During its Malaysia Tech Month 2021 in August, the government’s digital promotion agency, Malaysia Digital Economy Malaysia (MDEC) introduced the Global Technology Grant (GTG). Local and foreign ICT companies that are incorporated in Malaysia are eligible to apply for up to MYR 2 million (USD 480,000) of funding value.
The main goals for GTG are for tech companies in Malaysia to scale up their R&D activities and services, develop new technologies, set up Centers of Excellence (CoE), and create new market-driven goods or services to enter the international market. In essence, MDEC put emphasis on the development of an ecosystem that can contribute to the growth of the digital economy, such as new job creation, increased export and investment, and talent development. There are two types of GTG incentives as summarized below:
- For locally owned firms, Type 1 of the GTG intends to assist enterprises that are positioned to grow their global market presence through technology innovation and commercialization of market-driven products or services. This could pave the way for future Malaysian unicorn businesses. Type 1 of the grant covers up to 50% of total project expenses or MYR 2 million (USD 480,000), whichever is lower. While for foreign-owned firms, the Type 1 of the award pays up to 30% of total project expenses, or up to MYR 2 million (USD 480,000).
- Under Type 2, the GTG seeks to encourage foreign technology businesses to establish Centres of Excellence in Malaysia to conduct high-value tech breakthroughs and R&D activities for the global market while contributing to ecosystem growth. Type 2 grant pays up to 30% of the project cost or MYR 2 million (USD 480,000), whichever is less.
All participating companies must be incorporated in Malaysia under the Companies Act 1965 or the Companies Act 2016 and have been in operation for at least one year. Local firms, on the other hand, must have a minimum issued and paid-up capital of MYR 20,000 (USD 4,800) and a minimum of 51% equity held by Malaysians whilst foreign corporations need to hold a minimum issued and paid-up capital of MYR 500,000 (USD 120,000).
The application process for Global Technology Grant is between 27 August and 15 September 2021. The evaluation and approvals will be completed by October and the project is set to start in November and December 2021. For more information on the Global Technology Grant and the application process, visit www.mdec.my/gtg.
(Sources: MDEC; Digital News Asia)