Government / Public Policy

R&D funds to kickstart commercialisation of products, innovation

PUTRAJAYA: The Science, Technology and Innovation Ministry (Mosti) has introduced five Research and Development (R&D) funds under the Malaysia Grand Challenge (MGC) to help commercialise products and innovations here.

Minister Khairy Jamaluddin said the funds would cover various sectors, aimed at improving people's lives, economic system and environment at both the local and global levels.

He said MGC would introduce various incentives and collaborative efforts through disruptive technology in mainstreaming science, technology and innovation.

This, he said, was in line with the country's aspiration to realise the Shared Prosperity Vision 2030 (SPV 2030) and Sustainable Development Goals (SDGs) outlined by the United Nations.

"MGC was introduced to encourage the research, development, commercialisation and innovation (R&D&C&I) in the country. Mosti will offer R&D allocations under the Pemacu strategic technology fund programme (Pemacu) and applications are open to start-up companies, Small-Medium Enterprises (SMEs), multi-national companies and even individuals.

"The government has the responsibility to invest in R&D so those that are successful later could be commercialised, with private sectors investing in them. It's very difficult to find venture capital firms that invest in research before the commercialisation.

"While not all funded R&D (projects) would be successful, we hope to see a large number of them commercialised," he said, adding the ministry targeted R&D for 114 products this year.

He cited efforts by countries like the United States that invested in smartphone technology like touchscreen and giant brand Apple Inc's voice-controlled personal assistant Siri that have also benefited consumers across the globe.

He said MGC would improve innovations, creativity and commercialisations of local products through sustainable technology, thus reducing dependency on foreign innovations.

The five funds available under Pemacu, he said, were Strategic Research Fund, Technology Development Fund 1 (TeD1), Technology Development Fund 2 (Ted2 which is an extension of TeD1), Bridging Fund (BGF) and Applied Innovation Fund (AIF).

He said SRF provides up to RM15 million to SMEs and multinational companies for a matching period of 36 months for products with Technology Readiness Levels (TRL) of 3 to 9.

The TeD 1 offers up to RM1 million funds within 24 months for TRL 2 to 4; TeD 2 (RM3 million within 36 months for TRL 4 to 7); BGF (RM4 million in 36 months for TRL 7 to 9); and AIF (RM500,000 in 12 to 18 months for TRL 2 to 4).

Khairy said the scheme would strengthen the R&D&C&I sector in the country, with a target of 3.5 per cent gross domestic expenditure on R&D (GERD) by 2030 from 1.08 per cent presently.

He said the initiative was in support of Malaysia's High-Tech Nation Council in charting the current and future technology development in the country that would cover issues like health, environment, food, access to technology and security.

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