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The Intensification of Research in Priority Areas (IRPA) Fund, a core program of the Ministry of Science, Technology and the Environment, was established in 1988 to provide financing for research in projects which have commercial potential under various programs. These include agriculture, industries, medicine, strategic studies and social sciences, and new and emerging technologies, viz, manufacturing, microelectronics, biotechnology, information technology and advanced materials and energy. The fund is designed to encourage Government owned R & D agencies and universities with R & D facilities/capabilities to have greater linkages with the private sector.
ITAFThe launching of the Industrial Technical Assistance Fund (ITAF) in 1990 to provide financial assistance to small and medium-scale industries in the form of matching grants for consultancy studies, product development and design, quality and productivity improvements and market development. Other quality development systems include: Process and Product Development and Upgrading Scheme, and Productivity Improvement and Certification Scheme.
Other grantsProcess and Product Development and Upgrading Scheme
This is an assistance scheme in the form of a matching grant to SMIs to improve and upgrade indigenous technology through the development of new products, designs and processes. The maximum grant allocated per company is RM250,000. Assistance is in the form of a matching grant where 50% of the project cost is borne by the Government and the applicant is responsible for the remainder of the project cost.
The types of expenses that are eligible for funding are as follows: Consultancy costs; Costs of acquiring technology and skills through training; Service cost for related schemes, testing and calibration; Cost of testing materials and developmental equipment used in designing and prototypes; and Other cost as per contract.
Productivity Improvement and Certification Scheme
This is an assistance scheme in the form of a matching grant to SMls to upgrade productivity and quality, and to achieve international standards and certification. The scheme provides matching grants to SMls for quality improvement, development of product, factory auditing and total quality management scheme.
The types of expenses that qualify for assistance include consultancy costs, cost of acquiring technology and skills through training, service costs for related schemes, testing and calibration, and cost of testing materials and development equipment.
Under the Seventh Malaysia Plan, RM935 million was allocated for R&D. This program is extended to the private sector through the Industry R&D Grant Scheme (IGS), Multimedia Super Corridor R&D Grant Scheme (MGS), and the Demonstrator Application Grant Scheme (DAGS). The three schemes are aimed at enhancing the competencies of Malaysian firms in the rapidly evolving information and communication technology (ICT) industry.
Funds by MTDCIndustrial R&D Grant Scheme (IGS)
This scheme was launched in 1997 and is opened to the private sector for funding of R&D projects. The objectives of the scheme are:
- To encourage Malaysian companies to be more innovative in using and adapting existing technologies and creating new technologies, products and processes which will benefit the economy;
- To strengthen national competitiveness in the global markets;
- To promote closer co-operation through joint-ventures and institutional linkages between the private sector and public sector universities and research institutes; and
- To encourage strategic global and regional linkages in R&D to enhance indigenous technology development.
Priority is given to proposals relating to advanced manufacturing, advanced materials, microelectronics, information technology, multimedia technology, biotechnology, aerospace as well as the 22 industrial clusters identified in the Second Industrial Master Plan (IMP2), and targeted technologies under the Seventh Malaysia Plan.
Demonstrator Application Grant Scheme (DAGS)
This scheme is set up with the objective of encouraging Malaysians to adapt and customize existing IT and multimedia technologies in applications so as to make them compatible with local culture. It also seeks to promote the development of software and content industries for greater competitiveness of Malaysian industries in the global market. Demonstrator Applications (DAGS) are small, focused and short-term projects aimed at creating, developing and promoting new applications. Funding of up to 70% of project cost will be provided. Priority is given to projects in areas of e-Iearning, e-economy, e-community, e- public services and e-sovereignty.
Various grants are administered by MTDC e.g The Technology Acquisition Fund (TAF) and Commercialization of R&D Fund are highlighted below.
Technology Acquisition Fund (TAF) Established under the Ministry of International Trade and Industry, TAF's role is to facilitate the acquisition of strategic and relevant technologies by the industrial sector. The fund provides partial funding to further promote efforts by the private sector to enhance their technology level and production processes. On the whole, TAF strives to enhance the competitiveness of Malaysian firms. Provision of funding covers the following areas: Purchase of High- Tech Equipment and Machinery, Technology Licensing, Acquisition of Patent Rights, Prototypes and Design, Placement of Malaysians in Foreign Technology Companies and Foreign Technology Institutes, Expert Sourcing Program, Information Dissemination Seminars/Workshops
-Purchase of High- Tech Equipment and Machinery: Approved activities include the purchase of machinery and equipment for high-technology industries as listed in the list of promoted activities and products for high-technology companies under the Promotion of Investment Act 1986, and multimedia and other strategic industries as approved by the government. A maximum of 50% of the total cost of machinery or equipment can be granted.
