MDEC launches global technology grant to nurture global champions
By Digital News Asia August 26, 2021
- Grant provides up to RM2 mil funding for tech companies & accelerators
- Aims to support scaling-up of M’sian tech companies into the global arena
The Malaysia Digital Economy Malaysia (MDEC) has announced the Global Technology Grant (GTG), an initiative aimed at nurturing global champions, driving investments, and catalysing a digital innovation ecosystem.
In a statement, it said the objective of GTG is to support the scaling-up of Malaysian technology companies into the global arena by way of empowering innovation, development, and commercialisation of disruptive or innovative products and services.
The grant works by supporting research and development (R&D), scaling up of provision of R&D services, development of new technologies, establishment of centres of excellence, and the creation of new market-driven products or services for the global market, it said.
The GTG also serves to support high-impact ecosystem development initiatives, including the development of ecosystem players that ultimately contribute to the growth of the digital economy, it added.
This includes new job creations, expansion of export and investments, and talent development.
“In order to compete in an increasingly globalised market, technology companies in Malaysia need innovation, ideas and globally-relevant products. One way to do so is to create an ecosystem that supports R&D and innovation,” said Gopi Ganesalingam (pic), vice president, tech ecosystems and globalisation at MDEC.
“The GTG aims to nurture global champions out of local innovators by allowing them to develop and commercialise innovative and commercially driven products or services.”
This will have a snowball effect that ultimately leads to export revenue increases, the upskilling of local founders and talents, and a rise in digital investments, he claimed.
The grant offers two types of incentives. Type 1, which is directed at technology companies, and type 2, for technology accelerators.
For type 1, the GTG aims at helping local scale-up tech companies who are ready to enter their first global market or expand their existing global market presence via technology innovation and commercialisation of market-driven products or services.
The purpose, ultimately, is to drive a potential Malaysian unicorn in the making.
Type 1 of the grant covers up to 50% of total project costs or up to RM2 million (US$480,000), whichever is lower, for locally owned companies.
As for foreign-owned companies, the grant covers up to 30% of total project costs or up to RM2 million.
[RM1 = US$0.24]
Under type 2, the GTG targets foreign technology companies to set up centres of excellence to conduct high-value tech innovations and R&D activities leading to the development and commercialisation of market driven, innovative products and services for the global market on top of contributing to the development of the ecosystem.
Type 2 covers up to 30% of the project cost or up to RM2 million, whichever is lower.
The GTG is open to local and foreign owned companies. For local companies to be eligible, it must be incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016 and in operation for at least one year.
It must have a minimum issued and paid-up capital of RM20,000 (US$4,800) and a minimum of 51% equity held by Malaysians. For companies whose shareholders are from another company, the same rule applies.
For foreign-owned companies to be eligible, they must be incorporated in Malaysia under either companies acts, with a minimum issued and paid-up capital of RM500,000 (US$120,000). They must also be in operation for at least one year.
The GTG is open for submission on Aug 27, and the closing date for submissions on Sept 15, with evaluation and approvals set to be completed by October.
The project execution phase will begin in November and December.
For more information on the GTG and the application process, click here.
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