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MOSTI — Technology Development Fund (TeD1 / TeD2) — PEMACU

Grant — Non-repayable (90–100% funded; TeD2 requires 15% company cash co-contribution)

Largely non-repayable R&D grant (TeD1/TeD2) under the PEMACU framework for Malaysian tech SMEs and startups advancing technology readiness with a commercialisation path.

Open & Active — TeD1 (up to RM1M) and TeD2 (up to RM4M) under MOSTI PEMACU framework. Apply via MOSTI portal during open windows. Requires ≥51% Malaysian-owned, SSM-registered, ≥TRL 4 for TeD2.

Financial Parameters

Total pool / mandate
Not publicly disclosed (rolling under PEMACU/MOSTI annual allocation)
Ticket size
Not specified – RM1,000,000 (TeD1, 24 months); RM4,000,000 (TeD2)
Cost of capital
0% — non-repayable grant; TeD1 up to 90–100% funded; TeD2 requires 15% company cash contribution
Tenure
TeD1: up to 24 months; TeD2: up to 36 months
Grace period
N/A (grant)
Shariah-compliant
No

Focus Areas

Value chain segments
IC Design & Embedded SystemsAdvanced Packaging / OSATAdvanced Materials & SubstratesEquipment Manufacturing / Automation
Use of proceeds
R&D
Company stage
Pre-revenueEarly revenue (Seed–Series A)

Eligibility

Ownership requirement
Registered with SSM; ≥51% Malaysian-owned; company <5 years (TeD2 focus: 1–5 yrs operation); proposed project at TRL experimental/development stage (TeD1: TRL 3-5; TeD2: TRL 4+, proven concept or working prototype); project commercialisable in Malaysia

Tech SME or start-up at R&D stage; must demonstrate commercialisation path; project team led by Malaysian

Application

Application cycle
Via MOSTI/MRANTI portal during open call windows; PEMACU programme (Malaysia Grand Challenge framework)

Background

Example recipients
Semiconductor material R&D companies, IC design tool developers, OSAT process improvement projects
Notes / source
Source: MOSTI / MRANTI PEMACU, https://www.mosti.gov.my/en/