The BioNexus status, initiated in 2006, is a special status awarded by BiotechCorp to qualified international and Malaysian bio-based companies undertaking value-added biotechnology and life sciences activities. There will be income tax exemption on statutory income for 10 years or 5 years (expansion project) and income tax exemption for qualifying capital expenditure. Some other incentives include double deduction on expenditure incurred for R&D and for the promotion of exports as well as import duty and sales tax exemption on imported raw materials and machinery.
In January 2017, Bioeconomy Corporation launched the Biotechnology Commercialisation Fund 2.0 (BCF 2.0) under the 11th Malaysia Plan to assist BioNexus SMEs and matured companies in growing and expanding their existing bio-based businesses. The Government has allocated RM100mil for the BCF in the form of soft loans. This soft loan is offered at a rate of up to 5 % interest, and up to 18 months’ grace period on repayment to ease the burden of repayment by companies. This funding for SME includes working capital (up to RM600,000) with a tenure of up to 2 years and Business expansion capital (up to RM3 million including ‘zero entry financing cost’) with a tenure of up to 7 years.
Cradle is an agency under the Ministry of Finance dedicated to providing seed funding and nurturing to raw technology-based ideas in order to turn them into commercially viable ventures. The Cradle Fund is a pre-seed grant offered to entrepreneurs for prototype development and valued at RM150,000. Cradle Investment Program (CIP) also offers another scheme since 2009 which gives up to RM500,000 grant, which is essentially a seed fund to help technology companies attain commercialisation and are only awarded to local start-up companies with innovative technologies and good commercialisation prospects. CIP is Malaysia’s only end-to-end funding programme which provides funding from idea conceptualisation to product commercialisation via its pre-seed (CIP Catalyst & U-CIP Catalyst) and seed (CIP 500) grants.
It is a non-profit organization established in 2012 that focuses on creating and developing sustainable entrepreneurs via strategic developmental programs. In line with entrepreneurs in mind to ensure they reach their business potential, myNEF have signature programs such as SUPERBXCEL and ASEAN Rice Bowl Startup Awards to establish partnership with the Government and related agencies, both locally and in the Southeast Asian region. The programs organized ensure new entrepreneurs to receive training, advisory to polish up ideas, showcase or have business networking. One of the strategic partners is Cradle, which assists early stage entrepreneurs to both develop and commercialise their product via CIP300 with maximum grant value of RM300,000.
Ministry of Science and Technology (MOSTI)
It offers several funding routes:
- For Smart Challenge Fund, grant of up to RM 1,000,000 (for STRATEGIC) provided that TRL (Technology Readiness Level) is 4 (i.e. technology validated in lab) or RM 3,000,000 (for PRIORITISED) provided that TRL is 6 (i.e. Technology scale-up and pilot plant in relevant industrial environment. Duration of funding is 24 months.
- For Enterprise InnoFund, grant of up to RM50,000.00 for Individual/ Sole proprietor and RM500,000.00 for Micro/ Small Companies. Duration of funding is 18 months.
- Facilitation Fund is intended to help applicants survive the valley of death between the pre-commercialization phase to commercialization. The main objective is to assist applicants to increase the readiness of R&D products to be marketed, through hand-holding by MOSTI Agency (Implementing Agency). Funding is up to RM500,000 for 18 months.
Malaysian Technology Development Corporation (MTDC)
Through the Technology Development Programme established since the 7th Malaysia Plan, the Government had entrusted Malaysian Technology Development Corporation (MTDC) with the management of two grants:
- MTDC Technology Acquisition Fund (TAF) was established to facilitate the acquisition of strategic, proven foreign technology for immediate implementation into existing business. TAF provides funding in the form of partial grants with a maximum of RM2 million or 50% of the eligible expenses (whichever is lower).
- MTDC Commercialisation of R&D Fund (CRDF) provides added stimuli for the right innovation among Malaysian-owned companies, local universities and research institutions, by providing partial grants to qualified R&D projects.
Malaysia External Trade Development Corporation (MATRADE)
Market Development Grant (MDG): Up to RM200,000 (per company) as financial assistance on eligible expenses (reimbursable) incurred in undertaking export promotional activities. Activities include:
- Participation in International Trade Fairs / Exhibitions;
- Participation in Trade & Investment Missions/ Export Acceleration Missions;
- Participation in International Conferences Overseas;
- Listing Fee For Made In Malaysia Products in Supermarkets/ Hypermarkets/ Retail Centres Overseas;
Services Export Fund (SEF): Up to RM5 million Grants and loans for the expansion and venture into international market. Activities include:
- Promoting Malaysian expertise in services at international events overseas as speaker in conferences, forums and participating in services industry related competitions (grant);
- Travelling expenses for tender bidding (grant);
- Procuring commercial intelligence / market reports for assessing business opportunity or projects overseas (grant);
- Rendering services for projects undertaken overseas (grant);
- Presentation to potential clients for assessing business and projects overseas (grant);
- Preparation of prototype, system customisation and localisation to meet projects requirements (grant);
- Initial Cost of Setting up Office Overseas (grant);
- Logistic cost of sending Malaysian products, equipment or merchandising for project abroad undertaken by Malaysian services companies (grant);
- Conducting feasibility study for specific international project overseas (grant);
- Costs incurred in preparation and submission of project proposals for overseas projects (loan);
- Expenses related to raising bank guarantee or performance bond to execute overseas project (loan).