Technology Development: What you didn't know.


Established in 1992, Malaysian Technology Development Corporation or MTDC was set up to spearhead the development of technology industries in Malaysia, with the primary role of promoting and commercialising local research while also investing in high-potential ventures to acquire new technologies from abroad.

MTDC is aimed at seeding, nurturing and developing world-class Malaysian Technology companies; it is dedicated towards helping innovative technology-centric setups, technopreneurs and researchers tranform their dreams into possibilities by providing a host of financial and development options such as grant allocation, technology incubation and value-added services.

Granting Businesses the Power to Succeed:

Since 1996, MTDC has been entrusted by the Malaysian government to manage several special-purpose grants aimed at encouraging researchers and technology-centric businesses to commercialize research findings and provide an incentive to manufacturing companies in obtaining the latest technologies to enhance their operational processes. While the grant scheme was established under the 7th Malaysian Plan (7MP), the government's trust and confidence in MTDC has been proven time and again, with over RM 127 million being approved for grants under the 8MP, and even more sizeable amount allocated for the recent 9MP.

So how much has been allocated for 9MP ?

As an agency under the Ministry of Science, Technology and Innovation (MOSTI), MTDC's grant schemes are geared towards encouraging researchers and technopreneurs to commercialise research findings while assisting manufacturers to acquire advanced technologies in order to improve their operations. The types of funds available include:

1. Commercialization of Research & Development Fund (CRDF):

The fund provides partial grants to qualified R & D projects for commercialization, that is, converting research results into marketable products. Under the 9MP, the CRDF has been redesigned to provide financial support to universities, research institutes and eligible companies to undertake full commercialization. However, its core objectives remain the same; to leverage science, technology and innovation (STI) for national development; to increase the commercialization rate of domestic STI products; to increase wealth creation and technology content for Malaysian companies through commercialization; and to foster close collaboration between research bodies and industrial players.

Technology Acquisition Fund (TAF):

The TAF provides partial grants to facilitate the acquisition of strategic and relevant technology by the Malaysian industrial sector. In line with the 9MP's focus on harnessing STI to raise the capacity for knowledge and innovation while nurturing a truly global mentality, the TAF will assist Malaysian companies dedicated towards enhancing their technology levels, process and competitiveness by providng them with financial assistance to acquire relevant foreign technologies. The TAF also supports the growth of women entrepreneurs by providing them with the necessary funding to acquire vital equipment that can be immediately incorporated into their business activities.

Incubating Tomorrow's Breakthroughs:

Another of MTDC's primary activities is the establishment of Technology Incubation Centres (now known as Technology Centres) designed to strengthen the relationships between industries and research institutions as well as universities in order to accelerate the commercialization activities of both these bodies.

The Technology Centres are created base on the core strengths of the universities:

UPM-MTDC Technology Centre:

Located at University Putra Malaysia (UMP) in Serdang, Selangor, this centreis focused on ICT, Multimedia and Agri-Bio activities.

Companies include:
Axiomatic Solutions
Scan Associates
TM Research

Rental rates for UPM-MTDC is ranging from RM 1.80 to RM 2.20 per square fit. If you are interested, please contact the following person:

Name: Mr Eric Chia
Tel: 603-21641590

UKM-MTDC Technology Centre:

A biotechnology-centric centre located at Universiti Kebangsaan Malaysia (UKM) in Bangi, Selangor

UTM-MTDC Technology Centre:

This centre, located at Universiti Teknologi Malaysia (UTM) in Skudai, Johor, emphasises on advanced engineering and life sciences.

Under the 9MP, MTDC will be devleping another technology centre based in theh Forest Research Institute of Malaysia (FRIM), which is due to be completed by the year 2008. This new centre will be in line with the government's emphasis on biotechnology, and will cater specifically to the life sciences industry.

Adding Value to Businesses:

As part of its extensive offerings, MTDC also provides a host of value-added services to assist its investee companies, grant recipients and incubatess. These incldue:

  • Nurturing and business advisory
  • Capacity building and market research
  • Strategic planning
  • Other Services

So, if you're a technology-based enterprise with breakthrough ideas looking to take the industry, and the world, by storm, there's only one financing partner that's right for you.