Chapter 3 Linkages for Fostering Innovation Activities – Case ... - ERIA

Appendix AScience and Technology Incentives from Government of Malaysia.www.mastic.gov.my website (accessed January 29 th , 2010)Research and development as well as technological innovations are essential in the Malaysiangovernment's strategy of sustainable development and knowledge-based economy, ork-economy. Recognising these factors, the government has accorded a high priority to thescientific and the technological development of the country.INDUSTRIAL AND R&D GRANTSSince 1988, The Government has implemented a centralised grant system of financing scienceand technology (S&T) research in public institutions and research agencies. The Ministry ofScience, Technology and Innovation (MOSTI) is charged with the responsibility of managingthe fund and the implementation of S&T research and development (R&D) programmes in thecountry.Some of the grants provided are explained belowIGS: Provides grants to support the usage and adoption of existing technologies or creationof new technologies by local companies in key technology areas such as advancedmanufacturing, advanced materials, automation of processes, electrical & electronics,biotechnology, aerospace.TAF: Provides partial grants to firms to acquire technologies through licensing, to enhance thedesign and production of existing and new products and processes.MGS: Provides grants to encourage R&D in multimedia products and services among MSCstatus companies in Malaysia.CRDF: Provides partial grants for qualified R&D projects to be commercialized.LOAN & VENTURE CAPITALOver the years, the Malaysian government through various ministries and agencies, has helpedthe Small and Medium Industries (SMI) succeed from start-up through the many stages ofgrowth. Financial assistance is offered to help start or expand these businesses and achievesuccess through business loans to entrepreneurs and business owners of specialised industries.These loans are made available through financial institutions such as Credit GuaranteeCorporation Malaysia Berhad, Bank Pembangunan dan Infrastruktur Malaysia Berhad and BankIndustri dan Teknologi Malaysia Berhad to enable these entrepreneurs to obtain up to 100% loanand credit facilities to support their business aspirations. Venture Capital is an alternative formof financing. The Government has proven itself in the past to be very supportive of the VCindustry and has continued to do so, providing adequate liquidity to meet the industry's needs.140