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TAF

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 / rights / blueprints of a registered Intellectual Property 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) only

Note:

*SME definition as per Guideline on New SME Definition 2013 by SME Corp. Malaysia

Basic Eligibility Criteria

  • The company is incorporated under the Companies Act 1965;
  • The company must be at least 51% Malaysian-owned;
  • The company qualifies as an SME according to the guidelines on new SME definition 2013 by SME Corp. Malaysia;
  • The proposed technology acquisition must be from one of the Priority Technology Clusters identified by MOSTI;
  • The technology to be acquired must be a registered Intellectual Property (Patent/Copyright/Industrial Design) with proven and significant sales volume in the country of origin;
  • The technology provider must not hold any equity in the applicant’s company.

 Funding Quantum

TAF provides funding in the form of partial grants with a maximum of RM4 million:

  • For licensing of technology – RM2.8 million or 70% of the eligible expenses (whichever is lower).
  • For purchase of proprietary machineries and equipment from technology provider – RM1.2 million or 50% of the eligible expenses (whichever is lower).

Note: Please provide breakdown of cost into IP licensing and machine in the application.

Eligible expenses

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

Payback

Total amount approved for proprietary machineries and equipment.

Zero interest payment to start from the third year on instalment basis for a period of not more than 24 months.

Project duration

4 years (2 years Implementation and 2 years payback monitoring)

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