-Technology Licensing: TAF provides funding to enable the acquisition of technology through licensing to enhance the design and production of new and existing products and processes. The fund provides a partial grant of up to 70% of the total cost involved in the initial payment of the licensing fees--Acquisition of Patent Rights, Prototypes and Design: This is to facilitate the transfer of technology to local companies so as to enable them to develop new processes and products. The activities that are eligible for funding include the procurement of patents/manufacturing rights and registered design and procurement of prototypes and its related technology transfer to facilitate the physical development of new products. The fund provides a partial grant of up to a maximum of 70% of the total cost involved in the acquisition of patent rights, prototypes and design
-Placement of Malaysians in Foreign Technology Companies and Foreign Technology Institutes: The objective of this program is to expose Malaysians to new technologies and to upgrade their knowledge on technology development in foreign technology companies. Activities include job attachment or on-the-job training. The funding for this program is partial restricted to not more than 3 persons for the duration not exceeding three months. The grant that can be dispersed is up to a maximrun of 50010 of total cost or RM30,000, which ever is lower for each person.
-Expert Sourcing Program: This is to assist fmns in engaging foreign technical experts and consultants to upgrade their products and processes. The grant is partial, up to a maximrun of 50% of the total cost or RM30,000, whichever is lower.
-Information Dissemination Seminars/Workshops: The aim is to assist industry associations and chambers of commerce to engage foreign expert advice in upgrading the current technological capability of its member companies. The amount of grants has a limit of a maximrun of RM50,000 and are disbursed to industry associations or chambers of commerce to help organize technical workshops/seminars.
Commercialization of R&D Fund
The objectives of the fund are as follows:
In order to obtain assistance from this fund, companies must be local-controlled companies, i.e., more than 50% equity are owned by Malaysians. In addition, collaboration with local research institutions and universities are encouraged.
Eligible commercialisation activities include any stage in a series of activities that are geared towards commercialisation. The amount of funding varies with each stage.
The stages are as follows:
S&T Human Resource Development ProgramsPhase I: Market Survey and Research
The objective here is to assist in the evaluation of the market potential of the proposed product/process for commercialization. The fund provides a partial grant to a maximrun of 50% of the total cost involved in market survey and research-
Phase II: Product/Process Design and Development
The fund provides a partial grant to a maximrun of 50% of the total cost involved in product/process design and development. Funding does not include capital expenditure.
Phase III: Standards and Regulation Compliance and Intellectual Property Protection
The fund provides a partial grant to a maximum of 70% of the total cost involved in the process of meeting established standards and regulations and in intellectual property protection.
Concerted efforts have been made to develop the critical mass of skilled and technical S&T manpower required to support the development strategies of the Second Industrial Master Plan. The key S&T human resource development programs implemented are as follows: Science and Technology Human Resource Development Fund (S&T HRD Fund), Post-graduate and Post-doctoral Training Program; Teaching Company Scheme (TCS), and, recruitment of Malaysian Scientist Abroad and Foreign Scientist Scheme.
Science and Technology Human Resource Development Fund (S&T HRD Fund):
Introduced in 1997 with an allocation of RM300 million under the Seventh Malaysia Plan, this fund seeks to create a pool of skilled and trained manpower among professionals as well as among supporting staff of government departments, public research institutions, universities and Government corporatized institutions. Priority is given to critical technologies such as industrial design, IT and others. The Fund supports training programs that include formal courses, short courses/attachments, appointment of local/foreign consultants for training purposes as well as Science Awareness Programs for science teachers.
Human Resource Development Fund: To develop personnel for product design and R & D work
Malaysia's Multimedia Super Corridor: In 1996 a new urban zone (270 square miles), called Multimedia Super Corridor (MSC), designed specifically to enhance and develop a world-class multimedia industry was created. This is meant to enhance technology and the whole package would involve different incentives, including a tax break, but in this case the main incentive is the creation of a "safe haven" meant to attract foreign investment. It must also be noted that MSC was to cater for the specialized needs of the MNC, including both financial and non-financial incentives.
Among the 11 categories that constitute knowledge of various general S&T -related issues in the Public Awareness of Science and Technology Survey (MASTIC, 1998), three categories saw an increase -"economy and business", "environmental pollution", and "applications of nuclear technology". In general, male respondents in the survey showed a higher degree of knowledge of various S&T-related issues compared to female respondents. Among the three age groups (children, youth, and adult) youth showed the highest level of "knowledge and interest" in S&T -related issues.
There is a general consensus among survey respondents that S&T has improved their lives. In terms of "perception and attitude" towards S&T, the difference between rural and urban respondents is not statistically significant. Overall, there has been an improvement in the understanding of S&T -related concepts. Not surprisingly, knowledge tends to be positively correlated to educational level of the respondents. The major sources of information are television (for 98% of respondents), newspapers (93%), and magazines (81%).