterprise (SME)


‘SME' is defined as company with less than RM25 million annual turnover or  having less than 150 employee.


Basic Eligibility Criteria

  • The company is incorporated under the Companies Act 1965;
  • The company must be at least 51% owned by Malaysian;
  • The company has less than RM25 million annual turnover or  having less than150 employee;
  • The proposed technology acquisition must be from one of the Priority Technology Clusters identified by MOSTI excluding ICT;
  • The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume;
  • The technology provider must not hold any equity in the applicant's company; and
  • The proposed project must be tangible in nature.

Funding Quantum

  • TAF provides funding in the form of partial grants with a maximum of RM2 million or 50% of the eligible expenses (whichever is lower).

 Eligible expenses

  • Cost of Technology Acquisition i.e. for Licensing of Technology or Outright Purchase of Technology Only.

Project duration

  • 2 years (Implementation and Monitoring)


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